Alvarez & Marsal releases Saudi Arabia Banking Pulse for Q1 2022

Alvarez & Marsal releases Saudi Arabia Banking Pulse for Q1 2022

At a sectoral level, loan growth reflected increased market confidence potentially driven by the economic rebound, increased consumer expenditures and higher oil prices. Loans and advances (L&A) and deposits of the top banks increased by 5.2 percent and 3.9 percent QoQ, respectively.

A&M’s KSA Banking Pulse examines data of the 10 largest listed banks in the Kingdom, comparing the Q1’22 results against Q4’21 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 Q1 2022 are as follows:

1. L&A and deposits grew substantially in Q1’22. L&A of the top ten banks increased by 5.2 percent QoQ in Q1’22 while deposits grew by 3.9 percent in Q1’22. Consequently, as the L&A growth outpaced deposits growth, the loan to deposit ratio (LDR) increased marginally by 1.1 percent QoQ to 92.7 percent from 91.5 percent