Riyadh – Mubasher: The potential merger between the National Commercial Bank (NCB) and Riyad Bank is expected to boost Saudi Arabia's economy in general, and the banking sector in particular, the secretary general of the Media and Banking Awareness Committee of Saudi banks said.
If completed, the combination of the two Saudi lenders will help them in implementing more expansions, developing their banking services, and carrying over into growth pace, Okaz newspaper reported, citing Talat Hafez.
The official further noted that Saudi Vision 2030 requisites the existence of mega financial entities, which in return will lead to more merger deals.
On Monday, the two banks, listed on the Saudi Stock Exchange (Tadawul), started initial negotiations for a possible merger that would create an asset base of $182 billion for this entity.
Capital market analyst Mohammed Al-Shimmery told Mubasher that this deal is positive for Tadawul and would help in achieving the Saudi Vision 2030.
NCB last reported a net profit of SAR 2.45 billion ($650 million) in the third quarter of 2018, up 15.43% from SAR 2.126 billion ($570 million) in the same period of 2017, while Riyad Bank’s profits rose 8.17%, registering SAR 1.16 billion from July to September, against SAR 1.8 billion.
NCB’s stock decreased 1.36% to SAR 47.05, while Riyad Bank's stock inched up 0.10%, reaching SAR 19.56 by the end of Wednesday's trading session.
