Bank mergers are progressing across the rest of the Middle East/Bloomberg
by BloombergHSBC 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.
MOST READ
INVESTMENT
India seizes Yes Bank, limits withdrawalsINVESTMENT
ING Groep plans to sell its Turkish unitINVESTMENT
UBS launches new private client programINVESTMENT
Egypt plans to resume IPOs of parastatalsINVESTMENT
HSBC considering exiting from TurkeyINVESTMENT
Abu Dhabi’s Group 42 acquires BayanatINVESTMENT
Amanat considers stake in VPS HealthcareINVESTMENT
Goldman Sachs 1MDB case moved to higher courtINVESTMENT
Mashreq, Zoho partner to enhance SME bankingINVESTMENT
AA- ratings affirmed for ECI, stable outlookINVESTMENT
KIZAD, ECI partner to support UAE businessesINVESTMENT
Fiat Chrysler, PSA explore a potential mergerINVESTMENT
UBS investment bank job cuts reach EuropeINVESTMENT
Saudi Aramco plans to complete IPO this year
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.
Loading More post
