{"id":83025,"date":"2024-02-04T00:00:00","date_gmt":"2024-02-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/02\/04\/saudi-banks-are-well-positioned-to-grow-this-year-sp\/"},"modified":"2024-02-04T00:00:00","modified_gmt":"2024-02-04T00:00:00","slug":"saudi-banks-are-well-positioned-to-grow-this-year-sp","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/02\/04\/saudi-banks-are-well-positioned-to-grow-this-year-sp\/","title":{"rendered":"Saudi banks are well-positioned to grow this year \u2013S&P"},"content":{"rendered":"

The Saudi banking system <\/strong>is well-positioned for continued growth this year <\/strong>on the back of robust credit demand in non-oil sectors and economic diversification, according to S&P Global Ratings\u2019s GCC Banking Sector Outlook 2024 report (pdf)<\/a>. On the whole, GCC banks are projected to maintain solid capitalization, profitability, provisioning, and liquidity, the report said, predicting \"broad stability in key metrics across GCC banks and banking systems in 2024.\" <\/p>\n

GCC banks on the whole will see slightly slower credit growth:<\/strong> Credit growth will moderate slightly on the back of an unfavorable base effect and a more cautious approach to lending, the report noted. This comes amid a persistent high interest rate environment and uncertain external macroeconomic conditions, S&P Global said. <\/p>\n

Saudi and the UAE are expected to have the strongest return on assets (RoA) <\/strong>during the year<\/strong>, with high levels of capitalization making them favorable when compared to regional or global peer groups, the report said. <\/p>\n

Where do the risks lie? <\/strong>The report named four areas that could present risks: <\/p>\n