RIYADH: Saudi banks’ profits before zakat and tax rose 6.1 percent year on year to SR8.24 billion ($2.18 billion) in April, according to data from the Kingdom’s central bank.
The annual increase came even as monthly profits fell 18 percent from March, bringing April earnings to their lowest level in six months.
The banking sector’s performance comes as Saudi Arabia continues to balance strong credit demand driven by Vision 2030 projects with tighter liquidity conditions.
Rapid lending growth in recent years has outpaced deposit expansion, prompting banks to increasingly tap capital markets and external funding sources to support financing needs tied to the Kingdom’s economic diversification agenda.
Speaking to Arab News, Vijay Valecha, chief investment officer at Century Financial said: “Overall, Saudi banks are better positioned than many emerging market banking systems.”
