Saudi banks see robust growth in financing, deposits in Q2 | ZAWYA MENA Edition
The top 10 banks in Saudi Arabia have seen robust growth quarter-on-quarter in financing and deposits according to professional services firm Alvarez & Marsal.
Core operating income increased by 8.4 percent from the first quarter to the second quarter of 2021, while L&A increased by 13.1 percent and deposits by 12.6 percent.
The report said L&A and deposit growth was primarily supported by the merger of National Commercial Bank (NCB) and SAMBA to form Saudi National Bank (SNB).
Operating income increased for the fourth consecutive quarter by 8.4 percent. But the overall operating efficiency for the banking sector deteriorated the second quarter of 2021 due to higher operating expenses, which were higher by 13.7 percent quarter on quarter, and impairments, which were up 81.6 percent, impacting net profit for the top ten banks in the Kingdom.
Aggregate net income decreased over the same period by 8.1 percent to SAR 11 billion ($2.93 billion). The fall in net profit, however, was partially offset by an increase in net interest income (+11.1 percent).
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