10/11/2024 Argaam Exclusive
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.
| Bank | 2023-Q3 | 2024-Q3 | Change |
|---|---|---|---|
| Credit Portfolio | 2,470,745.74 | 2,769,043.60 | 12.07 % |
| Nonperforming Loans (NPLs) | 40,195.85 | 36,513.29 | (9.16 %) |
| Nonperforming Loans to Total Gross Loans (%) | 1.63 % | 1.32 % | (0.31 %) |
| Coverage Ratio | 127.65 % | 135.10 % | 7.45 % |
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:
| Bank | 2023-Q3 | 2024-Q3 | Change |
|---|---|---|---|
| SNB | 11,510.32 | 10,478.30 | (8.97 %) |
| SAB | 8,232.13 | 7,664.61 | (6.89 %) |
| ALRAJHI | 3,589.62 | 5,211.16 | 45.17 % |
| RIBL | 3,702.39 | 3,717.04 | 0.40 % |
| ANB | 2,570.77 | 2,229.99 | (13.26 %) |
| BSF | 3,540.27 | 1,685.27 | (52.40 %) |
| ALINMA | 2,937.66 | 1,559.68 | (46.91 %) |
| SAIB | 1,217.54 | 1,367.51 | 12.32 % |
| ALBILAD | 1,530.26 | 1,364.00 | (10.87 %) |
| BJAZ | 1,364.90 | 1,235.74 | (9.46 %) |
| Total | 40,195.85 | 36,513.29 | (9.16 %) |
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:
| Bank | 2023 Q3 | 2024 Q3 | ||
|---|---|---|---|---|
| Non-performing loans and credit portfolio Ratio | Coverage ratio | Non-performing loans and credit portfolio Ratio | Coverage ratio | |
| ANB | 1.68 % | 130.82 % | 1.32 % | 144.52 % |
| RIBL | 1.36 % | 127.94 % | 1.20 % | 144.93 % |
| BSF | 1.97 % | 139.52 % | 0.83 % | 193.15 % |
| SNB | 1.90 % | 98.88 % | 1.57 % | 106.82 % |
| SAB | 3.78 % | 74.02 % | 2.96 % | 84.93 % |
| BJAZ | 1.66 % | 200.45 % | 1.30 % | 197.94 % |
| SAIB | 1.48 % | 169.06 % | 1.41 % | 154.70 % |
| ALRAJHI | 0.60 % | 239.93 % | 0.79 % | 165.18 % |
| ALBILAD | 1.46 % | 193.23 % | 1.25 % | 202.97 % |
| ALINMA | 1.69 % | 150.85 % | 0.78 % | 245.23 % |
| Total | 1.63 % | 127.65 % | 1.32 % | 135.10 % |
| TASI | 11,840.52 | (27.40) | (0.23 %) |
| ALRAJHI | 93.60 | 0.50 | 0.54% |
| ALBILAD | 36.05 | (0.10) | (0.28%) |
| ANB | 19.54 | (0.10) | (0.51%) |
| BJAZ | 16.60 | (0.10) | (0.60%) |
| RIBL | 26.65 | 0.00 | 0.00% |
| SAB | 31.70 | (0.20) | (0.63%) |
| SAMBA | 39.05 | 1.70 | 4.62% |
| BSF | 31.40 | 0.00 | 0.00% |
| Alawwal | 19.58 | 0.28 | 1.45% |
| SAIB | 13.86 | (0.04) | (0.29%) |
| ALINMA | 27.85 | 0.20 | 0.73% |
| SNB | 33.15 | (0.20) | (0.60%) |
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