* Talal Al-Sayah from Riyadh
The cumulative provisions of Saudi banks at the end of the first quarter of 2019 rose to about 43.364 billion riyals, compared to SR 43.161 billion at the end of the first quarter of 2018, with a growth of 0.5 percent.
Provisions allocated by banks in the first quarter of 2019 are divided into three sections: "Provisions for credit losses, Investment Provisions and Provision for impairment of assets or financial assets."
According to the analysis of the unit reports in the newspaper "AlEqtisadiah" that was based on data banks in Tadawul, the provisions for credit losses during the first quarter of 2019 amounted to SR 2.08 billion, compared to SR1.639 billion during the same period last year, with a growth of 26.9 percent.
Investment allocations were amounted to about 40 million riyals compared to 100 million riyals, and provisions for impairment losses on assets or financial assets were amounted to SR 32 million compared to SR 13 million.
Regarding the value of non-performing loans, loans that no longer yield to the banks interest income are reaching SR 27.116 billion at the end of the first quarter, compared to SAR 23.925 billion at the end of the same period of the previous year, which was recording a growth of 13.3%
The ratio of non-performing loans to the banks' net loan portfolio rose to 1.9 percent from 1.7 percent.
The ratio of non-performing loans to Saudi banks at the end of the first quarter of 2019 was about 160 per cent, compared with 180 per cent at the end of the same period last year.
The ratio of non-performing loans to banks declined due to the growth of non-performing loans, with the first growing by 13.3 per cent to about 3.191 billion riyals, while the second recorded a slight growth of 0.5 percent at 204 million riyals.
Coverage ratio
Seven out of 12 banks recorded a decline in the coverage ratio of non-performing loans by the end of the first quarter of 2019, compared to the same period last year.
Al-Rajhi Bank came first in terms of decline in coverage ratio by 1.37 percentage points to 346 per cent by the end of the first quarter of 2019, compared to 483 per cent at the end of the first quarter of 2018.
The Saudi British Bank (SABB) was down 0.9 percentage points from 234 per cent to 144 per cent at the end of the first quarter of 2019.
It is followed by Riyadh Bank that was down 0.87 percentage points from 230 per cent at the end of the first quarter of 2018 to 144 per cent by the end of the first quarter of 2019, followed by Alinma Bank with a decline of 0.62 percentage points from 243 per cent to 180 per cent and followed by SAMBA that was down 0.44 per cent from 212 per cent to 167 per cent at the end of the first quarter of 2019.
Alahli declined 0.19 percentage points from 165 per cent at the end of the first quarter of 2018 to 145 per cent by the end of the first quarter of 2019.
The latest banks that recorded a decline in the ratio of coverage of cumulative provisions for non-performing loans was Albilad Bank, as whe ratio fell 0.12 percentage point from 246 percent to 235 percent at the end of the first quarter of 2019.
The figure is expected to rise by 0.12 percent.
Bank Al-Jazira was at the forefront of banks with a growth rate of 0.49 percentage points from 101 per cent to 150 per cent at the end of the first quarter of 2019 and followed by Arab Bank by 0.19 percentage points from 169 per cent at the end of the first quarter of 2018 to 188 per cent by the end of the first quarter 2019.
Saudi Hollandi 's First Bank increased by 0.16 percentage points to 158 per cent and Saudi Investment Bank (SAIB) increased by 0.06 percentage points to 63 per cent from 58 per cent at the end of the first quarter of 2018.
The most recent of which was Banque Saudi Fransi, as its coverage stood at 124 per cent at the end of the first quarter of 2019 compared to 122 per cent at the end of the first quarter of 2018.
Non - performing loans
The value of non-performing loans was amounted to SR 27.116 billion at the end of the first quarter of 2019, compared to SR 23.925 billion at the end of the first quarter of 2018 that was registering a growth of 13.3%.
Saudi British Bank (SABB) contributed to the growth in the value of non-performing loans, as its non-performing loans grew by SR1.280 billion, while total non-performing loans grew by 3.191 billion riyals and SABB contributed 40 percent to non-performing loans.
The bank's non-performing loans at the end of the first quarter of 2019 were amounted to 3.34 billion riyals, compared to 2.06 billion riyals at the end of the first quarter 2018.
Al-Rajhi Bank with its troubled loans grew by 584 million riyals from 1.707 billion riyals to 2.291 billion riyals at the end of the first quarter of 2019.
Riyadh Bank grew by 465 million riyals from SR 1.326 billion to SR 1.791 billion and followed by Alinma Bank with a growth of SR 441 million to reach SR 1.307 billion at the end of the first quarter of 2019.
Samba came with a growth of about 359 million riyals to reach the value of its troubled loans to 1.710 billion riyals, followed by the former Saudi Hollandi Bank, which is recording a growth of 304 million riyals in its troubled loans to reach 2.658 billion riyals and "National Bank" with a growth of 224 million riyals to reach the value of its troubled loans to 4.945 billion riyals.
