Fitch Ratings said that the operating environment for Saudi banks showed signs of recovery, due to significant growth in loans during the first ten months of 2020, in light of the continuing momentum in Real estate financing for individuals.
The agency added in a recent report, that despite the increasing pressure on the operating environment for banks since the first quarter of 2020, the weighted average feasibility rating of Saudi banks at + bbb is still the highest in the GCC countries.
She also pointed out that the signs of recovery come amid difficulties facing the operating environment, due to the repercussions of the Corona pandemic, and the drop in oil prices, which represents pressures on the quality and profitability of assets. / p>
The agency affirmed that the Saudi banking sector still enjoys good capital, which is among the highest in the world, and the balance sheets of Saudi banks remain liquid.
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Fitch pointed out that the measures of asset quality announced in the sector during the first nine months of 2020 showed stability, with government support measures, and high growth in corporate finance before the epidemic. .
And it expected the decline in the impact of corporate credit growth due to an expected default by some of them due to the repercussions of Corona, which puts pressure on the operating environment, while banks have been working to form provisions since the first quarter of 2020, in anticipation of poor asset quality.
The agency also noted that banks have been working on making provisions since the first quarter of 2020 in anticipation of poor asset quality.
