Saudi banks report profits despite higher provisions
The Saudi banking sector achieved total profits of 24.9 billion Riyals in the second quarter of the year, reflecting an 8.2% increase year-on-year and a 3.8% rise compared to the previous quarter, despite a rise in financial provisions. The growth was led by Al Rajhi Bank, whose profits increased by 14% to reach 7.01 billion Riyals, accounting for about 46% of the overall increase. Additionally, Bank AlJazira recorded the highest growth rate at 15.9%, while major banks such as the National Commercial Bank and the Saudi British Bank experienced more modest growth. Profits exceeded analysts’ expectations by approximately 6.7%, supported by continued growth in the loan portfolio, which expanded by 6.9%, and a 9.7% increase in sector deposits. Although provisions increased by 38%, the results remain positive, but challenges persist in defending profit margins amidst rising deposit costs and ongoing increases in provisions.
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