#Saudi Banks Set for Most Growth in 4 Years as Rates Offset Oil - Bloomberg

Saudi Banks Set for Most Growth in 4 Years as Rates Offset Oil - Bloomberg:

Saudi Arabian banks may report double-digit earnings growth this year as rising interest rates and increased government spending offset the risk of higher bad-debt charges. 


Even loans may expand faster -- albeit nowhere near the pace of a decade ago -- after four years of declines led to a contraction in 2017. The government’s 2019 budget increased spending in the face of plunging oil prices, casting doubt on whether the kingdom will hit its fiscal-deficit targets.

“More stimulus, business confidence, privatization and a stronger economy will also support lending to the private sector,” said Edmond Christou, a banking analyst at Bloomberg Intelligence in Dubai. “Strong mortgage lending is likely to continue into 2019, boosted by government incentives, which may compensate for slower growth in personal loans and car leases as new responsible lending rules take effect.”