National Commercial Bank

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The National Commercial Bank
البنك الأهلي التجاري
Public
Industry Finance
Founded 26 December 1953; 64 years ago (1953-12-26)
Headquarters Jeddah, Saudi Arabia
Key people
Mansour al-Maiman (Chairman)
Faisal Omar Alsaggaf (CEO)
Products Financial Services
Total assets $119.73 billion (2015)
Website www.alahli.com.sa

The National Commercial Bank (NCB) also known as AlAhli Bank (Arabic: البنك الأهلي التجاري‎) is a Saudi Arabian bank. The institute is the second largest bank by asset in the Arab world[1] and practices Islamic banking and finance. In 2014, NCB announced to turn itself into a fully Islamic bank in the next five years.[2]

Founding and legal structure[edit]

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 founded by Abdallah Mousa Kaki . The Bank initiated business in the name of "The National Commercial Bank" following the Royal Decree on 20 Rabi Thani 1373H (26 December 1953).[3]

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 90.7% of NCB Capital, its investment arm the Premier Investment bank in the Kingdom, and owns 67.03% of Türkiye Finans Katılım Bankası (TFKB), the leading participation bank in Turkey.

Ownership and legal constitution[edit]

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).

In an extraordinary general assembly meeting held on 21 March 2014, the shareholders approved to offer 25% of the Bank's share capital (after capital increase) to the general public under the Initial Public Offering (IPO) and to a minority shareholder of the Bank. The IPO was made for 15% of the Bank's share capital and an additional 10% was allocated to the Public Pension Agency. The shares offered were part of the shareholding of a majority shareholder of the Bank. The IPO was approved by the regulatory authorities and the subscription for the IPO took place between 19 October 2014 to 2 November 2014 and the Bank's shares have been trading on Saudi Stock Exchange (Tadawul) since 12 November 2014.

Management[edit]

In May 2018, Faisal Omar Alsaggaf was appointed new CEO of National Commercial Bank. This was announced by Mansour al-Maiman, Chairman of the Board of Directors of NCB. The Board appointed Faisal as new Chief Executive Officer who would take charge on May 2018.

In May 2018, Saeed bin Muhammad Al-Ghamdi was appointed as Chairman.

References[edit]

  1. ^ "QNB, NCB top list of biggest GCC banks". ArgaamPlus. Retrieved 2016-03-08.
  2. ^ Shankar, Sneha (20 October 2014). "Saudi Arabia's Largest Bank, National Commercial Bank, To Convert To Fully Islamic Bank". International Business Times. Retrieved 24 March 2018.
  3. ^ Tschoegl, Adrian E. (2002). "Foreign banks in Saudi Arabia: a brief history" (PDF). Transnational Corporations. 2 (11): 123–154. Retrieved 22 April 2012.