Saudi banks insulated from Turkish lira turmoil: Talaat Hafez

Saudi Arabia's banks will not be impacted by the steep decline in the Turkish lira, whether on earnings or asset quality level, Talaat Hafez, Secretary General of the Media and Banking Awareness Committee of Saudi Banks, said in a statement on Thursday.

"In addition to having low lending exposure to the Turkish currency, the Saudi banks also use hedging mechanisms to cushion against currency fluctuations," Hafez added.

Tadawul-listed National Commercial Bank (NCB) said that the lira's depreciation will not have a significant impact on its earnings, as its 67.03 percent-owned subsidiary, Turkey Finance represents only 2.7 percent of its total profit, Argaam reported.