The May-announced tie-up between Saudi British Bank (SABB) and Alawwal will take shape after boards of the two banks green-lighted the $5-billion deal.
“The combination of SABB and Alawwal bank will create a powerful banking franchise ready to fuel growth in the Kingdom,” said SABB chairman Khaled Suleiman Olayan.
“As Vision 2030 transforms Saudi Arabia, our own transformation will ensure our customers capture the opportunities of a more diverse, accessible and investible Saudi economy.”
The merger, according to the two entities, will lead to the creation of the kingdom’s leading corporate bank, which will also be leader in foreign exchange, cash management and trade finance.
The future combined entity will have for operation assets of $71bn, a market capital of $17.2bn and loan to deposit ratio of 86.6 per cent.
David Dew, SABB managing director, will head the joint venture.
Until the first half of next year when the merge will be complete, SABB and Alawwal will continue operating independently, Gulf Business reports.