Saudi banks lower investments in government bonds by $1.06bln in August

Riyadh –   Banks operating in Saudi Arabia reduced their investments in government-issued bonds in August 2020 by 0.9% or SAR 3.95 billion monthly.

The banking sector's investments in bonds amounted to SAR 429.31 billion in August, compared with SAR 433.25 billion in the previous month, as shown by data from the Saudi Arabian Monetary Authority (SAMA).

Year-on-year (YoY), the investments soared by 17.5% or SAR 64 billion when compared to their level in August 2019 at SAR 365.3 billion.

During the first eight months of the year, banks purchased bonds worth SAR 45.63 billion, an increase of 11.9% from overall investments of SAR 383.67 billion at the end of 2019.

The lenders’ investments in bonds represented 84.85% of total banks’ liabilities from the public sector, whether government or semi-government, in August.

Total banks liabilities from the public sector jumped by 19.7% YoY in August to stand at SAR 505.95 billion, according to the data.