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الاقتصادية
Saudi banks' profits mask growth slowdown
During the first seven months of 2026, banks operating in Saudi Arabia achieved record profits of 62.5 billion riyals, marking a decrease in profit growth of 5.5% compared to 18% in the same period last year. This comes amid a slowdown in bank credit growth, which reached its lowest level in around seven years at a growth rate of 6.8%, totaling 3.43 trillion riyals by the end of July. The slowdown is due to rising interest rates and weak demand for financing, especially in the real estate sector. Meanwhile, deposits with higher interest rates reached a historic high of 1.4 trillion riyals, growing by 25%, and their share increased to 45% of total bank deposits, exerting pressure on banks' profit margins. Despite this, profits remained at a record level for 2025, reaching 103.4 billion riyals. However, the slowdown in credit growth indicates challenges facing Saudi Arabia’s banking sector.
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