RIYADH: According to recently disclosed data, Saudi banks reported solid financial performance in January, with aggregate earnings increasing 16 percent year over year to SR8.14 billion ($2.17 billion). Pre-zakat and pre-tax earnings figures from the Saudi Central Bank, or SAMA, demonstrate the industry’s tenacity and rising profitability. The increase coincides with Saudi Arabia’s total bank loan balance surpassing SR3 trillion for the first time, representing the strongest yearly growth rate since October 2022 at 14.66 percent.
Increased company financing has been a major factor in this growth, especially in the manufacturing, trade, and real estate sectors. Banks’ financial performance and their role in promoting economic diversification under Vision 2030 are strengthened by the increased interest income they receive from lending to these sectors. Saudi banks ended 2024 with SR89.1 billion in total profits, the largest monthly earnings ever recorded in December.
Additionally, the industry has profited from government stimulus programs designed to boost infrastructure development, improve credit availability, and assist firms. Saudi banks have used the bond market to maintain expansion, obtaining more funds for investments and lending, so fortifying their financial situations in the face of economic volatility. Furthermore, the industry has successfully adjusted to changing economic circumstances, such as interest rate fluctuations that have affected lending practices and consumer behavior.
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