Sunday 28 June 2020

A merged NCB-Samba bank would be #SaudiArabia's biggest lender 'by some way', says EFG Hermes - The National

A merged NCB-Samba bank would be Saudi Arabia's biggest lender 'by some way', says EFG Hermes - The National:

A merger between Saudi Arabia’s National Commercial Bank and Samba Financial Group would create the biggest lender in the kingdom "by some way", with a 30 per cent share of the market, according to EFG Hermes.

NCB is already the kingdom’s biggest bank in terms of assets, with a 21 per cent share of the market. Samba is the fourth-biggest, with an 11 per cent share.

The combined bank will have a total asset base of 800bn Saudi riyals, ($214bn/Dh783bn). "It will be just shy of [the] UAE’s FAB [First Abu Dhabi Bank] in terms of assets,” EFG Hermes’ analysts said. 


On Thursday, the two lenders said they were working on a merger, in which NCB would be the merging bank and Samba Financial the merged lender. The terms agreed will see Samba shareholders receive between 0.736 and 0.787 newly-issued shares of NCB in exchange for each Samba share they hold.

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