Riyadh - Mubasher: The Saudi Investment Bank board of directors recommended on Tuesdat to the extraordinary general meeting (EGM) increasing the bank’s capital by 7.1% from SAR 7 billion to SAR 7.5 billion, according to a bourse filing.

The SAR 500 million capital hike will be financed from the retained earnings representing a distribution of 1 bonus share for every 14 shares, increasing the total outstanding shares from 700 million to 750 million.

This capitalization will be through the transfer from the retained earnings. This increase in capital is aimed to support the bank capital base which will increase the growth percentages and meet the future increases in the Bank activities, the statement indicated.

The Saudi Investment Bank also announced on Tuesday, in a separate statement to the Saudi Stock Exchange (Tadawul), that the board of directors has recommended the distribution of cash dividends for the year 2016 at SAR 0.5 per share or 5% of capital.

This dividends total amount to SAR 350 million, which represents 5% of the nominal share value. This dividend will be distributed over the current outstanding 700 million shares, according to the statement.