Banks in Saudi Arabia reported an aggregate profit of SR7.43 billion ($1.98 billion) in March, up 23.2 percent compared to the same month in 2022, the latest data from the Saudi Central Bank showed.
According to the report from the bank, also known as SAMA, the aggregate assets of banks operating in the Kingdom also went up by 11.17 percent year-on-year to SR3.74 trillion in March.
In its monthly statistical bulletins, SAMA covers the results of Tadawul-listed banks and some foreign banks operating in Saudi Arabia.
The latest report further noted the combined deposits in these banks rose 11 percent year-on-year to SR2.40 trillion.
It also revealed that loans given to private entities in the Kingdom rose over 10 percent year-on-year to SR2.35 trillion in March, indicating a growth in the non-oil private sector.
In February, banks in Saudi Arabia provided loans worth SR2.32 trillion, slightly up from SR2.29 trillion disbursed in January.
“The Q1 2023 profitability growth numbers for the sector and the quarterly earnings reported by the banks so far indicate that the corporate-focused banks are benefiting from the higher rate environment,” commented financial services company Al-Rajhi Capital on the latest bulletin.
It added: “We maintain our positive view on corporate-focused banks, as we believe the credit growth in the system will be driven by the corporate banks. Moreover, in terms of NIMs (net interest margin), we believe that the corporate banks are well-positioned to benefit.—AN
