SABB set to increase capital to SR6bn

The SABB Board of Directors, in line with the bank's policy to strengthen its capital base has decided to recommend the increase to the Extra-Ordinary General Meeting scheduled to be held in the first half of 2008.

After having obtained the necessary regulatory approvals, the increase of SABB paid capital would be from SR3.75bn ($1bn) to SR6bn ($1.6bn) by adding 225 million shares to the bank's shares before the increase (375 million shares). The total shares of the bank would then be 600 million shares by way of issue of 3 bonus shares for each 5 shares held (60%).

Sheikh Abdullah Mohammed Al-Hugail said the recommendations for the increase of capital have been made in line with the success achieved by the bank in recent years, which have enhanced the confidence of the bank's customers in the bank and added to the strong support by the shareholders of all bank activities.

Al-Hugail said this achievement would not have been recorded without the commitment and effort of the bank's staff and expressed his thanks for the support from SABB's shareholders, customers and staff. Upon obtaining of the regulatory approvals for the increase of the bank's capital, entitlement to the bonus shares to the bank shareholders shall be by the end of trading on the day the Extra-Ordinary general meeting is held for increase of bank's capital in 2008.

The capital increase represents a continuation of the policy followed by the Bank to grow its capital and annual profitability, particularly in the present environment that dictates faster growth to meet the banking requirements of the local market.