Saudi banking sector gets off to a positive start in 2021, says KPMG

Saudi banking sector gets off to a positive start in 2021, says KPMG
Saudi banking sector gets off to a positive start in 2021, says KPMG

Thank you for reading the news about Saudi banking sector gets off to a positive start in 2021, says KPMG and now with the details

Jeddah - Yasmine El Tohamy - Saudi Arabia’s banking sector is expected to record positive performance this year, despite the challenges of the pandemic, a KPMG report said.
Performance will be supported by government reforms, the sector’s success in halting expected credit losses, liquidity stability, and overall improvement in the capital adequacy ratio, Asharq Business reported.
“The banking sector in Saudi Arabia enjoys a strong base in the volume of liquidity and capital, and despite the COVID-19 pandemic, the demand for homes has witnessed a continuous increase, and the demand for real estate financing has doubled,” said Ovais Shehab, head of the financial services sector in Saudi Arabia at KPMG.
The Saudi banking industry showed its “solidity and cohesion” in the face of the challenges posed by the pandemic, the report said.
Eleven Saudi banks monitored by KPMG (excluding losses announced by the Saudi British Bank) reported a decline in net profit of 6.32 percent last year compared to 2019.
Total assets increased by 13.14 percent to SR2.771 billion compared to SR2.449 billion in 2019, while customer deposits rose by 9.18 percent to SR1.975 billion compared to SR1.809 billion in 2019.
Expected credit losses recorded a significant increase of 39 percent to SR17.33 billion, compared to SR12.46 billion in 2019.
The profitability of Saudi banks will surpass their GCC peers in 2021, despite low interest rates and the elevated cost of risk, Roman Rybalkin, associate director at S&P Global Ratings, told Arab News on March 11.
“After the shocks witnessed in 2020, the Saudi economy is expected to recover in 2021-2022 due to an increase in global demand for oil and increase of private consumption,” he added.

These were the details of the news Saudi banking sector gets off to a positive start in 2021, says KPMG for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT Saudi fashion sector on course to hit Vision 2030 targets, princess tells summit