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NCB, Samba Shareholders Approve Merger to Create Saudi Arabia’s No.1 Bank

The merged entity will be called Saudi National Bank (SNB) and operations under the new name and structure are planned to start on April 1, Reuters
The merged entity will be called Saudi National Bank (SNB) and operations under the new name and structure are planned to start on April 1, Reuters
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NCB, Samba Shareholders Approve Merger to Create Saudi Arabia’s No.1 Bank

The merged entity will be called Saudi National Bank (SNB) and operations under the new name and structure are planned to start on April 1, Reuters
The merged entity will be called Saudi National Bank (SNB) and operations under the new name and structure are planned to start on April 1, Reuters

Saudi Arabia’s National Commercial Bank (NCB) and Samba Financial Group (Samba) announced on Tuesday that their shareholders have approved the historic merger to create a new Saudi banking champion and a regional powerhouse.

The merged entity will be called Saudi National Bank (SNB) and operations under the new name and structure are planned to start on April 1.

At separate Extraordinary General Assembly meetings, held on March 1, shareholders of NCB and Samba voted overwhelmingly in favor of the merger. This follows earlier receipt of all regulatory approvals, including from the Saudi Central Bank (SAMA), General Authority for Competition (GAC), Capital Markets Authority (CMA), and Tadawul.

The merger will create a pre-eminent financial institution with significant value creation potential for shareholders, customers and employees, structured to finance economic development, support Vision 2030 and facilitate trade and capital flows with the region and the rest of the world.

SNB will be the kingdom’s No. 1 bank with a 30% market share.

“I want to express my sincere gratitude to the NCB shareholders for their tremendous support. The result of the vote at the EGA speaks volumes of how attractive the value proposition for this merger is. Saudi National Bank will deliver value not just for our esteemed shareholders, customers, and employees, but for the nation as a whole,” said NCB Chairman Saeed Al-Ghamdi.

“We will be uniquely positioned to transform the Saudi banking sector and propel the Kingdom closer to its Vision 2030 goals and I am very grateful for the opportunity to serve the people of Saudi Arabia alongside my colleagues and create a bank that delivers value for all stakeholders,” he added.

“This vote of confidence for the merger confirms the compelling commercial and strategic rationale of the deal and I want to thank the Samba shareholders for their support. This is a historic milestone for the Saudi banking sector, which will now have a powerhouse that is truly ‘a bank for all’,” noted Samba Chairman Ammar Alkhudairy.

“Saudi National Bank will unlock significant opportunities as a larger and exceptionally well-capitalized bank. I truly look forward to the journey ahead as we prepare to launch Saudi National Bank,” he added.

SNB will benefit from a strengthened competitive position as a superior retail banking franchise and the largest wholesale lender in the Kingdom. With a robust capital base and balance sheet, a balanced universal banking model, and improved liquidity, SNB will be optimally positioned to compete regionally and locally.

It will also benefit from an experienced leadership team that will drive the realization of the bank’s strategic objectives.

SNB’s new management structure includes Chairman Alkhudairy and Managing Director and Group CEO Al-Ghamdi.

In preparation for the proposed merger, NCB received approval from the CMA to increase its capital from SR30.00 billion to SR44.78 billion in order to issue new shares in NCB to Samba shareholders with a share swap ratio of 0.739 NCB ordinary shares for each Samba ordinary share, upon closing of the transaction.

Samba shares will be de-listed from the Saudi Stock Exchange (Tadawul) on the effective date of the merger, and the company dissolved with all its assets, liabilities and operations transferring into SNB.

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Business

Dollar Ticks Lower as Bond Markets Stabilize, US Jobs Data Looms

US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo
US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo
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Dollar Ticks Lower as Bond Markets Stabilize, US Jobs Data Looms

US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo
US one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo

The dollar declined against major peers on Friday, trimming gains made this week as bond markets stabilised and traders awaited key US jobs data expected to firm up the case for an interest rate cut by the Federal Reserve.

Data on Thursday showing higher-than-expected applications for jobless benefits in the US served as a prelude to the more critical nonfarm payrolls report. Bonds rallied in the US, Europe and Japan after fiscal concerns spurred a run-up in long-term yields, while the S&P 500 hit a new all-time high.

"It seems to me that the reaction to the ADP yesterday was a bit too muted," said Francesco Pesole, FX strategist at ING.

"All in all, it is pointing to a probably weak payroll figure today. I was a little surprised to see the dollar holding up yesterday."

He said dollar weakness in early European trading on Friday could be indicative of traders offloading the greenback ahead of the US job figures at 8:30 a.m. ET (1230 GMT).

On Friday, the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, dipped 0.2% to 98.018, trimming its gain for the week to 0.2%, Reuters reported.

The dollar dropped 0.2% to 148.14 yen. The euro was up 0.3% on the day at $1.16845.

In the UK, sterling was last up 0.3% at $1.34720, while versus the euro, the pound was unchanged at 86.70 pence.

The pound held steady after Friday's news that British Deputy Prime Minister Angela Rayner resigned after admitting to underpaying property tax on a new home, in a fresh blow for her boss, Prime Minister Keir Starmer.

British finance minister Rachel Reeves will stay in her role despite an expected wider government reshuffle, BBC News reported on Friday following Rayner's resignation.

Earlier, UK retail sales data for July came in hot but also failed to move the dial on sterling.

