Sunday, 25 September 2022

The Strongest Banks Rankings

2021
2020 2019 2018

Strongest banks in the Middle East in 2021

In this year’s The Asian Banker Strongest Banks By Balance Sheet evaluation, Saudi Arabia-based Al Rajhi Bank has emerged as the strongest bank in the Middle East. This is based on a detailed and transparent scorecard that ranks banks on six areas of balance sheet financial performance, namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality and liquidity. Al Rajhi Bank recorded the highest return on assets (ROA) among all the Middle Eastern banks on the list at 2.5%. Its asset quality remained strong as reflected by the low gross non-performing loan (NPL) ratio of 0.76% and high loan loss reserves (LLRs) to gross NPLs ratio of 306%.

The top 10 strongest banks in the Middle East comprise four Saudi Arabian banks, three Qatari banks and one each from Kuwait, the UAE and Bahrain. With the weighted average strength score of 3.83 and 3.65 out of five respectively, Saudi Arabian and Qatari banks performed much better than banks in other Middle Eastern countries. Banks in the two countries recorded the highest scores in profitability. Meanwhile, Saudi Arabian and Qatari banks also maintained high level of capitalisation and sound asset quality. However, their liquid assets to total deposits and borrowings ratios were lower than the average in the region.

The balance sheet strength of banks in the UAE declined in 2020, with the strength score averaging only 3.37 out of five, lower than the average strength score recorded by banks in the Middle East at 3.46. Banks in the UAE registered slower balance sheet growth and their profitability and asset quality also weakened. The average gross NPL ratio deteriorated from 4.8% in 2019 to 6.2% in 2020 and the LLRs to gross NPLs ratio was down slightly from 95% to 90%. Meanwhile, UAE banks saw their average ROA fall the most from 1.7% in 2019 to 0.7% in 2020.

The average ROA of Middle Eastern banks on the list stood at 0.88% in 2020, lower than 1.53% in the previous year. In 2020, 21 Middle Eastern banks reported net losses, which comprise eight banks from the UAE, four from Lebanon, three from Bahrain, two from Saudi Arabia and one each from Jordan, Kuwait, Oman and Qatar. In addition to the UAE, Jordan and Bahrain also experienced a considerable decrease in ROA. Meanwhile, average gross NPL ratio of banks in the region deteriorated modestly from 3.56% in 2019 to 4.29% in 2020, as the COVID-related support measures postponed the asset quality issues. The asset quality of banks in Kuwait and Saudi Arabia remained the strongest, while remaining the weakest in Lebanon.

Meanwhile, Middle Eastern banks maintained strong capital positions as evidenced by an improvement in average capital adequacy ratio (CAR) to 18.4% in 2020 from 17.9% in 2019. Only Bahraini banks experienced a contraction in CAR from 19.2% to 17.9%. Banks in Saudi Arabia enjoyed the highest CAR at 20.4%, followed by Qatar (18.9%) and Oman (18.5%).

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

Please click to return to the AB 500 page.

Click to toggle ranking by category "up" and "down"

