Saudi National Bank (SNB; ), also known as SNB AlAhli, formerly known as The National Commercial Bank (NCB), is the largest commercial bank in

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in West Asia. Located in the centre of the Middle East, it covers the bulk of the Arabian Peninsula and has a land area of about , making it the List of Asian countries ...

. In April 2021, National Commercial Bank merged with Samba Financial Group under the name of Saudi National Bank. On 27 March 2023, Ammar Abdul Wahed Al Khudairy resigned as the bank's chairman citing personal reasons, two weeks after Al Khudairy stated that SNB would not be acquiring more shares in troubled Swiss bank

Credit Suisse Credit Suisse Group AG (, ) was a global Investment banking, investment bank and financial services firm founded and based in Switzerland. According to UBS, eventually Credit Suisse was to be fully integrated into UBS. While the integration ...

due to regulatory constraints, which caused more panic among investors.

SNB Group

The Saudi National Bank “SNB Group” “Arabic: البنك الأهلي السعودي” is a Saudi bank

headquartered Headquarters (often referred to as HQ) notes the location where most or all of the important functions of an organization are coordinated. The term is used in a wide variety of situations, including private sector corporations, non-profits, mil ...

Riyadh Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the Riyadh Governorate. Located on the eastern bank of Wadi Hanifa, the current form of the metropolis largely emerged in th ...

, the capital city of Saudi Arabia. The bank was founded in December 1953 under the name of the National Commercial Bank “NCB”. In 2021, SNB has emerged as a banking champion after completing one of the largest mergers in the region between the National Commercial Bank and Samba Financial Group. Currently, SNB has subsidiaries and affiliates operating in 8 countries around the world. The Saudi National Bank is mainly owned by the Saudi Government represented by the

Public Investment Fund The Public Investment Fund (PIF; ) is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of billion. It was created in 1971 for the purpose of investing funds on be ...

and the General Organization for Social Insurance (GOSI). Being the largest financial group in Saudi Arabia and one of the largest powerhouses in the region, SNB plays a vital role in supporting economic transformation in Saudi Arabia by transforming the local banking sector and catalyzing the delivery of Saudi Arabia’s Vision 2030. SNB strategy is closely aligned with the Saudi Vision programs, levering on its position as the largest institutional and specialized financier in the Kingdom to support the Kingdom’s landmark deals and mega projects. SNB robust balance sheet, resilient business model, and healthy liquidity position enhance the Bank’s local and regional capabilities, and to facilitate trade and capital flows between the Kingdom and regional and global markets.

Ownership and legal constitution

The bank was constituted as a general partnership from its founding in 1953 until 1 July 1997, when it was reconstituted as a joint stock company. In 1999, the

Government of Saudi Arabia The politics of Saudi Arabia takes place in the context of a unitary absolute monarchy, along traditional Islamist lines, where the King is both the head of state and government. Decisions are, to a large extent, made on the basis of consult ...

acquired a majority holding in the bank through the Ministry of Finance's

(PIF). In an extraordinary general assembly meeting held on 21 March 2014, the

shareholder A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the ...

s approved to offer 25% of the bank's share capital (after capital increase) to the public under the initial public offering (IPO) and to a minority shareholder of the bank. The IPO was made for 15% of the bank's share capital, and an additional 10% was allocated to the Public Pension Agency. The shares offered were part of the shareholding of a majority shareholder of the bank. The IPO was approved by the regulatory authorities and the subscription for the IPO took place between 19 October 2014 and 2 November 2014, and the Bank's shares have been trading on Saudi Stock Exchange (

Tadawul Saudi Exchange () or Tadāwul () is a stock exchange in Saudi Arabia. Tadāwul was formed in 2007 as a joint stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia, but trading began in 1954 as an informal f ...

) since 12 November 2014.

SNB Management

Chairman: ahmed alfayez
CEO: Tareq Abdulrahman Al Sadhan
CEO, SNB Capital: Rashed I. Sharif
Group CFO: Ahmad Ali Al Dhabi

NCB Samba Deal

Samba Financial Group and NCB planned a mega-merger worth

billion Billion is a word for a large number, and it has two distinct definitions: * 1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is now the most common sense of the word in all varieties of ...

. The merger would result in the creation of Arabian Gulf's third-largest bank after

Qatar National Bank Qatar National Bank (QNB Group) () is a Qatari multinational commercial bank headquartered in Doha, Qatar. It was founded in 1964 and currently has subsidiaries and associates in 31 countries on three continents. The bank's ownership is evenly d ...

and

First Abu Dhabi Bank First Abu Dhabi Bank (FAB) () is the largest bank in the United Arab Emirates. It was formed following a merger between First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD). FAB offers financial solutions, products and services through ...

Investments

As of 15 March 2023, Saudi National Bank holds a 9.8% stake in the

Credit Suisse Group Credit Suisse Group AG (, ) was a global Investment banking, investment bank and financial services firm founded and based in Switzerland. According to UBS, eventually Credit Suisse was to be fully integrated into UBS. While the integration ...

. Later statements indicate this had been increased to the maximum authorised amount of 9.9% and a statement issued on this matter at the time “material weaknesses” were identified by auditors in Credit Suisse accounts contributed to climate which resulted in CS being bought at a steep discount by its rival UBS and despite receiving a massive credit line by the Swiss National Bank. This will have resulted (subject to any hedging) in a large loss write down in value of investments owned by the Saudi National Bank. They will have gained a much smaller participation in the new post-merger UBS bank.

References

External links

{{DEFAULTSORT:Saudi National Bank 1953 establishments in Saudi Arabia Companies of Saudi Arabia Companies based in Jeddah Saudi Arabian companies established in 1953 Banks established in 1953 Islamic banks of Saudi Arabia 2021 mergers and acquisitions Companies in the MSCI Tadawul 30 Index