Headed for a promising year in 2021, Saudi banking sector is all set to grow, says KPMG in its report.
The report ‘Banking Perspectives 2021’ records that the sector is moving positively, supported by the reforms in the Kingdom with halt in expected credit losses (ECL) and stable liquidity.
One of the Big Four, KPMG, also mentioned the transformational changes and a stronger Capital Adequacy for 2021 in the report. The changes were accelerated diversity and inclusion efforts by major banks.
While banks had to weather Covid-19, they were also at the front lines of implementing financial support measures, instigated by the government and SAMA.
This comes after 2020 was a year of unprecedented events, affecting almost every sector.
“In the wake of immense uncertainty throughout FY2020, financial positions have surprisingly thrived rather than just survived,” said the report.
KPMG reported that the 11 Tadawul-listed banks stayed resilient at the end of the year indicating signs of recovery. As per the analysis, Saudi banks concluded 2020 reflecting “cohesiveness” in outlook as well as playing a joint role along with the regulator in economy recovery.