The second highest monthly profit in the history of banks operating in Saudi Arabia during January … 5.15 billion riyals

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Profits of “Saudi and foreign” banks operating in the Kingdom increased 134.7 percent, equivalent to 2.95 billion riyals during the month of January of this year, to reach 5.15 billion riyals, compared to 2.19 billion riyals in December of last year.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper, based on data from the Central Bank of Saudi Arabia, “SAMA”, the profits recorded last January are the second highest monthly profits historically for banks operating in the Kingdom, behind the record in January 2020 amounting to 5.23 billion riyals.
Bank profits declined during the month of January of this year on an annual basis, by 1.5 percent, equivalent to 79 million riyals, as their profits reached 5.23 billion riyals in the same month of last year.
The report includes profits before zakat and taxes for 11 national banks, in addition to branches of 14 foreign banks licensed to operate in Saudi Arabia, while it does not include branches of banks abroad.
The decline, compared to the comparative period last year, came as a result of the global outbreak of the Corona virus, which in turn led to a decrease in American interest rates, and by extension their local counterpart, while reducing the profit margin of the sector, in addition to requiring banks to postpone many installments for companies and individuals due to the pandemic. .
The average interest rates among Saudi banks, “SIBOR”, on deposits in riyals, for an average of three months, fell to the lowest level since July 2015, reaching 0.817 percent at the end of last month, compared to 2.217 percent at the end of the same month last year.
The rate of repurchase agreements reached 1 percent at the end of last month, levels not previously recorded, according to data available at SAMA, while it was 2.25 percent in the same month of 2020.
The rate of “reverse repo” agreements reached 0.5 percent, the lowest level since 2016, while it was 1.75 percent at the end of the same month of last year.
The profits of banks operating in the Kingdom, “Saudi and foreign,” fell last year 2020 by 23.1 percent, equivalent to 11.6 billion riyals, to reach 38.7 billion riyals, compared to 50.3 billion riyals in 2019.
The decline recorded in 2020 is the first annual decline in four years, as profits reached 40.4 percent in 2016, then grew 8.6 percent in 2017 to reach 43.9 billion riyals, then rose 9.8 percent to 48.1 billion riyals in 2018, while it increased 4.5 percent. During 2019.
Banks operating in Saudi Arabia recorded the highest annual profits in their history during 2019 by 50.32 billion riyals, up 4.5 percent (2.17 billion riyals) from their levels recorded in 2018, amounting to 48.15 billion riyals, which is the second highest profit in the history of the sector after 2019.
Regarding the monthly development during the period from early 1993 to July 2020, “334 months”, banks operating in Saudi Arabia recorded the highest profits in their history during January 2020 by 5.23 billion riyals, while losses were recorded within seven months only.
Economic Reports Unit





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