RIYADH: Saudi Hollandi Bank’s (SHB’s) board of directors has decided to recommend to its General Shareholders’ Assembly, which will hold its annual meeting during March, to increase the bank’s capital by 25 percent from SR2.65 billion to SR3.31 billion through capitalization of SR661.5 million from the bank’s 2008 retained profits.
The recommendation includes the distribution of one bonus share for each four shares held, resulting in an increase in the bank’s total issued shares from 264,600,000 shares to 330,750,000 shares. The board has also recommended distribution of a dividend payment to SHB’s shareholders of SR0.75 per share for a total amount of SR233,450,000. This includes Zakah and tax on foreign shareholders. The entitlement is for shareholders registered in the bank’s records and Tadawul as at the date of the General Shareholders Assembly meeting. The cash dividend shall not accrue for the bonus shares.
SHB Chairman Mubarak Abdullah Al-Khafrah said the recommendation to increase the bank’s capital was in line with the intention to enhance its capabilities and position in the market.
Geoff Calvert, managing director of SHB, said that the bank maintained a sound financial base and focused on meeting the expectations of both customers and shareholders.
The bank has previously announced that its net profit for the financial year ended Dec. 31, 2008, was SR1.224 billion.
