Investor Presentaiton
Aggregate cost of risk across the sector has decreased with
all the banks except SNB reporting higher cost of risk
Improved
Stable
Worsened
-
Cost of Risk (bps) – Net of Reversals
-30.8
-15.0
-69.9
-141.8
-75.3
مصرف الراجحي
SNB
Al Rajhi Bank
riyad bank
البنك
السعودي
الشرعية
بنك الرياض ساب SABB
Note: Scaling and some numbers might not add up due to rounding
Source: Financial statements, investor presentations, A&M analysis
2020
2021
2020 Av
2021 Av
-184.2
-23.6
-30.4
-31.9
Dangus
Fransl
anb
مصرف الإنماء
العربي
بنك البلاد
alinma bank
Bank Albilad
11
بنك الجزيرة
BANK ALJAZIRA
-30.8
البنك السعودي للاستثمار
The Saudi Investment Bank
105.95
66.47
KEY TAKEAWAYS
Cost of risk decreased for all the banks
except for SNB in 2021
• BSFR reported a significant fall in cost
of risk (141.8 bps YoY) to 0.71% in
2021 driven by:
■ Moderation in impairment charge
from SAR 2,670mn in 2020 to SAR
904mn in 2021 due to improved
macro-economic scenario
Cost of risk for SNB increased by 30.8
bps to 0.9% as the provisions
increased by 104% YoY
■ However, on a normalized basis the
SNB's cost of risk is 0.61%
ALVAREZ & MARSALView entire presentation