A total of 75.8 million rubles ($2.8 million), or 0.94% of each share's face value of 1 ruble, will be paid in dividends.
Ak Bars Bank's net profit in 2004 was 480.8 million rubles ($17.8 million), and no dividends were paid.
The bank, located in the Volga republic of Tatarstan, also decided to more than double its authorized capital in 2006 to 19.2 billion rubles ($709.8 million) from 8 billion rubles ($295.8 million) in line with its strategic development program until 2010.
"The authorized capital will increase due to placement of 11.2 billion ordinary shares with a face value of 1 ruble among current shareholders," board chairman Robert Musin said.
Ak Bars will become Russia's fourth in terms of authorized capital, and make it into the world's top ten banks in terms of equity capital.
The bank's equity capital was 13 billion rubles ($480.6 million) as of January 1, 2006. Its chief shareholder is oil company Tatneft [RTS: TATN], which holds 29.46% of the bank's authorized capital.
