Saudi banks’ credit portfolio grows 9% to SAR 1.32 trln in H1-15

The credit portfolio of Tadawul-listed banks reached SAR 1.328 trillion in the first half of 2015, growing nine percent year-on-year (y-o-y), a new study conducted by Argaam showed.

The number of non-performing loans (NPLs) during the period declined seven percent y-o-y to SAR 14.9 billion; while the coverage ratio rose to 180 percent from 166 percent in H1-2014.

Six out of 12 banks saw declines in NPLs, led by Bank Aljazira with a 46 percent drop, followed by Banque Saudi Fransi (BSF) with 21 percent.

Meanwhile, NPLs increased at six other banks. Alinma Bank saw highest rise at 25 percent, followed by Bank Albilad at 15 percent.

NPLs accounted for 1.12 percent of total loans in Saudi-listed banks for the same period, down from 1.32 percent in the first half of 2014.

In terms of NPLs to total loans, Bank Albilad and National Commercial Bank (NCB) recorded the highest ratios of 1.57 percent and 1.30 percent, respectively. Alinma Bank and Saudi Investment Bank (SAIB) tailed the list with 0.73 percent and 0.75 percent, respectively.

Coverage ratio at all banks exceeded 155 percent, with BSF, Arab National Bank (ANB), and Alinma Bank maintaining a coverage ratio of over 200 percent.