SPACs may reshape Gulf financial markets
JEDDAH, DUBAI: It took solely 15 months for Nationwide Industrial Financial institution and Samba Monetary Group to finish the quickest and largest merger within the Center East’s banking historical past.
The brand new entity, Saudi Nationwide Financial institution, often known as SNB, is the biggest monetary establishment in Saudi Arabia right now, bringing on the identical time many advantages to shareholders.
This may be discovered within the 10.7 % rise in SNB revenue for 2021, because the lender reported SR12.7 billion ($3.4 billion) in revenue due “to the improved efficiency to a collection of results that adopted the merger,” in keeping with a bourse submitting.
Nevertheless, such a merger has left few previous retail shoppers struggling to search out their means within the new system, Arab New has discovered.
The financial institution has transferred greater than 1.4 million accounts of particular person prospects in lower than six months.
“Evidently that the method was not simple, and we confronted many challenges, particularly as we’re speaking in regards to the merger of two large banking entities,” SNB advised Arab Information.
Integrating the 2 banks was the “most troublesome section” of the merger, it added, “because of the technical monetary, administrative, in addition to the indicative procedures required.”
Saudi college students resembling Basel Al-Ameel couldn’t entry their pupil accounts the place the federal government deposits every month an allowance to help them in ending their research.
“On December 28, I attempted to withdraw the allowance from an ATM, and it failed. On the identical day, 2 of my pals on the college tried and it failed,” he advised Arab Information.
“Considered one of them went to about three ATMs to attempt to withdraw. The day after, my second pal was in a position to withdraw, however I used to be nonetheless not ready. I went on for 3 days to several types of ATMs. In the long run, I needed to converse to the financial institution on the college as a way to resolve the issue,” he added.
Al-Ameel confronted one other drawback the place his card was out of the blue rejected.
“My SNB card was out of the blue rejected, and it contained cash, and the issue occurred to a variety of folks whom I do know personally,” he mentioned.
The financial institution responded instantly to resolve the difficulty.
“After I known as the financial institution, they mentioned that the difficulty shall be resolved the very subsequent day and it was,” he mentioned.
There have been different complaints Arab Information discovered from prospects, together with the numerous time it takes for them to get playing cards by mail or the issue of getting them if the consumer is overseas.
These points had been anticipated, particularly in a merger of such magnitude.
The SNB merger began on Oct. 11, 2020 with the signing of a binding framework settlement between the 2 banks. It was till Dec. 31, 2021 that the switch of buyer accounts had been accomplished.
The merger included 5 areas with retail, company, treasury on the core.
It additionally included the merger of NCB Capital and Samba Capital, in addition to different administrative sectors and branches resembling human sources, procurement and finance administration techniques. Branches from each banks had been additionally merged to supply built-in providers to prospects.
The company sector now has greater than 11,000 shoppers with many small and medium enterprise prospects. SNB additionally accomplished opening and activating accounts for 100% of consumers within the company class.
Chairman of SNB, Ammar Al-Khudairy mentioned the Financial institution has accomplished all phases of the merger roadmap, ensuing within the creation of Kingdom’s largest banking entity, with belongings exceeding SR900 billion.
“Reaching the end line of the merger agenda paves the best way for a brand new stage of labor and a promising future for the Saudi banking trade,” he mentioned.
As of January this yr, the financial institution has a market share of 31 % of the full belongings of the Saudi banking sector; a market share of as much as 28 % in particular person financing and 24 % of company financing.
“Now we have right now greater than 500 branches, greater than 4,100 ATMs throughout the Kingdom, 950 money deposit gadgets, and about 127,000 point-of-sale gadgets,” Al-Khudairy mentioned.
A Saudi lady who most popular to solely share her initials, A.S., was unable to make use of her bank card whereas touring to Spain on the thirty first of December.
“My card was declined as I used to be reserving a lodge room. There’s cash in my account, I simply couldn’t entry it,” she advised Arab Information.
She highlighted that the financial institution responded very properly to her situation and acted instantly.
“I known as them that day and advised them that my bank card will not be working and I’m exterior the Kingdom. They had been very responsive and useful and I used to be ready to make use of my card in a while for my journey,” she added.
The financial institution mentioned there’s “a big group within the entrance rows and again rows” who labored intensively on the merger, which it described as a turning level for the Saudi banking historical past.
Al-Khudairy mentioned the financial institution has entered a brand new section that’s targeted on pursuing new strategic aspirations.