Time and savings deposits in Saudi Arabia’s banking system rose to a record high of SAR889.558 billion ($236.98 billion) by the end of May 2024, achieving an annual growth rate of 23.4 percent and an increase of SAR168.789 billion from May 2023, where they reached SAR698.436 billion.
Time and savings deposits grow
The latest data from the Saudi Central Bank’s (SAMA) Monthly Statistical Bulletin reveals that time and savings deposits represented around 31.5 percent of Saudi Arabia’s total money supply.
Time and savings deposits in Saudi Arabia’s banking system also achieved a monthly growth rate of 5.6 percent, with an increase of SAR47.273 billion, compared to SAR842.286 billion by the end of April 2024.
Moreover, they grew 3 percent since the beginning of the year, with an increase of about SAR25.237 billion after reaching SAR846.321 billion at the end of January 2024.
The monthly average for the current year for the level of time and savings deposits was about SAR855.589 billion.
Read: Saudi Arabia’s corporate sukuk, debt capital market grows 7.9 percent annually since 2019
Saudi banking sector grows
In the first quarter of 2024, Saudi Arabia’s overall bank deposits saw a 5.9 percent increase, according to Alvarez & Marsal (A&M)’s latest KSA report. Operating income increased by 3.8 percent quarter-on-quarter due to significant growth in non-interest income despite a slow growth in net interest income.
Notably, Saudi Arabia’s top 10 listed banks saw their earnings surge in Q1 of 2024 by 8 percent to reach SAR18.65 billion ($4.97 billion), compared to the same period the previous year, according to SAMA. Loans reached SAR2.67 trillion ($711.9 million) by the end of March, with a growth rate surpassing that of deposits, which increased by 8 percent.
Additionally, S&P Global forecasts robust credit growth for banks in the Kingdom, ranging between 8-9 percent in 2024. This expansion is expected to be driven by corporate lending.
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