Al Salam Bank–Sudan begins trading on Dubai Financial Market

March 23, 2008
Khartoum

• DFM welcomes 59th public joint stock company listing
• Trading symbol ‘ALSALAMSUDAN’ allotted
• Classified within bourse’s banking sector

Continuing its position as the preferred stock exchange for companies based in the Middle East and North Africa region to enter the GCC capital market, Dubai Financial Market (DFM) today announced the listing of Al Salam Bank–Sudan. Trading of the company’s shares began today, under the trading symbol “ALSALAMSUDAN,” which will appear on DFM screens, trading systems and publications.

The listing ceremony was attended by Essa Kazim, Chairman of the Board of Directors of DFM and Mohamed Hussein Al-Meeza, Board Vice Chairman, Al Salam Bank–Sudan; Abdo Mahmoud Khalil, General Manager, Al Salam Bank–Sudan; and senior members of DFM and Al Salam Bank – Sudan. The Chairmen of DFM and the Board Vice Chairman Al Salam Bank–Sudan rang the bell declaring the start of trading of the bank’s shares.

The listing follows the bank’s completion of all the necessary listing requirements of the Emirates Securities and Commodities Authority (ESCA) as well as those of DFM. Al Salam Bank – Sudan is listed on the Khartoum Stock Exchange and will be classified within DFM’s banking sector stocks.

The dual listing on DFM will facilitate the company’s shareholders to tap liquidity in the UAE and the Gulf region and give them options to trade on more than one market according to their priorities.

The company’s authorised capital is US$100 million and the paid-up capital is US$100 million. The company has issued 100 million shares, with each share valued at a par value of US$1.

H.E. Mohamed Ali Alabbar, Chairman of the Board of Directors of Al Salam Bank–Sudan, said: "The listing of the bank’s shares on the Dubai Financial Market, reflects the bank’s strategy to increase activities, enhance services and attract investment in countries outside the Sudan in order to benefit the bank’s stakeholders and customers.

He added: “Al Salam Bank–Sudan is determined to diversify and increase the bank’s shareholders base, and in order to accomplish this has selected investors from regions that are experiencing strong economic growth. This will allow us to reach the broadest number of investors, reduce risk and achieve the highest returns possible for the benefit of our customers and primary  stakeholders.”

Alabbar went on to give his thanks to ESCA, the management of DFM, the Central Bank of Sudan and the Khartoum Stock Exchange for their cooperation and joint effort in making the shares of Al Salam Bank–Sudan formally a part of DFM. The process demonstrated the ability of all parties involved to work seamlessly together and showed how the regulations and instruments in place that facilitate dual listings on DFM work exceptionally well.

Kazim said: “Al Salam Bank–Sudan is the first Khartoum Stock Exchange-listed company to cross list its shares on the DFM. The listing of Al Salam Bank–Sudan on DFM represents a further strengthening of ties between the financial exchanges of Dubai and Khartoum, as well as growing economic cooperation between the UAE and Sudan. Many companies listed on the Khartoum Stock Exchange have shareholders from the UAE, and a dual listing will give them greater access to their shares and enhance their ability to trade them.

“DFM continues to be the premier gateway for companies in the wider region seeking access to the investor community of Dubai and the UAE. Such listings will benefit companies in both markets, while providing further depth and diversification to individual and institutional investors. We look forward to more such listings from the promising, high-growth enterprises of Sudan.”

Al-Meeza said: “The UAE’s immense economic growth convinced Al Salam Bank–Sudan to choose DFM as the first market to list on outside the Khartoum Stock Exchange. This listing represents a step forward to even stronger links between Arab financial exchanges throughout the world.”

He added: “The listing of the bank’s shares on DFM is a significant move towards the implementation of a strategy that aims to create the best financial climate possible for shareholders to trade their shares and enhance the value of their investments. The strong investor confidence in the bank is the result of a long history of success since our inception, achieving consistent growth and significant returns.”

Al-Salam Bank (Sudan) is considered among the most important banks, with respect to the capital in the Khartoum market of financial papers, and among the most eminent banks operating in the Sudanese market, throughout its innovative and excellent bank services. The bank constitution came as a fruit of an Emirati- Gulf- Sudanese cooperation; as its operations started up on May 25th 2006, with a capital of 100 million dollars.

The results of the bank for the year 2007 show record results, despite its recent presence in the Sudanese bank market, as the bank managed to achieve the aimed balance between the investment returns and the investment risks and it contributed to achieve high growth rates against the minimum possible of risks. Within the scope of the evaluation of the bank performance, it managed to achieve brilliant results in the central Sudanese bank, for the preventive control for the last quarter of the year 2007, according to CAEL indicators, since it obtained a strong classification, which is regarded as one of the greatest achievements of the bank.

The big bank investments during the year 2007 resulted in good returns, achieving a profit of 30 Million Dollars against 25 million during the year 2006, including the share of depositors from profits which reached 7.4 Million Dollars against 7 Million for the year 2006. In addition, it achieved a net profit for shareholders, which reached 12.3 dollars after the deduction of zakat and taxes. As for the property rights, they reached 149 Million Dollars with a growth rate of 8% for the year 2006.

The ordinary general assembly, held in Khartoum on 23/3/2008, declared the distribution of the monetary profits among shareholders, at a rate of 10%.