Saudi banks posted their highest-ever quarterly profits in Q2 2024, with net earnings up 13% from the same period last year.
Analysts attribute this boost to three main factors: a rebound in lending and financing, increased deposits, and lower credit provisions. They expect this strong performance to continue in future quarters.
The ten listed Saudi banks reported a 13% rise in net profits, reaching SAR19.54 billion ($5.2 billion) for Q2 2024, up from SAR17.27 billion ($4.6 billion) in Q2 2023.
The National Commercial Bank (NCB) led with the highest share of profits, earning SAR5.23 billion, a 4.3% increase from the previous year. Al-Rajhi Bank came second with SAR4.69 billion, a 13.2% rise year-on-year.
Riyad Bank reported SAR 2.33 billion in profits for Q2 2024, a 17.93% increase from the same quarter last year. Alawwal Bank saw the highest growth rate, with profits up over 30% to SAR 2.02 billion.
Thamer Al-Saeed, Head of Asset Management at Rasana Financial, cited three key reasons for the record profits: The return of active lending, increased deposit volumes, and reduced credit provisions. He believes these trends will continue to boost bank profits in the coming quarters.
Mohamed Hamdy Omar, CEO of G-World, noted that the banking sector is likely to see further profit growth due to rising income from commissions and loans.
He highlighted the positive outlook for the sector, driven by ongoing projects and government initiatives to support business and infrastructure development in Saudi Arabia.
