FinanceVietnam2020

The Strongest Banks Rankings

2019
2018

In this year’s The Asian Banker Strongest Banks By Balance Sheet evaluation, banks in Saudi Arabia and UAE remained the strongest in the Middle East, with the weighted average strength score of 3.93 and 3.76 out of five. Saudi banks continued to deliver robust financial performance, taking top five spots in the top 10 strongest banks list in the region.

On the contrary, the average strength scores for banks in Bahrain and Lebanon are lower than other Middle Eastern countries under evaluation. In addition to subdued balance sheet growth, banks in Bahrain and Lebanon posted much weaker profitability and asset quality than their regional peers amid the challenging operating environment.

The overall profitability of banks in the Middle East improved marginally in 2018. Banks’ operational efficiencies improved, reflected by the fall in the weighted average cost to income ratio of the 100 largest banks in the region from 38% in the previous year to 36.9%. Qatari banks enjoyed the lowest average cost to income ratio, while the ratio for banks in Jordan and Kuwait improved the most. The weighted average ROA went up to 1.65% in 2018 from 1.59% in 2017, and the average return on equity (ROE) was higher at 12.6% from12%. The average ROA of Saudi banks on the list improved further to 2.3%, the highest in the region.

Meanwhile, Middle Eastern banks remained well-capitalised, with capital adequacy ratio (CAR) averaging 18.3% and Tier 1 capital ratio averaging 16.8% in 2018. Despite the slight decline, the average CAR of Saudi banks remained the highest in the region, at 20.3% in 2018. Banks in Qatar, Lebanon and Oman have seen an increase in their average CAR. Despite the challenging operating environment, the overall asset quality of banks in the region stayed relatively sound. Nevertheless, the overall balance sheet growth was weak in 2018, with banks registering the average loan growth and deposit growth of 2.7% and 4.5%, respectively.

Looking forward, most banking systems in the region are expected to remain resilient, despite challenges. Some changes in the rankings are expected in the near future, as the recent mergers and acquisitions drive in the region is expected to create larger and stronger banks. In the face of subdued growth, rapidly changing technology and rising regulatory requirements, more consolidation is expected, as mergers will enhance profitability and boost competitiveness.

For a full explanation of the evaluation criteria please click here.

