SABB, Alawwal Complete Merger Creating Third-Largest Saudi Bank

Logo of Saudi British Bank (SABB) and Alawwal banks
Logo of Saudi British Bank (SABB) and Alawwal banks
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SABB, Alawwal Complete Merger Creating Third-Largest Saudi Bank

Logo of Saudi British Bank (SABB) and Alawwal banks
Logo of Saudi British Bank (SABB) and Alawwal banks

Saudi British Bank (SABB) and Alawwal bank on Sunday finalized all the legal proceedings for merging their businesses, following regulatory and shareholder approvals. The banks now have become a single-listed company, creating the third largest bank by assets in Saudi Arabia.

The two banks will continue to operate a normal service while work continues to fully integrate their products and services.

Speaking on the merger, Chair of SABB Lubna Olayan said that each of the two banks has a rich history and legacy of playing key roles in Saudi Arabia’s development.

“Now our size, enhanced capabilities, and fantastic talent will help us build on that history and legacy to become the bank of choice for a modern Saudi Arabia. We will be the best place to bank and the best place to work in the Kingdom, for a new generation of Saudi men and women and for the new era of development under Vision 2030.”

The combined bank will cement its position as a top tier Saudi financial institution, with total revenue of $2.9 billion, with more than one million retail customers and the second largest corporate bank by assets, according to information released Sunday.

In addition, joining the two banks creates a significant retail and wealth management business with greater resource to innovate and connect a young, tech-savvy population to a leading digital banking experience. Customers will also have access to an international banking network that is unrivaled in the Kingdom.

Similarly, SABB Managing Director David Dew announced that the combination of SABB and Alawwal bank creates huge potential for our customers and staff. He explained that the increased scale and capacity will allow both banks to support the growing needs of the diverse customer base, while also providing unrivaled international connectivity for retail, corporate and institutional clients.

“Our focus now is on our customers while at the same time completing the integration process and executing our vision of being the leading international bank in the Kingdom.”

The combined bank has $70 billion of total assets, $45.8 billion of customer loans and $53.2 billion of customer deposits.

It will deliver long-term shareholder value by combining the best of SABB and Alawwal bank, while capitalizing on its long-term strategic partnership with HSBC Holdings plc to provide the most international banking offering available in Saudi Arabia.

For now, both banks will provide normal services to customers, who should continue to bank in the usual way. The integration of the two banks is expected to take between 18 and 24 months.

For its part, HSBC Holdings plc welcomed the completion of the merger between SABB and Alawwal bank, which creates Saudi Arabia’s third-largest bank by assets.

“As the largest shareholder in the combined bank, HSBC fully supports this merger and believes that it will create a stronger bank to support Saudi Arabia’s economic transformation,” HSBC Group CEO John Flint said.

HSBC believes SABB is well positioned to capture value and new opportunities from one of the world’s most ambitious economic transformation programs, Saudi Vision 2030.



Dollar Holds Steady after ECB Leaves Rates Alone, Tariffs and Fed in Focus

US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Holds Steady after ECB Leaves Rates Alone, Tariffs and Fed in Focus

US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
US dollar banknotes are seen in this illustration taken May 4, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar traded sideways against the euro on Thursday after the European Central Bank held rates steady, and was wedged between prospects for higher Japanese rates that supported the yen and worries about political risk after Sunday's elections.

The European Central Bank left interest rates steady at 2%, as expected, on Thursday, taking a break after a year of policy easing to wait for clarity over Europe's future trade relations with the United States, Reuters reported.

"The view that the ECB is probably on hold here is probably gaining a bit more traction. We've trimmed expectations for the cuts in September to certainly less than 50/50," said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto.

The Japanese central bank's deputy governor, Shinichi Uchida, said Tuesday's trade deal with Washington had reduced economic uncertainty, comments that fuelled optimism in the market about the potential resumption of interest rate hikes.

Analysts believe the yen will face persistent headwinds after Sunday's upper house election, with the opposition considering a no-confidence motion.

The European Union is nearing a deal that would impose a broad 15% tariff on EU goods, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan.

"The ECB faces a challenge that is quantitatively different from the BoJ's," said Thierry Wizman, global forex and rates strategist at Macquarie Group.

"The euro has appreciated by far more than the JPY so far in 2025, meaning that the disinflationary impulse from US import tariffs may be greater in the EU than in Japan, or the ECB may suspect as much," he added.

PMI data showed fragility in France following budget-cut proposals there, but also resilience in Germany and other parts of the euro zone.

Data showed that German business activity continued to grow marginally in July.

"As of now, there has been very little tariff impact on the hard data," said Mohit Kumar, economist at Jefferies.

ECONOMIC FALLOUT

Meanwhile, risk assets rallied as the trade deals eased fears over the economic fallout of a global trade war.

Next week the Federal Open Market Committee meets and is expected to leave rates where they are as policy makers wait for the expected impact from tariffs on inflation and growth to show up.

A number of US employment releases next week culminate with Friday's big June payrolls report, while the July Personal Consumption Expenditures Price Index and the first revision to 2nd quarter Gross Domestic Product could also move markets.

"A lot of event risk next week and not just from the Fed, we've got a lot of data next week as well, so that's probably going to shape expectations to some extent for September," Osborne said.

The euro was 0.17% firmer at $1.1786, not far from $1.1830 it hit earlier this month, which marked its strongest level in more than three years.

Against the yen, the dollar was 0.07% weaker at 146.39, and hit a fresh 2-week low earlier in the session at 145.86.

Olivier Korber, forex strategist at Societe Generale, expects the yen to strengthen further, citing support from the trade deal and prospects for higher interest rates.

Ishiba denied on Wednesday he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat.

Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, a surprise move that escalates tensions between the administration and the Fed.

The dollar index, which measures the greenback against a basket of six currencies including the euro and yen, was off 0.03% at 97.17.

In cryptocurrencies, bitcoin gained 0.33% to $118,391.37. Ethereum rose 2.14% to $3,647.18.