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National Bonds Declares 3.54 Per Cent Profit in ’09

The much-awaited 2009 return was almost half of previous year’s 7.07 per cent and the announcement by the Dubai-based company also came over a month later than in 2008 when the dividend declaration was made on January 24. The profit will be issued effective January 01, 2010, National Bonds said in a statement.

Although the national saving scheme is licensed and regulated by the UAE Central Bank, the delay in dividend declaration led an Abu Dhabi newspaper to publish several news stories earlier this month speculating over the integrity of the company and the risks associated with investing in the scheme.

National Bonds said that over the last three years its scheme’s cumulative profit rate comes at 16.64 per cent, which is among the highest payout in comparison to any other similar savings schemes in the UAE.

“With this annual profit rate of 3.54 per cent combined with our largest prize draw of Dh60 million plus in the UAE, we have also kept our promise of offering the best returns to our bondholders even during a tough year in 2009,” Chief Executive Officer Mohammed Qasim Al Ali said.

National Bonds said that the 2009 profit reflects remarkable growth achieved by the firm during a very challenging year and brings down the curtain on a third successful year.

NBC registered 48 per cent growth in new savings deposits and saw its customer base increase by eight per cent to 560,000 bondholders from over 91 different nationalities. As a result the Mudaraba Fund grew to Dh3.7 billion while new business sales of Dh2.5 billion were achieved. Statistics also show repeat purchases rose to 63 per cent.

“In 2010, we will continue to focus on inculcating the savings culture while giving best value to our customers through innovative products and services. National Bonds will further strengthen its position as “Everyone’s favourite place to save and invest”, Al Ali said.

National Bonds awards 101 prizes every week, of amounts ranging between Dh1 million, Dh10,000, Dh5,000, Dh1,000 and Dh500. This amounts to Dh1,155,000 in total prize money awarded each week.

Chief Commercial Officer Louis Bruno Rochecouste said, “To live up to the expectations of its bondholders, the strategic focus of National Bonds in 2010 will be to further increase its market share, innovate and deploy the latest technologies in distribution and customer service; continue with its products enhancements and the rollout of new unique products envisaged for 2010 that will meet the different needs of our bondholders.”

The firm recently introduced the “National Bonds Individual Takaful Cover” as an appreciation of loyalty and added value to eligible bondholders. This coverage is based on Shari’a-compliant Takaful platform and is being provided to all individual bondholders from 12 months to 70 years old up to a maximum value of Dh125,000 which can be claimed by the family of the deceased bondholder.

Currently more than half a million of customers are benefiting from this “Takaful” coverage without any premium contribution, the company said.

As of January 31, 2010, National Bonds has introduced over 70 millionaires since its inception in March 2006 and given away about Dh210 million in over 700,000 prizes. In 2009, 39 bondholders became millionaires from a total of 135,000 prize winners.

The Government of Dubai holds a 50 per cent ownership in the company with each of its local shareholders, comprising Dubai Bank, Dubai Holding and Emaar Properties, holding 16.6 per cent ownership respectively.

abdulbasit@khaleejtimes.com