Focus remains on the dollar and the Fed's likely trajectory on interest rates. US President Donald Trump's meddling with Fed policy and his unpredictable tariff regime has made investors shy about holding dollar assets of late, said Bart Wakabayashi, the Tokyo Branch Manager of State Street.

"The dollar remains very, very underweight," Wakabayashi said. "I do think there is room for the dollar buying to come back at some point. Maybe investors are just waiting for the rate cut to happen and then pile back in."

Several Fed officials said labour market worries continue to support their calls for rate cuts, boosting expectations of an imminent easing. The Fed is due to convene on September 16-17.

The Labor Department's Bureau of Labor Statistics (BLS) will report US nonfarm payrolls for August, with economists surveyed by Reuters expecting an increase of 75,000 jobs after a gain of 73,000 in July.

That follows figures on Thursday showing that US private payrolls rose by less than expected in August and jobless claims in the final week of the month were higher than predicted.

"The risk is still tilted to payrolls underperforming US economists' expectations that will weigh on the USD tonight," Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, wrote in a note.

Traders are pricing in a near-100% chance of the Fed cutting interest rates later this month, up from 87% a week ago, CME FedWatch showed.

Michael Brown, senior research strategist at Pepperstone, said that Friday's jobs report doesn't really matter in the grand scheme of things.

"The Fed will be delivering a 25-bp cut at the September meeting. A hot report shan't dissuade them from doing so, given the broader trend of softening jobs data. A cool report shan't convince them to plump for a larger rate reduction, given lingering upside inflation risks," he wrote in a note.

Trump signed an order on Thursday to implement lower tariffs on Japanese automobile imports and other products that were announced in July. Japan also confirmed its commitment to an annual $7 billion worth of energy purchases from the US, a joint statement from the countries showed.

The Australian dollar rose 0.4% to $0.6544. The New Zealand dollar rose 0.6% to $0.58785.

Business

Gold Poised for Best Week in Three Months; US Jobs Data on Tap

A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
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Gold Poised for Best Week in Three Months; US Jobs Data on Tap

A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
A goldsmith weighs gold jewellery inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo

Gold rose on Friday and headed for its best week in three months, supported by growing expectations of a Federal Reserve rate cut this month, as attention turns to the US non-farm payrolls data due later in the day.

Spot gold was up 0.4% at $3,557.99 per ounce, as of 0500 GMT, hovering near an all-time high of $3,578.50 touched on Wednesday. Bullion has risen 3.2% so far this week.

US gold futures for December delivery gained 0.3% to $3,616.70.

"Gold is creeping higher today, with traders not willing to try and push the price too much higher until we see the non-farm payrolls print," KCM Trade Chief Market Analyst Tim Waterer said.

"Market dynamics remain in favor of gold with rate cuts likely on the way, Trump's attempts to shape the Fed into a more dovish body, and the Russia-Ukraine conflict not slowing down."

The number of Americans filing new applications for jobless benefits increased more than expected last week, consistent with softening labor market conditions.

Furthermore, the ADP National Employment Report showed US private payrolls increased less than expected in August.

Several Fed officials this week said labor market concerns continue to animate their belief that rate cuts lie ahead. Fed Governor Christopher Waller said he thinks the US central bank should be cutting at its next meeting, according to Reuters.

Traders are currently pricing in a near 100% chance of a 25-basis-point rate cut at the end of the two-day Fed policy meeting on September 17, according to CME Group's FedWatch tool.

Non-yielding gold typically performs well in a low-interest-rate environment.

Focus will also be on the US non-farm payrolls data, due at 1230 GMT, that could offer more clarity on the Fed's interest rate trajectory.

Elsewhere, spot silver rose 0.5% to $40.85 per ounce and was heading for its third straight weekly gain. Platinum gained 1.1% to $1,382.33 and palladium was flat at $1,127.01.

Business

Oil Heads for Weekly Loss as Higher Supply Expected

Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo
Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo
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Oil Heads for Weekly Loss as Higher Supply Expected

Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo
Cuba-flagged oil tanker Vilma carrying about 400,000 barrels of oil leaves Mexico’s Pajarito’s port on its way to Cuba, in Pajaritos, Mexico October 26, 2024. REUTERS/Angel Hernandez/File Photo

Oil extended its decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as expectations grow of higher supply and a surprise increase in US crude inventories added to demand concerns.

Reuters reported on Wednesday that eight members of OPEC+ will consider raising production further at a meeting on Sunday. US crude inventories rose 2.4 million barrels last week, rather than falling as analysts expected.

Brent crude futures fell 35 cents, or 0.5%, to $66.64 a barrel by 0810 GMT, while US West Texas Intermediate crude dropped 33 cents, or 0.5%, to $63.15.

"There are increasing stories and signs of a future where feedstock supply is unlikely to be a problem," said John Evans at oil broker PVM.

For the week, Brent is down 2.2% and WTI down 1.3%.

Expectations are growing that the Organization of the Petroleum Exporting Countries and allies like Russia - known together as OPEC+ - will push more barrels into the market to regain market share at Sunday's meeting.

Another boost would mean that OPEC+, which pumps about half of the world's oil, would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule.

Strength in the downstream sector has been a key support for prices, BMI analysts said in a report, but refining margins will likely be squeezed in coming months as global demand growth wanes and refiners ramp up maintenance.

Supply risks continue to support the market, however. US President Donald Trump told European leaders on Thursday that Europe must stop buying Russian oil, a White House official said.

Any cuts to Russia's crude exports or other disruption to supplies could push global oil prices higher.