Al Rajhi Bank’s Board of Directors Recommends a Capital Increase of 53.8%, amounting to 25 Billion SAR

07 January 2019

Mr. Abdullah bin Suleiman Al Rajhi, Chairman of the Board of Directors of Al Rajhi Bank, announced that the Board of Directors recommended to the Extraordinary General Assembly a capital increase from SR 16.25 billion to SR 25 billion, an increase of 53.8% by granting 7 free shares for every 13 shares owned. The free shares will be granted to the shareholders registered in Al Rajhi Bank's registry by the end of the Extraordinary General Assembly meeting day, which will be scheduled after obtaining the necessary approvals from the bank authorities. The planned increase will be made through the capitalization of 8,750 million SAR from the retained earnings.

Mr. Al Rajhi added that the Board of Directors recommended to the Ordinary General Assembly a distribution of cash dividends of 3,656.25 Million SAR to the shareholders for second half of the year 2018. This makes 2.25 SAR per share which is 22.5% of the nominal value of the share. This dividend will be awarded to all the shareholders at the end of trading on the day of General Assembly meeting, which will be scheduled later.

Earlier this year, Al Rajhi Bank distributed net cash dividends of 3,250 Million SAR for the first half of the fiscal year 2018 to the shareholders registered in Al Rajhi Bank's shareholders registry at the Depository Center. These were distributed at the end of the second trading day following the maturity date, which was approved on 05/11/1439H, 18/07/2018AD. The dividends amounted to 2.00 SAR per share, representing 20% of the nominal value of the share. In total, the net profit distributed to the shareholders of Al Rajhi Bank for the year ended 31st December 2018 amounted to 6,906.25 SAR, which makes 4.25 SAR per share, equivalent to 42.50% of the nominal value of the share.

The Chairman of the Board of Directors stated that the capital increase is the culmination of the results achieved by the bank throughout the past few years, that were focused on the growth in various operations and diversification of services. This advancement has been possible due to the qualitative and quantitative development steps taken by the bank, with the guidance of Allah SWT. This success is also attributed to efforts of Al Rajhi Bank’s administration and its devoted employees. Mr. Al Rajhi added that the Board of Directors and Executive Management are always keen on implementing strategies that work in the interests of the bank and enhance its progress.​

Mr. Al Rajhi further added that these steps are consistent with the Saudi Vision 2030 and the government's strategy to build and develop giant banking institutions.

These two steps also shed light on the strength of Al Rajhi Bank’s growing financial position and its commitment to increase the shareholders' investments, which will enable the bank to achieve its objectives and increase the share capital. This also proves the success of Al Rajhi Bank’s financial policies alongside the accomplishment of scoring the highest performance in the Saudi banking sector.

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