Saudi banks’ Q1 credit portfolio up 10% to SAR 1.32 trln

The credit portfolio of Tadawul-listed banks reached SAR 1.32 trillion in the first quarter, marking year-on-year growth of 10 percent, according to new research conducted by Argaam.

Meanwhile, non-performing loans (NPLs) decreased seven percent during the same period to SAR 14.8 billion. The coverage ratio improved to 181 percent, from 161 percent in Q1-2014.

Research showed that six out of 12 banks witnessed a decline in NPLs, led by Banque Saudi Fransi (BSF) with 22 percent. Al-Rajhi Bank and Samba followed with 20 percent and 19 percent, respectively.

Meanwhile, NPLs increased at six banks, led by Saudi Hollandi Bank (SHB) at 13 percent, followed by Bank Albilad and Alinma Bank, as each saw a 12 percent rise.

NPLs accounted for 1.14 percent of total loans in Saudi-listed banks for the same period, declining from 1.35 percent in Q1-2014.

When comparing NPLs to total loans, Bank Albilad and National Commercial Bank (NCB) logged the highest ratios of 1.64 percent and 1.38 percent, respectively.

Alinma Bank and Saudi Investment Bank tailed the list with 0.65 percent and 0.72 percent, respectively.

All banks increased coverage ratio to over 158 percent.

Coverage ratio exceeded 200 percent at BSF, Arab National Bank, Al-Rajhi Bank, and Alinma Bank.

Argaam Reports