(Bloomberg) -- It is too early to link the attacks on Saudi Aramco's facilities to the kingdom's banking system and the effects might take some time to trickle through, according to Moody's Investors Service.
“We still don't know,” Ashraf Madani, a senior analyst at Moody's in Dubai, said in an interview in Riyadh on Tuesday. The outlook for lenders in the country is stable for the next 12-18 months, he said.
Read more: Aramco Faces Weeks or Months Without Bulk of Abqaiq Output
Record government spending will help fuel lending growth to about 4%-5% next year, Madani said. “Profitability in the system is solid,” he said. “We're talking about a ratio of return on assets above 2%, which is very solid.”
Non-performing loans are also seen stabilizing at between 2%-2.5% over the next 12-18 months after several years of deterioration.
To contact the reporter on this story: Sarah Algethami in Riyadh at salgethami@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels, Alastair Reed
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
