Saudi banks’ NPLs down 9% in Q3 2024; credit portfolio up 12%

Non-performing loans (NPLs) declined by 9% to SAR 36.51 billion in Q3 2024, from SAR 40.20 billion a year earlier. Additionally, the NPL coverage ratio rose to 135% at the end of the current period, up from 128% year-on-year (YoY), according to data compiled by Argaam.

Meanwhile, the consolidated credit portfolio of Saudi banks grew by nearly 12% to SAR 2.76 trillion by the end of Q3 2024, from SAR 2.47 trillion in the year-earlier period.

Regarding the market share of the credit portfolio, both Saudi National Bank (SNB) and Al Rajhi Bank each held a 24% share of the total portfolio, followed by Riyad Bank with an 11% share.

NPLs declined for seven banks by the end of Q3 2024 compared to Q3 2023, with Banque Saudi Fransi (BSF) recording the highest decrease at 52%, followed by Alinma Bank, Arab National Bank (ANB), and Bank Albilad with decreases of 47%, 13%, and 11%, respectively.

On the other hand, NPLs grew at Al Rajhi Bank, The Saudi Investment Bank (SAIB), and Riyad Bank by 45%, 12%, and 0.4%, respectively, as shown in the following table:

At the end of Q3 2024, NPLs accounted for 1.32% of the total credit portfolio of all banks combined, down from 1.63% in the same period a year earlier. Saudi Awwal Bank (SAB) and SNB recorded the highest NPL ratios at 2.96% and 1.57%, respectively, relative to their total credit portfolios.

Additionally, the coverage ratio for Saudi banks stood at 135%. SAB and SNB had coverage ratios below the combined average, with SAB recording the lowest at 85%, followed by SNB with 107%. The highest coverage ratio was recorded by Alinma Bank at 245%, as shown in the table below: