Riyadh – Mubasher: The Saudi Capital Market Authority (CMA) has approved Bank Al Bilad’s request to raise its capital by SAR 1.5 billion to SAR 7.5 billion from SAR 6 billion currently.

The capital hike would be carried out by issuing one bonus share for each four shares owned by shareholders registered in the shareholders’ registry at the Security Depository Center as of the closing of the second trading day following the due date, the CMA said in a statement on Wednesday.

The bank’s due date will be determined by the board at a later time.

Moreover, Bank Al Bilad’s capital top-up will be carried out by transferring SAR 355.865 million from its retained earnings added to SAR 1.144 billion from its statutory reserves. Accordingly, the Saudi-listed bank’s capital will increase by SAR 150 million shares to 750 million from 600 million shares at present.

The bank’s “extraordinary general assembly shall be held within six months from this approval date and the Bank shall satisfy all regulatory requirements and applicable laws,” the Saudi CMA concluded.

Bank Al Bilad previously posted SAR 1.11 billion in net profits in 2018, up 17.89% year-on-year from SAR 942 million in 2017. The bank attributed the profit growth to a 15.4% rise in operating income.