Deposits in banks across Saudi Arabia increased by 7.3 percent in 2019, according to local media reports.
Around SR1.795 trillion was deposited into banks in Saudi Arabia last year. While in 2018, total deposits recorded were around SR1.674 trillion.
Savings and term deposits in Saudi Arabia banks also increased to SR501.67 billion in 2019, a13.2 percent increase year-on-year.
According to data released by the Saudi Arabian Monetary Authority (SAMA), the sector’s aggregate income climbed by 5 percent yearly to SAR 50.5 billion.
The banks operating in Saudi Arabia’s aggregate assets also increased by 10 percent to SR2.631 trillion during the same period.
Money lent by Saudi banks to the private sector also increased significantly boosted by government-backed mortgages programme. The proceeds of Saudi Aramco’s initial public offering also lifted money supply in the Saudi banking sector.
According to reports published last month, banks in Saudi Arabia and the UAE could see an increase in demand for loans as earnings are expected to slow down in 2020.
JPMorgan Chase analyst Naresh Bilandani predicts that demand for loans in Saudi Arabia may increase by an average of 7 percent, compared to about 6 percent in 2019.
He further revealed that mortgages will continue to remain a key driver of credit in Saudi Arabia after expanding 31 percent year-on-year during the third quarter of 2019.
He told Gulf News that, “Corporate volumes are also starting to show some pickup. Net-income growth at the biggest Saudi banks could slow to about 4 percent in 2020, compared with 14 percent last year, as the costs of holding deposits outpace deposit growth.”