Alawwal Bank

The Alawwal Bank (Arabic: البنك الأول‎), previously known as Saudi Hollandi Bank, is a Saudi Arabian bank based in Riyadh, Saudi Arabia. It was the first operating bank in the Kingdom of Saudi Arabia and was founded in 1926 as a branch of the Netherlands Trading Society.

Alawwal Bank
Native name
البنك الأول
Formerly
Saudi Hollandi Bank
Public
Traded asTadawul: 1040
IndustryFinance
Founded1926 (1926) in Jeddah (as The Netherlands Trading Society)
HeadquartersRiyadh, Saudi Arabia
Key people
  • Lubna Olayan (Chairman)
  • Khalid Bin Abdullah Al-Mulhem (Vice Chairman)
  • David Dew (Managing Director)
ProductsCorporate and institutional banking, SME banking, retail banking, investment banking, brokerage, asset management, insurance services
Total assets$28 billion (May 2017)
Number of employees
2600 (2017)
Websitewww.alawwalbank.com
Footnotes / references
[1][2][3]

History

It began as a branch of the Netherlands Trading Society in 1926 to serve the Hajj pilgrims from the Dutch East Indies, now Indonesia, and operated out of one office in Jeddah. As it was the only bank in the Kingdom at the time, it acted as the central bank, keeping the Kingdom's gold reserves and receiving oil revenues on behalf of the Saudi Arabian government. In 1928 the Saudi Riyal, a new silver coin commissioned by Late King Abdulaziz, became the Kingdom's first independent currency. The Netherlands Trading Society office in Jeddah assisted the government with the launch of the local currency.

In 1954 the Netherlands Trading Society expanded its operations in the Kingdom by opening two additional branches, in Khobar and Dammam, in the Eastern Province.

In 1969, ABN Bank, the successor of the Netherlands Trading Society, was one of the first foreign banks to implement the Saudization initiatives set forth by the Saudi Arabian Monetary Agency (SAMA) and became the model for other foreign banks in the Kingdom. In 1977 the Saudi Hollandi Bank was established as a joint-venture company with a paid-up capital of SAR 35 million.

The branch network was expanded to include Riyadh, Jubail, Makkah, Hofuf, Madinah, Qatif and other regions.

In 2009, the bank opened its new operations center Al Waha, which houses the bank's centralised operations functions as well as the SHB Academy. Also in 2009, SHB was the first bank in the Kingdom to deploy the automated Teller Cash Recycling machines (TCR), which was introduced to enhance the Open Branch concept that allows direct contact between the bank's employees and its customers.

At the end of June 2010, the bank's paid-up capital amounted to SAR 3,307 million. Saudi Hollandi Bank employs 1,417 staff with a Saudization ratio of over 87.44% and operates 43 branches, 15 Ladies Sections, 30 Preferred Banking Centres and 246 ATMs providing banking services throughout the Kingdom.

In June 2011, Saudi Hollandi Bank Launched The First MasterCard World Credit Card With A Silver Mark in the Middle East.[4]

In November 2016, Saudi Hollandi Bank changed its name to Alawwal Bank as part of a new corporate identity that will be rolled out over the next three months, according to a statement. Alawwal, meaning “The First” in Arabic, which refers to the bank’s status as the first bank to launch in the country in 1926.[5][6]

Operations

SHB is organized into three main business segments: Corporate Banking, Personal Banking and Treasury. In addition, the Bank provides brokerage, asset management and investment banking services through its subsidiary Saudi Hollandi Capital.

Principal divisions and subsidiaries
  • Saudi Hollandi Capital: engages as principle and agent in retail equity brokerage, asset management, corporate finance and investment advisory activity, debt arrangement and securities custody services
  • Wataniya Insurance Company: with 20% ownership for Saudi Hollandi Bank
  • Saudi Hollandi Insurance Agency Company: entirely owned as its bancassurance distribution arm with licensed in insurance activities.
  • Saudi Hollandi Real Estate Company: entirely owned in support of SHB’s Home Finance by being involved in the registration of real estate title deeds

Branches and ATMs

Saudi Hollandi Bank has over 265 ATMs, 6 Business Banking Centres, 30 Preferred Banking Centres and 45 branches across the kingdom, in which 16 are women-only sections. Amongst Saudi Hollandi’s ATMs are Teller Cash Recycling machines (TCR). Preferred Banking Centers are for Saudi Hollandi’s VIP clients.

Merger with Saudi British Bank

On 4 October 2018 Arab News reported that the Alawwal Bank and the Saudi British Bank (SABB) are about to become one with a merger proposal from both sides in order to create Saudi Arabia's third largest bank.[7] On 16 June 2019, the merger was legally completed.[8][9][10]

The integration will completely took place in about 18 months[11], which will result in retention of the brand name "Saudi British Bank" only.[12]

gollark: Plus ISA extensions.
gollark: Plus more cores at the same price point.
gollark: So, er, 2.25x as a lower bound
gollark: I'd expect at least 1.5x IPC and 1.5x clock.
gollark: How... how can you do anything at all?

References
  1. "Alawwal Bank". Forbes. Retrieved 5 April 2020.
  2. "Alawwal Bank (merged)". Zawya. Retrieved 5 April 2020.
  3. "Alawwal Bank". Bloomberg. Retrieved 5 April 2020.
  4. "Saudi Hollandi Bank Launches The First MasterCard World Credit Card With A Silver Mark in the Middle East". Zawya. 2011. Retrieved 25 August 2011.
  5. "Saudi Hollandi Bank changes name to "Alawwal Bank"". Reuters. November 24, 2016. Retrieved 4 April 2020.
  6. "Saudi Hollandi changes name to 'Alawwal Bank'". Arab News. November 27, 2016. Retrieved 4 April 2020.
  7. "Lubna Al-Olayan to chair merged SABB and Alawwal bank". Arab News. 2018-10-04. Retrieved 2018-10-04.
  8. "Important update on our merger with SABB". Alawwal Bank. March 29, 2020. Retrieved 5 April 2020.
  9. "SABB, Alawwal Complete Merger Creating Third-Largest Saudi Bank". Asharq Al-Awsat. June 17, 2019. Retrieved 5 April 2020.
  10. "Sabb completes merger with Alawwal Bank creating third-largest Saudi lender". The National. June 16, 2019. Retrieved 5 April 2020.
  11. "SABB, Alawwal Complete Merger Creating Third-Largest Saudi Bank". Asharq AL-awsat. Retrieved 2020-07-17.
  12. "Sabb completes merger with Alawwal Bank creating third-largest Saudi lender". The National. Retrieved 2020-07-17.

See also
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