Saudi National Bank

In 2024, S&P Global Ratings expects SNB to record credit growth of 10%, primarily from projects related to Vision 2030 implementation, in addition to mortgage lending. Therefore, we expect higher lending volumes will offset flat margins and higher credit costs, post recoveries booked in 2023, leaving the bank with a marginal earnings growth in 2024. Our positive outlook on SNB mirrors that on the long-term sovereign rating, given the bank's intrinsic creditworthiness and high systemic importance. We could raise the rating if we took a similar action on Saudi Arabia. We could revise the outlook to stable within the next 12 months if we were to take the same action on the sovereign. Our anchor for a commercial bank operating

...In 2024, S&P Global Ratings expects SNB to record credit growth of 10%, primarily from projects related to Vision 2030 implementation, in addition to mortgage lending. Therefore, we expect higher lending volumes will offset flat margins and higher credit costs, post recoveries booked in 2023, leaving the bank with a marginal earnings growth in 2024. Nonperforming loans (NPLs) are likely to increase marginally as private sector leverage builds up over in the next five years. We expect an increase in lending to subsidiaries of government-related entities and the bank's lending book will remain well diversified. Over the same period, we forecast that legacy loans in the construction and real estate sectors...

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