SABB seeks to regain market share in corporate loans, boost mortgages

Saudi British Bank (SABB) is ready to compete aggressively to recover its market share in corporate loans, after finalizing the acquisition of Alawwal Bank, Bloomberg reported, citing the bank’s managing director David Robert Dew.

“SABB has no appetite whatsoever to continue losing market share. Margins as a whole have peaked for this particular interest rate cycle and are now on a downward trend,” Dew said.

The lender plans to boost mortgages in the current year, easing its so far conservative approach to home loans.

“We’re looking to move our risk appetite to some extent but it’s unlikely to go fully in line with where the overall market seems to be,” Dew further added.

He expects to see some mortgage growth in the bank in 2020, forecasting that non-performing loans (NPLs) are likely to increase this year, although not to concerning levels given the bank’s capitalization.

“SABB still sees some signs of corporate stress, and they wouldn’t diminish this year,” Dew said.