Saudi's Riyad Bank announces $399mln cash dividend

Board recommends payout despite 12% net profit decline

  
A Saudi trader monitors stocks at the Saudi stock market in Riyadh, Saudi Arabia, January 8, 2020.

A Saudi trader monitors stocks at the Saudi stock market in Riyadh, Saudi Arabia, January 8, 2020.

REUTERS/Ahmed Yosri

Saudi Arabia’s Riyad Bank is set to distribute 5 percent cash dividend to its shareholders, the lender said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The payout for the year 2020, pegged at 1.5 million Saudi riyals ($399 million), has been recommended by the bank’s board of directors.

A total of three billion shares will be eligible for the dividend at 0.50 Saudi riyal per share.

The bank also advised non-resident foreign investors that the dividend distribution, which is transferred by the resident financial broker, is subject to a withholding tax of five percent.

The bank’s net income for the full year 2020 fell 12 percent to 5.4 million Saudi riyals on the back of high impairment charge for credit losses.

(Writing by Cleofe Maceda; editing by Mily Chakrabarty)

Cleofe.maceda@refinitiv.com

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© ZAWYA 2021

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