KPMG Report: Despite pandemic, Saudi banks have thrived rather than survived; a dynamic outlook for 2021

KPMG Report: Despite pandemic, Saudi banks have thrived rather than survived; a dynamic outlook for 2021

KPMG's latest report on the financial sector, Banking Perspectives 2021, records the sector seen moving towards a better year. Backed by government reforms, halt in credit losses (ECL), stable liquidity, stronger CAR, and transformational changes, banks are heralding a stable year, as compared to a shaky outlook in the corresponding period last year. KPMG reported that the 11 Tadawul-listed banks stayed resilient at the end of 31 December 2020 reflecting signs of recovery since uncertainties evolved in March 2020 and a promising outlook for FY 2021. These 11 banks are Alinma Bank, Arab National Bank, Al Rajhi Bank, Bank Al Jazira, Bank Al Bilad, Banque Saudi Fransi, National Commercial Bank, Riyad Bank, Saudi British Bank, Saudi Investment Bank and Samba Financial Group. The analysis further reveals that 2020 definitely started as a challenging year due to pandemic, but for the banking industry in Saudi Arabia, it concluded as a year of reflecting "cohesiveness“ of industry and how the banks and the regulator can play a joint-role in economic recovery. The Saudi Central Bank came out proactively with the stimulus program to support borrowers and simultaneously helped banks to accelerate their digital journey for ensuring the continuation of all banking services without physical