The Saudi banking sector achieved its highest-ever quarterly net profit of SAR 20.90 billion in Q4-2024, according to Aljazira Capital’s report, marking a historic milestone for the industry. This record-breaking performance aligns with Yoast SEO guidelines by emphasizing the key phrase “Saudi banking sector” in the title and first sentence.
Amid sector-wide growth, individual banks showed varying performances, with five out of ten listed institutions surpassing consensus estimates. Saudi Awwal Bank (SAB) and Al Rajhi Bank led the pack with earnings beats of 8.80% and 8.30%, respectively. However, Bank Aljazira and Riyad Bank lagged, missing forecasts by 15.50% and 8.60%, underscoring the uneven recovery across the sector.
Driving Factors Behind the Surge
Moreover, the surge in earnings stemmed from a 10.10% year-on-year (YoY) rise in net interest income to SAR 29.20 billion. Meanwhile, mortgage lending surged by 53.40% YoY, fueled by the Cityscape Global 2024 event, which boosted sales to over SAR 20 billion. This event acted as a catalyst, pushing the monthly mortgage run rate to SAR 10.10 billion in Q4-24.
Looking at deposits, the sector’s total deposits increased by 8.40% YoY to SAR 2.68 trillion, with Riyad Bank leading growth at 20.20% YoY, followed by Bank Aljazira at 15% YoY. These figures highlight robust customer confidence, setting a strong foundation for sustained expansion in 2025.
