A&M’s KSA Banking Pulse examines data of the 10 largest listed banks in the Kingdom, comparing the FY’21 results against FY’20 results. Using independently sourced published market data and 16 different metrics, the report assesses banks’ key performance areas, including size, liquidity, income, operating efficiency, risk, profitability, and capital.

Explore all of our KSA Banking Pulse reports below:

FY2022 KSA Banking Pulse
The report suggests that higher credit demand, better asset yield, and operating efficiencies drove the top Saudi lenders’ profitability amidst rising benchmark interest rates. The aggregate net income increased by 28.4 percent year-on-year (YoY) to SAR 62.7bn. Saudi banks are likely to remain on a profitable path in 2023 with continued credit growth.    

Q4 2022 KSA Banking Pulse
The report suggests that for the top 10 KSA banks L&A and deposits increased by 1.5% and 1.0% QoQ, respectively. Operating income increased by 1.0% QoQ, primarily driven by growth in total interest income (+19.4% QoQ) but was undermined by decline in non-core income by 14.0%. The sector witnessed deterioration in cost efficiency with an increase in cost-to-income ratio by 16bps QoQ in Q4’22. Cost of risk increased by 5bps QoQ to 0.5% due to increase in impairment charges (+13.6% QoQ).

Q3 2022 KSA Banking Pulse
The report suggests that profitability for the top 10 KSA banks witnessed robust growth in profitability as net profit increased 9.3 percent QoQ resulting in a return on equity (RoE) of 14.8 percent in Q3’22. Profitability was underpinned by higher total interest income of 15.9 percent QoQ and lower impairment charges for the quarter of 15.4 percent QoQ. 

Q2 2022 KSA Banking Pulse
The report suggests that profitability for the top 10 KSA banks showed a moderate improvement as growth in aggregate net profit was 2.7 percent from Q1’22 resulting in an increase of 41 bps in return on equity (RoE). Simultaneously, L&A and deposit growth slowed while NIM expansion and improvement in cost efficiencies continued.

Q1 2022 KSA Banking Pulse
The report suggests that aggregate profitability of top Saudi banks increased substantially by 17.6 percent quarter on quarter (QoQ) in Q1’22 driven largely by operational income growth of 5.6 percent QoQ. Better cost efficiencies and lower impairment charges also supported growth, with most banks showing improved coverage ratios and net loan ratios, highlighting their improving credit profile.

FY 2021 KSA Banking Pulse
The report suggests that the profitability metrics of the top 10 banks in the Kingdom of Saudi Arabia witnessed an improvement with post COVID-19 economic recovery. The aggregate loans and advances (L&A) grew 14.2 percent year-over-year (YoY) as all the top ten banks reported a growth, however deposit mobilization slowed down in FY’21.

Q3 2021 KSA Banking Pulse
The latest Saudi Arabia Banking Pulse for Q3 2021 highlights that despite low interest rates higher NII and reduced impairments drove double digit profit, of 20.3 percent, for top 10 banks in the Kingdom of Saudi Arabia (KSA) in Q3’2021, with liquidity expected to remain healthy for the remainder of 2021.

Q2 2021 KSA Banking Pulse
The latest Saudi Arabia Banking Pulse for Q2 2021, highlights that the total Loans & Advances (L&A) and deposits of top ten Saudi banks witnessed a robust double-digit growth as compared to the previous quarter. Total L&A increased by 13.1 percent and deposits grew by 12.6 percent from Q1’21. L&A and deposit growth was primarily supported by the merger of National Commercial Bank (NCB) and SAMBA to form Saudi National Bank (SNB). The operating income increased for the fourth consecutive quarter by 8.4 percent quarter over quarter (QoQ). 

Q1 2021 KSA Banking Pulse
The latest Saudi Arabia Banking Pulse for Q1 2021 highlights that that the top 10 Saudi banks have rebounded to deliver blockbuster first-quarter profit as the aggregate income increased substantially by 34.1 percent. The strong earnings are riding on the improving macroeconomic conditions, the Kingdom’s buoyant capital market, and a significant decrease in impairments. 

Q3 2020 KSA Banking Pulse
The report suggests that the profitability outlook for banks showed signs of improvement as increased operating income and reduced provisioning supported return ratios. Saudi Arabia’s top 10 banks also reported an increase in loans and advances (L&A) which grew at a faster pace in Q3’20 (3.0% QoQ), compared to Q2’20 (1.9% QoQ). This growth was primarily driven by increased credit uptake in consumer and credit card segment. Similarly, deposits showed signs of improvement in comparison to the previous quarter. These can be partially attributed to an uptick in economic activity during the quarter following the easing of lockdown measures.

Q2 2020 KSA Banking Pulse
The report suggests that the profitability outlook for banks remains subdued, as a result of the twin effects of low oil prices and Covid-19 lockdowns which might impact credit demand and asset quality. Saudi Arabia’s top ten banks reported a marginal increase in deposits compared to the preceding quarter, which improved the banks’ funding position. In Q2, the loan to deposit ratio (LDR) increased slightly to 86.1%.

Q1 2020 KSA Banking Pulse
The report reveals that the top banks in Saudi Arabia showed mixed performance in Q1 2020 as improved operating efficiency and lower provisioning was offset by the effect of reduced interest rates.