By Neeraj Gangal
Lender partly-owned by UK's HSBC will offer one bonus share for every three held
The board of Saudi British Bank has proposed to increase the lender’s capital by 33 percent to SR10bn ($2.7bn), according to a statement posted on the country’s bourse Saturday.
The bank, 40 percent owned by UK’s HSBC Holdings plans to offer one share for every three shares held.
SABB will also pay a dividend for 2011 at SR0.65 per share, the statement added.
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 recent report.
Riyadh-based SABB is the second Saudi lender to propose a hike in capital this week.
Saudi Hollandi Bank, partly owned by the Royal Bank of Scotland, asked 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 could see one bonus share distributed for every five shares owned.