SNB shareholders OK capital hike, dividends

Shareholders of Saudi National Bank (SNB) approved the board’s recommendation to increase capital by 33.99% to SAR 60 billion through 1-for-3 bonus share distribution, during the extraordinary general meeting (EGM) held on May 7, according to a statement to Tadawul.

Shareholders also endorsed the board’s proposal to distribute a cash dividend at 6%, or SAR 0.6 a share, for H2 2022, the statement added.

Shareholders also approved authorizing the board of directors to distribute interim dividend on a semi-annual or a quarterly basis for 2023, the statement added.

During the meeting, the bank shareholders ratified the buyback of 10 million shares maximum to be allocated for the Employee Stock Incentive Plan. The share repurchase will be financed from the bank’s internal resources, and the board will be authorized to carry out the share buyback within 12 months maximum as of the EGM decision. The repurchased shares will be retained for 10 years maximum as of the general meeting date until being allocated to employees.

In a separate statement, the Saudi Exchange said the share fluctuation limits will be based on a share price of SAR 37.05 for today, May 8, and the outstanding orders will be canceled.  

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios by May 10, the statement added.