Strong oil revenues in Saudi Arabia generally translate into a strong economic performance and good results for the banks. This analysis proved particularly accurate in 2003 as oil revenues – up $20bn over 2002 – provided real GDP growth of 6.4%, a current account surplus of $27bn and strong profit growth at the banks. But oil is not the only factor involved and double digit profit growth at most banks stems from improved diversification of income sources and strong growth in consumer finance.
Combined profits at the 10 Saudi commercial banks rose to SR9.3bn ($2.5bn) for the first nine months of 2003, up 14.3% on the previous year.
