SABB-Alawwal merger set to finalize in H1 2019, says MD

Saudi British Bank (SABB) and Alawwal Bank’s merger, which is expected to finalize in H1 2019, is “a win for all parties,” the new entity’s managing director David Dew told Al Arabiya channel.

“For Saudis, it proves the readiness of the capital market, and both local and international investors to do business. The merger is also good for our shareholders, whether they are individuals, big companies or SMEs, as a larger bank means more value,” he said.

Among the top benefits of the merger is expanding the retail segment’s market share to 98 percent. The new entity will be the Kingdom’s third largest bank, while in terms of corporate banking it will be Saudi Arabia’s largest lender, he said.

“SABB and Alawwal Bank have conducted intensive due diligence, so we understand each other very well. The focus should be on growth and the available opportunities under Vision 2030,” Dew said.

The new bank’s financial performance is promising, Dew said, adding “We don’t give financial projections now, but we are optimistic about the economic growth under 2030. There are short-term challenges, however, we think good basis are being set for medium- and long-term sustainable growth.”

Earlier this month, SABB and Alawwal entered into a binding merger agreement, whereby the assets and liabilities of Alawwal will be transferred to SABB, Argaam previously reported.