Alinma Bank CEO says capital increase will boost solvency

Alinma Bank CEO, Abdulmohsen Al-Fares, said the capital increase will enhance the bank’s solvency and credit limit, as well as its ability to engage in key activities in the future, resulting in more investment opportunities.

Speaking to CNBC Arabia, Al-Fares added the capital hike will boost future growth and enhance Alinma’s position among other Saudi banks, also adding that the bank has a very high capital adequacy ratio.

“The bank always relies on its main business, which grew steadily over the last 10 years across various key activities,” Al-Fares commented when asked about the bank’s shares maintaining a positive reaction to the capital increase.

“The bank will maintain growth in the future,” he further noted.

Al-Fares also said the movement of shares on Tadawul is subject to strategic investors and traders, highlighting the importance of key strong activities to support stock prices.

According to data compiled by Argaam, the Capital Market Authority (CMA) approved Alinma Bank’s request to increase its capital to SAR 20 billion from SAR 15 billion, through issuance of 1 bonus share for every 3 shares held by shareholders.