Talal AlSayah from Riyadh
The cumulative provisions of Saudi banks at the end of the third quarter of this year 2018 are up to SR41.91 billion compared to SR 32.26 billion at the end of the same period last year, which registered a growth of 29.9 percent, equivalent to 9.649 billion riyals.
According to the monitoring unit of the reports in the newspaper "AlEqtisadiah" that was based on data from Saudi banks, cumulative allocations for all 12 banks increased with the exception of SABB and Arab Bank, which declined by 11.3 percent and 3.7 percent, respectively.
Cumulative allocations for Alinma Bank increased by 96.9 per cent, followed by Saudi Investment Bank by 60.9 per cent, and Riyad Bank by 54.8 per cent.
AlBilad Bank increased its cumulative provisions by 48.5 per cent, and Samba by 44.8 per cent, and AlRajhi Bank by 48.5 per cent.
While Alawwal Bank provisions increased by 42.5 per cent, Bank AlJazira by 41.7 per cent and Saudi Fransi by 22.3 per cent, then AlAhli Bank, which was the latest bank that grow in cumulative provisions, with cumulative provisions growing by 17.2 per cent.
Saving 2.5 billion riyals
Saudi banks withdrew during the third quarter of 2018 a provision of 2.49 billion riyals compared to 2.73 billion riyals during the same period of the previous year 2017, with a decline of 8.8 per cent.
AlAhli Bank and AlRajhi Bank topped the list during the third quarter of 2018, as AlAhli banked about SR 615.8 million representing about 24.7 per cent of the total allocations taken by banks during the third quarter of 2018, and AlRajhi Bank has a provision of about SR 417.3 million, representing about 16.7 per cent of the total allocation.
Riyadh Bank came in third with SAR 308.3 million, then Alawwal Bank in fourth place with 278.5 million riyals, and Arab Bank in the fifth rank with 239.8 million riyals.
AlBilad Bank has set aside provisions of SR 148.1 million, while Saudi Fransi by 123.9 million riyals, and Alinma by 92.4 million riyals.
While Saudi Investment Bank's share was of SR 90.4 million, SABB with SR 87 million, Samba with SR 68.7 million, and the most recent of which was Bank AlJazira with 21.4 million riyals.
Impaired loans
The value of non-performing loans to banks at the end of the period were amounted to about SR 23.672 billion, compared to SR 19.140 billion, with a rise of 23.7 percent by about SR 4.532 billion.
Non-performing bad loans rose to 10 banks, down from two banks, Riyad Bank by 8.1 percent and Saudi Investment Bank by 18.4 percent.
For banks whose non-performing loans increased, SABB had a decline with 74.2 per cent, followed by Bank AlJazira by 57.8 per cent, and Arab Bank by 52.4 per cent.
Samba came up by 49.4 per cent, Alinma Bank with 46.9 per cent, and Bank AlBilad by 38.5 per cent.
Then, Alawwal Bank was by 25.4 per cent, Fransi Bank by 18.7 per cent, AlRajhi Bank by 16.5 per cent, and the most recent is Alahli Bank by 8.4 percent.
Coverage ratio 177%
The ratio of cumulative provisions for non-performing loans to non-performing loans was about 177 per cent, about twice as high as 191.7 per cent at the end of the second quarter of 2018, which is in comparison with 168.6 per cent at the end of the third quarter 2017.
AlRajhi Bank was the highest in terms of coverage ratio of 403.4%, followed by Bank AlBilad by 253.3 per cent, Alinma Bank by 222 per cent, and Riyadh Bank by 201.2 per cent.
Samba had 180.1 per cent coverage, Saudi Investment Bank by 177.9 per cent, and Alawwal Bank by 157.1%.
While the coverage rate of AlAhli Bank was by 154 per cent, Arab Bank by 148.3 per cent, Fransi Bank by 134.8 per cent, AlJazira Bank by 130.8 per cent, and SABB by 100 per cent.
* Economic Reports Unit
