NCB seeks big role in govt programs post capital increase: Chairman

The National Commercial Bank (NCB) is set to expand its lending portfolio to tap market opportunities, following its planned capital increase, Chairman Mansour Al-Maiman told Al Arabiya TV.

"NCB will likely boost its credit portfolio in 2018, backed by the positive impact of the government's incentive programs for the private sector, especially in the construction sector," Al Maiman added.

NCB seeks to play a significant role in financing government-sponsored projects, following the planned capital increase.

The bank's board proposed in December increasing its capital by SAR 10 billion by issuing bonus shares to help support growth.

"The planned capital increase will strengthen our lending capacity," he stated.

Saudi banks are hoping to benefit from increased lending activity as government's economic transformation drive is expected to unlock a wide array of opportunities across the economy.

"Entering the housing market is priority for all Saudi banks. The housing ministry and Real Estate Development Fund (REDF) are setting regulations to help banks support public housing programs," Al Maiman noted.

Investment in governmental bond issues is another attractive business for banks, he said.