LONDON, 26 April 2005 — Fitch Ratings, the international rating agency, says in a special report published yesterday that some Saudi banks may see positive rating actions if they continue their strong profitability and further strengthen their key credit risk indicators.
Fitch says Saudi banks will continue to be one of the main beneficiaries of a buoyant local economy, which continues to be supported by high oil prices. This, together with continuing high demand for retail loans, increased fee (mainly brokerage) income from a booming local stock market, IPO financing and a continuation of liquidity flowing into the region, contributed to the Saudi banks’ strong 2004 results. In the report, entitled “Saudi Banks: 2004 Annual Review and Outlook 2005”, Fitch says further strong results are expected this year, although fee and commission income growth is expected to slow slightly as the local stock market boom recedes.
