The profits of Saudi banks listed on the local stock exchange (10 banks) during the first quarter of this year rose by 17.3 percent to 17.2 billion riyals ($ 4.6 billion), the highest profits for the sector ever. Saudi banks listed on the stock exchange recorded net profits of 14.7 billion riyals ($ 3.9 billion) in the corresponding period of 2022.
The Saudi banking sector includes 10 local banks listed on the local stock exchange after the merger of SABB and Alawwal banks, as well as Samba and Al-Ahli, and branches of more than 15 foreign banks.
Saudi Arabia's central bank has raised interest rates 10 times since March 2022, in line with the US Federal Reserve, with the Saudi riyal pegged to the US dollar. Interest rates are a major reason for the profitability of banks around the world, as interest on loans is the main source of income for the sector, and increasing them means higher profits in the sector.
Source (Anadolu Agency, Edited)
