The Capital Market Authority said Saudi British Bank, an affiliate of HSBC Holdings, could issue one bonus share for every two shares held, increasing the number of the bank's outstanding shares to 1.5 billion from 1 billion.
DUBAI Dec 24 (Reuters) - The board of Saudi British Bank , an affiliate of HSBC Holdings, has recommended boosting the bank's capital by 50 percent to 15 billion riyals ($4 billion) through an issue of bonus shares, it said on Wednesday.
The bank attributed its drop in net profit to a rise in operating expenses, but did not elaborate. Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.
Saudi British Bank, the Kingdom's fifth-largest listed lender by assets, posted a 25.2 per cent rise in third-quarter net profit on Thursday, in line with analysts' forecasts as operating income increased.
The economy grew 4.6 percent last year. The number of loans from National Commercial Bank, the kingdom's biggest lender to SMEs through the Kafalah program fell to 232 last year from 1,048 the previous year.
A number of other Saudi banks have said they will conduct similar bonus share offerings, including Samba Financial Group and Saudi British Bank. Profitability at banks in the kingdom has been supported in recent years by strong loan growth, although ...