Saudi banking sector in strong position, no pressures seen in H2 2022: SABB CEO

Tony Cripps, CEO of Saudi British Bank (SABB)

The Saudi banking sector is in a strong position despite higher interest rates, Tony Cripps, CEO of Saudi British Bank (SABB) told Argaam in an exclusive. 

SABB has a positive outlook for the Kingdom’s economic growth, and the banking sector is unlikely to witness pressures in the second half of the year.

The Saudi market is better in terms of economic growth, compared to global peers as inflationary pressures are well managed, Cripps said. 

SABB returned to market growth in the last 12 months. The corporate dealings represented 75% of the bank’s balance sheet. The retail segment recorded growth for the first time since several years, Cripps added, noting that after merger the bank focused on ensuring smooth transactions for its clients. 

He expected lending to be healthy in the second half of 2022, as was the case in the first six months, affirming that retail loans did not see a slowdown.

SABB is focusing on green bonds in the Kingdom. It participated in financing The Red Sea Development Project.

On the other hand, SABB does not have any investments outside the Kingdom, Cripps noted, ruling out any inflation impact on the Saudi market as inflation rate reached nearly 2.5%, which is much less than that in the US, Europe or any other country. Meanwhile, a decline in euro will not have any impact on the bank, he concluded.

SABB posted a net profit of SAR 2.089 billion in H1 2022, compared to SAR 1.892 billion a year earlier. The second-quarter earnings hit SAR 1.083 billion, Argaam earlier reported.