Saudi First Bank (SAB), one of the largest banks in the Kingdom, announced that its Board of Directors has recommended distributing substantial cash dividends to the bank’s shareholders for the second half of the fiscal year, in a move that reflects the bank’s strong and stable financial performance and its commitment to delivering worthwhile returns for investors.
According to the official statement issued by the bank and published on the Saudi Stock Exchange (Tadawul) website, the total amount recommended for distribution is SAR 2.055 billion. This amount will be distributed among 2,054,794,522 shares eligible for dividends, meaning that the dividend per share is SAR 1 after deducting zakat. This distribution represents 10% of the share's nominal value, which is a positive indicator of the bank's profitability and its ability to generate liquidity.
Historical context and strategic integration
This strong financial performance by Saudi First Bank is the culmination of a long journey of growth and development within the Saudi banking sector. Formerly known as the Saudi British Bank (SABB), the bank has a long and distinguished history in the Saudi market. Its landmark merger with Alawwal Bank in 2019 marked a strategic turning point, creating a banking giant with a substantial capital base, an extensive branch network, and enhanced competitiveness. This merger enabled the bank to improve its operational efficiency and expand its product and service portfolio, positively impacting its financial results and its ability to distribute generous dividends regularly.
Importance and impact on the economy and financial market
This recommendation is of paramount importance on several levels. Locally, the dividend distribution boosts investor confidence in the bank's stock and the Saudi banking sector as a whole. It also contributes to injecting liquidity into the Saudi Stock Exchange (Tadawul), potentially stimulating trading activity and supporting market stability. On a broader economic level, the ability of a bank the size of Saudi First Bank to generate and distribute sustainable profits is a testament to the strength of the Kingdom's financial sector, a pivotal sector in achieving the goals of Saudi Vision 2030, which aims to diversify the economy and enhance the role of the private sector.
Entitlement and distribution mechanism
The bank clarified that dividend entitlement will be for shareholders who own shares at the close of trading on the day of the bank's general assembly meeting and are registered in the bank's shareholder register at the Securities Depository Center Company (Edaa) by the end of the second trading day following the meeting. The date of the general assembly meeting and the distribution date will be announced later, after obtaining the necessary regulatory approvals. It is worth noting that the bank has already received approval from the Saudi Central Bank (SAMA) for these distributions, confirming its sound financial position and compliance with regulatory requirements.
