RIYADH, 18 March 2004 — Saudi Hollandi Bank (SHB) will increase its capital base from SR 945 million to SR 1.26 billion through capitalization of SR315 million from the bank’s general reserves.

This was disclosed to Arab News by SHB’s managing director Peter Baltussen, who said the decision was taken at an extraordinary shareholders’ meeting held at the Riyadh Chambers of Commerce and Industry on Tuesday night. More than 80 percent of the bank’s shareholders were present. Baltussen said that the bank’s outstanding shares would be increased to 25.2 million shares. “The shareholders also approved the second dividend distribution of SR9.5 per share recommended by the Board of Directors, bringing the total distributed dividends to SR 17 per share for the year 2003.

He said the bank achieved a record profit of SR600.9 million last year. Referring to the standby credit for $215 million to Russia’s oil giant Lukoil, the managing director pointed out that this deal was worked out through the bank’s newly established Structured Finance and Syndication Department and reflects the bank’s “new capabilities” in the structured finance field.

The newly established department is exploring a variety of avenues with various public and private establishments in order to expand this new field of service. “We are looking forward to more deals in the petrochemical, oil, gas and telecommunication sectors,” he observed.

In reply to a question on the bank’s future direction of growth, Baltussen said SHB’s focus has largely been on corporate finance. “We have been very much a corporate-oriented bank. A lot of growth is happening on the consumer banking side. Certain areas, such as consumer loans and credit cards, are not picking up as fast as they should. This is apart from local share trading and other investment products which also need attention.”

He said the bank has decided to enter consumer banking in a big way, “particularly in areas where we have introduced our Van Gogh Preferred Banking program for individuals who like to invest in local and international shares. We have trained a lot of customers relationship managers to assist them in making their choices.”