Saudi's Alawwal Bank and HSBC-backed SABB in merger talks | Reuters

Saudi's Alawwal Bank and HSBC-backed SABB in merger talks | Reuters:

"Saudi lenders Alawwal Bank 1040.SE and Saudi British Bank 1060.SE have agreed to start talks about a merger that could create the kingdom's third biggest bank with assets of nearly $80 billion. The announcement by the lenders on Tuesday is the latest example of consolidation in the Gulf's banking sector, where profit margins are being squeezed by lower government and consumer spending because of weak oil prices. "The consolidation points to the fact that you need stronger banks to sustain in this challenging macro environment. You need large, efficient banks to serve," said Murad Ansari, an analyst at EFG-Hermes in Saudi Arabia."



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