The National Commercial Bank (NCB) also known as AlAhli Bank (Arabic: البنك الأهلي التجاري‎‎) is the first Saudi Arabian bank, the second 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’’ following the Royal Decree on 20 Rabi Thani 1373H (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 90.7% 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
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
In 29 January 2013 Saeed bin Muhammad Al Ghamdi was appointed new CEO of National Commercial Bank. 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.
Financial Indicators
- NCB is one of the largest Bank in the Arab world. The Bank’s paid-up capital is SR 20,000 million (US$ 5,333 million).
- Total assets at year-end 2015 totaled SR 449 billion (US$ 120 billion).
- Net profit for year 2015 totaled SR 9.1 billion (US$ 2.42 billion).
- Shareholders’ equity at year-end 2015 totaled SR 48.5 billion (US$ 12.93 billion).
- Return on average Shareholder’s equity for fiscal year 2015 was 19.24%, the highest in 2015 for Saudi banks.
- Earning per share for year 2015 amounted to SR 4.56 (US$ 1.21)
Awards
Every year, NCB receives numerous prestigious awards and titles from regional and international media, industry bodies, and banking institutions, in recognition of its efforts and achievements in various fields of banking and financial services.
2016
- Best Bank in Saudi Arabia, by Euromoney Awards for Excellence 2016
- Best Bank in Saudi Arabia, by The Banker Middle East Industry Awards 2016
- Number One Rank in Saudi Arabia (Tier-1), by The Banker/FT's Top-1000 World Banks Ranking 2016
- Number 87 (from 115th in 2014) Rank in the World (Tier-1) by The Banker/FT's Top-1000 World Banks Ranking 2016
- Best Corporate/Institutional Digital Bank in Saudi Arabia, by Global Finance Best Digital Banks Awards 2016
- Best Integrated Corporate Banking Site in the MEA Region, by Global Finance Best Digital Banks Awards 2016
- Best Real-Estate Finance in Saudi Arabia, by The Banker Middle East Industry Awards 2016
- Best Premium Banking Service in Saudi Arabia, by The Banker Middle East Products Awards 2016
- Best Treasury Management in Saudi Arabia, by The Banker Middle East Products Awards 2016
- Best SME Loan in Saudi Arabia, by The Banker Middle East Products Awards 2016
- Best Private Banking Services Overall, by Euromoney Annual Private Banking & Wealth Management Survey 2016
- Elite Quality Recognition Award, by J.P. Morgan Chase
- Best STP Rates in U.S. Dollars, by J.P. Morgan Chase
- Best Residential Finance Award in Saudi Arabia 2015 â€" Individuals, by “Jeddah & Riyadh Real Estate and Housing Exhibitions†at Restatex Jeddah & Restatex Riyadh 2016
2015
- Best IPO in the Middle East, by EMEA Finance 2015
- Best Bank in Saudi Arabia, by Euromoney Awards for Excellence 2015
- Best Commercial Bank in Saudi Arabia, by The Banker Middle East Industry Awards 2015
- Best Islamic Bank in Saudi Arabia, by Islamic Finance News Awards 2015
- Syndicated Deal of the Year, by Islamic Finance News Awards 2015
- Best Private Banking Services Overall in Saudi Arabia, by Annual Euromoney Private Banking and Wealth Management Survey 2015
- Best Private Bank UHNW Clients (Greater than $30 million) in Saudi Arabia, by Annual Euromoney Private Banking and Wealth Management Survey 2015
- Best Private Bank HNW Clients ($5 million to $30 million) in Saudi Arabia, by Annual Euromoney Private Banking and Wealth Management Survey 2015
- Commercial Banking Capabilities, by Annual Euromoney Private Banking and Wealth Management Survey 2015
- Succession Planning Advice and Trusts, by Annual Euromoney Private Banking and Wealth Management Survey 2015
- Best Islamic Private Bank Award, by Global Finance Islamic Financial Institutions Awards 2015
- Best Islamic Project Finance House, by Global Finance Islamic Financial Institutions Awards 2015