As much as SR32.9 bln Non-performing Loans, at Saudi banks

The overall non-performing loans, at the Saudi banks, totaled SR32.9 billion in the second quarter of 2021, with a cumulative balance of provisions of SR51.1 billion, bringing the overall coverage rate to 155.6 percent.

Those 10 listed banks have written off SR3 billion in bad debts, during the first six months of this year, according to financial statistics published on the financial market website Tadawul and reported by “Maaal” the Saudi leading online business daily.

Saudi banks’ lending portfolio reached SR1.8 trillion, by the end of June 2021.

The formerly known National Commercial Bank or Al-Ahli and Al-Rajhi Bank acquired 48.7% of them, as the net loans of the two banks amounted to SR893.5 billion.

The Saudi National Bank i.e. (the National Commercial Bank after the merger with “SAMBA”) was listed in the Saudi stock exchange, reported SR7.5 billion, in terms of non-performing loans, by the end of the period, ending in June 2021.

While the bank’s net loans amounted to SR503.2 billion, its balance of provisions stood at SR11.2 billion and the coverage ratio reached 149%.

In second place, in terms of the non-performing loans’ valuation, SAAB Bank came in with SR5.4 billion and the bank’s net loans amounted to SR161.4 billion, while its balance of provisions for non-performing loans posted SR7.1 billion and the coverage ratio stood at 131.8%.

On the other hand, the provisions set aside by overall Saudi banks, at the end of the first half of this year, amounted to about SR7 billion.

The non-performing loan provisions were the most cautious, at Al-Rajhi Bank.

The coverage ratio amounted to 318% and the cumulative balance of provisions with the bank reached SR8.5 billion, compared to non-performing loans worth SR2.7 billion, by the end of June 2021.

As well, The Arab National Bank had the lowest coverage ratio with 114.5%, whereas its cumulative balance of provisions recorded to SR3.9 billion, and its non-performing loans reported SR3.4 billion.

A table displaying net financing, non-performing loans, provisions, bad debts and coverage ratios for Saudi banks listed in Tadwul all Share Index “TASI” by the end of June 2021

A table displaying net financing, non-performing loans, provisions, bad debts and coverage ratios for Saudi banks listed in “TASI” by the end of June 2020

It’s noteworthy, that the earnings of the 10 Saudi banks listed in the Saudi stock exchange “Tadawul” increased by 111% to SR23 billion by the end of the first half of this year, compared to SR10.9 billion, at the same time of the previous year.

By the end of the second quarter of 2021, the profits of the banks listed in “TASI” had risen to SR11 billion, an increase of 1050% over their profits in the same quarter of 2020, which were just SR962 million.

According to Saudi bank quarterly reports, eight out of ten banks increased their profits, in the three months ended in June 2021, led by Banque Saudi Fransi, whose profits increased by 76% to SR770 million compared to SR437 million, in the same quarter the previous year.

The “Fransi” was followed by Bank Al-Jazira with a growth rate of 51.5%, then Al-Rajhi Bank with an increase of 48%, while the profits of the Arab National Bank fell to SR473 million, at the end of the second quarter of 2021, with a rate of 2.7% from its profits, in the second quarter 2020, which was SR486 million.

Meanwhile SAAB earned a profit of SR919 million, at the end of the second quarter of this year, compared to a loss of SR6.9 billion, in the previous quarter.