RIYADH: According to recently released data, the total profit of Saudi banks before zakat and tax hit an all-time high of SR7.83 billion ($2.1 billion) in July, representing a 23 percent annual increase.
According to the Kingdom’s central bank, also known as SAMA, the financial institutions reported total profits of SR50.22 billion from January to the end of July, up 13% from SR44.5 billion during the same period last year. During this time, total deposits increased by 8% to SR2.64 trillion, with term deposits growing at the fastest rate of 20% to SR930.24 billion.
The total amount of deposits in demand accounts, which account for 53% of all deposits, increased by a more moderate 5% to SR1.4 trillion. Regarding assets, the total amount of bank credit increased to SR2.79 trillion in July, a 12 percent increase from the same month in 2023.
An important indicator of a bank’s liquidity, the loans-to-deposits ratio, increased to 80.73 percent from 78.84 percent the previous year. A combination of strategic initiatives and favourable economic conditions is driving the expansion of the banking sector in Saudi Arabia.
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