02/02/2014
39 billion, in response to the requirements of «Basel 3»
Saudi banks increase their capital to expand into real estate loans
Ten Saudi banks supported with more than $ 39 billion during the year, this support came through increased nine banks with more than $ 31 billion, in addition to instruments worth eight billion riyals, with the aim of increasing their capacity to lend and meet the requirements of the ' Basel III. According to an analysis conducted by the unit of economic reports in the newspaper ' economic ', will support banks to increase their capital reserves and retained earnings mega special statutory reserves have, by the end of the first nine months of last year, the 10 banks 78.5 billion SR, 83 per cent of capital amounting to 95 billion, and earnings 53.6 billion. Among the 10 banks that supported the capital during the year, eight banks recommended by their governing bodies to raise capital are ' Riyadh ', and ' Alahli ', ' Al Rajhi, Saudi fransi, Samba ', And ' ANB ', ' the Saudi Hollandi Bank ' and ' investment ', adding to the country's Bank raise its capital actually early last year to four billion riyals, add the ' SAP ' the instruments of SR 1.5 billion, did not raise capital finally being already in 2012.
Bank Alinmaa and the Aljazira Bank did not even raise their capital finally, but it was justified as still modern Foundation, founded in 2008, and had not yet been able to set aside large reserves and profits to raise its capital, was founded with a capital of a huge base of 15 billion. Aljazira Bank has issued instruments worth billion in 2011, and could raise capital in the coming period is to compete for market share in the market, especially the capital is less in the market with three billion riyals, and the capital banks will raise a major shift in the order of their sizes on the market, when it was approved by the General Assemblies of those banks on the recommendations of the Board of Directors to raise capital, which will become the ' Riyadh ' largest banks in Saudi Arabia by 30 billion, followed by the ' national commercial ' with a capital of 20 billion riyals, Al Rajhi Bank will come with 16.25 billion riyals, and IV alinma Bank 15 billion riyals, while four banks in the former capital of 15 billion riyals.
The total capital of banks will rise to 143 billion riyals, compared to 112 billion before the increase, the average increase in the capital of 32 per cent among the 10 banks, with average 39 per cent after adding the instruments, which is the second part of the capital, Saudi banks to increase their capital needs to increase their lending, especially under license to some offer mortgage services, in addition to strengthening the financial and banking centers support the activities and plans of expansion in the market and increase its capital base, which supports increased profits and financial solvency is bound by the requirements of Basel 3 is one of the reasons that made the Saudi banks to move, to support their capital efficiency, requiring ' Basel 3 ' that the rate of efficiency of capital within 8%, this additional support to banks, Given that all meet the requirements of the ' Basel III ' required by the end of 2014, with their capital efficiency 17.9 percent, according to the statement of the Governor of SAMA ' toxic ' for more than three months, and capital efficiency measures the proportionality of the EIB with the risks caused by loans and financing, thus turning the banks to raise their capital to increase the efficiency of capital and its ability to provide loans and financing to customers.
The volume of bank loans by the end of 2013, nearly 1.13 trillion riyals, compared to 1.01 trillion riyals in 2012, an increase of 12 percent, according to preliminary financial results of banks published on the Saudi stock exchange ' trading ' and support Saudi banks to increase their capital reserves, special reserves, has large, plus size big has retained earnings end of first nine months of last year, amounting to the statutory reserves of the 10 banks 78.5 billion constitutes 38 percent of the capital of 95 billion, this rate is high because the banks after the statutory reserves to exceed 50 per cent of the capital is not obliged to set aside additional reserves, the banks continued to set aside reserves to reach the ' Eden ' and ' Samba ' 100 per cent of the capital of each, 15 billion to ' Rajhi ' And nine billion riyals in ' Samba ', followed by the percentage of capital, ' NCB ' 91 per cent reserve system's 13.6 billion riyals, IV ' Riyadh ' 89 per cent reserve system's 13.3 billion riyals, compared to $ 15 billion in capital for both banks retained earnings amounted to the same banks by the end of the first nine months by 2013, about 53.6 billion riyals, and other reserves of about 6.9 billion, of total reserves and retained earnings to 139 billion riyals equivalent to 145% of the 10 banks capital and ' Samba ' Banks in terms of reserves and retained earnings capital 286%, recommendations to boards of directors need to be approved by the General Assembly is approved, the Bank's capital increase was approved in January 2013 effective. The largest increase in capital value of Riyad Bank share 15 billion riyals, multiplied by the capital of 15 billion to 30 billion, becoming the largest bank in Saudi Arabia when the increase had been approved, subsequent increase value ' NCB ' five billion riyals, raising the capital by 33 per cent, 15 Billion, to $ 20 billion, the second-largest bank after the increase in terms of value. III increase ' BSFR ' worth three billion riyals, the raising of capital by 33 per cent, from $ 9 billion to $ 12 billion, is the fifth ranking among banks in terms of the volume increase. Fourthly, in terms of value, the ' Samba ' worth three billion riyals, the raising of capital by 33 per cent, from $ 9 billion to $ 12 billion, Occupied by ranking fifth among banks in terms of the volume increase. Fourthly, in terms of value, the ' Samba ' worth three billion riyals, the raising of capital by 33 per cent, from nine billion riyals 12 billion riyals, the sixth largest banks after the increase. The Board recommended that ' ANB ' increased capital 1.5 billion, 10 billion, up from 8.5 billion riyals, an increase of 18 per cent. Then Al Rajhi Bank raises 1.25 billion, raising its capital from 10 billion to 16.25 billion riyals, which is ranked third among the Saudi banks. The Bank increased its capital by one billion riyals, from three billion to four billion riyals, an increase of 33 per cent, and will increase the ' Saudi Hollandi capital ' worth 794 million, To 4.76 billion riyals, up from 3.97 billion riyals, an increase of 20 per cent, and finally the ' Alisthmar ' which will increase its capital of 500 million riyals, to 6 billion, up from 5.5 billion riyals, an increase of 9 percent. the most increases in the capital of Saudi listed banks before the recent increase, it was ' SAP ' and ' French ' another Saudi banks to increase their capital in 2012, while raising Saudi Hollandi ', ' and ' Alisthmar , ' Arab ' funds in 2011. Riyadh ' bank increased, ' Rajhi ', and ' Aljazira ', and ' Samba ' funds in 2008, with Alinmaa Bank and Albilad was formed 2008 and 2005 respectively.
