Managing Partner at KPMG, Khalil Al-Sudais, said in an interview with Al-Arabiya, today, Tuesday, that the decrease in the number of new branches of Saudi banks is mainly related to Vision 2030 and digital transformation in the financial sector, and we witnessed the launch of digital banks in Saudi Arabia, granting Saudi Central Bank Two licenses and more are under study.
He added that the transformation of branches into digital and a mechanism to provide direct personal services, will be the transformation in the sector and a requirement for the banking sector, and is expected to increase in the future.
He explained that the current year witnessed the merger of Samba and Al-Ahly banks, and the effects of this merger did not appear in 2021, but its real effect appears in 2022, because this year witnessed the merger and the formation of the main entity.
Khalil Al-Sudais said that loans and assets have grown to 2 trillion riyals, which is the highest number it has reached, and the growth of lending was driven by the significant growth in real estate financing, especially that citizens’ home ownership is one of the goals of Vision 2030.
He pointed out that the growth of the asset portfolio was supported by the continued support of the Saudi Central Bank “SAMA”.
The quarterly report of KPMG Professional Consulting showed the continued recovery and growth of the banking sector in Saudi Arabia without recording any significant credit deficit locally in corporate finance.
The report stated that the banking sector in Saudi Arabia recorded a growth of six point three percent in total assets by the end of the third quarter since the end of last year.
It also recorded a 12% year-on-year growth in net income in the third quarter.
The report praised the banking sector’s steps towards digitizing banking operations, which is reflected in the decrease in the number of bank branches throughout Saudi Arabia by 5% during the past year.