SABB and Alawwal bank today created Saudi banking history by legally combining their businesses. Following regulatory and shareholder approvals, the banks have now become a single listed company, creating the third largest bank by assets in Saudi Arabia. The two banks will continue to operate a normal service while work continues to fully integrate their products and services.
Lubna S. Olayan, Chair of SABB, said: “We have combined two great banks, each with a rich history and legacy of playing key roles in the Kingdom’s development. Now our size, enhanced capabilities and fantastic talent will help us build on that history and legacy to become the bank of choice for a modern Saudi Arabia. We will be the best place to bank and the best place to work in the Kingdom, for a new generation of Saudi men and women and for the new era of development under Vision 2030.”
The combined bank will cement its position as a top tier Saudi financial institution, with total revenue of SAR 10.9bn* ($2.97bn), more than one million retail customers and the second largest corporate bank by assets. Joining the two banks creates a significant retail and wealth management business, with greater resource to innovate and connect a young, tech savvy population to a leading digital banking experience. Customers will also have access to an international banking network that is unrivalled in the Kingdom.
David Dew, Managing Director, SABB, said: “The combination of SABB and Alawwal bank creates huge potential for our customers and staff. The increased scale and capacity will allow us to support the growing needs of our diverse customer base, while also providing unrivalled international connectivity for retail, corporate and institutional clients. Our focus now is on our customers while at the same time completing the integration process and executing our vision of being the leading international bank in the Kingdom.”
The combined bank has SAR257bn* ($70bn) of total assets, SAR168 bn* ($45.8bn) of customer loans and SAR 195bn* ($53.2bn) of customer deposits. It will deliver long-term shareholder value by combining the best of SABB and Alawwal bank, while capitalising on its long-term strategic partnership with HSBC Holdings plc to provide the most international banking offering available in Saudi Arabia.
For now, SABB and Alawwal bank will offer a normal service to customers, who should continue to bank in the usual way. A new board and leadership team are in place, overseeing the integration of the two banks, which is expected to take between 18 and 24 months.
*As at end of financial year 2018