Font Size
Share this article

Print Friendly Version
01 March 2020

SABB seeks to boost corporate lending

Saudi British Bank (SABB), which is 29 per cent owned by HSBC, completed the acquisition of Alawwal Bank in 2019 to create the Kingdom’s third-largest lender

Bank mergers are progressing across the rest of the Middle East/Bloomberg

by Bloomberg

HSBC Holdings’ affiliate in Saudi Arabia is ready to ‘compete aggressively’ to regain market share in corporate lending following the acquisition of Alawwal Bank.

David Dew, SABB ’s Managing Director, said, “We have no appetite whatsoever to continue to lose market share, for SABB, margins as a whole have peaked for this particular interest rate cycle and are now on a downward trend.”

The lender also plans to boost mortgages this year, easing its so far conservative approach to home loans, said Dew. Mortgages in Saudi Arabia are soaring as the government seeks to grow homeownership. According to the Saudi Arabia Monetary Authority, the number of home loans in the Kingdom rose almost threefold in 2019 from a year earlier.

“We’re looking to move our risk appetite to some extent, it’s unlikely to go fully in line with where the overall market seems to be, but we do expect to see some mortgage growth in SABB in 2020,” added Dew.

The acquisition of Alawwal Bank is a rare example of consolidation in the Kingdom’s banking sector, even as bank mergers progress across the rest of the Middle East.


RELATED STORIES: HSBC Holdings Saudi British Bank Alawwal Bank





CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.

Subscribe to our News Letter


© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.