Saudi Arabia: prudent banks get their rewards | beyondbrics | FT.com

Saudi banks, like their nation, have won a reputation for being among the most conservative in the oil-rich Gulf.

This approach helped them avoid some of the worst excesses in the credit boom when lending growth soared at unsustainable levels across the region. And recently released second quarter 2010 results show them to be reaping the rewards of their prudence.
According to Credit Suisse, all but one of five of the kingdom’s main banks – Riyad Bank – beat consensus expectations. The better than expected results were driven by solid revenue growth of between 4 and 8 per cent, on strong fee income, up 9 to 22 per cent quarter on quarter, and resilient margins as net interest income grew between 1 and 7 per cent, Credit Suisse said in a research note.

This was also supported by lower than expected provisioning.