The anticipated rise in profits of companies listed on the Saudi financial market in the banking, communications, and healthcare sectors during Q3 of 2023 can be attributed to several factors.
Leading these factors are cost reduction, reliance on digital infrastructure, expansion of projects, and advancements in service delivery, according to economic analysts.
Some forecasts suggest a substantial increase in healthcare sector profits, approaching 50% compared to the same period in the previous year.
Meanwhile, other sectors show profit increases ranging between 20% and 30%, with the communications sector’s average expected increase falling between 30% and 40%.
Most banks, on the other hand, are expected to record profit increases ranging from 10% to 20%.
Economic analyst Abdullah Al-Jubaili asserted that the increased profitability of banking institutions can be attributed to their operational cost reduction and the closure of some branches.
These banks have also embraced digital infrastructure, which has led to higher profit margins despite a decrease in their real estate lending portfolios, representing a significant portion of the total lending portfolio of these banks, Al-Jubaili told Asharq Al-Awsat.
The rise in healthcare sector profits, on the other hand, can be attributed to substantial capital expenditures on expansion projects in the sector’s hospitals in recent years and increased demand for healthcare services.
According to Al-Jubaili, this has significantly improved the performance of healthcare companies, along with an increase in private sector employment and a decrease in unemployment rates, leading to an improvement in the health insurance portfolio relied upon by healthcare sector companies to enhance their financial performance and profitability.
Al-Jubaili also mentioned companies in the communications sector expanding their investment reach and increasing expenditure on new company listings, services, digital payments, tower leasing, infrastructure investment, and providing substantial liquidity for non-operational profit generation.
