The Clap
Suez Canal Bank’s board of directors approved the issuance of bonus shares worth EGP 400 million.
What
Bonus shares are a form of return to shareholders (dividends). The bank will pay these dividends (EGP 400 million) from its legal reserves balance (EGP 175 million) and a part of last year’s retained earnings (EGP 225 million).
So What
After the capital increase, the paid up capital of the bank will reach EGP 5 billion, which is in line with a 2020 banking law requiring banks to have at least EGP 5 billion in paid capital.
Now What
The board has called for an extraordinary general meeting on Aug 13 to discuss the matter. Shareholders will get to vote for going through with the capital increase.
