Bank Albilad’s share of mortgage lending up 25%, says CEO

Bank Albilad increased its market share of retail mortgage lending by 25 percent, chief executive Abdul Aziz Al Onaizan told CNBC Arabia on Wednesday.

The bank also has ten various real estate finance programs to fulfill client needs.

Saudi banks have strong liquidity buffers and are not conservative in lending but they are undergoing restructuring of the various segments, Al Onaizan added.

He added that the decline in oil prices and spending cuts on project have weighed on bank lending.

The Saudi banks, however, are in a better position this year, driven particularly by the Kingdom’s privatization plans of education and healthcare sectors.

The banking sector is in a historical stage for interest rates, which are still very low.

In the mortgage market, banks get high interest rates on home loans as the tenure extends up to 20 years.

Endorsement of the pledge law soon will boost home ownership across the Kingdom, he added.