'Bullish' on Saudi Banks Al Rajhi, National Commercial, Samba, Shuaa Capital Says

The transcript discusses the outlook for Saudi and UAE banks in 2019, focusing on the impact of Fed rate hikes. It highlights the expected slowdown in earnings growth for Saudi banks and the flat margins for UAE banks. The discussion also covers the potential for margin expansion and the role of consolidation in UAE banks. Additionally, it addresses the exposure of UAE banks to the real estate sector and the expected increase in default rates due to economic conditions.

What is the expected earnings growth deceleration for Saudi banks from 2018 to 2019?

• From 8% to 5%

• From 11% to 6-7%

• From 12% to 9%

• From 15% to 10%

How are Saudi banks expected to benefit from the Fed rate hikes?

• No benefit at all

• Complete loss in margins

• Significant margin expansion

• Some margin expansion, but less than before

Which factor is highlighted as a key driver for UAE banks?

• Interest rate cuts

• Technological advancements

• Consolidation story

• Increased foreign investment

What is the expected change in default rates in the UAE banking sector?

• Remain stable

• Increase by 50 basis points

• Decrease by 10 basis points

• Increase by 20 basis points

Which sector is mentioned as being within the regulatory limits of the UAE Central Bank?

• Technology

• Real estate

• Agriculture

• Healthcare