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SABB (Saudi bank)

Not to be confused with its investment division HSBC Saudi Arabia.
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(December 2008) ()

The Saudi British Bank (SABB) (Arabic:البنك السعودي البريطاني (ساب)‎) is a Riyadh-based Saudi joint stock company in which British banking firm HSBC Holdings PLC owns a minority stake. The bank traces its origins to the British Bank of the Middle East which was acquired by HSBC in 1959. In response to restrictions on foreign ownership of banks in Saudi Arabia, SABB was created in 1978 to manage HSBC branches and assets in the country.

Saudi British Bank SJSC
Native name
البنك السعودي البريطاني
TypePublic
Tadawul: 1060
ISINSA0007879089
IndustryFinance
FoundedJanuary 21, 1978; 43 years ago (1978-01-21)
HeadquartersRiyadh, Saudi Arabia
Number of locations
81
Area served
Saudi Arabia
United Kingdom
Key people
ProductsFinancial services
Revenue$1.88 billion (2017)
$1.05 billion (2017)
Total assets$0 (2017)
OwnersHSBC Holdings (51%)
Public shares (49%)
Number of employees
5,000+
Subsidiaries
  • HSBC Saudi Arabia
  • SABB Insurance Agency Limited
  • SABB Insurance Services Limited
  • SABB Securities Limited
  • SABB Takaful
RatingA1/P-1
Websitewww.sabb.com

SABB is one of the five largest Saudi banks by deposits and has over eighty branches across Saudi Arabia and one branch in London, England. In May 2018, prompted by recent changes to Vision 2030 economic reforms, SABB announced its intention to acquire Alawwal Bank in the Saudi banking sector's first merger in twenty years.

Contents

British Bank of Iran and the Middle East (1950)

The British Bank of Iran and the Middle East, which became British Bank of the Middle East (BBME), opened branches in Jeddah and Al Khobar in 1950. The Jeddah branch in particular depended for its profits on the Hajj, the Muslim pilgrimage to Makkah (Mecca). Hongkong and Shanghai Banking Corporation (HSBC) acquired BBME in 1959.

Saudi British Bank (1976)

In 1976 the central bank enacted its sweeping policy of banking sector Saudization to address foreign banks' domination of the sector and its impact on the Saudi economy. Consequently, it directed all foreign bank branches to incorporate in Saudi Arabia (i.e., become Saudi companies with Saudi capital) and limited their parent companies to ownership of forty percent of these new entities.

As a result, HSBC incorporated in Saudi Arabia in 1978 and opened up to local ownership, renaming itself the Saudi British Bank. Ownership became 60% Saudi and 40% HSBC, and HSBC has a technical services agreement with the bank.

HSBC Holdings of Britain held 49% stake in the joint venture with SABB holding 51% until October 2019 when HSBC Group acquired shares from SABB to become the major shareholder with 51% stake.

Merger with Alawwal Bank (2019)

On May 16, 2018, SABB and Alawwal Bank (formerly Saudi Hollandi Bank) entered into a non-binding agreement on a deal for SABB to acquire Alawwal. The agreement concluded nearly one year of negotiations, and SABB will be represented by U.S. investment bank Goldman Sachs in the transaction. Alawwal Bank will cease to exist as a legal entity and will be absorbed into SABB, creating Saudi Arabia's third largest bank with a market cap of $17.2 billion.

SABB shareholders will own 73 percent of the new bank, which is expected to be chaired by Saudi businesswoman Lubna Al Olayan. Final agreement on a merger deal was announced one week after the Saudi government launched the Financial Sector Development Program, an executive program aimed at overhauling the Saudi financial sector to create an effective capital market capable of supporting the goals of the Vision 2030 economic reform plans.

The merger of the two banks was completed on 16 June 2019. The integration of the two banks was planned to completed in about 18 months.

The integration was planned to completely took place in about 18 months, which will result in retention of the brand name "Saudi British Bank" only.

On 14 March 2021, Alawwal & SABB fully integrated in historic bank merger.

SABB offers services in investment banking, commercial banking, private banking and Islamic banking. SABB Islamic Financial Solutions (Arabic: الحلول المالية الإسلامية), which are part of SABB services, are regulated by the Saudi Arabian Monetary Agency and a Sharia Supervisory Committee. This ensures that SABB Islamic Financial Solutions conforms to strict adherence to principles of Sharia.

In August 2011, Fitch Ratings gave SABB's long-term issuer default rating (IDR) at “A” with a stable outlook as well as The Viability Rating (VR) has also been affirmed at “A”.

In October 2018, in anticipation of its pending merger with Alawwal Bank, Moody’s reaffirmed local and foreign currency deposit ratings of SABB at A1/P-1 and Alawwal Bank at A3/P-2, respectively.

