SABB sells certain business lines from HSBC Saudi Arabia to Alawwal for SAR 1.20bn

SABB sells certain business lines from HSBC Saudi Arabia to Alawwal for SAR 1.20bn

Riyadh – Mubasher: Saudi British Bank (SABB) announced the completion of the sale and purchase of certain business lines from its subsidiary HSBC Saudi Arabia to Alawwal Invest Company, in which SABB owns a 100% stake.

The value of the transaction is SAR 1.20 billion and is subject to post-completion adjustments as per the agreement between the buyer and the seller, according to a bourse filing on Sunday.

On 18 May 2022, HSBC Saudi Arabia entered into a SAR 766.49 million sale and purchase agreement with Alawwal, under which Alawwal will buy the business lines of asset management, retail margin lending, and retail brokerage.

HSBC Saudi Arabia will become “a smaller, less complex business, and simpler to manage,” following the transaction, SABB said. Meanwhile, Alawwal will focus solely on asset management and servicing retail clients across margin lending and brokerage solutions.

It is worth noting that during the first half (H1) of 2022, SABB registered net profits worth SAR 2.08 billion, an annual increase of 10.43% from SAR 1.88 billion.

Earnings per share (EPS) stood at SAR 1.02 in H1-22, compared to SAR 0.92 in H1-21.