The Banking Executive Magazine - March 2021

The Saudi banking sector is headed for a promising year in 2021, having weathered the shaky outlook follow- ing the COVID-19 pandemic in the corresponding period last year, ac- cording to the latest report by KPMG, one of the Big Four accounting or- ganizations. Titled ‘Banking Perspectives 2021,’ the report records that the sector is seen moving positively, supported by the reforms in the Kingdom, halt in expected credit losses (ECL), stable liquidity, stronger Capital Adequacy Ratio (CAR), and transformational changes. KPMG reported that the 11 Tadawul- listed banks stayed resilient at the end of the year reflecting signs of re- covery since uncertainties evolved in March 2020 and a promising outlook for 2021. These 11 banks are Alinma Bank, Arab National Bank, Al Rajhi Bank, Bank Al Jazira, Bank Al Bilad, Banque Saudi Fransi, National Com- mercial Bank, Riyad Bank, Saudi British Bank, Saudi Investment Bank and Samba Financial Group. The analysis revealed that Saudi banks concluded 2020 reflecting “cohesiveness” in outlook as well as playing a joint role along with the regulator in economic recovery. The Saudi Central Bank (SAMA) came out proactively with the stimu- lus program to support borrowers Saudi Banks Saudi Banks Overcome COVID-19 Pandemic Worries, POISED FOR GROWTH IN 2021 the BANKING EXECUTIVE 12 ISSUE 147 MARCH 2021