Saudi Hollandi eyes 20pc capital hike
Riyadh, December 21, 2011
Saudi Hollandi Bank, partly owned by the Royal Bank of Scotland, will ask shareholders to approve a capital increase through bonus shares to help support the bank's growth, it said in a regulatory filing yesterday.
The 20-per cent increase, which will see the capital increased from SR3.31 billion ($882.56 million) to SR3.97 billion, will be voted on by shareholders at a meeting during the first quarter of 2012.
The issue, which will see one bonus share distributed for every five shares owned, requires approval from the Saudi Arabian Monetary Agency, the kingdom's central bank.
The bank posted a 251 per cent rise in third quarter net profits in October of SR299.4 million, exceeding the SR244.5 million average forecast by seven analysts. It is the eighth largest bank in the kingdom by market capitalisation.
The Saudi banking sector is expected to post higher revenues in 2012, fuelled by higher loan growth and fee income and falling provisions for bad loans, NCB Capital said.-Reuters