JEDDAH, 2 February 2005 — The National Commercial Bank, the largest in the Kingdom in terms of capital, is expected to sell some 30 percent of its state-owned shares in the first quarter of this year, press reports said. There was no official confirmation of the reports but senior NCB officials had earlier confirmed the bank’s plan to sell part of its shares in an IPO. Talks are being held to fix a date for the public offering.
Sources are unsure how many shares NCB will sell in the IPO but they estimate that some 30 to 40 percent of state-owned PIF (Public Investment Fund) shares will be offered for sale. Some 69.3 percent of NCB shares are owned by PIF.
In May 2003, Abdul Hadi Shayif, the bank’s general manager and a member of its executive committee, disclosed the IPO plan. He pointed out, however, that it would be the owners who would make the final decision.
Abdullah Bahamdan, NCB’s chairman, announced recently that the bank had made a net profit of SR3.53 billion in 2004 which represented an increase of SR518 million compared to 2003. The bank operates 252 branches throughout the Kingdom, including 111 branches dedicated exclusively to Islamic banking services.
The number of the bank’s customers reached million clients by the end of 2003. During the same period, NCB achieved the following market share positions: 42.5 percent of investment funds, 23.2 percent of personal finance, 22.4 percent of customer deposits and 21.7 percent of total assets.
NCB was the first bank established in Saudi Arabia in 1953 under a Royal Decree issued by King Abdul Aziz which converted the partnership of Saleh & Abdul Aziz Kaki and Salem Bin Mahfouz into NCB.