Riyadh – There are many benefits to the merger between the Saudi British Bank (SABB) and Alawwal Bank, the merged entity’s newly-appointed managing director has said.
Not only will the merger create the third largest bank in Saudi Arabia, but it will also be the largest banking entity in terms of corporate businesses, David Dew told Al Arabiya on Sunday.
The merger will also allow us to expand our retail business, Dew said, noting that the SABB-Alawwal entity would have a market share of 9.8%.
Earlier this month, SABB and Alawwal appointed Lubna Olayan as a chairperson of the merged lender, making her the first Saudi woman to lead a listed bank in the kingdom. The banks also named David Dew as the managing director.
Dew forecast that the merger process would be legal completed and that the two banks would begin acting as a single entity in the first half of 2019.
The merger is positive for our shareholders as it offers greater value as a large entity, Dew told Al Arabiya, indicating that the merger would be good for corporate customers, small or medium-sized firms, or retail clients.
The two Saudi-listed banks announced their merger on Thursday, 4 October.
Last week, Moody’s Investors Service affirmed its local and foreign currency deposit ratings for SABB at A1/P-1 and Alawwal Bank at A3/P-2.
The ratings agency changed its outlook on Alawwal's long-term deposit ratings to positive from stable, while SABB’s were kept at stable.