NCB in talks with Riyad Bank for merger

The National Commercial Bank (NCB) said it has commenced initial talks with Riyad Bank for a possible merger, both banks said on bourse filings.

“Talks may not result in a deal,” the two Saudi lenders said, adding that they coordinated the move with the Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank.

However, the deal is not expected to result in forced dismissal of staff, the banks noted

An agreement could create the Kingdom’s largest lender by SAR 685 billion in assets, Argaam reported.

The Public Investment Fund (PIF), Saudi Arabia’s main sovereign wealth fund, owns about 44.29 percent of NCB and 21.75 percent of Riyad Bank.

Also, the Public Pension Authority owns a 10.26 percent stake in NCB, and a 9.27 percent in Riyad Bank.

General Organization for Social Insurance (GOSI) owns a 10 percent in NCB and a 16.72 percent of Riyad Bank.