BofAML’s Yazhari Sees Strong Growth Ahead for Saudi Mortgage Market

The video discusses the current state of the Saudi banking sector, highlighting the return of loan growth and increased business confidence as we move into 2020. It emphasizes the role of megaprojects and the mortgage market in driving this growth. Al Rajhi Bank is identified as a key player due to its low cost of funds and strong retail presence. The video also touches on the global market's improved clarity following the phase one trade deal and Brexit resolution, which positively impacts Saudi and UAE equities.

What is expected to drive loan growth in Saudi banks as we move into 2020?

• Reduction in bank participants

• Increased interest rates

• Rising business confidence and megaproject financing

• Decreased mortgage targets

Which bank is highlighted as having the lowest cost of funds globally?

• Samba

• National Commercial Bank

• SABB

• Al Rajhi

What is a notable characteristic of Al Rajhi Bank in the retail market?

• High cost of funds

• Underpenetrated market presence

• Limited asset base

• Weak management team

How has the phase one trade deal affected global market uncertainty?

• Caused market collapse

• Increased uncertainty

• No impact

• Reduced uncertainty

What is the expected impact of global market clarity on Saudi banks?

• Increased margin decline

• Reduction in asset allocation

• Stabilization in margins and loan growth

• Decreased lending comfort