Riyadh – Mubasher: The board of Saudi National Bank (SNB) proposed to increase the bank’s capital by 33.99% through the issuance of nearly one bonus share for every three owned shares.
SNB would capitalise SAR 15.22 billion from the retained earnings account in order to carry out the raise process, according to a recent bourse disclosure.
The new capital will stand at SAR 60 billion distributed over 6 billion shares, compared to SAR 44.78 billion and 4.47 billion shares prior to the hike.
Meanwhile, the capital raise aligns with the lender’s strategic objectives to reinforce its financial position.
Cash Dividends
In another bourse filing, the bank’s board suggested cash dividends after Zakat worth SAR 2.68 billion, representing 6% of the capital, for the second half (H2) of 2022.
SNB would disburse SAR 0.60 per share for 4.47 billion eligible shares.
The distribution date for the H2-22 dividends will be announced at a later time.
It is worth noting that the two recommendations were determined on 12 January 2023.
In the first nine months (9M) of 2022, the Tadawul-listed bank generated SAR 13.81 billion net profits, higher by 42.35% year-on-year (YoY) than SAR 9.70 billion.
