Saudi top 10 banks see robust growth in financing, deposits

Web Desk BOL News

21st Sep, 2021. 03:47 pm
Global Cyber Security

Global Cyber Security

RIYADH: Saudi Arabia’s top 10 banks saw robust quarter-on-quarter growth in financing and deposits in the second quarter of 2021, Arab News reported, citing management consulting firm Alvarez and Marsal (A&M)’s KSA Banking Pulse.

Core operating income increased by 8.4 per cent, compared to 1.2 per cent in the first quarter of the year, in what is considered the fourth increase in a row, while loans and advances (L&A) increased by 13.1 per cent and deposits by 12.6 per cent.

L&A and deposit growth were primarily supported by the merger of National Commercial Bank and SAMBA to form Saudi National Bank (SNB), according to the report.

Operating expenses rose by 13.7 per cent quarter-on-quarter and impairments jumped by 81.6 per cent, affecting the second quarter’s overall operating efficiency for the banking sector. This affected net profit for the top ten banks in the Kingdom.

Aggregate net income decreased over the same period by 8.1 per cent to SR11 billion ($2.93 billion), while the fall in net profit was partially offset by a 11.1 per cent increase in net interest income.

The top 10 banks in the report are SNB, Al Rajhi Bank, Riyad Bank, Saudi British Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank Albilad, Saudi Investment Bank and Bank Aljazira.

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