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Strength Rank 2019 MEA 200 Rank 2019 Bank Country Assets YoY Growth in Loans YoY Growth in Deposits Loan to Deposit Ratio Capital Adequacy Ratio YoY Growth in Operating Profit Return on Asset Cost to Income Ratio Non-interest Income/Total Operating Income Loan Loss Reserves / Gross NPLs Gross Non-Performing Loan Ratio Liquid Assets / Total Deposits and Borrowings Aggregate Strength Score 2019
Score (17.5%) Score (2.5%) Score (2.5%) Score (10.0%) Score (10.0%) Score (5.0%) Score (7.5%) Score (7.5%) Score (7.5%) Score (12.5%) Score (12.5%) Score (5.0%)
17Al Rajhi BankSaudi Arabia4.52.54.03.0 5.0 1.5 5.0 5.0 2.5 5.0 4.5 4.5 4.23
22First Abu Dhabi Bank UAE5.03.55.03.0 4.0 2.5 5.0 5.0 3.5 5.0 3.0 5.0 4.20
35National Commercial Bank Saudi Arabia5.03.53.02.5 5.0 0.5 5.0 5.0 2.5 5.0 4.0 4.0 4.14
413Samba Financial GroupSaudi Arabia4.51.52.54.0 5.0 1.0 5.0 5.0 2.5 5.0 3.5 5.0 4.11
520Arab Bank Group Jordan4.02.52.53.0 4.0 5.0 5.0 5.0 4.0 5.0 2.5 4.5 4.01
61Qatar National BankQatar5.03.53.01.0 5.0 1.5 5.0 5.0 2.5 5.0 3.5 3.5 3.99
616Kuwait Finance HouseKuwait4.52.52.53.0 4.5 1.5 4.5 4.5 3.0 5.0 3.5 5.0 3.99
84Emirates NBD Bank UAE5.04.03.51.5 5.0 1.5 5.0 5.0 3.0 5.0 2.0 4.5 3.95
921Arab National Bank Saudi Arabia4.03.53.02.0 5.0 0.5 5.0 5.0 2.5 5.0 4.0 3.5 3.90
1018Banque Saudi Fransi Saudi Arabia4.51.51.52.5 5.0 1.0 5.0 5.0 2.5 5.0 3.0 4.5 3.89
1130Ahli United Bank Bahrain4.02.04.02.5 4.5 1.5 5.0 5.0 2.5 5.0 3.5 4.0 3.88
1211Abu Dhabi Commercial BankUAE4.53.04.01.5 4.5 0.5 5.0 5.0 2.5 5.0 3.0 5.0 3.85
1315Dubai Islamic Bank UAE4.54.03.51.5 4.5 1.0 5.0 5.0 3.0 5.0 3.0 3.0 3.83
148National Bank of Kuwait Kuwait4.53.53.00.0 4.5 1.0 4.5 5.0 2.5 5.0 4.0 4.5 3.81
1414Riyad BankSaudi Arabia4.54.04.52.0 5.0 1.0 5.0 4.5 3.0 3.5 3.5 3.5 3.81
1623SABBSaudi Arabia4.01.01.02.5 5.0 0.5 5.0 5.0 3.0 5.0 3.0 4.5 3.79
1626Mashreqbank UAE4.04.54.02.5 4.5 0.0 4.5 4.0 4.0 5.0 2.5 5.0 3.79
1832Alinma BankSaudi Arabia3.53.52.51.5 5.0 1.5 5.0 4.5 2.5 5.0 4.0 3.5 3.78
1924Qatar Islamic Bank Qatar4.02.01.50.5 5.0 1.0 5.0 5.0 3.5 5.0 4.0 2.5 3.76
2028BLOM Bank Lebanon4.01.02.55.0 5.0 0.0 4.5 4.5 2.0 4.5 2.5 5.0 3.74
2122Bank Audi Lebanon4.00.51.05.0 5.0 1.0 3.5 3.5 2.5 5.0 2.0 5.0 3.63
2146Bank AlBiladSaudi Arabia2.05.05.02.0 4.5 2.5 5.0 3.0 4.0 5.0 3.5 4.5 3.63
2333Bank Muscat Oman3.54.04.50.0 5.0 0.5 4.5 4.0 3.5 5.0 3.0 3.5 3.55
2437Masraf Al Rayan Qatar3.02.01.50.0 5.0 0.0 5.0 5.0 5.0 4.5 4.5 1.0 3.54
2550Bank of Beirut Lebanon2.02.52.05.0 4.5 0.0 3.5 3.5 4.0 5.0 3.0 5.0 3.48
2660Qatar International Islamic Bank Qatar1.50.51.02.0 4.5 1.0 5.0 5.0 4.0 4.5 3.5 4.5 3.34
2731Abu Dhabi Islamic Bank UAE3.53.02.03.0 4.5 0.5 5.0 3.5 2.5 3.5 2.5 4.0 3.33
2859Noor Bank UAE1.55.05.01.5 4.5 0.0 4.0 4.5 4.0 5.0 2.5 4.5 3.29
2884Warba Bank Kuwait1.05.03.00.0 5.0 5.0 1.5 4.5 3.5 5.0 4.0 4.0 3.29
