Bank Albilad posts 14% higher profits in 2023; dividends, capital raise proposed

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Riyadh – Bank Albilad registered SAR 2.36 billion in net profit during the January-December 2023 period, higher by 13.80% year-on-year (YoY) than SAR 2.08 billion.

The lender reported an 18.97% hike in clients’ deposits to SAR 112.83 billion as of 31 December 2023, versus SAR 94.84 billion, according to the annual financial results.

Earnings per share (EPS) amounted to SAR 2.38 last year, marking a rise from SAR 2.09 in 2022.

The assets climbed by 10.47% to SAR 143.10 billion in 2023 from SAR 129.54 billion a year earlier, while the investments jumped by 7.18% to SAR 22.07 billion from SAR 20.60 billion.

Dividends

The board of Bank Albilad recommended cash dividends after Zakat standing at SAR 500 million, equivalent to 5% of the capital, for 2023.

A dividend of SAR 0.50 per share will be granted to 1 billion eligible shareholders.

Meanwhile, the eligibility and distribution dates for the dividends will be disclosed at a later time.

Capital Hike

During the same meeting that was held on 4 February, the board proposed a capital increase to SAR 12.50 billion from SAR 10 billion by capitalising SAR 2.50 billion from the retained earnings account.

Bank Albilad will implement the transaction by granting one bonus share for every four owned shares.

Accordingly, the new capital will be distributed over 1.25 billion shares when compared to 1 billion shares, before the raise.

The board members recommended the 25% increase to enhance the bank’s financial solvency and retain its resources in operational activities.

As of 30 September 2023, the listed lender posted an annual surge of 14.27% in net profit to SAR 1.76 billion, compared to SAR 1.54 billion.