NCB-Riyad Bank merger to add value to economy: official

The planned merger between National Commercial Bank (NCB), Saudi Arabia's largest lender by assets, and Riyad Bank will bring added value to the national economy as well as the local banking sector, Okaz newspaper reported on Wednesday, citing Talaat Hafez, Secretary-General of the Media and Banking Awareness Committee of Saudi Banks.

"The preliminary talks will be followed by thorough studies to determine the merger feasibility for both banks," Hafez said.

The potential consolidation will help the two banks pursue overseas expansions, develop banking products and focus capital expenditure on growth.

The planned merger comes in line with the Kingdom's vision. It will create a solid financial synergy to meet the requirements of the Saudi Vision 2030, he added.

The deal would be the second merger of Saudi banks. It comes two months after Saudi British Bank (SABB) and Alawwal Bank entered into a binding deal to create the Kingdom's third-biggest lender, Argaam reported.