  1. "About us - SABB Online Banking". Saudi British Bank.
  2. "SAUDI BRITISH BANK Company Profile". Hoovers.
  3. "Moody's affirms ratings of SABB, Alawwal Bank". Saudi Gazette. Jeddah. October 13, 2018. Retrieved2018-11-14.
  4. "Saudi British Bank (SABB)". relbanks.com. Retrieved14 April 2012.
  5. Saudi British Bank: Reinstating Coverage(PDF) (Report). Riyad Capital. September 16, 2015.
  6. Platt, Gordon (June 1, 2018). "Saudi Arabia: First Major Bank Merger In Nearly Twenty Years". Global Finance.
  7. "After Being Endorsed by Ceda: The 'Financial Sector Development Program' Holds a Forum to Introduce the Program and its Initiatives". SAMA. Riyadh. May 9, 2018.
  8. Tschoegl, Adrian E. (2002). "Foreign banks in Saudi Arabia: a brief history"(PDF). Transnational Corporations. 2 (11): 123–154. RetrievedApril 22, 2012.
  9. Ramady, Mohamed A. (2010). The Saudi Arabian Economy: Policies, Achievements, and Challenges (2 ed.). New York: Springer Science & Business Media. ISBN 978-1-4419-5987-4.
  10. HSBC Group becomes major shareholder of its Saudi subsidiary , zawya.com
  11. Wendel, Samuel (October 4, 2018). "Saudi British Bank And Alawwal Bank Finalize Merger Agreement". Forbes Middle East.
  12. "Saudi British Bank and Alawwal set to create Kingdom's third biggest bank". Arab News. 2018-10-04. Retrieved2018-10-04.
  13. Arnold, Tom (October 4, 2018). "Saudi British Bank secures binding deal for $5 bln acquisition of Alawwal". NASDAQ. Dubai.
  14. "Lubna Al Olayan appointed as first woman Saudi bank head". BBC. 5 October 2018.
  15. "Merge Page". www.alawwalbank.com. Retrieved2020-07-17.
  16. "Sabb completes merger with Alawwal Bank creating third-largest Saudi lender". The National. Retrieved2020-07-17.
  17. "SABB, Alawwal Complete Merger Creating Third-Largest Saudi Bank". Asharq Al Awsat. Retrieved17 July 2020.
  18. "Sabb completes merger with Alawwal Bank creating third-largest Saudi lender". The National. Retrieved17 July 2020.
  19. "Alawwal & SABB fully integrate in historic bank merger". Arab News. 2021-03-14. Retrieved2021-03-30.
  20. "Fitch affirms SABB rating". Arab News. Riyadh. August 11, 2011. Retrieved25 August 2011. Long-Term Issuer Default Rating (IDR) at “A” with a stable outlook. The Viability Rating (VR) has also been affirmed at “a”.

