RIYADH: The Saudi British Bank (SABB) board of directors, in consideration of shareholders’ expectations and the continued policy of capital and profit enhancement, has decided to recommend to the extraordinary general meeting, scheduled for the first half of 2009, subject to obtaining the necessary approvals by the regulatory authorities, the increase of SABB paid capital from SR6 billion to SR7.5 billion by issue of 150 million new shares, in addition to the present 600 million shares, so that the total number of the bank’s shares, after the new issue, is 750 million shares, by way of issue of one bonus share for every four shares held.
The additional increase in the capital of SR1.5 billion, which represents 25 percent of the bank’s current paid-up capital will be used to enhance the bank’s capital base and grow its profits by investing in the major growth opportunities provided by the strong Saudi economy and consequently strengthening shareholders returns.
SABB’s ad-hoc chairman, Khaled bin Suliman Al-Olayan said the board’s recommendation to increase the bank’s capital has been made in view of the successes achieved in the recent years, the excellent customer relationships and the most advanced services provided by the bank to customers using latest technology, thereby enhancing customers’ confidence in the bank as well as the ongoing support by shareholders to all bank activities. Al-Olayan said these achievements would not have been possible without the competence, enthusiasm and dedication of staff in serving the bank’s customers as well as their high level of professionalism.
Once the regulatory authorities have approved the capital and share increase, the eligibility of the bonus shares will be to those shareholders registered in the bank’s register as of the end of trading on the day of the extraordinary general meeting held to decide the capital increase, scheduled for the first half of 2009, Al-Olayan added.