Saudi banks assets surge to $738bln in 2020

Total assets of 11 Tadawul-listed lenders reached SAR 2.77 trillion ($738.89 billion) by the end of 2020, compared with SAR 2.45 trillion ($653.07 billion) in 2019, according to data collected by Mubasher based on the banks’ earnings releases.

Supporting this hike was the annual rise in the assets of nine banks, notably Al Rajhi Bank, whose assets soared by 22% yearly last year to SAR 468.83 billion ($125.02 billion).

Meanwhile, the National Commercial Bank (NCB) topped the list with SAR 599.45 billion ($159.85 billion) in assets in 2020, compared to SAR 506.82 billion ($135.15 billion) a year earlier, up by 18.3%.

Bank Aljazira’s assets amounted to SAR 92.09 billion ($24.56 billion) by the end of 2020, a yearly hike of 6.4%.

Contrary to that, assets of the Arab National Bank (ANB) and the Saudi Investment Bank (SAIB) fell by 1.66% and 0.9%, respectively, to SAR 180.4 billion ($48.1 billion) and SAR 99.89 billion ($26.64 billion), respectively.

The Saudi banking sector is awaiting the launch of the Saudi National Bank following the merger of NCB and Samba Financial Group. The new entity is set to be the kingdom’s largest so far and one of the biggest across the GCC region.

As per the financial statements of NCB and Samba, the assets of the new entity will be SAR 896.39 billion ($239.04 billion) as of the end of the fiscal year (FY) 2020.

Last week, the extraordinary general meeting (EGM) of NCB approved the proposed merger of the bank and Samba through the issuance of 0.739 new NCB shares for every share in Samba.

The NCB-Samba tie-up will come into effect after satisfying all of the merger conditions, including the condition related to the creditor objection period.