Riyadh – Mubasher: The extraordinary general meeting of Bank Albilad approved Monday increasing the company’s capital by 20% to SAR6 billion from SAR5 billion.
The capital raise will be effected through distributing 1-for-5 bonus shares, the company said, adding that it will be financed as follows: SAR468 million out of retained earnings and SAR532 million out of the regular reserve.
Shareholders of record till the EGM date would be entitled to this distribution, the company said in a bourse filing.
This move aims to sustain the bank’s solvency and to keep using the bank’s resources in operating activities.
In April 2015, the ordinary general meeting decided to pay out cash dividends for 2014 at 5% of capital, or SAR0.50 per share, or at a total of SAR200 million; in addition, a capital top-up was also endorsed at 25% through 1-for-4 bonus shares distribution.
In 2015, the company reported a decline in profits by 9% year-over-year to SAR788.4 million from SAR864 million.
