The 971 Report

UAE National Bonds announces 1.5% profit for 2012

National Bonds Corporation, a Shariah based savings scheme regulated by the UAE Central Bank, has announced a profit rate of up to 1.5% for 2012.

The profit announced is the lowest since its inception in 2006. For 2011, the company announced a profit rate of up to 2%. In 2010 its profit was 3.78% and in 2009 it was 3.54%.

According to a statement from the company, its annual returns were 2.62%, which comprise a profit rate of up to 1.5% and earnings through 501,032 prizes and incentives equaling 1.12% distributed through 2012 from its own funds.

National Bonds did not give a reason for its lower profits in 2012.

BONDHOLDERS RISE

The company said its initiatives to promote savings among local and expat communities have increased the number of bondholders to 690,000 in 2012, up 5.78% compared to 2011.

Mohammed Qasim Al Ali, CEO of National Bonds Corporation, said: "The rise in the number of bondholders is a clear indicator that both individuals & families are paying more attention to their future financial wellbeing. We are confident that the cumulative annual returns, which averaged 5.6% during the period 2006-2012, will emphasize the advantages of adopting long-term saving plans whilst cascading the culture across a larger section of our society."

Female bondholders saw a healthy increase of 9% during 2012 with a 10% increase in the average holding period of its customer accounts.

National Bonds has nearly 10% of the UAE residents from over 200 nationalities investing in its bonds, the company said in a statement.

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