Saudi banks’ profits surge 3.4% in April to $1.55bn

0 144

The aggregate profit of banks operating in Saudi Arabia increased by 3.4 percent year on year in April to reach SR5.78 billion ($1.55 billion), according to the latest figures released by the Saudi Central Bank, also known as SAMA.

The report, however, noted that the aggregate profits of Saudi banks fell by SR1.65 billion month on month in April. In March, banks in Saudi Arabia reported an aggregate profit of SR7.43 billion.

According to the SAMA report, the aggregate assets of banks operating in Saudi Arabia also increased by 10.81 percent year on year in April to hit SR3.75 trillion.

The report added that the combined deposits in Saudi banks witnessed a 10.38 percent year-on-year rise to SR2.40 trillion by the end of April.

Highlighting the growth of the non-oil private sector in the Kingdom, the report noted that loans provided to private firms increased by 9.67 percent year on year in April to SR2.36 trillion.

SAMA’s monthly statistical bulletin covers the results of banks listed in the Saudi exchange and some foreign banks operating in Saudi Arabia.

“We see downside risks to our mortgage estimate; however, we maintain our corporate loan estimate unchanged and believe the corporate credit growth will accelerate in the second half of the year. Thus, we maintain our positive view on the corporate banks,” Al-Rajhi Capital commented on the SAMA report.

Meanwhile, the newly released report suggested that assets held by SAMA declined by SR22.8 billion month on month to SR1.82 trillion in April, compared to SR1.85 trillion the cental bank had in March. On an annual basis, its assets shrunk by SR22.8 billion.

The report added that the central bank’s investments in foreign securities, which account for roughly 56 percent of its total assets, dropped over 9 percent year on year to around SR1.01 trillion in April.

On the other hand, SAMA’s deposits in banks abroad rose by 10.53 percent year on year in April to SR316.80 billion, compared to SR286.62 billion in the same month of 2022.

Its miscellaneous assets also witnessed a rise in April 2023, as it went up by 46.68 percent year on year to SR208.26 billion, compared to SR141.98 billion in the same month of the previous year.

You might also like