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Saudi Arabian and Egyptian banks demonstrate capital strength as Middle Eastern and African peers reveal weakness amid heightened stress

National Commercial Bank and Banque Misr emerged as the strongest bank by balance sheet in the Middle East and Africa respectively in 2020. Banks in Saudi Arabia and Qatar are the strongest in the Middle East, while Egyptian and South African banks are the strongest in Africa

January 29, 2021 | Wendy Weng
  • National Commercial Bank is strongest bank by balance sheet in the Middle East as regional peers delivered weaker overall performance
  • Banque Misr is the strongest bank bank by balance sheet in Africa while its counterparts in the continent registered mixed results
  • Qatar National Bank and Standard Bank are the largest bank in the Middle East and Africa respectively as players recorded lower profits

National Commercial Bank, the largest Saudi Arabian bank, tops the annual ranking of strongest banks in the Middle East, while Egypt-based Banque Misr is the strongest bank in Africa. This is based on a detailed and transparent scorecard that ranks banks on six areas of balance sheet financial performance; namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality and liquidity. National Commercial Bank and Samba Financial Group have also entered into a merger to create the third largest bank in the region. The merger is expected to be completed in the second quarter of 2021.

Saudi Arabian and Qatari banks achieved the highest weighted average strength score, at 3.83 and 3.64 out of five, respectively. The average strength score recorded by banks in the Middle East fell from 3.62 in the previous year’s evaluation to 3.48 in 2020, a reflection of weaker overall financial performance. Apart from the impact of the pandemic, low oil prices also posed serious challenges to the banking system. Banks in the region registered an average return on assets (ROA) of 0.92% in 1H FY2020, much lower than 1.69% in 1H FY2019. Asset quality deteriorated and average capital adequacy ratio (CAR) also declined during the year.

This year, financial information in the first half of financial year 2020 (1H FY2020) was collated and incorporated into the assessment of how banks performed during the COVID-19 pandemic. This year’s evaluation covers banks from 15 countries, namely Bahrain, Jordan, Kuwa...

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Categories:

Asian Banker 500

Keywords:Mea200, Largest Banks, Scorecard, Profitability, Asset Quality, Capitalisation, Ranking, Covid-19


Saudi Arabian and Egyptian banks demonstrate capital strength as Middle Eastern and African peers reveal weakness amid heightened stress

National Commercial Bank and Banque Misr emerged as the strongest bank by balance sheet in the Middle East and Africa respectively in 2020. Banks in Saudi Arabia and Qatar are the strongest in the Middle East, while Egyptian and South African banks are the strongest in Africa

January 29, 2021 | Wendy Weng
  • National Commercial Bank is strongest bank by balance sheet in the Middle East as regional peers delivered weaker overall performance
  • Banque Misr is the strongest bank bank by balance sheet in Africa while its counterparts in the continent registered mixed results
  • Qatar National Bank and Standard Bank are the largest bank in the Middle East and Africa respectively as players recorded lower profits

National Commercial Bank, the largest Saudi Arabian bank, tops the annual ranking of strongest banks in the Middle East, while Egypt-based Banque Misr is the strongest bank in Africa. This is based on a detailed and transparent scorecard that ranks banks on six areas of balance sheet financial performance; namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality and liquidity. National Commercial Bank and Samba Financial Group have also entered into a merger to create the third largest bank in the region. The merger is expected to be completed in the second quarter of 2021.

Saudi Arabian and Qatari banks achieved the highest weighted average strength score, at 3.83 and 3.64 out of five, respectively. The average strength score recorded by banks in the Middle East fell from 3.62 in the previous year’s evaluation to 3.48 in 2020, a reflection of weaker overall financial performance. Apart from the impact of the pandemic, low oil prices also posed serious challenges to the banking system. Banks in the region registered an average return on assets (ROA) of 0.92% in 1H FY2020, much lower than 1.69% in 1H FY2019. Asset quality deteriorated and average capital adequacy ratio (CAR) also declined during the year.

This year, financial information in the first half of financial year 2020 (1H FY2020) was collated and incorporated into the assessment of how banks performed during the COVID-19 pandemic. This year’s evaluation covers banks from 15 countries, namely Bahrain, Jordan, Kuwa...

Please login to read the complete article. If you already have an account, you can login now or subscribe/register.

Categories:

Asian Banker 500

Keywords:Mea200, Largest Banks, Scorecard, Profitability, Asset Quality, Capitalisation, Ranking, Covid-19


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