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MarketScreener Homepage  >  Equities  >  Saudi Arabian Stock Exchange  >  The Saudi British Bank    1060   SA0007879089

THE SAUDI BRITISH BANK

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Saudi banks face tough few quarters but are well capitalised, say CEOs

06/04/2020 | 08:03am EST
People wearing protective face masks are seen outside Samba bank as the government eases lockdown restrictions amid the coronavirus disease (COVID-19) outbreak, in Riyadh

By Marwa Rashad

Saudi Arabia's banks face a tough few quarters as the coronavirus crisis and weak oil prices put pressure on profitability and loan growth, banking executives told Reuters.

But they said strong capital buffers would help them weather the storm.

"This crisis is not going to be over in a very short period of time," David Dew, managing director of Saudi British Bank (SABB), the kingdom's third-biggest lender by assets, told Reuters.

"The second and probably third quarters will remain challenging and 2020 will be a tough year."

Ammar Alkhudairy, chairman of the country's fourth biggest bank, Samba Financial Group, said profitability would be pressured by lower net interest margins, and possibly higher non-performing loans (NPLs), among other things.

"The margin compression will cause us, as well as all other banks, some profitability deterioration," he said, adding that the bank made extra NPL provisions in the first quarter.

Central bank data shows Saudi banks' profit declined by an annual 38.4% in April to 2.9 billion riyals ($773 million), while Rating agency Moody's said they face a weakening operating environment and cut the outlook on those lenders it rates to negative.

The central bank has provided 50 billion riyals to support banking sector liquidity, and both executives said the proactive measure would help them support private sector companies, especially those facing disruption from the pandemic.

However, bank lending to the private sector is expected to grow just 1% during 2020, Al Rajhi Capital said in a recent report.

"Given the economic situation, maybe loan growth is not the number one priority for banks right now," Samba's Alkhudairy said, adding that he expected mortgage financing to continue growing strongly.

(Reporting by Marwa Rashad; Editing by Kirsten Donovan)


© Reuters 2020
Stocks mentioned in the article
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AT HOME GROUP INC. 1.35% 22.46 Delayed Quote.45.28%
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SAMBA FINANCIAL GROUP 0.32% 31.7 End-of-day quote.3.76%
THE SAUDI BRITISH BANK 2.10% 26.8 End-of-day quote.8.41%
WTI 0.37% 53.141 Delayed Quote.8.53%
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Financials
Sales 2020 9 001 M 2 400 M 2 400 M
Net income 2020 -4 102 M -1 094 M -1 094 M
Net Debt 2020 - - -
P/E ratio 2020 -27,3x
Yield 2020 0,33%
Capitalization 55 068 M 14 679 M 14 683 M
Capi. / Sales 2020 6,12x
Capi. / Sales 2021 5,99x
Nbr of Employees 4 537
Free-Float 43,4%
Chart THE SAUDI BRITISH BANK
Duration : Period :
The Saudi British Bank Technical Analysis Chart | 1060 | SA0007879089 | MarketScreener
Technical analysis trends THE SAUDI BRITISH BANK
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Average target price 26,76 SAR
Last Close Price 26,80 SAR
Spread / Highest target 26,1%
Spread / Average Target -0,14%
Spread / Lowest Target -16,0%
EPS Revisions
Managers and Directors
NameTitle
David Robert Dew Managing Director & Executive Director
Lubna Suliman Al-Olayan Chairman
Robin Jones Chief Operating Officer
Mathew Pearce Chief Financial Officer
Khalid bin Abdullah Abdul Al-Molhem Non-Executive Director
Sector and Competitors