Saudi lenders National Commercial Bank and Riyad Bank are seeking advisers for a potential merger, according to a report by US-based news service Bloomberg.

The banks are reported to have sent a request for proposals to firms including Citigroup, Credit Suisse Group, Goldman Sachs, HSBC, JPMorgan Chase and UBS Group.

If the deal goes ahead, it would create the Gulf region’s third-biggest lender with $182bn in assets.

Saudi Arabia’s Public Investment Fund owns about 44 per cent of National Commercial Bank and 22 per cent of Riyad Bank.

Last year, Saudi British Bank (Sabb) and Alawwal Bank (formerly Saudi Hollandi Bank) secured board approval for their proposed merger that will create Saudi Arabia’s third-largest bank with SR271bn ($72bn) in assets.