Saudi National Bank

The stable outlook on the long-term global scale and national scale ratings on SNB indicates that we expect the bank to maintain solid capitalization while keeping the risks associated with lending growth in check. We also anticipate that SNB will sustain its underwriting standards, with minimal government interference, over the next 12-24 months. We could lower the long-term global scale and national scale ratings if we saw: A significant deterioration in SNB's asset quality; Greater government interference in decision-making, causing significant risk to build up on SNB's balance sheet; or Weaker capitalization, so that the RAC ratio drops below 10%. We consider an upgrade on the long-term global scale rating to be remote within the next 12-24 months because it

...Saudi National Bank (SNB) is the leading bank in Saudi Arabia. It enjoys a prime domestic market position, and had total assets of Saudi Arabian riyal (SAR) 958.5 billion as of June 2022. The merger with Samba Financial Group has created a national champion, and we expect SNB to realize merger benefits in 2022 and 2023, boosting its profitability. We expect SNB's return on average assets to increase to 2.1%-2.2% in 2022-2023, compared with 1.7% in 2021, supported by higher financing growth, margin expansion, and lower risk costs....

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