RIYADH: Net loans at Saudi Arabia’s ten publicly traded banks increased 7% year on year to SR3.25 trillion ($865.2 billion) by the end of the second quarter of 2026, while deposit growth surpassed lending for the second consecutive quarter, according to Al Rajhi Capital.
Deposits surged by 9 percent to SR3.15 trillion, while net loans increased by 2 percent from the previous quarter and deposits jumped by 3 percent, according to the report released on August 18. The loan-to-deposit ratio stood at 103%.
Lending growth slowed as Saudi banks shifted their focus to profitability and returns rather than boosting loan volumes, with some of the Kingdom’s top lenders lowering their loan-growth forecasts for 2026, according to Al Rajhi Capital. The top three banks altered their guidance downwards as their focus shifted to value over volume, according to the analysis.
According to the report, corporate-focused banks experienced 10% annual loan growth, compared to 4% for retail-focused lenders. Their deposits rose 11% and 7%, respectively. Al Rajhi now forecasts low-single-digit growth, up from its earlier low- to mid-single-digit prediction. The SNB reduced its forecast to mid-single-digit growth from high-single-digit growth, while Riyad Bank predicts mid- to high-single-digit expansion rather than high-single-digit growth.
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