National Commercial Bank

For other uses, see National Commercial Bank Limited.

The National Commercial Bank
البنك الأهلي التجاري

National Commercial Bank
Type	Public
Industry	Finance
Founded	26 December 1953 (1953-12-26)
Headquarters	Jeddah, Saudi Arabia
Key people	Mansour Saleh Al-Miman (Chairman) Saeed bin Muhammad Al-Ghamdi (CEO)
Products	Financial Services
Total assets	$115.9 billion (2015)
Website	www.alahli.com.sa

The National Commercial Bank (NCB) also known as AlAhli Bank (Arabic: البنك الأهلي التجاري‎‎) is the first Saudi Arabian bank, the second largest bank by asset in the Arab world and one of the pioneers in Islamic banking and finance in the world. NCB has decided to turn itself into a fully Islamic bank in the next five years.

Founding and legal structure

The National Commercial Bank was the first Saudi bank to be licensed and the biggest in the Kingdom and a leading financial institution in the Region. The Bank initiated business in the name of ‘‘The National Commercial Bank’’ following the Royal Decree on 20 Rabi Thani 1373H (26 December 1953).

In 1999, the Government through the Ministry of Finance's Public Investment Fund (PIF) acquired a majority holding in the Bank.

The National Commercial Bank owns 90.71% of NCB Capital, its investment arm the Premier Investment bank in the Kingdom, and owns 67.03% of Türkiye Finans Katılım Bankası (TFKB), the leading participation bank in Turkey.

Ownership and legal constitution

The Bank was constituted as a General Partnership from its founding in 1953 until 1 July 1997 when it was reconstituted as a Joint Stock Company.

In 1999, the government of Saudi Arabia acquired a majority holding in the Bank through the Ministry of Finance's Public Investment Fund (PIF).

Management

With the changes in the bank's ownership in 1999, a new board of directors was formed under the chairmanship of Abdulla Salem Bahamdan who was re-elected as chairman of the board of directors for the current term. On 1 October 2005, Abdulkareem Abu Alnasr was appointed as general manager and later assumed the bank's first chief executive officer (CEO) position on 1 January 2006.

It was announced on 29 January 2013 that Saeed bin Muhammad Al Ghamdi has been appointed new CEO of National Commercial Bank after the resignation of Abdul Kareem Abu Al Nasr. This was announced by Mansour bin Saleh Al-Maiman, chairman of the board of directors of NCB.The board appointed Al Ghamdi as new chief executive officer who would take charge on 1 March 2013.

Financial indicators

• NCB is one of the largest Bank in the Arab world. The Bank’s paid-up capital is SR 20,000 million (US$ 5,333 million).
• Total assets at year-end 2014 totaled SR 434,878 million (US$ 115,967 million).
• Net profit for year 2014 totaled SR 8,655 million (US$ 2,308 million).
• Shareholders’ equity at year-end 2014 totaled SR 45,214 million (US$12,057 million).
• Return on average Shareholder’s equity for fiscal year 2014 amounted to 20.1%
• Earning per share for year 2014 amounted to SR 4.34 (US$1.16)

Key facts and figures

• At year-end 2014, the Bank operated 342 branches throughout the Kingdom, dedicated exclusively to Islamic Banking services.
• At year-end 2014, the Bank’s customers surpassed more than 4 million clients.
• At year-end 2014, the Bank employees throughout the Kingdom reached a total manpower of 7,515, 94.5% of which are Saudis.
• At year-end 2014, the Bank has operated 2,643 Automated Teller Machines throughout the Kingdom.
• Over 91% of customer transactions had been successfully executed through alternative delivery channels during year 2014.

Awards received in 2014

• Best Private Bank High Net Worth II Clients (US$10 million to US$30 million) in Saudi Arabia, by Euromoney for 2014.
• Islamic Bank of the Year - Saudi Arabia for 2014, by The Banker Magazine.
• Best Cash Management, by the Banker Middle East Product Awards KSA 2014.
• Best Customer Service – Retail, by the Banker Middle East Product Awards KSA 2014.
• Best Bank in Saudi Arabia, by the CPI Financial.
• Best Bank in the Middle East, by the CPI Financial during the Banker Middle East 2014 Awards.
• Best Domestic Cash Management Bank award in KSA 2014, by the Asian Banker.
• The largest recruiter, by the Institute of Public Administration.

Awards received in 2013

• The Banking & Finance Customer Care Excellence Award from Middle East Excellence Awards Institute
• Saudi CSR Award for Companies from Jeddah Chamber of Commerce
• Best Local Bank from EMEA Finance
• Best Islamic Bank, Saudi Arabia from the Asset Triple A Islamic Finance Awards 2013
• Best Highly commended Islamic Loan Syndication from the Asset Triple A Islamic Finance Awards 2013
• The Banker "Islamic Bank of the Year - Saudi Arabia" country award for 2013
• Tatweej-Islamic Award 2013 “Arab Business & Finance Leaders & Leading Islamic Banks
• Best institution employs graduates from the Institute of Public Administration.
• Euromoney Deal of the Year Awards for Madinah Airport on 27 Feb in Dubai
• Euromoney Best Islamic Project Finance Deal - Madinah Airport Expansion PPP in London
• Best management for loyalty program from MasterCard.
• The Banker Deal of the Year – Middle East which is SHARED by other banks for Zain KSA SAR6bn rights issue, Saudi Arabia
• The Banker Deal of the Year – Middle East which is SHARED by other banks for $1.9bn Jubail Acrylates Complex project, Saudi Arabia
• Environmental Management System Certification (ISO 14001) from British Standard Institute
• International Certification “ISO-22301” for Business Continuity Management
• Strongest Bank Balance Sheet in Saudi Arabia & Middle East for 2013 by The Asian Banker
• Top 100 Arab Bank Rankings by The Banker
• Top 100 Global Companies from World Finance
• Rank as #1 in ME and #115 in the World according to TIER 1 Capital by Top 1000 World Bank Rankings The Banker