The credit rating agency, Fitch, stated that the repercussions of the Corona epidemic on the Saudi banking sector have been contained, stressing that the rise in oil prices supports the economic recovery.
According to Arabiya Net, Fitch indicated that financing and loan portfolios grew by 14.9% in 2020, and by 19% in the first half of 2021.
It revised its outlook for the sector to stable, indicating that the deterioration in asset quality and profits has stopped.
Standard & Poor's, in its latest report on Gulf countries' banks, expected a rise in the rate of non-performing loans over the next two years without exceeding 6%, compared to 3.8% on June 30th. This comes amid the gradual withdrawal of stimulus programs and the repercussions of the Corona crisis on small businesses.
Despite the economic recovery, lending growth in the Gulf states is likely to remain subdued over the next two years, with the exception of Saudi Arabia, driven by mortgages and implementation of visionary investments, the agency said. 2030.