Strength Rank 2021 MEA 200 Rank 2021 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 2021
Score (17.5%) Score (2.5%) Score (2.5%) Score (7.5%) Score (12.5%) Score (5.0%) Score (7.5%) Score (7.5%) Score (7.5%) Score (12.5%) Score (12.5%) Score (5.0%)
17Al Rajhi BankSaudi Arabia5.05.05.02.5 5.0 1.0 5.0 5.0 2.0 5.0 4.5 4.0 4.28
25Saudi National Bank (National Commercial Bank) * Saudi Arabia5.05.04.52.5 5.0 0.5 5.0 5.0 2.5 5.0 3.5 4.5 4.18
313Riyad BankSaudi Arabia4.54.03.01.5 5.0 1.0 5.0 5.0 3.0 5.0 3.5 4.5 4.01
423Qatar Islamic Bank Qatar4.03.03.50.5 5.0 2.0 5.0 5.0 4.0 5.0 4.0 2.5 3.93
51Qatar National Bank Qatar5.03.53.51.0 5.0 0.5 4.0 5.0 2.0 5.0 3.5 3.5 3.84
617Kuwait Finance HouseKuwait4.54.54.53.5 4.5 0.0 2.0 4.5 2.5 5.0 3.5 5.0 3.83
733Masraf Al Rayan Qatar3.54.53.00.0 5.0 1.5 5.0 5.0 4.5 4.5 4.0 2.5 3.78
82First Abu Dhabi BankUAE5.01.53.03.5 4.5 0.0 3.5 5.0 3.5 3.5 2.5 5.0 3.71
927Alinma BankSaudi Arabia4.04.54.51.5 5.0 0.5 4.0 4.5 2.0 5.0 3.5 2.5 3.66
1028Ahli United Bank Bahrain4.02.02.02.5 4.5 0.0 4.0 5.0 3.0 5.0 3.0 4.0 3.65
113Emirates NBD Bank UAE5.02.52.01.0 5.0 0.5 3.0 5.0 2.5 5.0 2.0 4.5 3.60
1211National Bank of Kuwait Kuwait4.53.53.50.5 5.0 0.0 2.0 4.5 2.5 5.0 3.5 4.5 3.59
1255Qatar International Islamic Bank Qatar2.04.04.50.0 4.5 2.5 4.5 5.0 4.0 5.0 4.0 4.0 3.59
1419Arab Bank Group Jordan4.52.04.04.0 4.5 0.0 1.0 3.5 4.0 5.0 2.0 5.0 3.56
1544Bank AlBiladSaudi Arabia3.05.03.51.0 4.5 1.5 4.5 3.5 2.5 5.0 4.0 3.5 3.54
1620Banque Saudi Fransi Saudi Arabia4.53.01.50.5 5.0 0.5 2.0 5.0 2.5 5.0 3.0 3.5 3.48
1739Al Baraka Banking Group Bahrain3.03.03.54.5 4.0 4.5 1.5 3.5 5.0 4.0 2.0 4.0 3.45
1814Dubai Islamic Bank UAE4.55.05.01.0 5.0 0.0 3.5 5.0 3.0 3.5 2.0 3.0 3.44
1816Saudi British BankSaudi Arabia4.52.52.02.5 5.0 0.0 0.0 4.5 2.5 5.0 3.0 4.0 3.44
2022Arab National Bank Saudi Arabia4.01.51.02.0 5.0 0.0 3.5 5.0 2.0 4.5 3.0 2.5 3.39
2157Al Khalij Commercial BankQatar2.04.03.00.0 5.0 3.0 4.0 5.0 1.5 5.0 3.5 4.5 3.38
2234Bank Muscat Oman3.52.53.00.0 5.0 0.5 4.0 4.5 3.0 5.0 2.5 2.5 3.33
2342Commercial Bank of Dubai UAE3.04.04.01.5 4.5 0.5 4.0 5.0 4.0 3.5 2.0 4.5 3.31
2470Warba Bank Kuwait1.54.55.00.0 4.5 4.5 0.5 5.0 4.5 5.0 3.5 4.0 3.30
2541Saudi Investment Bank Saudi Arabia3.01.51.01.5 5.0 0.0 2.5 4.0 2.0 5.0 3.5 5.0 3.28
2646Dukhan Bank Qatar2.54.54.50.0 4.5 5.0 1.5 5.0 4.0 4.0 3.0 2.5 3.26
27123Capital Bank of JordanJordan0.55.05.02.5 4.5 4.5 3.5 4.0 4.0 4.5 2.5 4.0 3.25
2845Bank AlJaziraSaudi Arabia2.54.04.03.0 5.0 2.5 0.5 3.0 3.0 5.0 3.5 1.5 3.24
