The board of Saudi British Bank (SABB), a 40% indirectly held associate of HSBC Holdings (HKG:0005), has recommended an increase of SABB's capital from SAR7.5 billion (US$1.999 billion) to SAR10 billion (US$2.666 billion) by way of bonus issue on the basis of 1 bonus share for each 3 shares held by shareholders.

The capital increase of SAR2.5 billion represents 33% of SABB's capital.

SABB's board has also decided to recommend the payment of annual cash dividends for 2011 at the rate of SAR0.65 (US$0.173) per share.