Arab News, Tuesday, May 30, 2023 | Thul-Qidah 10, 1444
Saudi banks’ profits surge 3.4% in April to $1.55bn
Saudi Arabia:
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.