#Saudi's largest banks to maintain strong profitability: Moody's | ZAWYA MENA Edition

Saudi's largest banks to maintain strong profitability: Moody's | ZAWYA MENA Edition:

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, Moody’s Investors Service 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, Vice President -Senior Analyst at Moody's.

Riyad Bank and NCB announced in 2018 that they had begun discussions about a potential merger.