The merger between SABB and Alawwal Bank was wrapped up following approvals from regulatory authorities and shareholders. Put together, the banks’ registered revenue was SAR10.9bn (£2.31bn) in 2018.
The enlarged Saudi Arabian bank, which is valued at about $17bn (£3.6bn), is expected to reinforce its position as a top tier Saudi financial institution. It will serve over a million retail customers and will be the second largest corporate bank in the kingdom by assets.
The combination will hold SAR257bn (£54.45bn) of total assets, SAR168bn (£35.59bn) of customer loans and SAR195bn (£41.31bn) of customer deposits.
The merger of SABB and Alawwal Bank is said to result in a major retail and wealth management business having greater resource to innovate and connect a young, tech savvy population in Saudi Arabia to top digital banking experience. Customers of the enlarged banking company are also expected to have access to a global banking network.
SABB chair Lubna Olayan 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.”
As per the terms of the merger announced in May 2018, each share of Alawwal Bank will be exchanged for 0.485 shares of SABB.
Based on the exchange ratio, each share of Alawwal Bank was valued at SAR33.5 (£7.1) as on 14 May 2018.
SABB managing director David Dew 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.”
