LONDON, 27 May — Saudi banks top in the Middle Eastern region according to the latest Moody’s ratings on the basis of the performance in 2000, with notable improvement compared to 1999.
Moody’s spokeswoman Elizabeth Moor said the capital and assets income in the Saudi banks are better than the other banks in the region.
“Despite some variations here and there, the general tendency all these banks have been to perform well while the weaker banks have improved to reach the level of strong banks.”
The Saudi American Bank (SAMBA) is now on a par with the Kuwait National Bank and the Jordan Arab Bank, she added.
The international rating agency did not observe any change in the ratings in the recent estimations except upgrading the Riyad Bank. She also expected the Saudi banks to expand their business activities either by opening new branches in other countries or with cooperation with other regional banks.
However, the Saudi banks are classified into A,B,C and D as part of restructuring the ratings on the basis of their financial strength which will be announced later in the week.
However this is not a new rating but a reorganization of the classification in general, she added.
The major factors that determine the ratings are the bank’s business environment, ownership and management, value of operations, current income level, risk management and volume, economic analysis of the capital and management priorities and strategies.
Economic circles in the Kingdom view the Moody’s rating as an approval of the banking operations in the country on an international perspective. It should be noted particularly that the merger of SAMBA with the United Commercial Bank has helped strengthen its base and enabled to be at the forefront among other leader banks such as the Kuwait National Bank and Jordan Arab Bank.