Alvarez & Marsal Middle East Limited (A&M) is delighted to publish the 2nd edition of the Kingdom of Saudi Arabia (KSA) Banking Pulse (“The Pulse”). In this quarterly series, we share results from our research examining the top ten largest listed KSA banks by assets, and highlight key performance indicators of the KSA banking industry. The Pulse aims to help banking executives and board members stay current on industry trends. 

All the data used in this report has been obtained from publicly available sources and the methodology for the calculations is discussed in the glossary. Calculation of several metrics will be subject to change based on available information. 

Following the outbreak of COVID-19, the KSA government and central bank have announced a series of stimulus measures worth ~SAR 170bn, to support the economy. However, it also imposed some austerity measures in the form of tripling VAT rate, reducing budget spending and suspending cost of living allowance for the citizens. 

The planned merger between NCB and SAMBA reinstated the consolidation wave in the domestic
banking sector, after SABB acquired Alawwal Bank in 2019.

The performance in Q2’20 may not be entirely comparable with that of the previous quarters, as we are comparing the sector’s performance during COVID and pre-COVID periods. Post the outbreak of COVID sector-wide loan growth, profitability and interest rates reached multi-period low levels. However, the COVID-19 related impact on the industry is expected to continue for FY’20.
We hope that you will find our second edition of the KSA Banking Pulse useful and informative.

Read the full report here