We are pleased to present the third volume of our quarterly report on the Saudi banking sector with industry insights, market analysis and the Q3 financial performance.

Heading towards the end of 2020, the corporate and financial systems appear to be on better footing to tackle further challenges compared to those arising at the onset of the pandemic. This is in part courtesy of the continued support of governments and regulators, various mitigation measures since the outbreak and the overall adaptability of the financial sector. The Saudi banking sector in the past quarter has also experienced range of regulatory changes, including the VAT reforms and the institutionalization of the real estate transaction tax (RETT), while mortgage finance continued to recorded significant growth. NCB and SAMBA merger agreement has also brought more light to post-pandemic recovery, while the era itself seem to have awakened a renewed sense of purpose, indicating executives are more inclined to address their ESG policies.

We foresee that the final quarter of this already eventful year is likely to be a nexus of several divergent themes and in the grand scheme of things the closure would depend on the continued tenacity and resilience of the sector founded on measures taken by both SAMA and individual banks. We have observed multiple efforts towards customers endurance at the back of strong capital base and funding structure of the industry and we do not foresee a different proposition for rest of the year.

We wish you an insightful read of the third edition of our Banking Pulse which is part of a series of our industry-wide endeavor to share and seek insights in the banking space. We wish you all a good read and look forward to your feedback.