The Saudi banks raised their credit portfolios to SAR 962bn, 11% more than 2012 levels; as indicated in a study performed by Argaam, on Saudi banks’ financial statements as of December 31, 2013.

Non-performing loans fell by 15% to SAR 12.7bn at the end of 2013 with an increased coverage ratio of 155%, compared to 146% in 2012.

Comparison of Saudi Banks Credit Portfolio in 2013 to the Same Period of 2012
Change	2013	2012	Period
+11%	962	864	Credit Portfolio in billion
(15%)	12.7	14.9	Non-performing loans in billion
(0.4%)	1.34%	1.77%	ratio of NPL to total credit
+9%	155%	146%	Coverage ratio

7 out of 11 banks, included in the study, reported a decline in the NPL. Riyad Bank and Al-Jazeerah Bank reported the most decline in NPL where the NPL were limited to SAR 1,264m and SAR 429 respectively.

The remaining four banks reported an increase in the NPL topped by Inmaa Bank where the NPL increased to more than double amount, followed by BSF at 45% increase.


NPL (2010-2013)
2013	2012	2011	2010	Bank
1264	2037	1879	1814	Riyad Bank
429	1040	1031	1330	Al-Jazira Bank
395	450	1802	1791	The Saudi Investment Bank
738	722	735	931	Saudi Hollandi Bank
1517	1045	1128	1016	Banque Saudi Fransi
1525	1598	1678	2615	Sabb
1004	1314	1784	2029	Arab National Bank (ANB)
2011	2340	2764	3139	Samba
3007	3530	2396	2663	Al Rajhi Bank
460	752	685	708	Bank Al-Bilad
302	122	10	0	Alinma Bank
12652	14950	15892	18036	Total

* Numbers in SAR million

The NPL ratio, compared to total credit portfolio, decreased from 1.77% in 2012 to 1.34 in 2013.

Al-Bilad, SAMBA and Al-Rajhi banks reported the highest NPL ratios at 2%, 1.8% and 1.6% respectively, while Inmaa bank and the investment bank were the least in this regard at 0.7% an 0.8% respectively.

All banks under study have been able to increase their NPL coverage ratio above 140%, headed by the ANB at 205% and Al-Bilad Bank at 195% as shown in the following table:

Comparison of non-performing loans to credit portfolio and coverage percentage for 2012/2013
	2013		2012
Coverage ratio	NPL%	Coverage ratio	NPL%	Bank
153%	0.96%	124%	1.73%	Riyad Bank
154%	1.23%	132%	3.47%	Al-Jazira Bank
178%	0.83%	181%	1.32%	The Saudi Investment Bank
162%	1.37%	153%	1.59%	Saudi Hollandi Bank
146%	1.36%	149%	1.01%	Banque Saudi Fransi
148%	1.44%	151%	1.66%	Sabb
205%	1.14%	205%	1.52%	Arab National Bank (ANB)
145%	1.77%	133%	2.28%	Samba
144%	1.61%	136	2.05	Al Rajhi Bank
195%	1.96%	145%	4.12%	Bank Al-Bilad
170%	0.67%	230%	0.33%	Alinma Bank
155%	1.34%	146%	1.77%	Total

Comments {{getCommentCount()}}

Be the first to comment

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

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.

The Saudi banks raised their credit portfolios to SAR 962bn, 11% more than 2012 levels; as indicated in a study performed by Argaam, on Saudi banks’ financial statements as of December 31, 2013.

Comments {{getCommentCount()}}

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

{{comment.DisplayName}}

Most Read

Popular Links

Quick Links

About Us

Join Us

Follow Us

Saudi banks loans up 11%, coverage ratio at 155 % by end of 2013

The Saudi banks raised their credit portfolios to SAR 962bn, 11% more than 2012 levels; as indicated in a study performed by Argaam, on Saudi banks’ financial statements as of December 31, 2013.

Comments {{getCommentCount()}}

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

{{comment.DisplayName}}

Most Read

Popular Links

Quick Links

About Us

Join Us

Follow Us