Saudi bank gets nod for $800m capital increase
Riyadh, February 7, 2014
Banque Saudi Fransi, the lender part-owned by Credit Agricole, has received regulatory approval for a 3 billion riyal ($800 million) capital increase through the issuance of bonus shares, it said in a bourse statement.
The bank, which last month posted its lowest quarterly net profit in at least five years on the back of higher operating expenses, plans to boost its capital to 12.1 billion riyals from 9.1 billion riyals by issuing one bonus share for every three existing shares.
Saudi Arabia's Capital Market Authority approved the capital increase, which will be paid by transferring 3 billion riyals from the bank's retained earnings to its capital, it said.
Saudi Fransi had made a net profit of 274 million riyals in the three months to December 31, a 66.1 percent slump on the same period a year earlier.-Reuters