Redmond Ramsdale’s Post

Banks' net interest margin is influenced by a myriad of factors, in addition to interest rates. Know more about Marmore’s insight about the trends in Saudi Banking: https://lnkd.in/dPjYUUmz #Saudi #KSA #saudiarabia #bank #interest #interestrates #nim #liquidity #centralbank #marmoreresearch #markaz

Islamic banks in the GCC are set to outgrow conventional banks, driven by rising demand for Shariah-compliant products and stable profit margins, according to Moody's. Supported by stable oil prices and economic diversification, Islamic banks are expected to see strong growth, with Saudi Arabia leading the expansion. Sukuk issuances are also projected to increase significantly in 2024. #IslamicFinance #IslamicBanking

UAE: The assets of Islamic banks operating in the UAE jumped $23.41 billion to surpass $195 billion. The data showed that the assets of Islamic banks reached Dh717.7 billion ($195.39 billion) an annual increase of 13.61 per cent compared to Dh631.7 billion ($171.98 billion). The share of Islamic banks is now around 17.1 per cent of the total UAE banking assets. - CBUAE https://lnkd.in/dHjE64Cd #Islamicbanking #Islamicfinance #UAE #Shariahcompliant

"Saudi Islamic Banks Poised for Robust Growth Amidst High Oil Prices and Strong Economic Conditions," Says Fitch RIYADH: Saudi Islamic banks are set for robust growth through 2025, driven by non-oil economic growth and favorable conditions, Fitch Ratings reported. These banks benefit from a substantial retail customer base, enhancing profitability and maintaining high-quality assets. The demand for Shariah-compliant mortgages, which comprise 85% of Islamic financing in Saudi Arabia, boosts deposits and financing growth. Major players in the sector include Al Rajhi Bank, Bank Albilad, and Alinma Bank. Fitch notes that Islamic banks show better impaired financing ratios at 1.5% compared to over 2% for conventional banks. Despite rising costs, Islamic banks maintained stable profitability in 2023, with operating profit relative to risk-weighted assets exceeding 3%, outperforming conventional banks at approximately 2.5%. Their strong retail franchises and lower funding costs ensure resilience in a challenging financial environment. https://smashi.tv/en

Our latest insight on Saudi banking analyses change in net interest margin across interest rate cycles and discusses what could be expected for 2024. Read more  https://lnkd.in/dPqNv-QF #Saudi #KSA #saudiarabia #bank #interest #interestrates #nim #liquidity #centralbank #marmoreresearch #markaz

Saudi Islamic banks are set for robust growth, driven by favourable economic conditions and strong operational fundamentals, according to a recent report from Fitch Ratings. The sector benefits from a substantial retail customer base, which enhances profitability and supports the acquisition of low-cost funds. In Saudi Arabia, where all residential mortgages must comply with Islamic law, there is a growing preference for Shariah-compliant financial products. This trend has significantly bolstered deposits in Islamic banks, positioning them as leaders in the local financial landscape. Fitch Ratings highlighted that Islamic banks in Saudi Arabia maintain a superior asset quality compared to their conventional counterparts, with a lower impaired financing ratio. This success is attributed to their cautious approach towards corporate financing, resulting in enhanced loan performance and reduced default rates. Additionally, Islamic banks demonstrated higher profitability in 2023, driven by stable operating margins supported by cost-effective funding from retail deposits. Looking ahead, Saudi Islamic banks are expected to uphold strong credit profiles amid robust economic growth and strategic initiatives. While facing challenges related to capital and liquidity pressures from strong credit growth, these banks are diversifying their funding sources through initiatives like sukuk issuance. This approach aims to maintain financial stability and capitalize on growing demand for Shariah-compliant financial services in the Kingdom's evolving economic landscape. #banking #islamicfinance #investment #saudiarabia #investsaudi

Islamic banking is prominent in #Qatar, constituting 25% of total sector assets at end-2023 (end-2022: 25%) due to high public demand, the mainstream relevance of Islamic products, and solid branch and digital networks. #FitchRatings upgraded three Qatari #Islamicbanks in March to reflect a higher ability of support from the Qatari authorities. Learn more: https://ow.ly/jlwE50R87wX

𝐅𝐢𝐭𝐜𝐡 𝐑𝐚𝐭𝐢𝐧𝐠𝐬 𝐑𝐞𝐟𝐥𝐞𝐜𝐭 𝐒𝐚𝐮𝐝𝐢 𝐈𝐬𝐥𝐚𝐦𝐢𝐜 𝐁𝐚𝐧𝐤𝐬 𝐏𝐨𝐢𝐬𝐞𝐝 𝐟𝐨𝐫 𝐃𝐞𝐜𝐞𝐧𝐭 𝐆𝐫𝐨𝐰𝐭𝐡 𝐰𝐢𝐭𝐡 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐏𝐫𝐨𝐠𝐫𝐞𝐬𝐬 According to a new analysis, Saudi Islamic banks are expected to continue their strong performance this year and in 2025, boosted by non-oil economic development and good operating conditions. Read More: https://bityl.co/Qk3V #FitchRatings #SaudiBanks #EconomicProgress #NewsUpdate #news #BusinessNews #newsdaily

Saudi Islamic banks’ standalone credit profiles will remain strong in 2024 and 2025, supported by high oil prices and benign operating conditions, says Fitch Ratings in a new dashboard. Strong credit growth will put some pressure on capital, funding, and liquidity. We expect the credit growth will also lead to banks further diversifying their funding bases through wholesale funding, including sukuk issuance, which is becoming a bigger part of the funding mix – although we expect deposits will remain the main source of funding. Saudi Islamic banks are well-placed in the banking sector, with larger retail franchises supporting higher margins, a lower cost of funding, and better asset quality. In general, financing growth has outpaced lending over the past few years, supported by the requirement for residential mortgages to all be sharia-compliant. Islamic banking is dominant in Saudi Arabia, with the largest proportion of Islamic financing (85%) of any country that allows conventional banks to operate alongside Islamic banks.

Having delivered positive results in Q3 2024, the profitability of Saudi Banks has come under the radar, especially with the commencement of rate cuts by the Fed. Assessing the change in banks’ net interest margin (NIM) across interest rate cycles could provide guidance on how their profitability could evolve in the next 12 months. For further insights and analysis on the Saudi banking industry, speak to our consultants. https://lnkd.in/dPjYUUmz #ksa #ksabanks #interestrate #gcc #policyrate #nim #marmore