Tadawul-listed banks’ capital adequacy ratio rose to 18 percent in Q1-2016, compared to 17.7 percent in the same period of 2015, data compiled by Argaam showed.
Tier-1 capital adequacy ratio (CAR) improved to 16.2 percent, from 16 percent in Q1-2015.
Saudi banks have gradually applied the Basel III accord since January 2016.
|
Capital adequacy ratio of Saudi Banks (SAR bln) |
|||
|
Change |
2016 |
2015 |
Item |
|
+5% |
1982.23 |
1893.94 |
Risk-weighted assets |
|
+9% |
321.10 |
293.92 |
Tier 1 capital |
|
+21% |
35.62 |
29.35 |
Tier 2 capital |
|
+10% |
356.72 |
323.27 |
Total Tier 1 and 2 capital |
|
+0.16% |
%16.20 |
%16.04 |
Tier 1 CAR |
|
+0.35% |
%18.00 |
%17.65 |
Tier 1 and 2 CAR |
All banks recorded higher CAR compared to Basel III and the minimum 8 percent defined by the Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank.
The capital adequacy ratio decreased at four banks, led by Alinma Bank with 4 percent. It was followed by The Saudi Investment Bank (SAIB) with a drop of 1.80 percent, Bank Albilad (-1.68 percent) and Saudi Hollandi Bank (SHB) (-0.37 percent).
Samba Financial Group recorded the highest increase of 1.40 percent in Q1. Al Rajhi Bank came second with 1.26 percent, followed by Bank AlJazira (1.02 percent).
CAR = Tier 1 capital + Tier 2 capital / risk weighted assets.
The Basel Committee was established at the end of 1974 by the G10 countries. The first Basel Accord was issued in 1988 and focuses on the capital adequacy of financial institutions. The Basel II Framework was released in 2006.
By January 2019, Basel III requirements are expected to be applied by the world’s banks.
|
Capital adequacy ratio of Saudi Banks (SAR bln) |
|||
|
Change |
2016 |
2015 |
Bank |
|
+0.70% |
18.20% |
17.50% |
Riyad Bank |
|
+1.02% |
15.08% |
14.06% |
Bank Aljazira |
|
(1.80%) |
16.04% |
17.84% |
Saudi Investment Bank |
|
(0.37%) |
15.49% |
15.86% |
Saudi Hollandi Bank |
|
+0.35% |
17.43% |
17.08% |
BSFR |
|
+0.19% |
17.01% |
16.82% |
SABB |
|
+0.99% |
15.64% |
14.65% |
ANB |
|
+1.40% |
20.70% |
19.30% |
SAMBA |
|
+1.26% |
20.77% |
19.51% |
Al Rajhi Bank |
|
(1.68%) |
15.06% |
16.74% |
Bank Albilad |
|
(4.00%) |
21.00% |
25.00% |
Alinma Bank |
|
+0.50% |
17.60% |
17.10% |
NCB |
|
+0.35% |
18.00% |
17.65% |
Total |
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