SAMA says Samba-NCB merger backed by shareholders, no other merger requests

The potential merger of Samba Financial Group (Samba) and National Commercial Bank (NCB) is mainly driven by consent from the shareholders of both lenders, and will lead to a fully-integrated banking entity, Al Eqtisadiah reported, citing Fahad Alshathri, Deputy Governor (Supervision) at Saudi Arabian Monetary Authority (SAMA).

The potential consolidation will create one of the largest banking institutions in Saudi Arabia, the GCC region and the Middle East, which will help in ramping up economy, Alshathri added.

“SAMA doesn’t mind mergers between Saudi banks that would create well-established combined entities that buoy the Kingdom’s financial position, fulfill the financing requirements, provide more options for clientele, boost operating efficiency and improve financial indicators,” Alshathri noted.

“Currently, SAMA doesn’t have other requests for bank mergers on table,” he said, adding that the central bank is willing to receive licensing requests, and is bracing for expanding the banking industry.

On Sunday, NCB entered into a legally binding merger agreement with Samba, Argaam reported.

For more M&As