Saudi bank provisions top SR20bn
High loan loss provisions depress profits but they could improve in 2011.
Total provisions averaged over 150 per cent of non-performing loans between 2004 and 2008. The absence of reasonably priced bank credit has been a key factor holding back the performance of the private sector over the last two years.
Less need for provisions should improve the financial performance of banks in 2011 and prompt them to ease curbs on credit.
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