ZAWYA-NEWS: Outlook for Saudi banks: Al Rajhi Bank, SNB and SAIB preferred, says FAB Securities

FAB Securities has identified Al Rajhi Bank, Saudi National Bank (SNB), and The Saudi Investment Bank (SAIB) as preferred banks, assigning an "accumulate" rating to Al Rajhi with a target price of SAR110, and "Buy" ratings to SNB and SAIB with target prices of SAR47 and SAR17.80, respectively. The outlook for Saudi banks remains positive, supported by a strong macroeconomic environment and structural reforms. Expected rate cuts by the US Federal Reserve and SAMA are anticipated to bolster credit demand, despite ongoing margin pressures. The banking sector is projected to grow significantly, with total assets expected to reach SAR 4.9 trillion by October 2025.