RIYADH, 20 October 2005 — The Saudi British Bank (SABB) board of directors has decided to recommend an increase in its capital to SR3.75 billion and issue one bonus share for each two shares held.
The meeting held in Jeddah will send the recommendation to the bank’s extraordinary general meeting scheduled to be held during the first quarter of 2006. The recommendation is subject to obtaining the necessary approvals from the regulatory authorities. If approved, the bank’s paid-up capital will be increased from SR2.5 billion by adding 25 million shares so that the total number of the bank’s shares becomes 75 million and the bank will issue one bonus share for each two shares held, a bank statement said yesterday.
The recommendation is in line with the aspirations of its shareholders and policy for the ongoing process of strengthening its capital.
“The capital increase is a direct result of the successes achieved by the bank in the last few years, and the ongoing progress and the competitive advantages it enjoys that have made it to occupy a leading position in the Kingdom’s banking sector,” SABB Chairman Abdullah Al-Hugail said. “This is all due to the strong presence of the bank in the Kingdom, excellent customer relationships, and provision of best products and services using latest technology, as well as due to the strong and continuous support extended by its shareholders to all of its initiatives,” he added.
“Such achievements would not have been realized without the high level of efficiency, enthusiasm and dedication displayed by the bank staff in serving the their customers and the best training programs provided to them by the bank,” Al-Hugail said.
The entitlement to the bonus shares of 2005 is to be defined at a later stage. The board will also recommend that a net dividend of SR5 per share will be paid for the second half of 2005, bringing the total dividends paid to shareholders for 2005 to SR15 per share, which reflects the bank’s continued policy to strengthen its capital and annual profits particularly at this stage.
The bank recently announced the payment of an interim net dividend of SR10 per share (gross dividend SR10.52 per share). Total half yearly dividends distributed for the first half of 2005 amounted to SR526 Million, an increase of 11.8 percent compared to the same period of last year. SABB was also the first bank to obtain an “A” rating by Fitch Credit Rating Agency.
