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NCB, Samba Move Forward with Major Merger Plan

NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
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NCB, Samba Move Forward with Major Merger Plan

NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)
NCB and Samba received on Feb. 1, 2021, the approval of the Saudi Central Bank (SAMA) for the merger. (File/Reuters)

Samba Financial Group and National Commercial Bank (NCB) are moving forward at a quick pace with the biggest merger of its kind in the Middle East.

Saudi Arabia's Capital Market Authority (CMA) gave the green light for NCB to increase its capital from SAR30 billion ($8 billion) to SAR 44.7 billion ($11.9 billion), through issuing 1.478 billion ordinary shares.

The move aims to merge Samba Financial Group into NCB by transferring the former's assets and liabilities to the latter under share swap.

NCB will publish the capital hike circular within sufficient time before holding its extraordinary general meeting.

The market regulator approved the proposed offer timetable, as well as the publication of the merger offer submitted by NCB. The offer will be published to Samba shareholders within sufficient time before holding its extraordinary general meeting.

If NCB shareholders approve the capital increase, and Samba shareholders accept the merger offer in their extraordinary general meetings, the new shares will be issued to Samba shareholders who are registered at the Securities Depository Center (Edaa).

In addition, Samba shares will be delisted from Tadawul after the merger decision becomes effective.

CMA said shareholders must be informed of the circular and the offer and should study them carefully in order to reach the right decision when voting.

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Türkiye Spends $12 Billion Defending Lira After Erdogan Rival’s Arrest

Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)
Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)
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Türkiye Spends $12 Billion Defending Lira After Erdogan Rival’s Arrest

Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)
Protesters hold a Turkish national flag as they clash with Turkish anti riot police using tear gas and water cannons during a demonstration in support of Istanbul's arrested mayor, in Ankara on March 23, 2025. (Photo by Adem ALTAN / AFP)

Türkiye’s central bank burnt through almost $12 billion defending the lira in a record intervention after President Recep Tayyip Erdogan’s detention of his political rival triggered a political crisis that scared investors and sent the currency reeling.

The bank spent $11.5 billion propping up the currency on Wednesday after the detention of Istanbul’s mayor, Ekrem Imamoglu, the most prominent leader in Türkiye’s political opposition, said a person with knowledge of the matter and calculations based on official data by Burumcekci Research and Consultancy, the Financial Times reported.

It said the intervention was nearly four times larger than any previous such move on the bank’s official records.

It came after the lira plunged as much as 11% against the US dollar to a record low on Wednesday as Erdogan’s move against Imamoglu ignited a stampede out of the Turkish markets.

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One Turkish banker told the Financial Times that the officials had “lost control” of the market early on Wednesday, adding it had “left a scar” on investors’ confidence.

JPMorgan Chase, a significant player in emerging market finance, also noted “lira liquidity was impaired amid large outflows” on Wednesday.

Analysts say the central bank likely continued intervening in the market on Thursday and Friday. Policymakers have taken other steps to soothe markets this week, including holding an emergency central bank meeting on Thursday in which a key overnight interest rate was increased in an attempt to keep local savers in lira accounts rather than switching to dollars.

The actions have eased the lira’s decline, leaving the currency down 3% for the week, though Istanbul’s Bist 100 share index tumbled almost 8 percent on Friday in its worst week since 2008.

On Sunday, Bloomberg said Turkish central bank officials held a “technical meeting” with commercial lenders to prepare for potential market volatility after a key opposition politician was formally arrested.

The meeting discussed “the latest developments in markets,” according to a statement from the Turkish Banks Association.