Bahrain-based BSB (Bahraini Saudi Bank) has confirmed strong levels of enquiries relating to its forthcoming rights issue, announced recently. BSB shareholders overwhelmingly supported the Bank’s call to increase its capital at an AGM held in Manama.
“Having received the support of our shareholders and Board we are now in the final stages of preparing the issue,” confirmed Shaikh Fahad Mohammed AI Athel, Chairman of Bahraini Saudi Bank. “We will be raising an additional BD 30 million capital, which will be used to meet the current and the future needs of the Bank, which will see paid up capital increase to BD 50 million,” said Khalid S S Shaheen, Chief Executive Officer of Bahraini Saudi Bank.
The Bank has received many calls and questions about the rights issue. “Since the new management team took the reins at BSB the Bank has undergone a radical transformation that saw a change in corporate identity and the introduction of new systems and procedures that are modelled on the best-in-industry practices. This has resulted in substantial operational improvements in terms of efficiency and control,” said Mr Shaheen.
The Bank realised a profit of BD 1.7 million for the nine months ended 30 September, 2004, compared to a profit of BD 1.4 million during the same period in 2003. The rights issue which is underway is part of the next stage of expansion at BSB, which will see the implementation of a strategic five-year plan that is currently being developed in order to make optimal use of the additional funds.
“We have been through the cleanup and consolidation stages – with these funds in place our focus will be on growth,” concluded Mr Shaheen.
