12 Hrs
Source:
الاقتصادية
Saudi bank dividends rise 30 percent
Saudi banks announced a significant increase in dividends, rising by 29.5% during the first half of the year. The dividends amounted to 24.5 billion riyals, compared to net profits of 48.8 billion riyals. This led to a rise in the payout ratio to approximately 50% of profits, up from 41.8% in the previous year. The most prominent bank in this increase was Al-Rajhi Bank, which raised its per-share dividends by about 152% year over year, with the payout ratio reaching around 55% of the first-half profits. Meanwhile, the growth rate of dividends across all banks was faster than the growth in their profits. Retained earnings were also used to support equity, with some profits kept within the balance sheet to strengthen capital. This increase in the payout ratio reflects a greater reliance on profit distributions to shareholders within the sector, which could impact the potential for future profit growth either positively or negatively.
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