Maaal Reports: SAR 30.3 billion in non-performing loans across Saudi banks, 17.1 billion debts written off in one year, loan portfolio exceeds SAR 2.5 trillion

Monitoring conducted by Maaal newspaper has uncovered a significant decline in non-performing loans among Saudi banks listed on the Saudi stock market “Tadawul.” By the end of 2023, non-performing loans dropped to SAR 30.3 billion, marking a 13.7% decrease from SAR 34.4 billion in 2022. However, the alarming trend of bad debts (written off) has escalated. By the conclusion of last year, bad debts surged to SAR 17.1 billion, indicating a worrying 27% increase from SAR 12.5 billion written off in 2022.

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According to the monitoring, net financing in Saudi banks surged by 9.6% to SAR 2.45 trillion, compared to SAR 2.2 trillion in 2022. Conversely, the allocations set aside by the 10 banks by the end of 2023 amounted to approximately SAR 9.4 billion, marking a decrease of 2.6% compared to SAR 9.6 billion set aside the previous year.

According to Maaal, the cumulative balance of allocations in Saudi banks reached SAR 48.1 billion at the end of the previous year, whereas in 2022, it stood at SAR 51 billion. Additionally, the coverage ratio for non-performing loans reached 158.7% by the end of the previous year, an improvement from 148.7% in 2022.

The monitoring revealed that Al Rajhi Bank demonstrated the highest level of conservatism among Saudi banks, boasting a coverage rate for non-performing loans reaching 203%. Conversely, Banque Saudi Fransi emerged as the least conservative, with a coverage rate of 137.7%.

On the other hand, non-performing loans at the Saudi National Bank, totalling approximately SAR 7.4 billion, constituted 24.3% of the total non-performing loans in the sector. Following closely, non-performing loans at Al Rajhi Bank amounted to SAR 4.3 billion, ranking second in terms of value.Top of Form

Table of the net loans, non-performing loans, set aside provisions, and coverage ratio in 2023

The profits of the 10 banks listed on the Saudi stock market saw a significant annual increase of 11.9%, reaching approximately SAR 70 billion in 2023. Furthermore, in the fourth quarter of 2023 alone, these banks recorded a 7.7% increase, with profits reaching SAR 17.4 billion compared to SAR 16.1 billion year-over-year.