3091HSBC Bank Oman Oman1.02.02.03.5 5.0 4.0 4.0 2.5 3.5 5.0 4.0 0.0 3.24
3144Commercial Bank of Dubai UAE2.54.04.51.0 4.0 1.0 5.0 5.0 3.0 4.0 2.0 4.5 3.23
3296Arab Bank for Investment and Foreign Trade UAE1.04.54.51.0 5.0 1.0 5.0 5.0 2.0 5.0 2.5 4.5 3.21
3372National Bank of Fujairah UAE1.54.04.02.0 4.0 2.0 5.0 5.0 3.5 4.0 2.0 4.5 3.20
3445Gulf BankKuwait2.03.03.50.0 4.5 1.0 2.5 5.0 2.5 5.0 4.0 3.5 3.18
3529HSBC Bank Middle East UAE4.04.51.51.5 2.5 1.0 4.5 3.0 4.5 3.5 2.0 5.0 3.16
3654Al Ahli Bank of Kuwait Kuwait1.51.53.51.0 5.0 1.0 2.5 4.5 3.0 5.0 3.5 4.0 3.15
3657National Bank of Ras Al-Khaimah UAE1.52.53.51.0 4.5 0.0 5.0 4.5 3.0 5.0 2.5 4.5 3.15
3670Ahli Bank Qatar1.51.00.50.0 5.0 1.0 5.0 5.0 2.5 5.0 3.5 3.5 3.15
3940Byblos Bank Lebanon2.52.02.55.0 5.0 0.5 1.5 3.0 3.0 3.5 2.5 5.0 3.14
3966Sharjah Islamic Bank UAE1.54.55.01.5 4.5 0.0 3.5 3.0 5.0 5.0 2.0 4.5 3.14
4167Housing Bank for Trade and FinanceJordan1.52.52.03.5 4.5 1.0 3.5 4.0 2.0 5.0 2.5 4.5 3.13
4175BBK Bahrain1.02.50.53.5 5.0 2.0 5.0 4.5 3.5 4.0 1.5 4.5 3.13
4363Ahli United Bank KuwaitKuwait1.53.52.00.0 4.5 0.5 4.0 5.0 2.0 5.0 4.0 3.5 3.11
4439Saudi Investment Bank Saudi Arabia3.02.01.01.5 4.5 1.0 4.5 4.5 2.0 3.0 2.5 5.0 3.09
4465Barwa Bank Qatar1.50.51.50.0 4.5 0.0 5.0 4.5 5.0 5.0 3.0 2.5 3.09
4635Arab Banking Corporation Bahrain3.01.51.51.5 5.0 0.0 2.0 2.5 3.5 4.5 2.5 5.0 3.06
4642Al Baraka Banking Group Bahrain2.50.51.04.5 4.5 0.5 2.0 3.0 5.0 3.5 2.0 4.5 3.06
4838Doha BankQatar3.02.01.00.0 4.5 0.0 2.5 4.5 2.5 5.0 2.5 4.5 3.04
4893Ahli Bank OmanOman1.04.54.50.0 4.5 1.0 4.0 4.5 2.0 5.0 3.5 3.5 3.04
5027Commercial BankQatar4.01.00.50.0 4.0 1.0 3.5 5.0 3.5 3.5 2.0 3.0 3.03
5147Bank AlJaziraSaudi Arabia2.03.03.03.0 5.0 0.0 4.5 2.5 3.0 3.5 3.0 2.0 3.01
5294Jordan Islamic BankJordan1.03.01.53.0 5.0 0.0 3.5 3.5 1.5 5.0 3.0 4.5 3.00
52153Cedrus Invest Bank Lebanon0.05.05.05.0 2.5 2.5 5.0 5.0 2.5 3.5 2.5 5.0 3.00
5436Gulf International Bank Bahrain3.01.54.55.0 4.0 0.0 0.0 1.0 3.0 5.0 2.0 5.0 2.98
5481Sohar International Bank (Bank Sohar)Oman1.04.04.00.0 4.0 3.5 2.5 4.0 3.5 5.0 3.0 3.5 2.98
5678National Bank of Bahrain Bahrain1.03.02.55.0 5.0 1.0 5.0 4.5 3.0 2.0 1.5 4.5 2.96
5686Kuwait International Bank Kuwait1.05.04.50.0 4.5 0.0 3.0 3.0 2.0 5.0 4.5 4.0 2.96
5858Al Khalij Commercial BankQatar1.50.50.50.0 4.5 0.0 3.5 5.0 2.0 5.0 3.5 5.0 2.95
5992Oman Arab Bank Oman1.04.53.51.0 4.5 3.0 4.0 3.0 2.5 4.5 3.0 2.5 2.94
60115National Bank of Umm Al-QaiwainUAE0.51.03.01.5 5.0 3.5 5.0 5.0 2.5 3.0 2.0 5.0 2.91
61101Bank al EtihadJordan1.04.54.53.0 4.0 2.5 3.5 3.5 3.0 3.5 2.5 3.0 2.90
62123Bank of Jordan Jordan0.52.52.53.0 4.5 0.0 5.0 3.0 2.5 5.0 2.0 4.5 2.89
6353Banque Libano-FrancaiseLebanon2.01.53.05.0 4.0 0.0 2.0 3.5 2.0 4.0 1.5 5.0 2.84
6443Fransabank Lebanon2.53.03.05.0 4.5 0.0 2.0 3.0 2.5 2.5 1.5 4.5 2.81
6571Bank Dhofar Oman1.51.51.00.0 4.5 0.0 3.5 3.0 2.0 5.0 3.5 3.5 2.76
