The Board of Directors of Riyad Bank has approved a recommendation to increase the capital by 33.33%, bringing the total capital to 40 billion riyals (equivalent to 10.6 billion dollars), distributed over 4 billion shares. This move is part of the bank's efforts to strengthen its financial position and ensure the sustainability of its operational activities.
According to a statement issued by the bank on Monday, the capital increase will be implemented by granting one share for every three shares held by shareholders. This measure is considered part of the bank's strategy to achieve its financial objectives and expand its services.
Details of the Event
The record date for the entitlement of the bonus shares will be the day of the extraordinary general assembly, where shareholders who own shares on that date will be entitled to receive the new shares. These shareholders will be registered in the bank's records with the Securities Depository Center at the end of the second trading day following the record date.
Riyad Bank is one of the largest financial institutions in the Kingdom of Saudi Arabia and the Middle East, consistently ranking among the top five Saudi banks in terms of assets and capital. By September 2025, the bank is expected to rank third among Saudi banks in terms of asset size, which has reached 135.34 billion dollars.
Background & Context
Founded in 1957, Riyad Bank is considered one of the leading banks in providing financial and banking services in the Kingdom. The bank has witnessed significant growth in recent years, reflecting its successful strategies in expansion and offering innovative services that meet market needs.
This capital increase comes at a time when global financial markets are experiencing volatility, making it essential for banks to enhance their financial stability to face potential challenges. This step also reflects Riyad Bank's commitment to continue providing its financial services efficiently and effectively.
Impact & Consequences
This capital increase is expected to enhance Riyad Bank's ability to expand its activities and increase investments in new projects. It will also help improve the bank's credit ratings, enabling it to attract more investments.
This move is also a positive indicator for investors in the market, as it reflects the bank's confidence in its ability to achieve sustainable growth in the future. Furthermore, strengthening the bank's financial stability will contribute to the stability of the banking system in the Kingdom.
Regional Significance
The capital increase for Riyad Bank is an important step in strengthening the banking sector in the Arab region, where the bank plays a pivotal role in supporting the Saudi economy. Through this step, the role of banks in financing developmental and investment projects in the region can be enhanced.
Moreover, this increase may encourage other banks in the region to take similar steps to strengthen their financial stability, contributing to the stability of the regional financial system. In light of global economic challenges, strong banks remain the backbone of Arab economies.