Samba Financial Group’s potential merger deal with National Commercial Bank (NCB) came from a position of strength regardless of the fallout of the COVID-19 crisis. The two banks are looking for growth opportunities inside and outside the Kingdom, Samba Chairman, Ammar Al-Khudairi, told CNBC Arabia.
The merger is an opportunity to boost profitability, reduce costs in terms of operating and information technology expenses, as well as increasing competitiveness.
Both parties have the enthusiasm and drive towards building a giant financial entity, in line with the specifications of the G20 countries, Al-Khudairi said, stressing that giant banks have favorable opportunities in terms of profitability, continuity and growth.
The potential merger with NCB will give rise to a strong entity that constitutes the largest bank in the Kingdom, which can compete more significantly with a market share ranging between 30% and 33%, and has the ability to grow locally and overseas.
The new entity will have the ability to increase profitability and reduce costs, he stressed.
Samba and NCB aim to boost Islamic products, as retail products are 100% Islamic and the majority of institutional transactions are also Islamic – the main target of the market.
Moreover, the two banks are interested in fulfilling the market needs, while focusing on offering Sharia-compliant investment and lending instruments, Al-Khudairi concluded.
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