Saudi Arabia's biggest lender NCB posts little change in 2020 profit
- NCB posted a net profit of 11.44 billion riyals ($3.05 billion) in the year that ended on Dec. 31, compared to 11.401 billion riyals in the same period a year earlier.
- NCB, which will complete its merger with smaller rival Samba Financial Group later this year.
DUBAI: National Commercial Bank, Saudi Arabia's biggest lender, on Tuesday posted little change in 2020 net profit as income was partially offset by impairments and higher expenses.
NCB posted a net profit of 11.44 billion riyals ($3.05 billion) in the year that ended on Dec. 31, compared to 11.401 billion riyals in the same period a year earlier.
Analysts had projected the bank will post a net profit of 10.25 billion riyals, according to an average forecast of 10 analysts' estimates available in Refinitiv data.
NCB, which will complete its merger with smaller rival Samba Financial Group later this year, said total operating expenses including impairments were higher by 9.4% mainly due to higher charges for expected credit losses.
Fitch Ratings said on Monday that several countries in the Gulf region have prolonged their loan deferral schemes well into 2021, masking the extent of the damage caused by the coronavirus pandemic and relatively low oil prices.
The rating agency has a negative outlook on Saudi banks' ratings, as it sees risks such as tempering of credit growth and increase in government fiscal consolidation measures.