Al Rajhi Bank BOD recommends distributing SAR 4.6 bln in cash dividends for H2 of 2023

Al Rajhi Bank announced on Sunday the BOD’s recommendation to distribute SAR 4.6 billion in cash dividends to the shareholders for the second half of 2023, equivalent to 11.5% of the nominal value of the share.

The number of shares entitled to dividends reached 4 billion shares, amounting to 1.15 riyals after deducting zakat, and the eligibility of the dividends shall be at the end of trading day of Al Rajhi Bank’s General Assembly meeting date (which will be announced at a later date) for the shareholders registered at Securities Depository Center Company (Edaa) by the end of the second trading day following the General Assembly Meeting date.

The Bank has obtained no-objection from the Saudi Central Bank on the Board of Directors’ recommendation to distribute cash dividends to ‎shareholders for the second half of 2023.

It is worth noting that the Bank has distributed a net cash dividend of SAR 4,600 Million for the first half of the financial year 2023 to the shareholders registered in Depository Center at the end of the second trading day following the due date 31-07-2023 for SAR 1.15 per share, which represents 11.5% of the share nominal value. Consequently, total net distributed dividends for the financial year ending 31-12-2023 amounting SAR 9,200 Million for SAR 2.30 per share which represents 23% of the share nominal value.

The bank would like to draw the attention of the non-resident foreign investors that the cash dividend distribution, which is transferred by the resident financial broker, is subject to (when transferred or credited to the bank account) withholding tax of 5%, in accordance with the provisions of article (68) of the income tax law and article (63) of its implementing regulation.

Accordingly, the bank emphasize to non-resident foreign investors who have tax exemptions on dividends issued by the Zakat, Tax and Customs Authority, to communicate with the company within 5 calendar days from the eligibility date and provide the bank with documents supporting tax exemption.