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  • 25-10-22

    Economist: Saudi highest banks open earning season with income rise

    (MENAFN) Three of Saudi Arabia’s highest 10 banks have recorded robust income expansion in the opening nine months of this year, as interest rates as well as crude prices increases.

    Saudi National Bank, the nation’s biggest lender, recorded a 42 percent rise in income to SR14 billion (USD3.8 billion) during the mentioned period.

    The nation’s most valuable, Al Rajhi Bank, has recorded a 19 percent revenue jump to SR13 billion (USD3.45 billion) in the first nine months of 2022.

    Riyad Bank has witnessed its income climb by 13 percent to SR5 billion (nearly USD1.33 Billion) in the in the January-September period of this year.

    Giving his remarks on the outcome, Fawaz Al-Fawaz, a Saudi-based independent economist and columnist informed Arab News that Saudi banks are mnomst probably to sustain their profitability.

    “The banking sector profitability was expected to improve, due to higher interest margins, which is the difference between what banks pay on the deposits, and the rate they charge on the loans,” he stated.

    Adding that “The rising rate environment normally allows banks to increase rates on loans, while they are slower to adjust rates they pay on deposits. Profits should continue to increase but at a slower rate. Increasing rates may deter some borrowing, as we saw in housing for the last few months.”

    MENAFN25102022000045014228ID1105074171

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