Steve Bertamini

#Saudi’s Al Rajhi Bank says expat exodus could impact its remittance business

Al Rajhi Bank expects low-single digit loan growth for the rest of 2018 as it curtails its loans while economic reforms take shape. A plan to reduce reliance on expatriates to generate jobs for Saudis has seen the number of foreign workers fall by more than 700,000 since last year. Al Rajhi's CEO Steve Bertamini said the expatriate exodus might have some impact on its remittance business. The bank has already seen an overall rise in banking for women and car loans for women have begun to rise substantially from a low base. Bertamini said that their entry into the workforce will mean more demand for accounts, loans and saving products.

Mortgages set to boost lending at #Saudi banking giant Al Rajhi

A jump in mortgages and a recovery in Saudi Arabia’s economy may help Al Rajhi Bank to reverse a decline in lending. According to CEO Steve Bertamini, higher government spending and faster economic growth amid higher oil prices should help the revival. Home loans have risen as much as 6% this year and there are 450,000 Saudis eligible to purchase a home under one of the government programs. Saudi Arabia’s new housing project announced in February includes an 18 billion riyal ($4.8 billion) loan-guarantee program to boost access to funding and 12.5 billion riyals to support down-payments. Al Rajhi Bank in July reported an 18% rise in second-quarter profit to 2.57 billion riyals. According to Bloomberg economists, Saudi Arabia’s economic expansion will accelerate to 1.6% this year from 0.9% in 2017.

Newly empowered #Saudi women to help drive growth at Al Rajhi Bank

Saudi Arabia's Al Rajhi Bank has opened 133 female-only branches and a car showroom for women to help them access car loans. Women have been allowed to attend mixed sporting events and will be able to drive from June. Al Rajhi Bank is a major provider of vehicle loans and has operated car showrooms since 2008. They were only for men until the bank opened its first women-only one late last year. Al Rajhi CEO Steve Bertamini said families usually have a large automobile already, so the cars for women tend to be smaller vehicles for commuting. He added that the bank would provide extended hours for women within existing car showrooms and increase the number of female bank branches in 2018. Women's increased economic activity will help the bank's loan growth outperform the 4% expected for the sector in 2018.

CEO of Saudi’s Al Rajhi Bank resigns, new head appointed

Al Rajhi Bank, Saudi Arabia’s second largest bank by assets, is to replace its chief executive, with the new head’s priority likely to be reversing its fortunes after seven straight quarterly profit drops. Suleiman bin Abdul Aziz al-Zabin resigned as chief executive for personal reasons, effective May 17, it said on Sunday in a statement. His replacement would be Steve Bertamini, who had been appointed chief executive, effective from May 18, it said. The bank’s consumer business has been hit by new rules and tougher competition from other lenders in the kingdom. It has one of the highest exposures in the financial sector to the retail segment.

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