Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Country reportsMay 1 2013

Saudi's banks enjoy an enviable position

Government spending has kept the Saudi Arabian economy buoyant over the past few years, allowing the country's banks to maintain a healthy profit level in 2012. And their prosperity is showing no signs of waning, with an ambitious home ownership target spurring growth in the mortgage market and momentum building in the small and medium-sized enterprise space.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Saudi's banks enjoy an enviable position

The stellar performance of Saudi Arabia’s banks must appear to be a mirage to the banking sectors of many other countries in the world. Its figures are enviable on every front – from its healthy profits to its strong liquidity ratios to its negligible non-performing loans (NPL) ratios. 

Last year represented the country's second best ever when it came to banking profitability, with its 12 commercial banks posting profits of SR33.5bn ($8.93bn) – only marginally lower than the record of SR34.6bn recorded in 2006. This was nearly 8.4% higher than the 2011 net earnings of SR30.9bn, although the profit growth in 2012 was much slower than in 2011, when it stood at about 18.3%.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial