KPMG says Saudi banks post ‘strong’ results; report no domestic major credit default

Saudi Arabia’s banking sector continued to post strong results without reporting any single domestically significant credit default in corporate lending, KPMG said in its recent quarterly “Banking Pulse” report.

“The banking sector continued to lead the charge towards recovery in the first nine months of FY 2021, thanks to sustained strong growth in mortgage finance,” said Khalil Ibrahim Al Sedais, Office Managing Partner – Riyadh KPMG in Saudi Arabia.

He added that the total lending exposure of Saudi banks to the private sector is edging towards a phenomenal SAR 2 trillion mark.

According to the KPMG report, the Saudi banking industry reflects consistent themes of efficiencies through digitalization. Accordingly, the number of bank branches across Saudi Arabia declined by 5% over the last year to under 2,000, while the number of ATMs increased considerably.

“The rise of digital banking during the pandemic was undoubtedly a contributing factor to this phenomenon. The recently issued licenses to STC Bank (formerly stc pay) and Saudi Digital Bank as the first digital banks in the country are a potent reminder of the digital imperative and Vision 2030’s objective of increasing non-cash transactions to 70% by 2025,” said Ovais Shahab, Head of Financial Services, KPMG in Saudi Arabia.