SABB Board of Directors recommends increase of SABB capital to SAR7,500m

The increase of SABB paid capital from SAR6,000m to SAR7,500m 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 1 bonus share for every 4 shares held.

The additional increase in the capital of SAR1,500m which represents 25% 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.

The Ad-hoc Chairman of SABB, Sheikh 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. 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.

Olayan said in conclusion of his statement that 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 extra-ordinary general meeting held to decide the capital increase, scheduled for the first half of 2009.