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MarketScreener Homepage  >  Equities  >  Saudi Arabian Stock Exchange  >  The National Commercial Bank    1180   SA13L050IE10

THE NATIONAL COMMERCIAL BANK

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National Commercial Bank : Saudi's National Commercial Bank buys Samba in $14.8B deal

10/11/2020 | 11:26am EST

DUBAI, United Arab EmiratesSaudi Arabia'sNational Commercial Bank said Sunday it will purchase rival lender Samba Financial Group in a deal valued at $14.8 billion, creating what would become the kingdom's largest bank.

The bank will control some $223 billion in assets and a market capitalization of $46 billion after the merger wins regulatory approvals and is completed, National Commercial Bank said in a filing on Riyadh's Tadawul stock market announcing the deal.

The new bank will control a quarter of all banking in the kingdom, it said.

NCB will pay Samba a premium of 3.5% on the closing price of its stock Thursday in the deal, which will see it dissolve into the NCB brand.

The bank's largest shareholders will be Saudi Arabia'sPrivate Investment Fund, the Public Pension Agency and the General Organization for Social Insurance, all government entities.

The two banks described the merger as fitting into the kingdom's Vision 2030 plan, the brainchild of Saudi Arabia's assertive Crown PrinceMohammed bin Salman. That plan calls for Saudi Arabia to ween itself off of relying on oil exports while creating new jobs for its millions of young people.

“Saudi Arabia is undergoing a historic transformation with Vision 2030," NCB chairman Saeed al-Ghamdi said in a statement. “Our ambition is to create a national champion that can facilitate the transformation envisaged under Vision 2030 and create a pioneer for next-generation banking services that nurtures tomorrow’s industry leaders."

NCB was Saudi Arabia's first bank to be officially licensed in the kingdom back in 1953, created out of two currency trading houses. Samba grew out of Citibank, which established a presence in the oil-rich kingdom in 1955. The bank became Saudi American Bank following a royal decree in 1980, with Citibank slowly divesting over time until selling its last shares in 2004.

The merger had been rumoured for months. Ratings agency Moody’s says it will help NCB become one of the world's largest Shariah, or Islamic law, compliant banks alongside fellow Saudi bank Al Rajhi and Kuwait Finance House. It also comes as the kingdom grapples with both the coronavirus pandemic and oil prices being down to around $40 a barrel amid a global economic slowdown.

“A combination of lower oil prices, deteriorating economic conditions and fierce competition among banks is driving a new wave of mergers and acquisitions in Saudi Arabia and across the wider Gulf region,” Moody's said in September.

___

Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellAP.

© 2020 The Canadian Press. All rights reserved., source Canadian Press DataFile

Stocks mentioned in the article
ChangeLast1st jan.
SAMBA FINANCIAL GROUP 1.76% 31.85 End-of-day quote.4.26%
THE NATIONAL COMMERCIAL BANK 1.01% 45.05 End-of-day quote.3.92%
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More news
Financials
Sales 2020 21 073 M 5 618 M 5 618 M
Net income 2020 10 564 M 2 816 M 2 816 M
Net Debt 2020 - - -
P/E ratio 2020 12,4x
Yield 2020 2,60%
Capitalization 135 B 35 913 M 35 916 M
Capi. / Sales 2020 6,39x
Capi. / Sales 2021 6,22x
Nbr of Employees 12 883
Free-Float 45,2%
Chart THE NATIONAL COMMERCIAL BANK
Duration : Period :
The National Commercial Bank Technical Analysis Chart | 1180 | SA13L050IE10 | MarketScreener
Technical analysis trends THE NATIONAL COMMERCIAL BANK
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 10
Average target price 46,20 SAR
Last Close Price 45,05 SAR
Spread / Highest target 23,4%
Spread / Average Target 2,55%
Spread / Lowest Target -8,99%
EPS Revisions
Managers and Directors
NameTitle
Faisal Omar Al-Sakkaf Chief Executive Officer
Saeed bin Mohammed Al-Ghamdi Chairman
Lama Ahmed Ghazzaoui Chief Financial Officer & Head-Strategy
Omar Mohammed Hashem Group Head-Digital & Technology
Anees bin Ahmed Moumina Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
THE NATIONAL COMMERCIAL BANK3.92%35 549
KUWAIT FINANCE HOUSE K.S.C.P.2.95%17 454
QATAR ISLAMIC BANK (Q.P.S.C.)0.99%11 416
MASRAF AL RAYAN (Q.P.S.C.)1.10%9 463
ALINMA BANK1.11%8 679
BIMB HOLDINGS-1.41%1 864