Boards of directors of The Saudi British Bank and Alawwal bank have approved a merger agreement
The boards of directors of The Saudi British Bank (SABB) and Alawwal bank have approved a merger agreement to create the Gulf kingdom's third largest bank.
The merger, subject to shareholder and regulatory approval, will deliver a top tier retail and corporate bank, and provide unrivalled access to a global banking network, a statement said.
No involuntary staff redundancies are expected as a result of the merger, it said, adding that there will be no immediate change for customers as both banks will remain independent and continue to operate a business as usual service until the merger has completed.
“The combination of SABB and Alawwal bank will create a powerful banking franchise ready to fuel growth in the kingdom. The new bank will be a leader in responsible lending and will set new standards for financial awareness and literacy," said SABB chairman Khaled Suleiman Olayan.
“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 said.
He added that 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.
“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,” said Alawwal bank chairman Mubarak Abdullah Al-Khafrah.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.