(MENAFN- Saudi National Bank) Saudi National Bank (SNB), the largest financial institution in Saudi Arabia, announced the completion of the merger between NCB and Samba Financial Group, making it the largest and fastest merger in the history of the region. This establishes a financial powerhouse with local and regional competitive capabilities and strengthens the Saudi banking sector’s position at the global level.
The Bank announced that it had successfully completed all of the merger roadmap phases, thus establishing the largest banking entity in Saudi Arabia with assets exceeding 900 billion riyals and own funds of 44 billion Saudi riyals.
Over 15 months, the Bank - with its strategic, financial, and legal teams, in addition to technical support agencies and its various business sectors - was able to fulfill all the legal, regulatory, and procedural requirements of the merger process. After signing the binding framework agreement in October 2020, the two banks obtained the necessary approvals, in the light of which the identity of the new entity was announced and SNB embarked on its journey, paving the way for the merger and the migration of Samba Financial Group customer accounts.
SNB successfully completed the last phase of the merger within 9 months since the process started with the legal launch of the new entity on April 1, 2021. The merger included five key areas consisting of migrating personal and corporate customer accounts, migrating treasury, NCB Capital, and Samba Capital customers, in addition to migrating other administrative sectors and the merger of branches of both banks. The Bank opened more than 1.4 million new personal accounts, which constitute 100% of personal banking customers. As for corporate customers, the bank opened accounts for more than 11,000 customers, making up 100% of small and midsized corporate customers. The Bank also completed opening and activating 100% of the large corporate customer accounts. On the other hand, SNB completed 100% of the procedures for migrating the treasury sector, NCB Capital, Samba Capital, and other administrative sectors and branches.
The Chairman of SNB, Mr. Ammar bin Abdul Wahed AlKhudairy, congratulated the shareholders and the executive management of the bank, led by the Managing Director and Group CEO, Mr. Saeed bin Mohammed AlGhamdi, his cadres, and his customers on the success of the merger and the completion of its phases in such a distinguished manner and in record time, which contributed to presenting a historic banking experience worthy of being documented as a role model of achievement and competent performance.
AlKhudairy stated: "Reaching the finish line of the merger agenda paves the way for a new stage of work and a promising future for the Saudi banking industry. The new entity - backed by a market share of 31% and its real wealth of 12,000 employees in Saudi Arabia and more than 4,000 employees in its subsidiaries - will support social prosperity and economic transformation in Saudi Arabia, and contribute to empowering citizens and national businesses and enhancing their growth opportunities, in line with the objectives of Saudi Vision 2030.”
For his part, Mr. Saeed bin Mohammed AlGhamdi, Managing Director and Group CEO of SNB, expressed his pride in this historic moment, which marks a turning point in the entire Saudi banking sector, saying: “The merger - with its many phases, milestones, and complex requirements – wouldn’t have taken place with such excellence, accuracy, speed, and flexibility had it not been for the unique cooperation of all parties, including shareholders, executive, administrative, technical and logistical teams, as well as the positive engagement of the Bank’s customers and their responsiveness to the Bank’s directives and instructions.”
He added: "Through a rising regional banking powerhouse, and by enriching the customer experience with more innovative solutions and products; our strategy is based on investing in digital technology, raising awareness of financial culture, promoting the savings policy, providing finance solutions that meet the needs of small and midsized enterprises, and improving the quality of life through finance initiatives that fulfill customers’ aspirations and contribute to improving the quality of life in Saudi Arabia in line with the Financial Sector Development Program.”
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