Saudi banks witnessed a notable surge in profits, with a 3.4% increase to reach $1.55 billion.
The banking sector in Saudi Arabia demonstrated its resilience in April, with the aggregate profit of banks operating in the country increasing by 3.4 percent year on year, reaching SR5.78 billion ($1.55 billion). The latest figures released by the Saudi Central Bank, commonly known as SAMA, reveal positive growth in the sector.
The report highlights a month-on-month decline in the aggregate profits of Saudi banks. In March, the banks reported an aggregate profit of SR7.43 billion, indicating a decrease of SR1.65 billion in April.
Despite the decline in monthly profits, the overall performance of the banking sector remains strong. The SAMA report further reveals that the aggregate assets of banks operating in Saudi Arabia increased by 10.81 percent year on year in April, reaching a total of SR3.75 trillion.
Moreover, the combined deposits in banks witnessed a significant year-on-year rise of 10.38 percent, reaching SR2.40 trillion by the end of April. This increase in deposits reflects the confidence and trust of individuals and businesses in the stability and reliability of the Saudi banking sector.
The report also highlights the growth of the non-oil private sector in the Kingdom. Loans provided to private firms experienced a notable year-on-year increase of 9.67 percent in April, reaching SR2.36 trillion. This surge in lending demonstrates the active support of Saudi banks in driving the growth and development of the private sector, which is crucial for the diversification of the Saudi economy.
SAMA’s monthly statistical bulletin covers the results of banks listed in the exchange, as well as some foreign banks operating within Arabia. These figures provide valuable insights into the overall performance and stability of the banking sector in the country.
The positive growth in profits and assets, coupled with the increased lending to the private sector, reflect the robustness and resilience of the Saudi banking sector. The sector continues to play a pivotal role in supporting economic growth, promoting investments, and facilitating financial transactions within the Kingdom.
Despite the monthly decline, the banking sector’s overall performance remains robust. The SAMA report further reveals that the aggregate assets of banks operating in Saudi Arabia saw a substantial year-on-year increase of 10.81% in April, totaling SR3.75 trillion. This growth in assets showcases the sector’s strength and its ability to attract and manage significant financial resources.
Moreover, the combined deposits in Saudi banks demonstrated a significant year-on-year rise of 10.38%, reaching SR2.40 trillion by the end of April. This increase reflects the confidence of individuals and businesses in the stability and reliability of the Saudi banking sector. The strong deposit base provides banks with a solid foundation to support lending activities and drive economic growth. The report also emphasizes the positive role played by Saudi banks in supporting the non-oil private sector, which is a crucial component of the country’s economic diversification efforts. Loans provided to private firms experienced a substantial year-on-year increase of 9.67% in April, amounting to SR2.36 trillion.
As Saudi Arabia works towards achieving its Vision 2030 goals, the banking sector will remain a key driver of economic diversification and development. The sector’s ability to adapt to changing market dynamics and its commitment to innovation and customer-centric services will further contribute to the country’s long-term economic stability and prosperity.
In conclusion, the Saudi banking sector demonstrated positive growth in April, with a 3.4 percent increase in aggregate profits compared to the previous year. Despite a month-on-month decline, the sector’s overall performance remains strong, with significant increases in assets and deposits. The support provided to the non-oil private sector through increased lending showcases the sector’s commitment to driving economic diversification. As Saudi Arabia continues to implement its Vision 2030 initiatives, the banking sector will continue to play a crucial role in achieving sustainable economic growth and prosperity.
