National Commercial Bank Boosts Profits
The National Commercial Bank, the largest Saudi bank by assets, saw a 7.6% year-over-year increase in profits in the second quarter of the year, reaching a record level of 6.6 billion riyals, surpassing expectations. The growth was driven by improved margins in private commission income, which reached its highest level in three years at 51.3%, as well as a roughly 140% increase in investment income. Despite this, loan growth slowed to its lowest in seven years at 3.5%, and the loan-to-deposit ratio decreased to 106%, as deposits grew at a faster rate with higher interest, contributing to an increase in the bank’s share of total deposits to 26%, the highest in over three years. The bank's profits remained strong despite the slowdown in lending, thanks to improved margins and reduced costs.
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