SABB (Saudi bank)
SABB Saudi bank Language Watch Edit 160 160 Redirected from Saudi British Bank Not to be confused with its investment division HSBC Saudi Arabia This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources SABB Saudi bank news newspapers books scholar JSTOR December 2008 Learn how and when to remove this template message The Saudi British Bank SABB Arabic البنك السعودي البريطاني ساب is a Riyadh based Saudi joint stock company in which British banking firm HSBC Holdings PLC owns a minority stake 4 The bank traces its origins to the British Bank of the Middle East which was acquired by HSBC in 1959 In response to restrictions on foreign ownership of banks in Saudi Arabia SABB was created in 1978 to manage HSBC branches and assets in the country Saudi British Bank SJSCNative nameالبنك السعودي البريطانيTypePublicTraded asTadawul 1060ISINSA0007879089IndustryFinanceFoundedJanuary 21 1978 43 years ago 1978 01 21 1 HeadquartersRiyadh Saudi ArabiaNumber of locations81Area servedSaudi Arabia United KingdomKey peopleLubna Olayan Chairman Tony Cripps Managing Director ProductsFinancial servicesRevenue 1 88 billion 2017 2 Net income 1 05 billion 2017 Total assets 0 2017 2 OwnersHSBC Holdings 51 Public shares 49 Number of employees5 000 SubsidiariesHSBC Saudi ArabiaSABB Insurance Agency LimitedSABB Insurance Services LimitedSABB Securities LimitedSABB TakafulRatingA1 P 1 3 Websitewww wbr sabb wbr com SABB is one of the five largest Saudi banks by deposits 5 and has over eighty branches across Saudi Arabia and one branch in London England In May 2018 prompted by recent changes to Vision 2030 economic reforms SABB announced its intention to acquire Alawwal Bank in the Saudi banking sector s first merger in twenty years 6 7 Contents 1 History 1 1 British Bank of Iran and the Middle East 1950 1 2 Saudi British Bank 1976 1 3 Merger with Alawwal Bank 2019 2 Services 3 Credit rating 4 See also 5 References 6 External linksHistory EditBritish Bank of Iran and the Middle East 1950 Edit The British Bank of Iran and the Middle East which became British Bank of the Middle East BBME opened branches in Jeddah and Al Khobar in 1950 The Jeddah branch in particular depended for its profits on the Hajj the Muslim pilgrimage to Makkah Mecca Hongkong and Shanghai Banking Corporation HSBC acquired BBME in 1959 Saudi British Bank 1976 Edit In 1976 the central bank enacted its sweeping policy of banking sector Saudization to address foreign banks domination of the sector and its impact on the Saudi economy Consequently it directed all foreign bank branches to incorporate in Saudi Arabia i e become Saudi companies with Saudi capital and limited their parent companies to ownership of forty percent of these new entities As a result HSBC incorporated in Saudi Arabia in 1978 and opened up to local ownership renaming itself the Saudi British Bank Ownership became 60 Saudi and 40 HSBC and HSBC has a technical services agreement with the bank 8 9 HSBC Holdings of Britain held 49 stake in the joint venture with SABB holding 51 until October 2019 when HSBC Group acquired shares from SABB to become the major shareholder with 51 stake 10 Merger with Alawwal Bank 2019 Edit On May 16 2018 SABB and Alawwal Bank formerly Saudi Hollandi Bank entered into a non binding agreement on a deal for SABB to acquire Alawwal The agreement concluded nearly one year of negotiations and SABB will be represented by U S investment bank Goldman Sachs in the transaction 11 Alawwal Bank will cease to exist as a legal entity and will be absorbed into SABB creating Saudi Arabia s third largest bank with a market cap of 17 2 billion 12 SABB shareholders will own 73 percent of the new bank which is expected to be chaired by Saudi businesswoman Lubna Al Olayan 13 14 Final agreement on a merger deal was announced one week after the Saudi government launched the Financial Sector Development Program an executive program aimed at overhauling the Saudi financial sector to create an effective capital market capable of supporting the goals of the Vision 2030 economic reform plans 6 The merger of the two banks was completed on 16 June 2019 15 The integration of the two banks was planned to completed in about 18 months 16 The integration was planned to completely took place in about 18 months 17 which will result in retention of the brand name Saudi British Bank only 18 On 14 March 2021 Alawwal amp SABB fully integrated in historic bank merger 19 Services EditSABB offers services in investment banking commercial banking private banking and Islamic banking SABB Islamic Financial Solutions Arabic الحلول المالية الإسلامية which are part of SABB services are regulated by the Saudi Arabian Monetary Agency and a Sharia Supervisory Committee This ensures that SABB Islamic Financial Solutions conforms to strict adherence to principles of Sharia Credit rating EditIn August 2011 Fitch Ratings gave SABB s long term issuer default rating IDR at A with a stable outlook as well as The Viability Rating VR has also been affirmed at A 20 In October 2018 in anticipation of its pending merger with Alawwal Bank Moody s reaffirmed local and foreign currency deposit ratings of SABB at A1 P 1 and Alawwal Bank at A3 P 2 respectively 3 See also Edit Saudi Arabia portal Banks portal HSBC Bank Middle East British Arab Commercial Bank Abdullah Mohammed Al Hugail List of Saudi Arabian companies List of banks in Saudi ArabiaReferences Edit About us SABB Online Banking Saudi British Bank a b SAUDI BRITISH BANK Company Profile Hoovers a b Moody s affirms ratings of SABB Alawwal Bank Saudi Gazette Jeddah October 13 2018 Retrieved 2018 11 14 Saudi British Bank SABB relbanks com Retrieved 14 April 2012 Saudi British Bank Reinstating Coverage PDF Report Riyad Capital September 16 2015 a b Platt Gordon June 1 2018 Saudi Arabia First Major Bank Merger In Nearly Twenty Years Global Finance After Being Endorsed by Ceda The Financial Sector Development Program Holds a Forum to Introduce the Program and its Initiatives SAMA Riyadh May 9 2018 Tschoegl Adrian E 2002 Foreign banks in Saudi Arabia a brief history PDF Transnational Corporations 2 11 123 154 Retrieved April 22 2012 Ramady Mohamed A 2010 The Saudi Arabian Economy Policies Achievements and Challenges 2 ed New York Springer Science amp Business Media ISBN 978 1 4419 5987 4 HSBC Group becomes major shareholder of its Saudi subsidiary zawya com Wendel Samuel October 4 2018 Saudi British Bank And Alawwal Bank Finalize Merger Agreement Forbes Middle East Saudi British Bank and Alawwal set to create Kingdom s third biggest bank Arab News 2018 10 04 Retrieved 2018 10 04 Arnold Tom October 4 2018 Saudi British Bank secures binding deal for 5 bln acquisition of Alawwal NASDAQ Dubai Lubna Al Olayan appointed as first woman Saudi bank head BBC 5 October 2018 Merge Page www alawwalbank com Retrieved 2020 07 17 Sabb completes merger with Alawwal Bank creating third largest Saudi lender The National Retrieved 2020 07 17 SABB Alawwal Complete Merger Creating Third Largest Saudi Bank Asharq Al Awsat Retrieved 17 July 2020 Sabb completes merger with Alawwal Bank creating third largest Saudi lender The National Retrieved 17 July 2020 Alawwal amp SABB fully integrate in historic bank merger Arab News 2021 03 14 Retrieved 2021 03 30 Fitch affirms SABB rating Arab News Riyadh August 11 2011 Retrieved 25 August 2011 Long Term Issuer Default Rating IDR at A with a stable outlook The Viability Rating VR has also been affirmed at a External links EditSaudi British Bank website HSBC Peru Retrieved from https en wikipedia org w index php title SABB Saudi bank amp oldid 1037431655, wikipedia, wiki, book,

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