Samba Financial gains approval for DIFC branch

The lender gained approval to offer 'selected financial services to professional clients and market counterparties' from the financial free zone

Samba Financial has had a licence from the Central Bank of the UAE to operate since 2008 but can now also offer services from the emirate's financial free zone after gaining approval from the Dubai FiShow more

Samba Financial Group, the Saudi Arabian bank that is currently in $15.6bn merger talks with compatriot National Commercial Bank, has received a licence to operate in the Dubai International Financial Centre.

The lender said it had gained approval from the Dubai Financial Services Authority, the regulator that oversees Dubai's financial free zone, to operate as an authorised firm and to "offer selected financial services to professional clients and market counterparties".

"The setting up of Samba Financial Group (DIFC Branch) is part of Samba’s overall growth plans. Samba has been present in the UAE since 2008 through its branch operations licensed by the UAE Central Bank and a branch in DIFC is expected to further strengthen Samba’s UAE franchise and also serve as a base for clients in the region," the lender said in a statement to the Tadawul stock exchange, where its shares trade.

Samba Financial last week declared a 2 per cent increase in second quarter net profit to 955 million Saudi riyals (Dh935m) despite a 13 per cent fall in revenue to 1.82bn riyals due to gains in the value of some of its debt holdings, higher fee and commission income and an increase in foreign exchange income.

For the first six months of the year, the lender reported an 11 per cent increase in net profit to 2.2bn riyals, despite a 6 per cent fall in revenue to 3.97bn riyals.

The merger talks announced by NCB and Samba Financial in June will, if successful, create one of the biggest banks in the Arab world, with a combined asset base of about $223bn (Dh819bn) as at June 30.

Under the terms of the deal, NCB would be the merging bank and Samba Financial Group the merged bank.

Both banks have government entities as significant shareholders. Saudi Arabia's sovereign wealth fund, the Public Investment Fund, holds a 44.29 per cent stake in NCB, and a 22.91 per cent share of Samba Financial Group, according to stock market data. The Public Pension Agency also owns 5.36 per cent of NCB and 11.54 per cent of Samba, while the General Organisation for Social Insurance has a 5.18 per cent stake in NCB and 7.09 per cent of Samba.