2925Mashreqbank UAE4.01.51.52.5 4.5 0.0 0.0 2.5 5.0 5.0 2.0 5.0 3.21
3059Commercial Bank of Kuwait Kuwait1.52.51.51.0 5.0 0.0 0.5 4.0 4.0 5.0 5.0 5.0 3.20
318Abu Dhabi Commercial Bank UAE4.51.51.51.0 4.5 1.0 2.5 4.5 2.5 3.5 2.0 4.5 3.18
3164Ahli Bank Qatar1.53.53.00.0 4.5 1.5 4.5 5.0 2.5 5.0 3.5 3.0 3.18
3358Sharjah Islamic Bank UAE1.54.55.02.0 5.0 0.5 2.0 3.5 5.0 4.0 2.5 4.5 3.13
3426Commercial BankQatar4.04.02.00.0 4.5 0.0 2.0 5.0 2.5 4.0 2.5 3.5 3.11
3552Gulf BankKuwait2.52.02.50.5 5.0 0.0 1.0 4.0 2.5 5.0 4.0 4.0 3.10
3592Jordan Islamic BankJordan1.04.53.52.5 5.0 0.5 3.5 3.5 2.5 5.0 3.0 3.5 3.10
37111Kuwait Finance House (Bahrain)Bahrain0.54.03.54.0 5.0 0.0 2.0 2.5 4.5 5.0 3.5 2.5 3.06
3869National Bank of Bahrain Bahrain1.55.05.04.0 5.0 0.0 4.0 3.5 2.5 3.5 2.0 3.5 3.05
3932Abu Dhabi Islamic Bank UAE3.53.02.02.5 5.0 0.0 4.0 3.5 3.0 2.5 1.5 4.0 3.04
4024HSBC Bank Middle East UAE4.02.04.03.5 2.5 0.0 0.0 2.0 5.0 4.5 2.0 5.0 3.01
4060National Bank of Ras Al-Khaimah UAE1.51.02.52.5 5.0 0.0 2.5 4.5 3.0 5.0 2.0 4.5 3.01
4247Burgan Bank Kuwait2.52.52.50.0 5.0 0.0 1.0 3.5 3.5 5.0 2.5 4.5 2.95
4256Al Ahli Bank of Kuwait Kuwait2.01.53.02.0 4.5 0.0 0.0 3.5 3.0 5.0 3.5 4.5 2.95
4275Bank of Bahrain and Kuwait Bahrain1.01.52.53.5 5.0 0.0 4.0 3.0 3.5 4.0 2.0 5.0 2.95
42135Bank Nizwa Oman0.53.54.53.5 3.5 3.0 3.0 3.0 4.5 3.5 3.5 3.0 2.95
4631Bank Audi Lebanon4.00.50.55.0 3.5 2.0 0.0 4.0 2.5 4.5 0.0 5.0 2.94
4637Gulf International Bank Bahrain3.03.01.05.0 4.5 0.0 0.0 0.0 2.5 4.5 3.0 5.0 2.94
4886Bank al EtihadJordan1.04.54.53.5 4.0 1.5 1.5 3.0 2.0 5.0 3.0 4.0 2.93
49124Bank of Jordan Jordan0.53.02.03.0 5.0 0.5 4.0 3.5 3.0 5.0 1.5 4.5 2.91
50137Arab Jordan Investment BankJordan0.52.53.53.5 4.0 2.0 1.5 3.0 2.0 5.0 3.5 4.5 2.88
5168Housing Bank for Trade and FinanceJordan1.52.01.53.0 4.5 1.0 1.5 4.0 2.0 5.0 2.0 4.5 2.85
5238Doha BankQatar3.02.01.50.0 5.0 1.5 1.5 5.0 2.5 3.0 2.0 4.5 2.84
5361Ahli United Bank KuwaitKuwait1.53.04.00.5 4.0 0.0 1.5 4.5 2.0 5.0 3.5 3.5 2.81
54146Safwa Islamic BankJordan0.05.04.55.0 2.5 2.0 1.5 3.0 2.0 5.0 3.5 4.0 2.78
5535Arab Banking Corporation Bahrain3.51.53.01.5 4.5 0.0 0.0 0.5 2.5 5.0 2.0 5.0 2.75
5680Kuwait International Bank Kuwait1.03.54.00.0 5.0 0.0 0.5 2.5 2.5 5.0 3.5 4.5 2.69
5753Byblos Bank Lebanon2.00.50.55.0 3.0 5.0 0.0 5.0 1.5 4.0 0.5 5.0 2.68
5836BLOM Bank Lebanon3.00.50.55.0 3.0 5.0 0.5 5.0 0.0 3.5 0.0 5.0 2.65
5971Bank Dhofar Oman1.53.52.00.0 4.5 1.5 2.0 3.5 2.0 4.5 2.5 2.5 2.60
6072National Bank of Fujairah UAE1.51.01.52.5 5.0 0.0 0.0 4.5 3.5 4.0 1.0 4.5 2.59
