Saudi Arabia Banking Pulse
6
19
Coverage ratio and NPL / net loan ratio improved for most
of the banks
Coverage ratio, %
NPL / net loans, %
Coverage ratio¹ and NPL / net loans ratio (%, quarterly)
مصرف الراجحي
بنك الرياض
143
SNB
143 145
Al Rajhi Bank
riyad bank
149
143
134
306
318 318
307
293
ساب SABB
135
130
125
126 133
124
143
132 132
103
3.9
3.5 3.4 3.3
124 124 124
126
3.0
2.8
2.9 2.8
2.7 2.6
2.0
1.8
1.8 1.7
0.8
1.9
1.5
1.6
0.8 0.7
0.7 0.7
1.9
1.5
1.6
العربي
مصرف الإنماء
anb
alinma bank
بنك البلاد
البنك السعودي للاستثمار
بنك الجزيرة
Bank Albilad
The Saudi Investment Bank
BANK ALJAZIRA
172
140 146
178
115
133
299
123
151
160
179
107
124
177
104
99
114
1.3
1.3
1.3
3.9
170
280
121
3.6
3.5
159
1.2
3.1
2.9
260
2.6
2.6
2.3
2.3
2.4
2.1
260
259
1.1
2.1 2.0
2.0 1.9
154
2.3
2.6
2.5 2.4
1.5
Q3'20
Q4'20
Note: Scaling and some numbers might not add up due to rounding
Source: Financial statements, investor presentations, A&M analysis, 1 accumulated allowance for impairment /NPL
14
KEY TAKEAWAYS
Asset quality improved further as NPLs/
net loan ratio decreased to 1.7% in Q3'21
compared to 1.8% in Q2'21
Aggregate coverage ratio increased to
157.7% (+2.1% points QoQ)
All the banks except SNB and ALRAJHI
reported increase in coverage ratio
SNB and ALRAJHI's coverage ratio
decreased by 14.5% points and 10.6%
points, respectively in Q3'21
SNB's coverage ratio declined due to
decrease in impairment allowance (-
WT T
2.8% QoQ), while the NPL for retail
and corporate sector increased
On the other hand, SABB reported the
highest increase in coverage ratio by
11.3% points to 143.1%
SABB's NPL/net loan ratio improved the
most (36.6bps) to 3.0%, while ALRAJHI
reported the best asset quality with
NPL/net loans at 0.7%
ALVAREZ & MARSALView entire presentation