• Historical levels of profits of Saudi banks..50 billion riyals in 2018


    *Ikrami Abdullah from Riyadh


    Saudi banks' profits rose by 11.1 per cent during the last year 2018 to reach about 50 billion riyals, compared to about 45 billion riyals in 2017, with an increase of nearly five billion riyals.

    According to the analysis of the unit of reports in the newspaper «AlEqtisadiah» that based on the data of Tadawul, earnings last year are the highest annual profits in the history of Saudi banks at all, followed by 2017.

    The jump in the profits of Saudi banks coincided with the rise in interest rates four times during the past year, which led to a rise in net special commission income (finance and investments) by 8.3 percent to reach 69.1 billion riyals, compared to 63.8 billion riyals in 2017, with an increase of 5.3 billion riyals.


    The Saudi Arabian Monetary Agency (SAMA) raised interest rates four times last year, coinciding with the US Federal Reserve's interest rate hike four times.


    Saudi banks' net profit rose 21 percent in two years, reaching 41.3 billion riyals in 2016, coinciding with a three-fold increase in 2017, four times in 2018.

    The number of Saudi banks 12 banks are all listed in the local stock market.



    Net profit

    Ten banks recorded a rise in profits of the 12 banks.

    While the profits of only two banks, namely "AlAwwal" and "Saudi Fransi" fell by 15.4% and 6.4%, respectively.

    The sector is the most profitable sector, as "Alinma Bank" rose by 25.2 per cent, "SABB" by 24.6 per cent, and "Riyadh" by 19.5 per cent.

    Regarding the sector's profits by value, "National Commercial Bank" of 10.7 billion riyals, followed by "AlRajhi Bank" with 10.3 billion riyals, which was accounting for 21.3 per cent and 20.6 per cent of the sector's profits, respectively.


    Net special commission

    The sector is the fastest growing sector in terms of the rise in net special commission, as "AlBilad Bank" rose by 23.4 per cent, "Riyadh" by 12.7 per cent, and "Arab National" by 10.4%.Regarding the sector's profits in terms of value of net special commissions, National Commercial Bank rose by 14.4 billion riyals, followed by "Al Rajhi Bank" by SR13.3 billion, as they dominated 20.8 per cent and 19.2 per cent respectively.


    * Economic Reports Unit​

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