Post-merger, NCB Cap to become #Saudi's largest asset management firm: Moody's | ZAWYA MENA Edition

Post-merger, NCB Cap to become Saudi's largest asset management firm: Moody's | ZAWYA MENA Edition

Moody’s Investors Service expects the potential merger between Saudi Arabia’s National Commercial Bank (NCB) and Samba Financial Group to reinforce NCB's asset management arm.

“If successfully executed, the merger will bring long-term benefits to NCB Capital including some product diversification into fixed income and alternative products, based on the assumption that NCB Capital shall be the surviving entity,” it said in a note Wednesday.

The two banks entered a binding merger agreement in 3Q 2020 following which the parent banks approved the merger of the capitals between NCB Capital and Samba Capital & Investment Management Company (Samba Capital) once the banks merger has been completed.

The merger, subject to regulatory approval, will reinforce the position of the merged entity as Saudi Arabia's biggest asset manager, based on assets under management (AUM), the ratings agency said.