The Saudi British Bank (SABB) will increase its capital by 33 per cent from SR7.5 billion ($1.99 billion) to SR10 billion by issuing of bonus shares to its shareholders at the rate of one bonus share for each 3 shares.

The capital increase of SR2.5 billion represents 33 per cent of the bank's capital so that the Bank's new capital will become SR10 billion compared to SR7.5 billion.

As a result of the intended increase, the number of shares issued will increase from 750 million shares to 1000 million shares, as the additional increase will be used to enhance the bank’s capital base and grow its profits and consequently strengthening the shareholders returns.

The board of directors has also decided to recommend to the bank's general meeting the payment of annual cash dividends for 2011 of SR562.5 million at the rate of SR0.65, which represents 6.5 per cent of the share's nominal value per share after deduction of Zakat, taking into consideration that the cash dividends shall not accrue to the bonus shares.

Eligibility for these distributions will be to shareholders registered in the Bank's share register as of the end of trading on the extra-ordinary general meeting day scheduled for the first quarter of 2012 and which will be announced in due course after having obtained the necessary approvals. – TradeArabia News Service