Alvarez & Marsal releases Saudi Arabia Banking Pulse for FY 2021

Alvarez & Marsal releases Saudi Arabia Banking Pulse for FY 2021

The KSA Banking Pulse for FY 2021 notes that the growth in net income (15.5 percent YoY) is mainly attributed to higher operating income (+3.5 percent YoY) along with lower impairments (-28.9 percent YoY). The net interest margin (NIM) declined by 18 bps YoY to 2.9 percent in FY’21 as interest rates fell to a 15-year low. Despite the lower NIM, the banks’ increased profitability demonstrates higher efficiency across the sector.

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.

The country’s 10 largest listed banks analyzed in A&M’s KSA Banking Pulse are Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank (RIBL), Saudi British Bank (SABB), Banque Saudi Fransi (BSF), Arab National Bank (ANB), Alinma Bank, Bank Albilad (BALB), Saudi Investment Bank (SIB) and Bank Aljazira (BJAZ).

The prevailing trends identified for FY 2021 are as follows:

- L&A growth remained strong; supported by recovering consumer spending while deposits growth slowed down in FY’21. The aggregate L&A increased at a higher rate of