Saudi banks' profits rise amid growth slowdown

Bank profits for operating banks in Saudi Arabia during the first seven months of 2026 saw a record rise of 62.5 billion Riyals, compared to 59.2 billion Riyals in the same period last year, representing an annual growth of 5.5%. However, profit growth significantly slowed down compared to an 18% increase in the previous year, due to a slowdown in lending and a rapid increase in deposits. The volume of bank credit reached its lowest level in seven years at 3.43 trillion Riyals, with only a 6.8% year-on-year growth, largely due to rising interest rates that pressured demand for financing, especially in the real estate and personal segments. Meanwhile, bank deposits hit a record high of 1.4 trillion Riyals, as depositors preferred interest-bearing deposits, which narrowed banks' profit margins. Although the profits in 2025 were record-breaking at 103.4 billion Riyals, a 16% increase, the slowdown in lending and the impact of interest rates exerted pressure on growth.

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