After finalizing SNB, Samba merger, new entity cuts 1225 employees

The new entity, resulted from Saudi National Bank (SNB) merger with Samba Financial Group, cut 1225 employees to 16,113 employees from 17,338 employees before finalizing the merger.

According to data collected by Maaal, total salaries of the new entity’s employees dropped by SR 1044 million to SAR 4.2 billion from total SAR 5.245 billion of salaries paid to employees of both SNB and Samba last year.

Based on official data collected from Saudi Central Bank (SAMA), SNB’s branch number before merger was 430 as of March 31^st 2021, while Samba’s branch number was 72. The branch number of the new entity (legally named as Saudi National Bank) was 506 branches as of December 31^st 2021 from 502 before the merger.

Furthermore, Saudi National Bank’s senior officials cut to 23 from 48 before the merger. Also, number of risk-related employees dropped to 587, while number of supervisory officers cut to 857.

Earlier this month, Saudi National Bank reported a net profit of SR 12.7 billion for 2021, a rise of 10.7% from SR 11.4 billion in the year-ago period. The bank said that after finalizing the merger with Samba on April 1st 2021, it recorded 10.7% higher net income due to an increase in operating income which was partially offset by higher operating expenses, including net impairment charge for expected credit losses.

Total operating income hiked by 32.6% due to higher net special commission income, investment income, fee income from banking services, and foreign exchange income which was partially offset by higher other operating expenses. Total operating expenses, including impairments, rose by 63.2% due to higher net impairment charge for expected credit losses pertaining to the day 1 of the merger as per IFRS requirements; other general and administrative expenses; salaries and employee expenses; depreciation/amortization of property, equipment & software; right of use assets; amortization of intangible assets; and higher rent and premises expenses.