SABB increases its capital to SAR 3,750 Million and issues one bonus share for each two shares held

The Board of Directors of The Saudi British Bank (SABB) has decided in its Board Meeting held in Jeddah, in line with the aspirations of its shareholders and the policy for ongoing strengthening of its capital, has recommended to the Extra-Ordinary General Meeting scheduled to be held during the first quarter of 2006 and subject to obtaining the necessary approvals from the regulatory authorities, an increase in the Bank's paid-up capital from SAR 2,500 Million (USD 667 Million) to SAR 3,750 Million (USD 1,000 Million) by adding 25 Million shares so that the total number of the Bank's shares becomes 75 Million shares and issue of one bonus share for each two shares held.

Sheikh Abdullah Al Hugail, Chairman of SABB, said the capital increase is a direct result of the successes achieved by the bank in the last few years, the ongoing progress and the competitive advantages it enjoys that made it occupy a leading position within the Saudi banking sector, thanks to the strong presence of the Bank in the Saudi market, excellent customer relationships and provision of best products and services using latest technology as well as due to the strong and continuous support by its shareholders to all its initiatives.

He concluded that such achievements would not have been realised without the high efficiency, enthusiasm and dedication displayed by staff in serving the Bank's customers and the best training programs provided to them by the bank.

The entitlement to the bonus shares of 2005 shall be defined at a later stage. The Board will also recommend a net dividend of SAR 5.0 per share shall be paid for the second half of 2005 bringing the total dividends paid to shareholders for the year 2005 to SAR 15 per share, which reflects the Bank's continued policy to strengthen its capital and annual profits particularly at this stage, which requires faster growth to meet the financial requirements of the local market.

The Bank has recently announced the payment of an interim net dividend of SAR 10 per share (Gross dividend SAR 10.52 per share). Total half yearly dividends distributed for the first half of 2005 amounted to SAR 526 Million, an increase of 11.8 % compared to the same period of last year. SABB was also the first bank to obtain an "A" rating by Fitch Credit Rating Agency.