RIYADH: Saudi Arabia’s banking system continued to expand in July, with total assets rising to SR5.75 trillion ($1.5 trillion), according to the Saudi Central Bank’s latest monthly data.
The monetary survey published in SAMA’s July statistical bulletin showed total banking assets increasing from SR5.73 trillion in June, a monthly gain of 0.27 percent. Year on year, assets rose 6.71 percent from SR5.38 trillion in July 2025.
The increase follows a broader expansion in the sector. SAMA’s latest Financial Stability Report said banking system assets grew 13.6 percent in 2024 to SR4.49 trillion, accelerating from 9.3 percent growth in 2023, largely on rising claims on the private sector.
Profitability also remained strong, with return on equity reaching 15 percent in 2024, supported by continued credit growth.
Foreign assets and private credit
Net foreign assets held by SAMA and commercial banks edged up 0.046 percent month on month to SR1.535 trillion in July. Bank claims on the private sector, the largest component of the banking system’s balance sheet, rose to SR3.266 trillion.
Government and public sector lending
Bank claims on the government increased 0.48 percent month on month to SR670.9 billion, from SR667.7 billion in June. Claims on nonfinancial public enterprises recorded a sharper increase, rising 4.33 percent to SR273.7 billion from SR262.3 billion.
The figures are consistent with SAMA’s observation that real estate, financial and insurance activities were among the main drivers of corporate credit growth.
Money supply and deposits
Total money supply edged down 0.55 percent month on month to SR3.36 trillion in July from SR3.38 trillion.
Narrow money, comprising currency outside banks and demand deposits, fell 0.45 percent to SR1.69 trillion. Time and savings deposits, meanwhile, increased 1.73 percent to SR1.39 trillion, continuing a shift toward interest-bearing accounts.
Government deposits declined 14.46 percent to SR330.5 billion from SR386.3 billion, while other items rose 4.61 percent to SR2 trillion.
SAMA balance sheet
SAMA’s total assets fell 1.41 percent month on month to SR1.94 trillion in July from SR1.96 trillion.
Its investments in securities declined to SR386.62 billion from SR424.29 billion, while gold holdings were unchanged at SR1.62 billion.
SAMA’s Financial Stability Report said the sector’s capital adequacy remained sound, supported by retained earnings and capital-qualifying issuances. The average capital adequacy ratio stood at 19.6 percent in 2024, well above regulatory requirements.
The report also noted that the non-performing loan ratio continued to decline, indicating resilient asset quality.
SAMA’s stress tests further confirmed the banking system’s resilience under severe hypothetical economic scenarios, with all banks remaining above minimum capital requirements.