RIYADH: Saudi Arabia’s largest listed banks posted 3.9 percent deposit growth in the first quarter of 2026, boosting liquidity and reinforcing the sector’s resilience, a new analysis showed.
Customer deposits outpaced loan growth during the three months ended March, with aggregate net loans and advances rising 1.6 percent from the previous quarter, according to Alvarez & Marsal’s latest KSA Banking Pulse report, which tracks the Kingdom’s 10 largest listed banks.
The stronger deposit growth reduced the sector’s loan-to-deposit ratio by 2.4 percent quarter on quarter to 104.1 percent, reflecting improved liquidity despite a challenging global interest rate environment.
The sector’s resilience comes despite a complex global interest rate environment shaped by ongoing Middle East conflicts, elevated energy prices, and divergent monetary policies worldwide.
Sam Gidoomal, managing director and head of Middle East Financial Services at A&M, said: “This performance in the first quarter underscores the resilience of Saudi Arabia’s banking sector, supported by healthy loan growth, stable margins, and easing credit costs.”
