Saudi banking giants forecast to maintain 'strong profitability' - Arabianbusiness:
Saudi Arabia's three largest banks, National Commercial Bank (NCB), Al Rajhi Bank, and Saudi British Bank (SABB), will maintain strong profitability even as interest margins on their lending narrow because of falling interest rates, according to Moody's Investors Service.
In a new research note, the ratings agency said the three banks have a combined market share of 47 percent of the country's banking assets.
"SABB will be hardest hit because it must also absorb the costs of its merger with smaller peer Alawwal Bank, and NCB will face a similar pressure if its planned merger with Riyad Bank is completed," said Ashraf Madani, VP-Senior Analyst at Moody's.
"Al Rajhi's retail focus will provide initial protection, but prolonged low rates will take their toll. Nevertheless, sound efficiency and strong capital at all three banks will protect their credit profiles," he added.
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