Mohsin: Prefer KSA Corporate Banks

The video discusses the strong market activity in emerging markets, particularly in Saudi Arabia, driven by investor interest and the strength of the dollar. It highlights the impact of the dollar on IPOs and investments, and examines the credit growth in Saudi banks, focusing on mortgages and SMEs. The discussion also covers the effects of interest rates on loan growth, with a comparison between retail and corporate sectors. Finally, it provides insights into market segmentation and earnings expectations, emphasizing the banking system's resilience amid inflationary pressures.

What has been a significant factor driving investor interest in the IPO landscape in Saudi Arabia?

• The rise in gold prices

• The decline in oil prices

• The strength of the U.S. dollar

• The strength of the euro

Which sector is expected to see around 20% CAGR in Saudi Arabia over the next three years?

• Retail

• Mortgages

• Healthcare

• Technology

What is one of the key drivers of credit growth in Saudi Arabia?

• Agriculture

• SMEs

• Manufacturing

• Tourism

How does the government-backed mortgage scheme affect loan growth in Saudi Arabia?

• It has no impact on interest rates

• It reduces the interest rates for borrowers

• It increases the interest rates for borrowers

• It only affects corporate loans

What is the expected trend for mortgage CAGR in Saudi Arabia for the next three years?

• Decrease to 20%

• Increase to 50%

• Decrease to 10%

• Remain at 50%

Which market segment has been more affected by inflationary pressures?

• Agricultural sector

• Technology sector

• Consumer sector

• Banking sector

What is a key benefit for banks in a rising rate environment?

• Positive benefit on asset rates

• Reduced interest margins

• Decreased loan growth

• Increased non-performing loans