Saudi banks' extra zakat payments for years up to and including 2017 removes a key near-term uncertainty that could have pressured some banks' ratings, Fitch Ratings says.

 

The extra amounts, due to a backdated change in the zakat calculation, will not materially deplete banks' capital buffers and therefore do not affect their ratings.

 

"We do not expect a significant impact on liquidity or profitability as we believe the banks will be allowed to spread payments over several years," according to Fitch.

 

Banks disclosed their extra zakat amounts last month after reaching a settlement with Saudi Arabia's General Authority of Zakat and Tax (GAZT).

 

However, the settlement amounts for 2018 will be disclosed separately, and the calculation method for future years' zakat is not yet clear. Some banks could still face pressure on ratings if future zakat assessments appear likely to structurally weaken their internal capital generation.

 

Fitch ratings for Saudi Banks

Bank

Rating

Outlook

Al Rajhi

A-

Stable

Alawwal Bank

BBB+

RWP

ANB

BBB+

Stable

Bank Aljazira

BBB+

Stable

Banque Saudi Fransi

A-

Stable

NCB

A-

Stable

Riyad Bank

A-

Stable

SABB

A-

Stable

SAIB

BBB+

Stable

SAMBA

A-

Stable

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}} حساب موثّق

{{comment.ElapsedTime}}
loader Train
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Quotes

ALRAJHI
88.90
0.30 0.34%
ALBILAD
35.95
(0.60) (1.64%)
ANB
19.18
0.06 0.31%
BJAZ
16.18
(0.06) (0.37%)
RIBL
25.55
0.00 0.00%
SAB
33.55
(0.15) (0.45%)
SAMBA
38.50
1.70 4.62%
BSF
31.10
0.10 0.32%
Alawwal
19.58
0.28 1.45%
SAIB
13.06
(0.04) (0.31%)
ALINMA
28.15
(0.10) (0.35%)
SNB
32.65
(0.20) (0.61%)


Popular Links

Quick Links

Join Us

Argaam.com Copyright © 2024, Argaam Investment, All Rights Reserved
Call Request