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Banks across Saudi Arabia posted upbeat results in the beginning of the year, fuelled by strong lending activity.
Cumulative bank earnings before zakat and taxes reached SAR 8.14 billion ($2.2 billion) at the end of January 2025, rising by 16.2% from the same period in 2024, according to new figures from the Saudi Central Bank.
Total loans, advances and overdrafts stood at SAR 2.8 trillion, representing a 16.6% jump over the same period last year, while total bank credit surpassed SAR 3 trillion, compared to SAR 2.6 trillion a year ago.
Bank deposits reached SAR2.7 trillion at the end of January 2025, up by 8% year-on-year. Time and savings deposits rose by 14% to SAR 985 billion over the same period.
As of the end of September 2024, the ratio of non-performing loans to total gross loans stood at 1.3%, down from 1.8% from a year earlier.
Banks’ profitability is expected to remain stable this year, according to S&P, citing that lower interest rates and the kingdom’s positive economic environment are likely to support higher lending growth.
Credit growth will likely be fuelled by corporate lending, supported by a strong project pipeline, the ratings agency said. Lower interest rates could also drive mortgage lending.
(Writing by Cleofe Maceda; editing by Seban Scaria)
