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The Saudi Central Bank reported that commercial banks generated pre-tax profits of SR8.24 billion in April 2026. This marked a 6.1 percent increase from SR7.77 billion in the same month a year earlier. Profits however contracted 18 percent from March to post the lowest reading in six months. The outcome reflects the sector’s efforts to meet robust credit demand linked to Vision 2030 initiatives while addressing tighter liquidity conditions.
Saudi Central Bank data showed the simple loan-to-deposit ratio eased 116 basis points to 108.8 percent in April. That level stands 440 basis points below the peak set in November. The Saudi Central Bank-adjusted loan-to-deposit ratio fell to 78.9 percent over the same period.
The central bank’s own balance sheet contracted with total assets declining SR15.9 billion month on month to SR1.95 trillion. Commercial banks expanded their total assets by SR9.6 billion to SR5.08 trillion during April. Deposits at banks climbed SR52 billion to SR3.1 trillion as time and savings deposits rose SR75.3 billion while demand deposits dropped SR37.3 billion to SR1.47 trillion.
Credit activity remained positive with claims on the private sector advancing SR20.1 billion to SR3.23 trillion and claims on the public sector increasing SR8.8 billion to SR922.7 billion according to Saudi Central Bank figures. Banks’ foreign assets grew to SR431 billion from SR420.5 billion in March as foreign liabilities declined narrowing net foreign liabilities to SR230.5 billion. Fitch Ratings warned in an April assessment that a prolonged regional conflict could place pressure on asset quality profitability and liquidity with the sector’s loans-to-deposits ratio having reached a record 108 percent by the end of 2025.
An analysis of the central bank data by Al Rajhi Capital found that new mortgage originations surged 51.1 percent month on month to SR6.3 billion in April marking the strongest figure in nine months. The four-month average for 2026 stood at SR5.5 billion only 4 percent below the trailing 12-month average of SR5.7 billion. In an interview with Arab News Sandeep Puri partner and head of finance for the Middle East at Addleshaw Goddard said “We have seen a number of positive regulatory developments in the past 12-18 months in the KSA real estate market as part of the broader Vision 2030.” “This has steadily translated into growing numbers of both national and non-nationals investing in the real estate market and therefore higher mortgage numbers.”
Speaking to Arab News Vijay Valecha chief investment officer at Century Financial said “Overall Saudi banks are better positioned than many emerging market banking systems.” S&P Global Ratings has projected that Saudi banks will supply between $65 billion and $75 billion in new corporate loans during 2026 backed by non-oil GDP growth and giga-projects. This outlook corresponds with broader efforts to diversify financing sources across the Kingdom’s economy.
