The Saudi Investment Bank announced that, based on the optimistic projections of the financials results for 1999, its Board of Directors has decided to recommend raising the bank's capital up to SR 1,000 Million (One Thousand Million Saudi Riyals) by issuing one new share for each six shares outstanding in addition to a cash dividend of SR 3.00 per share. The eligibility for share dividend and cash dividend will be decided later following the declaration of the audited financial results of the bank. This will result in the increase of the shareholders' equity to approximately SR 1,700 Million.
Commenting on the above, Dr. Abdul Aziz Abdullah Al Ohali, The Chairman of the Board of The Saudi Investment Bank, expressed his own and the Board Members' satisfaction with the distinguished results brought about by the bank's activities, and with its continued record of achieving higher profits and constantly improving results year after year. He confirmed his confidence in the Bank's potential to achieve further progress and demonstrate ever improving results. The Chairman said that the proposed increase in the Bank's capital is in line with the significant growth in its business activities. This broader capital base will help us implement new business expansion plans that will continue to give the Bank a competitive edge in the local and international money markets.
The Chairman explained that the Bank has consistently developed its services though effective utilisation of its available resources and has depended on its own resources to strengthen its equity base. He further mentioned that the Bank' efficiency ratio for resources management is the highest among the local and regional banks. He added that over the past ten years (1989-1999) the Bank has been able to increase its capital from SR 90 Million to SR 1000 Million; total shareholders' equity from SR 221 Million to about SR 1,700 Million; assets from SR 5,000 Million to more than SR 13,000 Million; deposits from SR 3,000 Million to more than SR 9,000 Million; loans portfolio from SR 621 Million to more than 7,000 Million and profits from SR 11 Million to the tune of SR 240 Million.
Dr. Abdul Aziz Abdullah Al Ohali also explained that the above figures are particularly noteworthy as they have been achieved by the skill and dedication of a highly trained and motivated management team of Saudi Nationals, Their efforts have allowed the Bank to place itself in this very advanced and competitive position in local and regional markets.
