Saudi Awwal Bank

Saudi Awwal Bank is a Saudi bank formed by the merger of Saudi British Bank (SABB) and Alawwal Bank, the completion of which was announced on 1 Sha'ban 1442 AH, corresponding to 14 March 2021, merging all products and services for all customers into a single banking entity. [1]

The bank provides corporate and individual banking services in the Kingdom of Saudi Arabia, and works to strengthen its partnership with the HSBC Group to provide access to an international banking network, while introducing new standards in digital services. [1]

Saudi British Bank (SABB) announced on 1 Sha'ban 1442 AH, corresponding to 14 March 2021, the completion of its merger with Alawwal Bank, under which all products and services for all customers were merged into a single banking entity. [1]

Lubna Olayan chaired the board of directors of SABB at the time the merger's completion was announced, and noted that the process had reviewed every aspect of the two banks' operations to identify the best advantages. [1]

The merger was completed by a project team of 300 members, which transferred 4,500 corporate customers and 500,000 individual customers from Alawwal Bank to the new merged bank. [1]

The bank relies in this on its partnership with the HSBC Group to provide access to an international banking network, coupled with the introduction of new standards in digital services in the Kingdom. [1]

On 24 December 2014, the board of directors of Saudi British Bank (SABB) recommended to the extraordinary general assembly an increase in the bank's capital from 10 billion riyals to 15 billion riyals, a rate of 50%, by capitalising 2.5 billion riyals from retained earnings and 2.5 billion riyals from the statutory reserve. [2]

On 7 January 2015, the Capital Market Authority announced its approval of the bank's request to increase its capital from 10 billion riyals to 15 billion riyals, by granting one free share for every two existing shares held by shareholders. [3]

On 12 March 2015, the extraordinary general assembly approved the increase of capital through the granting of free shares, and the Saudi Exchange (Tadawul) announced the addition of the bonus shares to shareholders' portfolios. [4]

The bank announced its board's recommendation to distribute cash dividends to shareholders for the financial year 2014, totalling 1,050 million riyals, at 1.05 riyals per share after the deduction of zakat, representing 10.50% of the share's nominal value. [2]

The bank recorded net profits of 1,115.19 million riyals in the first quarter of 2015, a growth of 3.21% compared with the corresponding quarter of the previous year. [5]

Its net profits rose by the end of 2015 to reach 4,331 million riyals, an increase of 1.52% over the previous year, 2014. [6]

In 2018, Saudi British Bank (SABB) signed a partnership agreement with the Saudi Real Estate Refinance Company, the seventh of the company's agreements with banks and financing institutions, bringing the total injected into the real estate market through those partnerships to 6 billion riyals. [7]

In 2019, the bank signed a strategic agreement with the Saudi Real Estate Refinance Company, affiliated with the Public Investment Fund, to purchase residential real estate finance portfolios worth 750 million riyals. [8]

In 2020, the bank signed a memorandum of understanding with the General Entertainment Authority to provide diverse financing solutions to the private sector operating in the entertainment sector and to support the companies working in it. [9]

In 2021, the Saudi Export-Import Bank signed a memorandum of understanding with HSBC Middle East and Saudi British Bank (SABB) to provide credit facilities supporting the export of Saudi products and services and their entry into regional and global markets. [10]

In 2022, the bank signed a memorandum of understanding and a purchase agreement for residential units with the Diriyah Gate Development Authority, aimed at enhancing cooperation in full corporate and individual banking services. [11]

On 9 March 2023, the Biban 23 forum witnessed the signing of a cooperation agreement between the Small and Medium Enterprises General Authority (Monsha'at) and the bank, to support micro, small and medium enterprises wishing to obtain financing. [12]

Q: What is Saudi Awwal Bank? A: It is a Saudi banking entity formed by the merger of Saudi British Bank (SABB) and Alawwal Bank, the completion of which was announced on 1 Sha'ban 1442 AH, corresponding to 14 March 2021. [1]

Q: How did the capital increase and the bonus shares proceed? A: Capital rose from 10 billion riyals to 15 billion riyals, a rate of 50%, through the capitalisation of retained earnings and the statutory reserve, and by granting one free share for every two existing shares. [2][3][4]

Q: What is the bank's international partnership? A: A partnership with the HSBC Group to provide access to an international banking network, with the introduction of new standards in digital services in the Kingdom. [1]

Q: Which sectors did the bank support through financing partnerships? A: Residential real estate finance, the entertainment sector, the export of Saudi products and services, and micro, small and medium enterprises. [7][8][9][10][11][12]

Q: How did Alawwal Bank's customers transfer after the merger? A: 4,500 corporate customers and 500,000 individual customers were transferred from Alawwal Bank to the new merged bank, within a single banking entity in which all products and services are merged. [1]

The completion of the merger of Saudi British Bank (SABB) and Alawwal Bank on 14 March 2021 marked a milestone in the course of the banking sector in the Kingdom of Saudi Arabia, as it provided a unified banking entity serving companies and individuals. [1]

Related topics on the platform include Saudi Vision 2030, the Capital Market Authority, the Saudi Exchange (Tadawul) and the Public Investment Fund.