National Commercial Bank
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|Founded||26 December 1953|
|Headquarters||Jeddah, Saudi Arabia|
|Key people||Mansour Saleh Al-Miman (Chairman) ; Abdulkareem Abu Alnasr (Resigned) Saeed bin Muhammad Al-Ghamdi (Announced CEO)|
The National Commercial Bank (NCB) also known as AlAhli Bank (Arabic: البنك الأهلي التجاري) is the first Saudi Arabian bank, the largest bank by asset in the Arab world and one of the pioneers in Islamic Banking and finance in the world. NCB has decided to turn itself into a fully Islamic bank in the next five years.
Founding and legal structure
The National Commercial Bank was the first Saudi bank to be licensed and the biggest in the Kingdom and a leading financial institution in the Region. The Bank initiated business in the name of ‘‘The National Commercial Bank’’ under Royal Decree on 26 December 1953.
In 1999, the Government through the Ministry of Finance's Public Investment Fund (PIF) acquired a majority holding in the Bank.
The National Commercial Bank owns 90.424% of NCB Capital, the Premier Investment bank in the Kingdom, and owns 64.68% of Turkiye Finans Katilim Bankasti (TFKB), the leading bank in Islamic Banking in Turkey.
Ownership and legal constitution
The Bank was constituted as a General Partnership from its founding in 1953 until 1 July 1997 when it was reconstituted as a Joint Stock Company.
In 1999, the government of Saudi Arabia acquired a majority holding in the Bank through the Ministry of Finance's Public Investment Fund (PIF).
With the changes in the bank's ownership in 1999, a new board of directors was formed under the chairmanship of Abdulla Salem Bahamdan who was re-elected as chairman of the board of directors for the current term. On 1 October 2005, Abdulkareem Abu Alnasr was appointed as general manager and later assumed the bank's first chief executive officer (CEO) position on 1 January 2006.
It was announced on 29 January 2013 that Saeed bin Muhammad Al Ghamdi has been appointed new CEO of National Commercial Bank after the resignation of Abdul Kareem Abu Al Nasr. This was announced by Mansour bin Saleh Al-Maiman, chairman of the board of directors of NCB.The board appointed Al Ghamdi as new chief executive officer who would take charge on 1 March 2013.
- NCB is one of the largest Bank in the Arab world, with a paid-up capital of SAR 15,000 billion (US$ 4,000 billion).
NCB performance as of year end 2012
- Total assets, SAR 345.3 billion (US$ 92.08 billion).
- Net profit, SAR 6.45 billion (US$ 1.72 billion).
- Shareholders’ equity, SAR 39.4 billion (US$10.5 billion).
- Return on equity, 17.9%
Key facts and figures
- At year-end 2010, the Bank has operated 284 branches throughout the Kingdom, dedicated exclusively to Islamic Banking services.
- At year-end 2010, the Bank’s customers had surpassed 2.3 million clients.
- At year-end 2010, the Bank employees throughout the Kingdom had reached a total manpower of 5,443 of which 89.4% are Saudis
- At year-end 2010, the Bank has operated 1626 Automated Teller Machines throughout the Kingdom.
- Over 89% of customer transactions had been successfully executed through alternative delivery channels during fiscal year 2010.
Awards received in 2010
- King Khalid Responsible Competitiveness award for the third year in a row.
- “Best Private Banking in KSA” by Euromoney.
- The Banker ranked NCB as # 1 in the Middle East & # 126 in the World according to its Tier 1 Capital.
- Deal Logic has rated NCB as number one Project Finance Bank in the Middle East; One of our deals, Riyadh IPP, is chosen by Euromoney as Middle East’s Power Deal of the Year for 2010.
- NCB Capital, the investment arm of NCB, was named Best Asset Manager Award by CPI Financial, publisher of Islamic Business & Finance magazine
- Best Asset Manager Award by Central Bank of Bahrain to NCB Capital.
- Best Research Company in the Middle East Award by Euromoney to NCB Capital.
- Türkiye Finans Katılım Bankası, of which NCB holds 64.68% of shares, was named best Islamic Financial Institution in Turkey by Islamic Finance.
- The National Commercial Bank Chief Executive Officer, Abdulkareem Abu Alnasr, was named Islamic Banker of the Year 2010 by the World Islamic Banking Conference "WIBC", a select group of fellow executive leaders drawn from the Islamic Banking and Finance Industry.
- "Saudi Arabia's Largest Bank To Become Fully Sharia-Compliant". Retrieved 20 October 2014.
- Tschoegl, Adrian E. (2002). "Foreign banks in Saudi Arabia: a brief history". Transnational Corporations 2 (11): 123–154. Retrieved 22 April 2012.
- "NCB Annual Report 2011". Retrieved 24 June 2012.
- "Press Release - Annual Performance for 2012". Retrieved 5 February 2013.