Saudi banks log record June profits of $2.63B on lending surge, digital expansion

RIYADH, Saudi Arabia (MNTV) — Saudi Arabia’s banking industry posted its highest-ever monthly profit in June, with aggregate earnings before zakat and taxes hitting $2.63 billion — a 28% jump from the same month last year, marking the fastest annual growth in six months.

First-half 2025 profits reached $13.58 billion, up nearly 20% from $11.33 billion in the first half of 2024, according to Arab News. 

Analysts credit the strong performance to sustained credit demand in both corporate and retail segments, ample liquidity, and investment flows tied to Vision 2030 infrastructure and private sector projects.

Sector gains were also driven by robust lending, reduced impairment charges, and growing digital banking adoption. 

Saudi National Bank reported a 17.3% rise in second-quarter net profit on the back of higher commission income and lower credit-loss provisions. 

Across the industry, net profits rose between 18% and 25%, supported by fintech integration, stronger capital markets, and broader economic diversification.

The Saudi Central Bank (SAMA) reported total banking assets at $1.28 trillion, with private sector credit at $826 billion and a capital adequacy ratio of 19.3%, well above regulatory requirements. 

Banks also dominated market activity on the Saudi Exchange in Q2, accounting for $16.4 billion in traded value — the highest of any sector.

Analysts say Saudi banks are starting the second half of 2025 with strong capital buffers, rising fee-based income, and a key role in funding the Kingdom’s shift toward a diversified, knowledge-based economy. 

However, they warn that geopolitical tensions and possible margin pressures could weigh on growth.