Saudi Arabia-based Alawwal Bank selected JPMorgan as adviser on a potential merger with Saudi British Bank, Reuters reported May 29, citing "sources familiar with the matter."

Saudi British Bank has picked another unnamed adviser, the sources said.

One source said the banks' accounts could be combined by the end of 2017, but that an actual merger would take longer.

Alawwal Bank is 40%-owned by Royal Bank of Scotland Group Plc; Saudi British Bank is 40%-owned by HSBC Holdings Plc. Initial merger talks between the two lenders had commenced in late April.