https://arab.news/cq973
RIYADH: Saudi Arabia's top 10 banks saw robust quarter-on-quarter growth in financing and deposits in the second quarter of 2021, Zawya reported, citing management consulting firm Alvarez & Marsal (A&M)'s KSA Banking Pulse.
Core operating income increased by 8.4 percent, compared to 1.2 percent in the first quarter of the year, in what is considered the fourth increase in a row, while loans and advances (L&A) increased by 13.1 percent and deposits by 12.6 percent.
L&A and deposit growth were primarily supported by the merger of National Commercial Bank and SAMBA to form Saudi National Bank (SNB), according to the report.
Operating expenses rose by 13.7 percent quarter-on-quarter and impairments jumped by 81.6 percent, affecting the second quarter's overall operating efficiency for the banking sector. This affected net profit for the top ten banks in the Kingdom.
Aggregate net income decreased over the same period by 8.1 percent to SR11 billion ($2.93 billion), while the fall in net profit was partially offset by a 11.1 percent increase in net interest income.
The top 10 banks in the report are SNB, Al Rajhi Bank, Riyad Bank , Saudi British Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank Albilad, Saudi Investment Bank and Bank Aljazira.