Fitch revises #Saudi National Bank's outlook on lender's resilience and improving environment | The National

Fitch revises Saudi National Bank's outlook on lender's resilience and improving environment | The National

Fitch Ratings upgraded Saudi National Bank's outlook from negative to stable, citing its resilient financial metrics and an improving operating environment.

The credit rating agency also affirmed the lender’s long-term issuer default rating at "A-". It assigned a national long-term investment grade rating of "AA+(sau)" with a stable outlook.

“The revision of the outlook reflects our view that pressures on the operating environment from the pandemic and lower oil prices have eased sufficiently, and that the financial metrics of the bank have been resilient in the past quarters, despite these pressures,” Fitch said.

“Strong financing growth will continue to support the bank’s metrics in 2021.”

The lender's first-quarter net profit jumped 20 per cent to 3.4 billion Saudi riyals ($907 million), boosted by higher fee income and lower impairment charges as the kingdom’s economy recovers from the Covid-19 pandemic.

Central bank stress test shows #UAE banking sector remains solid | Banking – Gulf News

Central bank stress test shows UAE banking sector remains solid | Banking – Gulf News

The UAE banking system remains resilient despite challenging operating environment from the repercussions of the COVID-19 pandemic, according to results of the latest Financial Stability Report (FSR) of the Central Bank of UAE.

Core banking indicators pointed towards adequate funding and liquidity positions and sustained lending capacity. However, vulnerability of the banking sector remained as the economic slowdown weighed on asset quality.

The surge in impairment charges and lower operating income reduced profitability. However, aggregate capital buffers remained adequate and well above regulatory requirements.

#Saudi listed company debt jumped by half in 2020 | ZAWYA MENA Edition

Saudi listed company debt jumped by half in 2020 | ZAWYA MENA Edition

The debts of companies listed on Saudi Arabia’s Tadawul stock exchange, excluding real estate funds, increased by 45 percent last year as they borrowed to face down the pandemic and took advantage of low interest rates.

Debt reached SR1.3 trillion ($346 billion) at the end of the fourth quarter of 2020, up from SR899.2 billion a year earlier, Al Eqtisadiah reported, citing data from the Tadawul and Saudi Capital Market Authority. On a quarterly basis, debt rose 8.1 percent.

The debt-to-assets ratio of the companies climbed to a record 21.4 percent from 15.8 at the end of 2019, the data showed.

Saudi companies have stepped up bond sales in recent months as the Federal Reserve kept interest rates near record lows.


Saudi Aramco yesterday said it completed a $6 billion dollar sukuk offering, which takes its bond issuance since 2019 to $26 billion.

EIG-led consortium closes $12.4 bln Aramco pipelines deal | Reuters

EIG-led consortium closes $12.4 bln Aramco pipelines deal | Reuters

U.S.-based EIG Global Energy Partners said on Friday a consortium it led has closed a deal to buy 49% of Saudi oil producer Aramco's (2222.SE) pipelines business for $12.4 billion.

EIG said the co-investment process for the deal attracted a global group of investors from China, Saudi Arabia, Korea, the United Arab Emirates and the United States.

It included Abu Dhabi's Mubadala Investment Company, Silk Road Fund, Hassana and Samsung Asset Management, the company said.