65146Bank Nizwa Oman0.05.05.03.0 4.5 5.0 2.5 2.0 4.5 0.0 5.0 3.5 2.76
6764Credit Libanais Lebanon1.51.02.05.0 4.5 0.0 1.5 2.5 2.5 3.5 2.0 5.0 2.70
6776National Bank of Oman Oman1.03.52.00.0 4.5 0.0 4.5 3.5 3.0 4.5 2.5 2.5 2.70
6789Commercial Bank International UAE1.02.04.02.5 4.0 2.5 3.5 4.0 4.5 2.0 1.5 4.5 2.70
7090Ajman Bank UAE1.04.05.01.5 4.5 0.0 2.0 3.5 4.0 3.5 2.0 4.0 2.68
71173Emirates Investment Bank UAE0.05.00.55.0 5.0 0.0 2.0 1.0 4.5 0.5 5.0 5.0 2.64
7255Commercial Bank of Kuwait Kuwait1.52.53.01.0 5.0 5.0 4.5 5.0 4.0 0.0 0.0 5.0 2.61
73133Saradar BankLebanon0.54.53.55.0 3.5 5.0 0.5 0.0 4.0 3.5 1.5 5.0 2.56
73157Alizz Islamic Bank Oman0.05.05.01.5 4.0 5.0 1.0 0.0 2.5 4.5 4.0 2.5 2.56
7580BBAC bankLebanon1.02.03.55.0 4.5 1.5 1.5 2.5 3.0 2.5 1.0 5.0 2.54
75158INVESTBANKJordan0.03.54.51.5 4.0 1.0 4.5 2.5 3.5 3.5 2.0 4.0 2.54
77106First National BankLebanon1.00.51.55.0 3.5 0.0 2.0 2.0 2.5 4.0 2.0 5.0 2.53
78151Banque Bemo Lebanon0.01.01.05.0 5.0 1.0 2.5 3.0 3.0 1.5 2.5 5.0 2.49
79100Lebanon & Gulf Bank Lebanon1.01.04.05.0 4.0 0.0 1.5 2.5 2.5 3.0 1.5 5.0 2.48
8049BankMed Lebanon2.00.52.55.0 4.5 0.0 0.5 0.0 3.5 4.0 0.5 4.5 2.45
80136Arab Jordan Investment BankJordan0.02.01.53.5 4.0 0.0 2.0 2.5 2.5 3.5 3.5 4.0 2.45
82159Arab Banking Corporation (Jordan)Jordan0.03.02.01.5 5.0 0.0 2.0 1.5 2.5 4.5 2.5 4.5 2.41
83161Safwa Islamic BankJordan0.04.55.02.5 2.5 4.5 2.0 2.0 1.5 4.0 3.0 3.0 2.40
83172Alubaf Arab International Bank Bahrain0.04.00.50.0 5.0 0.0 4.0 4.5 2.0 5.0 0.0 5.0 2.40
8582Bank of SharjahUAE1.00.51.02.5 4.0 0.0 1.0 4.0 3.0 4.5 1.0 4.0 2.39
86109Al Salam BankBahrain0.54.53.53.0 5.0 0.0 3.5 3.5 3.5 2.0 1.5 0.0 2.36
86119Jordan Kuwait Bank Jordan0.53.01.51.5 4.5 0.0 4.5 3.0 3.0 2.5 1.5 4.0 2.36
8899United Arab Bank UAE1.01.51.01.5 4.0 0.5 1.0 3.0 2.5 4.5 1.5 4.5 2.34
89116Kuwait Finance House (Bahrain)Bahrain0.55.04.51.5 5.0 0.5 4.0 2.0 5.0 1.0 1.5 2.0 2.33
89139Capital Bank of JordanJordan0.01.52.53.5 4.5 0.0 4.5 3.0 3.5 2.5 0.5 4.0 2.33
91144Societe Generale de Banque - JordanieJordan0.05.05.05.0 4.0 0.0 1.5 2.5 2.5 2.5 1.5 3.5 2.29
92118Jordan Ahli BankJordan0.51.02.03.5 4.0 0.0 2.0 1.0 2.5 3.5 2.0 3.5 2.20
9341Burgan Bank Kuwait2.51.50.50.0 4.5 1.5 3.5 4.0 3.0 0.0 0.0 4.5 2.14
94112Cairo Amman BankJordan0.53.54.02.0 4.0 0.0 3.0 1.0 3.0 2.0 1.5 4.0 2.09
95128Bahrain Islamic Bank Bahrain0.53.02.02.5 4.5 1.0 2.5 2.0 2.0 2.0 1.0 3.5 2.05
96147Khaleeji Commercial Bank Bahrain0.00.54.04.5 4.5 0.0 0.5 2.0 4.5 1.0 0.0 4.0 1.86
9779Ithmaar Bank Bahrain1.01.00.50.0 3.5 0.0 1.0 0.0 2.0 5.0 1.5 2.5 1.81
98154Jordan Commercial BankJordan0.02.50.52.5 3.0 0.0 1.0 0.5 2.5 3.0 1.0 2.5 1.56
99121Invest Bank UAE0.50.50.53.0 1.0 0.0 0.0 2.5 2.5 3.5 0.0 3.5 1.45
100111CreditBank Lebanon0.54.03.55.0 0.0 4.0 1.5 2.5 3.0 0.0 0.0 0.0 1.38

Note: 5 = Highest score, 0 = Lowest score
Source: Asian Banker Research