6198Al Salam Bank-Bahrain Bahrain1.05.05.02.5 5.0 2.0 1.0 3.0 1.0 3.0 2.5 3.5 2.58
6291Ahli Bank OmanOman1.03.54.50.0 4.0 0.0 2.5 4.0 2.0 4.0 3.0 3.0 2.54
62125National Bank of Umm Al-QaiwainUAE0.51.01.01.5 5.0 0.0 4.5 5.0 3.5 2.0 1.5 5.0 2.54
64142Khaleeji Commercial Bank Bahrain0.01.52.05.0 5.0 5.0 2.0 3.5 2.5 2.5 1.0 3.0 2.53
65159InvestBankJordan0.04.02.51.0 4.0 1.0 1.5 3.0 3.5 5.0 2.5 3.5 2.50
6697HSBC Bank Oman Oman1.01.01.03.5 5.0 0.0 0.0 0.0 2.5 5.0 2.5 5.0 2.49
67173Alubaf Arab International Bank Bahrain0.01.01.50.0 5.0 0.0 5.0 4.0 3.0 5.0 0.0 5.0 2.46
68149Societe Generale de Banque - JordanieJordan0.01.00.54.5 5.0 0.0 1.0 3.5 1.5 4.0 2.0 5.0 2.45
69163Arab Banking Corporation (Jordan)Jordan0.03.02.51.5 5.0 1.5 0.5 2.5 2.0 5.0 2.0 4.5 2.43
7099Bank of Baroda UAEUAE1.01.01.03.0 5.0 0.0 0.0 5.0 2.5 4.0 0.0 5.0 2.39
7184Ithmaar Bank Bahrain1.02.05.02.0 3.5 0.0 0.0 0.0 4.5 5.0 2.0 4.5 2.38
7282Gulf International Bank - Saudi Arabia Saudi Arabia1.03.52.52.5 5.0 0.0 0.0 0.0 3.0 3.5 2.5 5.0 2.36
7283Oman Arab Bank Oman1.05.05.01.0 4.0 0.0 1.0 2.0 3.5 3.5 2.5 2.5 2.36
74108Cairo Amman BankJordan0.54.54.02.5 4.0 0.0 1.5 2.0 2.0 4.0 2.0 3.5 2.33
7578Sohar International BankOman1.02.53.50.0 5.0 0.0 1.5 3.5 2.0 3.0 2.0 4.0 2.30
76116Jordan Ahli BankJordan0.52.52.53.5 4.0 0.5 1.0 1.5 2.5 4.0 2.0 3.0 2.28
7777National Bank of Oman Oman1.03.02.00.0 4.5 0.0 1.0 3.0 2.5 4.5 2.0 2.0 2.26
7893Arab Bank for Investment and Foreign Trade UAE1.02.53.01.0 5.0 0.0 0.0 4.5 2.5 3.0 0.0 4.5 2.14
79100Ajman Bank UAE1.02.01.50.0 4.5 0.0 0.5 4.0 3.0 3.0 1.5 3.0 2.10
80118Jordan Kuwait Bank Jordan0.52.02.52.5 5.0 0.0 0.0 2.5 2.5 3.0 1.0 4.0 2.09
81157Jordan Commercial BankJordan0.03.54.03.0 3.0 1.5 0.5 2.0 2.5 4.0 1.5 3.0 2.08
82110Commercial Bank International UAE0.51.01.01.0 4.5 2.0 0.5 4.5 4.5 2.0 0.0 2.5 1.96
83115United Arab Bank UAE0.50.51.02.5 3.5 0.0 0.0 1.5 3.0 4.5 0.0 5.0 1.90
84186Qatar First Bank Qatar0.00.50.55.0 4.0 0.0 0.0 0.0 3.0 5.0 0.0 5.0 1.78
8576Bank of SharjahUAE1.04.04.02.5 2.5 0.0 0.0 0.0 1.5 3.5 0.5 3.0 1.64
8663Bank of Beirut Lebanon1.50.51.05.0 0.0 0.0 0.0 2.0 0.0 0.0 0.0 5.0 1.08
86147Invest Bank UAE0.01.00.50.5 2.5 0.0 0.0 0.0 4.0 2.5 0.0 1.5 1.08
88165Emirates Lebanon BankLebanon0.00.00.00.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00

Notes: (1) 5 = Highest score, 0 = Lowest score. (2) * for National Commercial Bank. Scores are only shown to one decimal place, but rankings reflect full information.
Source: TABInsights