Revealed: Top 10 banks in Saudi

Things have been on the up for the GCC’s banks, which collectively recorded a better year in 2017 despite slowing economic growth in the region as a whole.

Banking activity was supported by a higher oil price and continued infrastructure investment as Gulf states diversify their economies in various ways. Commercial activity in the region expanded in 2017 and consumer confidence grew, albeit slightly. As a result, our list of the region’s 50 leading banks – ranking institutions in Bahrain, Kuwait, Oman, Saudi Arabia and the UAE – recorded higher net profit in 2017.

Read: Revealed: Top 10 banks in Bahrain

Read: Revealed: Top banks in Kuwait

The second half of 2017 was more challenging, but economic growth in the region is expected to improve slightly in 2018. This, along with diversification efforts, should provide a boost to the banking sector this year, meaning the forecast is for a marginal increase in returns.

Of the country’s covered in the report, Saudi Arabia saw some of the slowest asset growth of just 0.4 per cent.

The country’s domestic banking sector was also overtaken by the UAE. The kingdom’s market share at the end of 2017 was 29 per cent, down from a level of 32 per cent seen two years ago.

Once factor that will impact the list going forward is the planned $5bn merger of Saudi British Bank (SABB) and Alawwal Bank announced in May.

Read: Saudi’s Alawwal and SABB to merge creating $77bn bank

The non-binding deal would create a lender with assets of around $77bn, making it the kingdom’s third largest.

TOP 10 BANKS IN SAUDI
(Based on total assets of listed banks at the end of 2017)

1. National Commercial Bank

Assets in 2017 ($000): 118,364,231
Assets in 2016 ($000): 117,731,019
Growth (2016-2017): 0.54
2017 net profit ($000): 2,657,242
Return on assets (ROA) in 2017: 2.26

2. Al Rajhi Banking Corporation

Assets in 2017 ($000): 91,497,741
Assets in 2016 ($000): 90,589,818
Growth (2016-2017): 1.00
2017 net profit ($000): 2,432,194
Return on assets (ROA) in 2017: 2.68

3. Samba

Assets in 2017 ($000): 60,696,288
Assets in 2016 ($000): 61,730,290
Growth (2016-2017): -1.68
2017 net profit ($000): 1,339,811
Return on assets (ROA) in 2017: 2.17

4. Riyad Bank

Assets in 2017 ($000): 57,675,246
Assets in 2016 ($000): 58,031,734
Growth (2016-2017): -0.61
2017 net profit ($000): 1,052,266
Return on assets (ROA) in 2017: 1.81

5. Banque Saudi Fransi

Assets in 2017 ($000): 51,447,702
Assets in 2016 ($000): 54,247,656
Growth (2016-2017): -5.16
2017 net profit ($000): 941,836
Return on assets (ROA) in 2017: 1.74

6. Saudi British Bank

Assets in 2017 ($000): 50,030,758
Assets in 2016 ($000): 49,614,905
Growth (2016-2017): 0.84
2017 net profit ($000): 1,054,554
Return on assets (ROA) in 2017: 2.13

7. Arab National Bank

Assets in 2017 ($000): 45,787,120
Assets in 2016 ($000): 45,335,659
Growth (2016-2017): 1.00
2017 net profit ($000): 809,082
Return on assets (ROA) in 2017: 1.78

8. Alinma Bank

Assets in 2017 ($000): 30,668,018
Assets in 2016 ($000): 27,927,963
Growth (2016-2017): 9.81
2017 net profit ($000): 536,362
Return on assets (ROA) in 2017: 1.92

9. Alawwal Bank

Assets in 2017 ($000): 26,631,955
Assets in 2016 ($000): 28,018,800
Growth (2016-2017): -4.95
2017 net profit ($000): 356,138
Return on assets (ROA) in 2017: 1.27

10. Saudi Investment Bank

Assets in 2017 ($000): 25,012,325
Assets in 2016 ($000): 25,163,066
Growth (2016-2017): -0.60
2017 net profit ($000): 376,213
Return on assets (ROA) in 2017: 1.50

Looking ahead

In 2018, GCC banks are expected to record only modest growth in both assets and net profit, reflecting continuing challenging trading conditions. Economic growth in the region will be slightly higher, allowing for modest loan growth.

Maintained government infrastructure investment in the GCC and increased government spending in some GCC states will help to boost loan growth, albeit only modestly, and returns for the GCC banking sector are expected to be marginally higher over the course of the year.