to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
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Banking Sec<strong>to</strong>r<br />
Saudi Banking Sec<strong>to</strong>r Outlook<br />
» The Saudi banks (as per <strong>the</strong> eleven months data for 2008) posted profitability<br />
increase of 6.0% reaching SR30.0bn.<br />
» Although Saudi banks are somewhat robust against severe implications of global<br />
financial crisis, are estimated <strong>to</strong> record some write downs during <strong>the</strong> last quarter<br />
of 2008.<br />
» According <strong>to</strong> our estimates, <strong>the</strong> FY08 overall banking sec<strong>to</strong>r results will not<br />
experience any significant growth as <strong>the</strong> banking heavy weights performance<br />
could be mixed for <strong>the</strong> full year results. Our estimates indicate that amongst <strong>the</strong><br />
listed big banks Al Rajhi Bank and Saudi British Bank will lead <strong>the</strong> growth, while<br />
Riyad Bank and Samba financial group could witness decline.<br />
» Dependant on <strong>the</strong> stability of global s<strong>to</strong>ck markets in 2009, <strong>the</strong> Kingdom holds<br />
significant potential <strong>to</strong> attract investments. The Kingdom’s continued <strong>com</strong>mitment<br />
<strong>to</strong>wards <strong>the</strong> projects <strong>to</strong> ensure sustainable and balanced economic development<br />
along with banks’ restructuring plans and <strong>to</strong> lower dependence on revenues<br />
from equity markets, provide a window for stable if not higher banking sec<strong>to</strong>r<br />
performance during <strong>the</strong> year.<br />
Global Investment House<br />
24 Saudi Arabia Economic Overview - January 2009
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