Sheikh Khaled Olayan
SABB, Alawwal bank boards approve merger
RIYADH, October 4, 2018
Saudi British Bank (SABB) and Alawwal Bank (formerly Saudi Hollandi Bank) said they have won board approval for a merger that is aimed at creating a top-tier retail and corporate bank in the kingdom with SR271 billion ($72.2 billion) in assets.
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, 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.
On the merger, SABB chairman Khaled Suleiman Olayan 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."
He pointed out that the new bank would be a leader in responsible lending and would set new standards for financial awareness and literacy.
“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 stated.
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.
Alawwal Bank Chairman Engineer Mubarak Abdullah Al Khafrah said."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,” he noted.
“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 added.
SABB said no involuntary staff redundancies were 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, it added.- TradeArabia News Service
