PHOTO
RIYADH – The Boards of Directors of The Saudi British Bank (SABB) and Alawwal bank have unanimously recommended a merger of the two banks to their shareholders, creating a franchise that will support more opportunity for customers and help deliver new growth in an ambitious Kingdom.
The merger, subject to shareholder and regulatory approval, will create the Kingdom’s third-largest bank, increase its strength in corporate and retail banking, and provide unrivalled access to a global banking network to facilitate the flow of international investment capital into Saudi Arabia.
“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,” SABB Chairman Khaled Suleiman Olayan said.
“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 privatization projects,” he said.
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 banking, all supported by online and mobile services that deliver the best banking experience in the digital age.
“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,” Alawwal bank Chairman Engr. Mubarak Abdullah Al-Khafrah said.
“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 said.
The merged bank will set new standards in training and talent development and offer exciting career opportunities in a much larger organization. No involuntary staff redundancies are expected as a result of the merger.
There will be no immediate change for customers as a result of today’s announcement. Both banks will remain independent and continue to operate a business as usual service until the merger has completed. The new agreement triggers work to map out the milestones for a merger, including the proposed governance structure of the combined bank, on which shareholders will vote. The banks will make further announcements as work towards completion progresses.
The Boards of directors of SABB and Alawwal bank convey their appreciation and gratitude to the Custodian of the Two Holy Mosques and HRH The Crown Prince for their support and encouragement of the financial sector in the national economic development of the Kingdom. — SG
© Copyright 2018 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
