Established in 1977, Banque Saudi Fransi is affiliated with Calyon, the corporate and investment banking arm of France’s Crédit Agricole group.
Calyon holds a 31.1 percent stake in the Saudi bank, which said in February that it has more than halved an earlier plan to raise its capital by nearly 60 percent, citing the economic downturn and falling interbank lending rates. The bank now plans to raise its capital by 28.5 percent to SAR7.20bn ($1.92bn).
“Shareholders decided to wait until market conditions become more adequate. The bank has the means to achieve organic growth and get to a capital of SAR9bn ($2.40bn) without resorting to shareholders,” chief financial officer Philippe Touchard told newswire Reuters.
Banque Saudi Fransi’s net profit fell by 11 percent on the year in the fourth quarter, while full year profit rose 3.5 percent. The bank made $109m in provisions for the year, out of which $70.7m was in the fourth quarter alone, following a drop in the value of investment.