Saudi National Bank launched in regions largest merger in 2021

RIYADH — National Commercial Bank (NCB) and Samba Financial Group (Samba) announced on Thursday the formal completion of their historic merger to create a new Saudi banking champion and a regional powerhouse. Operations under the new combined entity name, Saudi National Bank (SNB) (ISIN: SA13L050IE10) (SYMBOL: 1180), are effective as of April 1, 2021.

While this completes the legal combination of NCB and Samba, the two banks will continue to serve customers as normal while progressing the full integration of products and services. Customers should continue to bank as normal with their respective banks and will not experience any difference to their banking services. In case of any updates to products, services, or if any action is required from a customer, the bank will communicate in advance to advise of any changes.

With over SR896 billion ($239 billion) in total assets, SR127 billion ($34 billion) in shareholders’ equity, and a combined net profit of SR15.6 billion ($4.2 billion), Saudi National Bank is the largest bank in Saudi Arabia with 30 percent market share across all metrics. As a strong bank with a robust capital position and strong liquidity, the bank is optimally positioned to finance economic development and enable the delivery of Vision 2030 by leveraging its increased scale, enhanced capabilities, and unparalleled employee talent.

Ammar Alkhudairy, chairman of Saudi National Bank, commented: “This is truly a historic moment that we can all be proud of. The formation of Saudi National Bank signals a new era of banking for the Kingdom, and I want to thank our shareholders, customers, and employees for their unwavering support. Now with the legal completion of the merger, Saudi National Bank is in prime position to compete regionally and locally, ultimately creating a positive impact for all of our stakeholders while accelerating the Kingdom’s journey toward Vision 2030.”

Saeed Al-Ghamdi, managing director and Group CEO of Saudi National Bank, said: “Today marks the beginning of our journey as Saudi National Bank. The legacy banks NCB and Samba served the Kingdom over the last 68 years and now, we combine their respective strengths to lead the future of banking that is committed to creating value for the nation and its people. Our customers remain our priority, and we look forward to ensuring a smooth transition as enter into the integration process.”

Following earlier approval from the CMA for NCB to increase its capital from SR30 billion to 44.78 billion, Samba shareholders will receive 0.739 ordinary shares in Saudi National Bank as consideration for every ordinary Samba Financial Group share held.

The new bank began trading as a single listed entity on the Saudi Stock Exchange (Tadawul) on April 1st, 2021. Equally, Samba shares had been de-listed from the Saudi Stock Exchange (Tadawul), and all its assets, liabilities, and operations transferred into the Saudi National Bank, which will continue to honor Samba’s obligations going forward.

Merger history

NCB and Samba initially entered into a Framework Agreement to conduct due diligence and negotiate definitive and binding terms of a potential merger on June 25, 2020. Following the successful completion of the due diligence phase, NCB and Samba signed a binding agreement to merge on 11th October 2020, subject to shareholder and regulatory approvals.

During two extraordinary general assembly (EGA) meetings on March 1, 2021, NCB and Samba shareholders respectively voted overwhelmingly in favor of the merger. The merger also received the relevant regulatory approvals from the Saudi Central Bank (SAMA), General Authority for Competition (GAC), Capital Markets Authority (CMA), and Tadawul. NCB changed its name to Saudi National Bank and accordingly, Samba merged into Saudi National Bank on April 1, 2021.

Saudi National Bank’s new board and leadership structure are in effect and overseeing the integration process, which is expected to be complete within the next 18 months. Clients, counterparts, and stakeholders will be advised on how the merger may affect them in a phased manner over the coming months.