Saudi Banks Report 27% Surge in Profits as Vision 2030 Drives Lending Boom

Saudi Arabia’s banking sector recorded a significant 27.1 percent year-on-year increase in net profits in March, reaching SR8.81 billion ($2.35 billion), according to data released by the Saudi Central Bank (SAMA). The figure, which reflects earnings before zakat and tax, marks one of the strongest monthly performances in recent years.

The surge underscores rising confidence in the Kingdom’s financial system amid steady economic activity and the continued rollout of large-scale projects under the Vision 2030 initiative. Analysts note that this performance positions Saudi banks to maintain strong profitability through 2025.

A January report by S&P Global Ratings forecast stable profitability across the sector, citing a favorable macroeconomic environment and anticipated declines in interest rates as key factors driving credit growth. The report emphasized that corporate lending will remain the primary engine of loan expansion, propelled by increased investment in infrastructure, construction, and government-backed projects.

SAMA’s latest figures show total bank credit in the Kingdom reached SR3.1 trillion in March, a 16.26 percent annual increase — the highest in over three years. Corporate loans represented more than half of this, rising 22.3 percent year-on-year to exceed SR1.71 trillion. The shift reflects a strategic redirection of lending towards the private sector, particularly in industries such as construction, real estate, and manufacturing.

As lending continues to expand, Saudi banks are increasingly tapping into international capital markets to support growth. S&P projects credit losses will remain stable at 50 to 60 basis points, backed by strong provisioning buffers established in recent quarters.

This financial upswing is mirrored by broader economic indicators. The Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), compiled by S&P Global, recorded a reading of 58.1 in March — the highest in the Middle East and well above the neutral 50.0 mark, indicating continued expansion.

The non-oil economy has played a crucial role in this momentum. According to the Ministry of Economy and Planning, non-oil activities now account for 52 percent of Saudi Arabia’s GDP, having grown by 20 percent since the launch of Vision 2030.

With the government aiming to attract $100 billion in annual foreign direct investment by 2030, the banking sector’s growth and resilience are seen as central to the Kingdom’s economic diversification strategy. As corporate activity accelerates, Saudi banks are expected to play a pivotal role in sustaining the country’s non-oil economic transformation.