Saudi Banks Report 16.2% Profit Surge in Jan. 2025
Saudi banks kicked off 2025 with strong financial results, driven by robust lending growth and economic momentum. Cumulative earnings before zakat and taxes hit SAR8.14 billion ($2.2 billion) in January 2025, marking a 16.2% annual increase, according to Saudi Central Bank (SAMA) data.
Total loans, advances, and overdrafts reached SAR2.8 trillion, reflecting a 16.6% annual surge. Bank credit exceeded SAR3 trillion, up from SAR2.6 trillion in January 2024. This upward trend highlights heightened corporate and consumer borrowing activity.
Deposit Growth Reflects Consumer Confidence
Bank deposits climbed 8% year-on-year to SAR2.7 trillion by January 2025. Notably, time and savings deposits jumped 14% to SAR985 billion, signaling stronger public trust in financial institutions.
Non-performing loans dropped to 1.3% of total gross loans in September 2024, down from 1.8% a year earlier. S&P Global predicts stable bank profitability in 2025, citing favorable interest rates and Saudi Arabia’s thriving economic environment.
Corporate lending will likely drive credit expansion, supported by major development projects. Lower interest rates may also boost mortgage lending as borrowing costs decline. Analysts expect sustained growth as Saudi Arabia continues diversifying its economy under Vision 2030.
In conclusion, Saudi banks are poised to capitalize on favorable macroeconomic conditions and regulatory support. As lending continues to expand, the sector remains a key driver of the kingdom’s economic diversification efforts.
