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SABB, Saudi Hollandi capital hike approved

Riyadh, January 8, 2012

Saudi Arabia's financial regulator has approved a 33 percent capital increase for Saudi British Bank (SABB) and a 20 percent hike for Saudi Hollandi Bank, it said in separate filings on Sunday.

SABB, an affiliate of HSBC, will raise its capital to 10 billion riyals ($2.67 billion) from 7.5 billion riyals by transferring 2.5 billion riyals from its retained earnings. It will issue a bonus share for every three existing shares owned by registered shareholders, bringing its total number of shares to 1 billion.      

Meanwhile, Saudi Hollandi, which is partly owned by the Royal Bank of Scotland, won approval to increase its capital to 3.97 billion riyals from 3.31 billion riyals by distributing an extra share for every five shares owned.

The increase for both banks has to be carried out in the next six months, the Capital Markets Authority (CMA) said in statements posted on the stock exchange website.

A number of Saudi banks are seeking to increase their capital to help fund expansion plans. Banque Saudi Fransi, which is 31 percent owned by Credit Agricole, said last week it was also seeking a 25 percent increase in capital, subject to regulatory and shareholder approval.

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 in a report in December.  - Reuters

Tags: capital | SABB | Saudi Hollandi |

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