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JAKARTA, May 17 (Reuters) - Saudi Arabia's largest lender by assets, National Commercial Bank (NCB)
The move could break the mould of the kingdom's banking sector, which hosts a range of large and well-capitalised financial institutions but which have traditionally focused on serving the domestic market.
NCB derives 8 percent of its revenues from overseas, mostly from its majority stake in Turkiye Finans, but it hopes to enter a new market as early as next year, chairman Mansour al-Maiman said on the sidelines of an industry conference in Jakarta.
Expanding its Turkey franchise could prove easier, but with $120 billion in assets it is also considering acquisitions and greenfield operations to leverage on its product know-how, al-Maiman said.
A specific timeframe and mode of entry would depend on local investment climate and regulatory framework, he added.
The plans from NCB, majority-owned by sovereign fund the Public Investment Fund, follow the release last month of a package of reforms and initiatives by the government known as "Saudi Vision 2030".
The government wants to end the kingdom's reliance on oil and transform it into a global investment power, plans which include widening the geographical footprint of established local brands.
NCB is also on track to become a full-fledged Islamic bank over the next 5 years, with a target of having 90 percent of its assets and revenues as sharia-compliant by 2018.
The bank currently classifies around 75 percent of its assets and 81 percent of its revenues as sharia-compliant.
All of NCB's branch network and retail business now follow Islamic principles, with some remaining conventional contracts linked to legacy transactions held by its treasury.
(Reporting by Bernardo Vizcaino; Editing by Kim Coghill) ((Bernardo.Vizcaino@thomsonreuters.com; Telf: +61293218168; Reuters Messaging: bernardo.vizcaino.thomsonreuters.com@reuters.net))
The move could break the mould of the kingdom's banking sector, which hosts a range of large and well-capitalised financial institutions but which have traditionally focused on serving the domestic market.
NCB derives 8 percent of its revenues from overseas, mostly from its majority stake in Turkiye Finans, but it hopes to enter a new market as early as next year, chairman Mansour al-Maiman said on the sidelines of an industry conference in Jakarta.
Expanding its Turkey franchise could prove easier, but with $120 billion in assets it is also considering acquisitions and greenfield operations to leverage on its product know-how, al-Maiman said.
A specific timeframe and mode of entry would depend on local investment climate and regulatory framework, he added.
The plans from NCB, majority-owned by sovereign fund the Public Investment Fund, follow the release last month of a package of reforms and initiatives by the government known as "Saudi Vision 2030".
The government wants to end the kingdom's reliance on oil and transform it into a global investment power, plans which include widening the geographical footprint of established local brands.
NCB is also on track to become a full-fledged Islamic bank over the next 5 years, with a target of having 90 percent of its assets and revenues as sharia-compliant by 2018.
The bank currently classifies around 75 percent of its assets and 81 percent of its revenues as sharia-compliant.
All of NCB's branch network and retail business now follow Islamic principles, with some remaining conventional contracts linked to legacy transactions held by its treasury.
(Reporting by Bernardo Vizcaino; Editing by Kim Coghill) ((Bernardo.Vizcaino@thomsonreuters.com; Telf: +61293218168; Reuters Messaging: bernardo.vizcaino.thomsonreuters.com@reuters.net))
