Saudi banks report 24pc profit growth

RIYADH, Dec 23 (Arab News): Saudi banks' aggregate profit reached SR7.7 billion ($2.05 billion) in October, marking a 23.67 per cent year-on-year increase, newly released data has revealed.

According to the Saudi Central Bank, also known as SAMA, these figures represent profits before zakat and taxes.

Cumulatively, from the beginning of the year to the end of October, banks recorded a total profit of SR73.28 billion, compared to SR64.47 billion during the same period last year.

The increase in banks' profits is primarily attributed to a combination of favorable factors that highlight the sector's strength and ability to adapt.

The third quarter of 2024 marked a significant turning point, with non-interest income playing a pivotal role.

According to a Fitch Ratings report published in November, strong gains on securities and trading contributed SR1.4 billion to non-interest income, offsetting higher financing impairment charges and helping push combined quarterly profits to SR20 billion.

This growth followed SAMA's decision to implement a 50-basis-point interest rate cut in September, which mirrored the US Federal Reserve's shift toward a more accommodative monetary policy.