(Bloomberg) -- Al Rajhi Bank plans to boost its capital by $4 billion as the second-biggest Saudi Arabian lender looks to grow its business.

The Riyadh-based lender plans to offer 3 bonus shares for every 5 held, according to a statement. That will raise the bank’s capital to 40 billion riyals ($10.7 billion) from 25 billion riyals and will “contribute to good growth ratios in the upcoming years,” it said.

Al Rajhi competes with lenders such as Saudi National Bank, which snatched the top spot as the kingdom’s biggest lender by assets after a combination with Samba Financial Group. Last week, Al Rajhi reported full-year profit that beat analysts’ estimates, citing a rise in income from financing and investments, and fees from banking services.

The shares have climbed 12% this year, tracking the 11% gain in the benchmark Saudi Tadawul All Share Index. 

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Al Rajhi Bank market insights:

• Stock advanced about 90% in the past 52 weeks. The Tadawul gained about 38%
• Al Rajhi Bank trades at 22 times its estimated earnings per share for the coming year
• The company’s dividend yield is 1.5% on a trailing 12-month basis and 1.9% based on Bloomberg Dividend Forecasts for the next 12 months

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