JEDDAH, 15 December 2004 — Riyad Bank said yesterday it planned to increase its paid-up capital from SR4 billion to SR5 billion ($1.3 billion) through a one-for-four share issue financed by a transfer of funds from reserves.
The bank said it would also distribute a SR10 dividend per share for the second half of 2004. If approved by authorities, the proposal “will be recommended to the general assembly meeting that is expected to be held in the month of February 2005,” Riyad Bank Chairman Rashid A. Al-Rashid said.
Riyad Bank shares, which were suspended shortly after the announcement at SR553.0, shot up in later trade by the maximum daily limit of 10 percent to close at SR600.5.
The bank said its net profits in the first nine months of the year rose by 16.6 percent to SR1.416 billion ($377.6 million).
Riyad Bank, the third-largest listed Saudi bank in terms of market capitalization, said total operating income rose to SR2.498 billion, up 3.5 percent from a year ago.
Assets rose 4.6 percent to SR73.22 billion, loans and advances grew 17.6 percent to SR31.98 billion, and total customer deposits gained 5.7 percent to SR47.48 billion.
High oil prices have swelled government coffers and helped drive up corporate profits in Saudi Arabia, the world’s biggest oil exporter. The bank has appointed Diebold, a global leader in providing integrated, self-service and security solutions, to deploy 100 Diebold Opteva(R) automated teller machines (ATMs) across the bank’s network.
Riyad Bank has a full-service approach, delivered through an accessible network of 200 branches, now including more than 650 ATMs. “Our retail customers are attracted to the bank’s innovative approach to consumer finance products and investment products alike,” said Riyadh Al-Zahrani, vice president and remote banking manager for Riyad Bank.