National Bonds (NBC) announced profit for the year 2011

National Bonds Corporation (NBC) PJSC, an investment company behind the leading Sharia'a compliant saving scheme, with its bond sales hitting the AED 2.39 Billion mark in 2011, and a 23% growth in its Mudaraba Fund. With these achievements, NBC has announced today that an annual profit rate of up to 2% on the Mudaraba pool will be distributed to its bondholders, the lowest since its inception in 2006.

The company gave the profit with the rate of 3.78 per cent for 2010 and 3.54 per cent for 2009.

Despite poor market conditions due to present economic downturn, NBC performed well in 2011, bringing up its Mudaraba portfolio to AED 4.6 Billion at the end of 2011 while increasing its customer base by 7.3% to 655,000 bondholders.

Under the new NBC saving tier system, a person with holding bonds for less than three months will get only 0.8 per cent as profit rate for 2011; three months and less than six months will get 1.2 per cent; six months and less than one year will be entitled for 1.6 per cent rate, while those holding for the full year will get 2 per cent.

“What we offer is currently unrivalled and unmatched as a savings experience preposition.” Mohammed Qasim Al Ali, CEO, NBC, said in a statement.

Ali said: “The prospects for National Bonds remain strong. The scheme is well positioned across a diversified range of asset classes whilst it provides the bondholders with the liquidity feature necessary to meet any of their emergencies requirements."

Sales crossed the Dh2.39-billion mark, registering a 23 per cent growth while repeat purchases rose to 79 per cent in 2011.

Cumulative return offered since inception of the scheme reached 30.68 per cent.

The annual profit rate, which covers the period from January 1st 2011 to December 31st 2011, gives NBC a cumulative profit rate of 30.68% on the Mudaraba pool since its inception in March 2006, the highest average annual profit rate for saving schemes in the region.

Moreover, 15 new institutions joined the employee saving scheme, which allows their employees the chance to automatically save a portion of their monthly salary in the form of bonds.