Saudi banks recovering 'well' from COVID-19 pressures: Fitch

Fitch Ratings said that the pandemic’s impact on Saudi banks has been contained and pressures on the operating environment have largely eased.

The economic activity of the banking sector shows a good recovery due to high oil prices, which boosts government spending.

Accordingly, banks’ financial standards stabilized and are projected to be further supported by the rise in interest rates between 2022 and 2023.

The ratings agency pointed out that these positive trends were realized from government support measures, as well as the continued strong loan growth in 2020 and 2021, which was reinforced by the continued momentum in real estate loans.

Last April, Fitch Ratings affirmed its ratings for Riyad Bank, Saudi British Bank (SABB), Banque Saudi Fransi, Arab National Bank (ANB), Alinma Bank, Saudi Investment Bank (SNB) and Bank AlJazira at "BBB+", revising its outlook to "positive" from stable.