Saudi banks’ aggregate profit before zakat and tax hit SR8.24 billion ($2.2B) in July, up 7% year-on-year, according to the Saudi Central Bank (SAMA). Cumulative January–July profits reached SR59.24B, an 18% rise from 2024, underscoring the sector’s strong momentum.
The growth is fueled by surging corporate lending, with total outstanding bank credit climbing to SR3.2 trillion in July (+15.2% YoY). Business loans jumped 22.5% to SR1.8T, now making up 56% of total lending, boosted by Vision 2030 megaprojects, infrastructure, and housing initiatives.
Regionally, banks in the GCC also posted record results. Kamco Invest reported GCC-listed banks’ Q2 profits at $16.2B, driven by revenue gains and lower cost-to-income ratios.
Despite high global interest rates, Saudi banks have benefited from wider lending margins, as SAMA mirrors U.S. Federal Reserve policy. Strong demand for credit continues despite costlier loans, reflecting confidence in the Kingdom’s economic outlook.
Looking ahead, S&P Global expects Saudi lending to grow 10% in 2025, while Fitch forecasts 12%, both highlighting corporate credit as the main driver. New funding tools are also emerging: the Saudi Real Estate Refinance Co. launched the Kingdom’s first mortgage-backed securities in August, freeing up bank liquidity for fresh lending.
With strong capitalization (19% adequacy) and prudent risk buffers, Saudi banks are well-positioned to sustain profitability and play a pivotal role in financing Vision 2030.