National Commercial Bank (NCB) and Samba Financial Group (Samba) have agreed on a merger that will create the largest bank in Saudi Arabia with over SAR896 billion ($239 billion) in total assets, SAR127 billion ($34 billion) in shareholders’ equity and a combined net profit of SAR15.6 billion ($4.2 billion).
Shareholders of both voted in favour of the merger at separate extraordinary general assembly meetings on Monday. The new entity, which is to be headquartered in Riyadh, will be called Saudi National Bank and will begin operations on April 1.
Saeed Al-Ghamdi, chairman of NCB, said: “We will be uniquely positioned to transform the Saudi banking sector and propel the kingdom closer to its Vision 2030 goals, and I am very grateful for the opportunity to serve the people of Saudi Arabia alongside my colleagues and create a bank that delivers value for all stakeholders.”
The merger had previously received regulatory approvals from the Saudi Central Bank (SAMA), General Authority for Competition (GAC), Capital Markets Authority (CMA), and the Saudi Stock Exchange (Tadawul).
Ammar Alkhudairy, chairman of Samba, said: “This is a historic milestone for the Saudi banking sector, which will now have a powerhouse that is truly ‘a bank for all’.”
Saudi National Bank’s new management structure includes the appointment of Alkhudairy as chairman and Al-Ghamdi as managing director.
Saeed Al-Ghamdi (L) as managing director and Ammar Alkhudairy (R) as chairman of Saudi National Bank.
In preparation for the proposed merger, NCB received approval from the CMA to increase its capital from SAR30 billion ($8 billion) to 44.78 billion ($11.94 billiothn) in order to issue new shares in NCB to Samba shareholders with a share swap ratio of 0.739 NCB ordinary shares for each Samba ordinary share, upon closing of the transaction.
Samba shares will be de-listed from the Saudi Stock Exchange on the effective date of the merger, and the company dissolved with all its assets, liabilities and operations transferring into Saudi National Bank.
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