Why are the banks merging?

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The proposed merger will unlock considerable synergies and growth potential to maximize value for all stakeholders:

It will create a new Saudi banking champion which will be a regional powerhouse in the consolidating Saudi and MENA banking landscape. It will be the number one bank in Saudi Arabia serving approximately 25% of the retail and wholesale banking market with aggregated SAR 837 billion ($223 billion) assets. For more information, please download the media FAQs.

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What is your outlook and strategy for the combined bank?

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Accelerate growth in retail by increasing the product penetration across the combined client base through delivering best-in-class innovative propositions, foster SMEs development and lending, growing residential financing and promoting financial literacy. Strengthen leadership in wholesale by supporting the Kingdom’s landmark deals and mega projects, increase presence in treasury and capital markets, as well as facilitating trade and capital flows in and out of Saudi Arabia into global markets. For more information, please download the media FAQs.

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How does this merger align with the objectives of Vision 2030?

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Saudi Arabia’s economic reforms are beginning to bear fruit and with mega-projects starting to come to life, the need for a new Saudi banking champion with reach and innovation is necessary for Saudi Arabia’s private sector to enable the next phase towards Vision 2030. The Saudi banking sector has long been ripe for consolidation and with exceptional performance and efficiency from both banks, now is the perfect time to merge. For more information, please download the media FAQs.

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What are the expected synergies from the merger?

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The merger is expected to result in SAR 800 million ($213 million) cost synergies through economies of scale and enhanced productivity and sharing of best practices. Cost synergies would represent ~9% of the combined banks. Additionally, there exists a high potential for revenue synergies through leveraging best practices across both organizations to boost product cross-sell in Retail and Wholesale, improve operating model and sales and optimize investment portfolio. For more information, please download the media FAQs.

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With all the economic uncertainty and slow growth, was this a wise decision?

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Saudi Arabia’s banking sector is at a turning point that would result in the emergence of a new Saudi banking champion that can propel the Kingdom towards its Vision 2030 goals. It is an opportune time to form a hub for banking innovation that will leverage scale, reach and digital capabilities to drive the future of banking with enhanced products and exceptional customer experience. For more information, please download the media FAQs.

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