Saudi lender SABB bank, HSBC's affiliate in the kingdom, is likely to appoint veteran banker David Dew as its new chief executive, three people familiar with the situation told Reuters.

Dew is currently deputy-chief executive of HSBC Amanah, the UK bank's Islamic finance unit. He has been with HSBC for more than 30 years and also previously served as chief operating officer of HSBC USA.

Dew would succeed Richard Groves who will leave SABB after little over a year in the job. Last week, Reuters had reported that Groves will step down from the bank citing sources familiar with the matter.

HSBC, which owns 40 per cent of SABB, declined to comment. A SABB spokesman in Riyadh also declined to comment.

The Riyadh-based bank posted a 30 per cent drop in full-year earnings, mainly due to a surge in bad debt provisions.-Reuters