Abdullah Sulaiman Al Rajhi: The recommendation to increase capital is a strategic step that supports expansion, sustainable growth, and strengthens the Bank’s financial position

Abdullah Al Rajhi, Chairman of the Board of Directors of Al Rajhi Bank

Al Rajhi Bank announced a recommendation to increase the Bank’s capital through the issuance of bonus shares, by capitalizing SAR 20 billion from retained earnings.Under the proposed increase, one bonus share will be granted for every two shares held, raising the Bank’s capital to SAR 60 billion from SAR 40 billion.

The Bank clarified that eligibility for the bonus shares will be granted to shareholders who own shares at the end of the trading day of the Extraordinary General Assembly (EGM) approving the capital increase (to be announced at a later date), and who are registered in the Bank’s shareholder register with the Securities Depository Center (Edaa) at the end of the second trading day following the EGM.

Abdullah Al Rajhi, Chairman of the Board of Directors of Al Rajhi Bank, stated that the increase in the bank's capital will contribute to supporting the bank's strategic plans, supporting the bank's growth and expansion in its financing and investment portfolios, keeping pace with the economic growth witnessed in the Kingdom, and supporting the national economy, the projects, and objectives of the Kingdom’s Vision 2030, by continuing to provide financial and financing solutions to the bank’s clients and corporate companies, as well as small and medium enterprises, in addition, participating in the capital market activities.

He added that the capital increase will contribute to supporting the bank’s capital base and financial solvency, which will positively impact the bank’s future operations and align with the Kingdom’s vision and the government’s aspirations to build and develop banking institutions that keep pace with economic developments and the Kingdom’s global and regional standing as a growing and stable economic power.

He explained that the bank's capital increase is a culmination of its continued success and growth across all levels, including growth in its financial position, its continued leadership in digital banking, its growth in expanding customer base and loyalty, and the diversification and innovation of its banking products and solutions that serve its clients and the Kingdom's economy. This growth and development are supported by the stability and growth of the Kingdom's economy and the development of its banking sector.