The Banking Executive Magazine - February 2025 Issue

Saudi Banking Sector Saudi Banking Sector RECORDS HIGHEST-EVER QUARTERLY EARNINGS OF $5.57BLN IN Q4-24 The Saudi banking sector posted highest-ever quarterly earnings of SAR 20.90 billion in the fourth quar- ter (Q4) of 2024. Five out of ten listed banks posted above consensus earnings, with Saudi Awwal Bank (SAB) and Al Rajhi Bank leading by 8.80% and 8.30%, respectively. On the other hand, Bank Aljazira and Riyad Bank had biggest earnings misses of 15.50% and 8.60%, re- spectively. Bank wise, Banque Saudi Fransi posted the highest net income growth of 35% YoY in Q4-24. Earnings growth was mainly driven a 10.10% YoY rise in net interest in- come to SAR 29.20 billion during the October-December period. Mortgage lending recorded a leap driven by the Cityscape Global 2024 event that took place in November 2024 and saw sales exceeding SAR 20 billion. Overall, monthly run rate for mort- gages hit SAR 10.10 billion in Q4- 24, up 53.40% from SAR 6.60 billion in Q4-23. Total deposits for the sector grew by 8.40% YoY to SAR 2.68 trillion in the three-month period that ended on 31 December 2024. Riyad Bank logged in the highest growth in deposits of 20.20% YoY in Q4-24, followed by Bank Aljazira with 15% YoY. ISSUE 194 FEBRUARY 2025 the BANKING EXECUTIVE 13 FIVE OUT OF TEN LISTED BANKS POSTED ABOVE CONSENSUS EARNINGS, WITH SAUDI AWWAL BANK AND AL RAJHI BANK LEADING BY 8.80% AND 8.30%, RESPECTIVELY