Bank Aljazira approves 30% capital hike, 5% dividend for FY16

Bank Aljazira’s extraordinary general assembly approved on Monday a 30 percent capital increase to SAR 5.2 billion from SAR 4 billion, through the issue of three bonus share for every ten shares held.

The lender will capitalize SAR 1.2 billion of retained earnings in order to facilitate the capital hike and boost its capital base, Aljazira said in a statement to the Saudi bourse, Tadawul.

Shareholders also approved issuing a 5 percent cash dividend at SAR 0.5 per share for fiscal year 2016.

Shareholders of record at the end of the extraordinary assembly meeting are eligible for the hike.

Meanwhile, the bank gave the go-ahead for setting up a company names Aman Agency for Bank Assurance with SAR 500,000 in capital.

The entity, which will market Aljazira Takaful Taawuni’s insurance products through the bank’s network, will be 100 percent-owned by the lender.