We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 21 Dec 2011 08:43 AM

Font Size

- Aa +

Saudi Hollandi eyes 20% cap rise to support growth

Lender partly-owned by Royal Bank of Scotland may issue one bonus share for every five held

Saudi Hollandi eyes 20% cap rise to support growth
Saudi Hollandi is currently the eighth largest bank in the kingdom by market capitalisation

Saudi Hollandi Bank, partly owned by the Royal Bank of Scotland, will ask shareholders to approve a capital increase to help support the bank's growth, it said in a regulatory filing on Tuesday.

The 20-percent increase, which will see the bank's capital increased from SR3.31bn ($882.56m) to SR3.97bn, will be voted on by shareholders at a meeting during the first quarter of 2012, the statement said.

The issue, which will see one bonus share distributed for every five shares owned, still requires regulatory approval from the Saudi Arabian Monetary Agency, the kingdom's central bank.

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 on Tuesday.

Saudi Hollandi posted a 251-percent rise in third quarter net profits in October of SR299.4m, exceeding the SR244.5m average forecast of seven analysts.

Saudi Hollandi is currently the eighth largest bank in the kingdom by market capitalisation.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.