The Saudi British Bank (SABB) and Alawwal bank boards have approved a merger agreement to create a new bank in Saudi Arabia.
The new bank will create a franchise that will support more opportunity for customers and will be a driving force for growth in Saudi Arabia, a statement said.
Today’s announcement follows the May 16 announcement by SABB and Alawwal bank on the Tadawul website of a non-binding agreement between the two banks.
The merger, subject to shareholder and regulatory approval, will create the kingdom’s third-largest bank, a top-tier retail and corporate bank, and provide unrivalled access to a global banking network to facilitate the flow of investment capital into Saudi Arabia and the growth of international trade, it said.
“The combination of SABB and Alawwal bank will create a powerful banking franchise ready to fuel growth in the kingdom. As Vision 2030 transforms Saudi Arabia, our own transformation will ensure our customers capture the opportunities of a more diverse, accessible and investible Saudi economy. The new bank will be a leader in responsible lending and will set new standards for financial awareness and literacy,” said SABB chairman Khaled Suleiman Olayan.
“We will enable growth in the private sector with the expertise to help all businesses, from SMEs to large corporates that compete nationally and internationally. Our bank will supply entrepreneurs with the financial tools needed to grow and create jobs and we will have enhanced capacity to underwrite large-scale transactions to support infrastructure and privatisation projects,” he said.
The combined bank will be a leader in corporate banking, foreign exchange, cash management and trade finance, with a robust retail franchise underpinning aspirations to be the kingdom’s leader in wealth management, all supported by online and mobile services that deliver the best banking experience in the digital age.
“Together, we will set new standards for customers by pooling the talents and experience of two of the kingdom’s longest-established banks. By building on our shared heritage of innovation, we will ensure we are the best place to bank and the best place to work in Saudi Arabia,” Alawwal bank chairman Eng Mubarak Abdullah Al-Khafrah said.
“Our combined bank is expected to deliver attractive long-term shareholder value, generating new growth by ensuring our customers have access to a full suite of services. This transformational merger creates a leader in the Kingdom’s financial sector development,” he said.
No involuntary staff redundancies are expected as a result of the merger. There will be no immediate change for customers as a result of the announcement. Both banks will remain independent and continue to operate a business as usual service until the merger has completed. - TradeArabia News Service
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