Established in 1979, the bank commenced commercial operations in February 1980 with one branch in Jeddah, having acquired the local operations of Arab Bank plc. headquartered in Amman, Jordan. The ownership structure remains at 60 percent Saudi, and 40 percent for Arab Bank.
The bank started operations with a capital of SR 150 million and only 9 branches. Customer deposits then stood at SR 2.349 billion, total assets SR 3.281 billion and a net income for the fiscal year ended 1980 of SR 148 million.
Over the years, the bank has delivered strong growth and performance. Net income for the fiscal year 2012 was SR 2.371 billion, customer deposits SR 107.560 billion and total assets SR 136.639 billion.
Today, the bank owns a vast distribution network covering 279 locations spanning all corners of the Kingdom to serve a clientele of more than 2 million customers. The branch network comprises 191 branches, including 45 ladies' branches/sections, 142 branches offering Shariah-compliant products exclusively, and 88 remittance centers (TeleMoney). To cater to needs of the bank's customers in the UK, the bank operates a branch based in London.
In an interview with Asharq Al-Awsat newspaper, a sister publication of Arab News, ANB's Managing Director Robert Eid, shed some light on some of the bank's recent achievements.
Following are the excerpts from the interview:
Arab National Bank recently led a syndication to extend a facility line of SR 2.25 billion to Zain. What was your role?
The bank took on the multiple roles of manager, lead arranger, book runner and agent. Drawing on its track record of performing pivotal roles in a number of major projects and structured financing deals in the local market, the bank remains a preferred partner when it comes to supporting financing needs of corporations and investors.
Some observers believe the extension of such a "life line" to Zain, which is already burdened with financial liabilities, could pose high risks. What guarantees have you secured to back the facility?
With an innovative finance structure, backed by the parent company’s (Zain-Kuwait) unconditional and irrevocable support, the deal saw good response from banks. As a result, Zain has become a major player in Saudi Arabia's telecom sector, which is dynamic and fast growing.
The bank announced the launch of a cooperative insurance company in partnership with Metlife ALICO and AIG. What success chances does the new company have bearing in mind the number of existing insurance companies in the Saudi market?
We opted to team up with Metlife ALICO and AIG for their industrial leading global expertise as well as their deep and longstanding local experience and the opportunity to draw on the founding partner’s work teams currently deployed in Saudi Arabia. This will give us a competitive edge. Our vision is to be a leading cooperative insurance company in the Saudi market. Generally speaking, insurance is a fast growing sector and Saudi Arabia's insurance market is emerging with a promising outlook for the long term. This is due to multiple factors, particularly the robust and solid Saudi economy.
What products will the company focus on and what business strategy did it adopt?
The company will conduct all types of cooperative insurance business. The product offering will comprise general insurance, protection and savings insurance and health insurance. The strategy focuses on offering a package of insurance products and services, which will cater to needs of various customer segments. The company will also focus on bancassurance opportunities to be provided through a comprehensive and exclusive bancassurance products distribution agreement between the company and Arab National Bank. The agreement draws on the bank's extensive branch network for product distribution.
The bank recently launched a co-branded credit card with Ferrari. What can you tell the readers about the card?
We entered into a long-term partnership with Ferrari whereby the bank will launch a unique credit card with a suite of preferred and exclusive benefits to the card holders. The card will appeal to a large segment of Ferrari fans and brand advocates in the Kingdom. We pride ourselves on being the first Saudi bank to launch such a card on an exclusive basis. In teaming up with Ferrari, the most reputable brand in the world for 2013, this innovative product exemplifies the modern and exclusive life style of the many Saudi customers. By launching this leading edge product to the Saudi credit card market, we aim to enhance the bank's standing further through catering to the needs and expectations of the Kingdom’s diverse customer base.
Standard & Poor's an-nounced an upward revision of its outlook to Arab National Bank from Stable to Positive, confirming its bank rating at A/A-1. Can you comment on this development?
The rating is a reflection of bank's high quality asset and investment portfolios, and satisfactory indicators in terms of solvency and capital adequacy. This reflects the bank's solid financial position, strong market presence, the confidence of regional and international financial institutions. Effective risk management and adherence to our strategic vision has laid down foundations for building the future bank, and to meet the ever growing expectations of our customers and shareholders. In part, the rating reflects the robust and solid fundamentals of the Saudi economy. Against this backdrop, ANB is determined to continue to deliver quality performance as a means to achieve balanced growth, driven by a conservative credit policy.
