Riyad Bank’s merger currently ‘fruitless’: Al-Rajhi Cap

Merger plans for Riyad Bank would be “inconvenient” for the time being, Mazen Al-Sudairi, Head of Research at Al-Rajhi Capital, told Al Arabiya TV.

He added that merger is no longer fruitful for the bank, attributing the reason to its restructuring process, which positively impacted its profits and helped diversify its products portfolio.

Al-Sudairi further explained that Riyad Bank reported high growth rates in 2019, in terms of lending, deposits, and net profit which increased by 66% year-on-year over the nine-month period, hence the high valuation in merger talks with National Commercial Bank (NCB).

“Riyad Bank has been pursuing a new strategy since 2017, therefore, any merger amid implementing a growth plan would deem unsuccessful,” he stated.

The board of directors of National Commercial Bank (NCB) and Riyad Bank agreed on Dec. 16 to back out of their merger negotiations that started last year.