Revealed: Top 10 banks in Saudi

Things have been on the up for the GCC’s banks, which collectively recorded a better year in 2017 despite slowing economic growth in the region as a whole.

Banking activity was supported by a higher oil price and continued infrastructure investment as Gulf states diversify their economies in various ways. Commercial activity in the region expanded in 2017 and consumer confidence grew, albeit slightly. As a result, our list of the region’s 50 leading banks – ranking institutions in Bahrain, Kuwait, Oman, Saudi Arabia and the UAE – recorded higher net profit in 2017.

The second half of 2017 was more challenging, but economic growth in the region is expected to improve slightly in 2018. This, along with diversification efforts, should provide a boost to the banking sector this year, meaning the forecast is for a marginal increase in returns.

Of the country’s covered in the report, Saudi Arabia saw some of the slowest asset growth of just 0.4 per cent.

The country’s domestic banking sector was also overtaken by the UAE. The kingdom’s market share at the end of 2017 was 29 per cent, down from a level of 32 per cent seen two years ago.

Once factor that will impact the list going forward is the planned $5bn merger of Saudi British Bank (SABB) and Alawwal Bank announced in May.

The non-binding deal would create a lender with assets of around $77bn, making it the kingdom’s third largest.

TOP 10 BANKS IN SAUDI
(Based on total assets of listed banks at the end of 2017)

1. National Commercial Bank

Assets in 2017 ($000): 118,364,231
Assets in 2016 ($000): 117,731,019
Growth (2016-2017): 0.54
2017 net profit ($000): 2,657,242
Return on assets (ROA) in 2017: 2.26

2. Al Rajhi Banking Corporation

Assets in 2017 ($000): 91,497,741
Assets in 2016 ($000): 90,589,818
Growth (2016-2017): 1.00
2017 net profit ($000): 2,432,194
Return on assets (ROA) in 2017: 2.68

...[ Continue to next page ]  /  Source: gulfbusiness