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Saudi British Bank soars as board proposes 10.50 per cent dividend, capital hike

The Tadawul All-Share Index advanced 1.79 per cent to hit 8,699.78 points on Wednesday, December 24. Since the gauge touched an 18-month low on December 16 2014 in the wake of the oil price crash, it gained 18.70 per cent.

Market bellwether SABIC slipped 0.95 per cent to SAR89.75. The Saudi British Bank, also known and branded as SABB jumped 7.18 per cent to SAR56. Earlier in the day, the lender which is owned 40 per cent by British universal bank HSBC that its board of directors has decided tto recommend to the bank’s shareholders general assembly the payment of annual cash dividends for the year 2014 of SAR1.050 billion at the rate of SAR1.05 (One Saudi Riyal and Five Halalas) per share after deduction of Zakat (Islamic donation share), which represents 10.50 per cent of share nominal value.

The board also decided to recommend to the extra-ordinary general assembly the increase of SABB capital from SAR10 billion ($2.7 billion) to SAR15 billion ($4.05 billion), representing an increase of 50 per cent by capitalization of SAR2.50 billion ($675 million) from the retained earnings account and of SAR2.50 billion (from the statutory reserve account).

“The proposed increase will be made by issuance of bonus shares to SABB shareholders at the rate of one bonus share for each two shares held, and as a result, the number of the Bank’s shares in issue will increase from 1,000 Million shares to 1,500 Million shares,” said SABB

131 shares advanced, while 26 declined in Riyadh.

Gerard Al-Fil