“Strong capital buffers” will help banks in Saudi Arabia push through a bumpy road ahead in the next few months, according to a Reuters report, which took a measurement of some of the industry’s top CEOs.
“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.”
2020 is set to be a tough year for banks as the coronavirus crisis and weak oil prices put pressure on profitability and loan growth, according to the Reuters report. But the Kingdom’s central bank has provided 50 billion riyals ($13.3 billion) 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, Reuters said.
