Two Saudi banks merge to create a single entity

The Saudi Arabian Bank (SABB) and Alawwal Bank announced the merger of their businesses after receiving the green light from regulators and shareholders. With this merger, the two banks founded the third largest bank in Saudi Arabia. 

 

[quote source=”“We are going to capitalize on the strength of each bank. SAAB is a great bank, with a great partner, stellar reputation, excellent governance, great investment bank and a corporate bank. Alawwal the oldest bank in the country, one of the best customer service, and digital banking in the country, and together we are going to be the best place to bank, and the best place to work in Saudi Arabia.””[/quote]

 

According to an official statement from SABB, the new banking structure resulting from this merger will have total assets equivalent to $70 billion and is expected to generate revenues of approximately $2.9 billion. 

 

Lubna Olayan the Chairperson of one of Saudi's largest Bank's announcing a merger. Until a couple of years ago she had been unable to become Chairperson as such positions had always been male (despite her being the largest shareholder). Today she is front and center. pic.twitter.com/cMmVRqY5m1

— Ali Shihabi (@aliShihabi) June 16, 2019

 

A major merger

 

More than an economic potential, this merger will allow the new banking structure to benefit from more resources to innovate and to bring together a younger population, keen on new technologies and leading digital banking experiences.

 

The integration of the two banks could take between 18 and 24 months. In term, customers will eventually have access to an international banking network in the Kingdom, particularly through shareholders such as HSBC Holdings PLC, whose CEO John Flint welcomed the merger: “As the main shareholder of the combined bank, HSBC fully supports this merger and believes that it will create a stronger bank to support Saudi Arabia’s economic transformation,” he said.