Bank AlBilad, the country's second-largest lender, recorded a growth of 153 million riyals to reach 725 million riyals at the end of the first quarter of 2019.
On the other hand, four banks recorded a decline in the value of their non-performing loans, the lowest of which was the decline of "Bank Al-Jazira" by 302 million riyals to reach the value of its troubled loans to 636 million riyals.
While the value in the Saudi Investment Bank by about 161 million riyals to reach the value of loans troubled by the end of the first quarter 2019 about 2.851 billion riyals.
Arab Bank also declined by 122 million riyals to reach 1.474 million riyals.
The most recent of which was "Saudi Fransi", which recorded a decline in its troubled loans by 35 million riyals to reach the end of the first quarter of 2019 about 3.388 billion riyals.
Cumulative allocations against non - performing loans
Cumulative allocations recorded a growth rate lower than that of non-performing loans, for this reason, the ratio of non-performing loans to Saudi banks fell by the end of the first quarter of 2019.
Eight banks recorded growth in the value of their cumulative provisions at the end of the first quarter of 2019, which is issued by "Alawwal Bank" with a growth of 855 million riyals from 3.351 billion riyals to 4.206 billion riyals by the end of the first quarter 2019, and followed by Bank Albilad with a growth of 294 million riyals from 1.407 billion riyals to 1.701 billion riyals by the end of the first quarter 2019.
Alinma Bank had a growth of 257 million SR from 2.102 billion riyals to 2.359 billion riyals by the end of the first quarter 2019, followed by Saudi Investment Bank with a growth of 76 million riyals from 1.732 billion riyals to 1.808 billion riyals at the end of the first quarter 2019, and followed by Arab Bank with a growth of 70 million riyals from 2.704 billion riyals to 2.774 billion riyals by the end of the first quarter 2019.
"Saudi Fransi" had a growth of 27 million riyals from 4.165 billion riyals to 4.192 billion riyals.
Samba Bank was the last bank to record a cumulative growth of SR3 million from SR2.860 billion to SR2.883 billion at the end of the first quarter of 2019.
The bank's net profit rose to SR2.8 billion.
On the other hand, four banks recorded a decline in the value of cumulative allocations, the National Bank, the lowest decline of 580 million riyals from 7.766 billion riyals to 7.187 billion riyals by the end of the first quarter 2019.
"Riyadh Bank" had a decline of 483 million riyals from 3.056 billion riyals to 2.572 billion riyals.
"Al-Rajhi Bank" had a decline of 316 million riyals from 8.242 billion riyals to 7.926 billion riyals.
The latest banks that recorded a decline in cumulative provisions Bank was "SABB", which was about SR 4 million from SR 4.829 billion to SR 4.825 billion at the end of the first quarter of 2019.
First quarter provisions
The provisions of "provisions for credit losses, investment and impairment of financial assets", which were covered by Saudi banks in the first quarter of 2019, were amounted to SR 2.073 billion, compared to SR1.726 billion in the same period of 2018, which is registering a growth of 20 percent, equivalent to 346 million riyals.
Seven banks recorded growth in their provisions over the same period in 2018 that is issued by Samba Bank, whose provisions grew by 309 million riyals by 2532 per cent to reach about 321 million riyals, compared to 12 million riyals in the first quarter 2018.
"Alawwal Bank" rose by 102 million riyals from 255 million riyals to 357 million riyals, followed by National Bank with a growth of 62 million riyals from 83 million riyals to 145 million riyals, then "Saudi Fransi" by about 47 million riyals from 59 million riyals to 106 million riyals, and then "Bank Albilad" with a growth of 30 million riyals from 95 million riyals to 125 million riyals in the first quarter 2019.
Al-Jasira bank had growth of nine million riyals from 17 million riyals in the first quarter of 2018 to 26 million riyals.
The latest banks that recorded growth in the provisions that were withdrawn in the first quarter 2019 was "Riyadh Bank" with provisions growing by SR 4 million from SR 205 million in the first quarter of 2018 to SAR 209 million in the first quarter of 2019.
On the other hand, five banks recorded a decline in the provisions they had in the first quarter 2019 compared to the first quarter 2018.
The lowest was SABB with 116 million riyals from 207 million riyals to 91 million riyals in the first quarter of 2019.
The allocation of "Al-Rajhi Bank" fell by 61 million riyals, from 450 million riyals to 389 million riyals and followed by Alinma Bank with a decrease of 24 million riyals, from 89 million riyals to 65 million riyals.
The Saudi Investment Bank (SAIB) decreased its provisions in the first quarter to SR 11 million from SR 89 million in the first quarter of 2018 to SR 77 million in the first quarter of 2019. The Saudi Investment Bank
The latest banks that had a decline in allocations that evaded in the first quarter 2019 was Arab Bank that reported a decline of SR4 million from SAR 165 million to SAR 162 million in the first quarter of 2019.
* Economic Reports Unit
