Saudi Investment Bank

The Saudi Investment Bank is a Saudi joint-stock bank whose shares are traded on the Saudi financial market, and it operates in banking and financing.[2] Its course includes successive capital increases through bonus shares, cash dividend distributions to shareholders, and partnerships with government entities and community institutions.[1][3][4]

The bank's activity falls within the banking sector of the Kingdom, which is undergoing continuous development under the Financial Sector Development Program, and the procedures for increasing its capital and trading its shares are carried out through the Capital Market Authority and Saudi Tadawul.[2][3]

On 8 January 2008, the bank's board of directors decided to recommend to the extraordinary general assembly an increase of the capital by 15.1%, from SAR 3,910 million (391,016,000 shares) to SAR 4,500 million (450 million shares), by granting one bonus share for every 6.63 existing shares.[1]

On 9 March 2015, Tadawul announced the addition of the free bonus shares to the investors' portfolios, after the bank's extraordinary general assembly approved the increase of the capital at its meeting held the previous day, and the fluctuation ratio for the bank's share was calculated on the basis of a price of SAR 26.68.[2]

On 8 March 2016, the Capital Market Authority approved the increase of the capital from SAR 6.5 billion to SAR 7 billion, by granting one bonus share for every 13 existing shares held by the shareholders registered in the shareholders' register at the end of the trading session on the day of the extraordinary general assembly. The value of the increase is settled by transferring SAR 500 million from the retained earnings item, raising the number of shares from 650 million to 700 million shares.[3]

On 22 December 2021, the bank's board of directors recommended a cash dividend distribution to the shareholders for the year 2021 of 70 halalas per share after deducting zakat, with a total of SAR 525 million for 750,000,000 shares eligible for dividends, equivalent to 7% of the nominal value of the share.[4]

On 24 July 2022, the bank announced its board's decision to distribute cash dividends to the shareholders for the first half of the year 2022 of SAR 0.30 per share after deducting zakat, with a total of SAR 300,000,000 for 1,000,000,000 shares eligible for dividends, and at a distribution rate of 3% of the nominal value of the share.[5]

The net profits of the bank reached SAR 603 million in the first nine months of the year 2008, against SAR 868 million for the corresponding period of the previous year.[10] The profits of the first quarter of the year 2009 recorded SAR 241 million against SAR 258 million for the corresponding period, then SAR 188 million in the second quarter against SAR 280 million.[12][11]

This was matched by a continuous path of strengthening the capital base: the decision of the board of directors in January 2008 to recommend an increase of the capital by 15.1%, then the increase of 2016 that brought the capital to SAR 7 billion.[1][3]

On 18 July 2007, the bank signed with Dallah Albaraka Holding Company a memorandum of understanding under which it owns 50% of the shares of AlBaraka Banking Group.[6]

On 25 December 2019, the bank concluded an agreement with the Ministry of Finance to activate the project of developing the method of disbursement from advances using bank cards.[9]

On 4 April 2017, the bank and the Disabled Children's Association launched the first of their long-term cooperation programmes, and the association received the proceeds of the charitable «WAAW» points programme, a customer loyalty programme the bank adopted for the association's benefit, which amounted to 18,898,000 points.[7]

On 19 May 2020, a strategic cooperation agreement was signed between the General Directorate of Prisons and the bank, under which the «Furijat» service joins the «WAAW» charitable programme.[8]

Q: What is the Saudi Investment Bank? A: It is a Saudi joint-stock bank whose shares are traded on the Saudi financial market, and it operates in banking and financing; its capital reached SAR 7 billion divided into 700 million shares.[2][3]

Q: How did the bank's capital develop? A: It began with an increase of 15.1% from SAR 3,910 million to SAR 4,500 million by granting one bonus share for every 6.63 existing shares in 2008, then an increase from SAR 6.5 billion to SAR 7 billion by granting one bonus share for every 13 shares, approved by the Capital Market Authority on 8 March 2016.[1][3]

Q: What is the cash dividend policy? A: 70 halalas per share for the year 2021, with a total of SAR 525 million and a rate of 7% of the nominal value, and SAR 0.30 per share for the first half of 2022, with a total of SAR 300 million and a rate of 3%.[4][5]

Q: What is the «WAAW» charitable programme? A: It is a customer loyalty programme the bank adopted for the benefit of the Disabled Children's Association, whose proceeds allocated to it reached 18,898,000 points in 2017, and the «Furijat» service joined it under a strategic cooperation agreement with the General Directorate of Prisons in 2020.[7][8]

Q: What is the bank's most prominent cooperation with government entities? A: An agreement with the Ministry of Finance on 25 December 2019 to activate the project of developing the method of disbursement from advances using bank cards.[9]

The capital increases of the Saudi Investment Bank came in stages: a recommendation of 15.1% in January 2008, the addition of the bonus shares to the portfolios in March 2015, and an increase to SAR 7 billion approved by the Capital Market Authority in March 2016, accompanied by cash distributions to the shareholders for the year 2021 and the first half of 2022, and by institutional partnerships and community programmes.[1][2][3][4][5][9]