Q1 outlook: Why top Saudi Arabian banks could see drop in earnings – ZAWYA

Q1 outlook: Why top Saudi Arabian banks could see drop in earnings – ZAWYA

According to EFG Hermes estimates, all of the top five banks, Al Rajhi Bank, Riyad Bank, National Commercial Bank , Banque Saudi Fransi, Samba Financial and Saudi British Bank, are set to declines in profit growth.. Al Rajhi Bank , the biggest retail lender in the kingdom, is expected to see a net profit of 2.53 billion, down 2 percent on year, according to the Cairo-based investment bank.. National Commercial Bank, Saudi's biggest by assets, is set to see a 15 percent drop in net profit to 2.41 billion riyals.. Saudi-based NCB Capital has penciled in a 2.6 percent rise in net profit for Al Rajhi Bank to 2.66 billion riyals.. It said Saudi Fransi Bank will see near 14 percent drop in net profit to 710 million riyals while Samba's net profit will drop over 7 percent to 987 million riyals.. According to Malik, February data suggests that loan growth is decent at high single digit and mortgage growth remains robust.. Saudi banks on average have a dividend payout ratio of approximately 60 to 70 percent of their income..