The bank said the capital increase to 5.2 billion riyals from 4 billion riyals ($1.07 billion) would be completed by issuing three new shares for every 10 shares held, paid for by capitalising 1.2 billion riyals of retained earnings.
No money is being raised from shareholders, who are getting the new shares for free, but the share issue effectively boosts the bank's equity and therefore supports future lending.
Bank AlJazira in January reported a 4.4 percent drop in fourth quarter net profit.
(Reporting By Tom Arnold. Editing by Jane Merriman) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: email@example.com))
© Copyright Zawya. All Rights Reserved.