Saudi government agencies to automate annual reports

In the first quarter of this year, Saudi banks achieved an unprecedented victory by registering record quarterly divisions, reaching $ 5.94 billion (22.26 billion reals). This number represents a 19 % great growth compared to the quarter of 2024, which confirms its key role as an engine for the strength and durability of the Saudi banking sector, the strength of the Saudi banking sector.

The net profit of all ten banks listed in the Saudi market increased in the first quarter, which usually reflects the strong economic performance of the sector.

The National Bank exports the highest net profit list, records 6.02 billion reals, growth 19.48 % in the first quarter last year.

Al -Razy finished second in terms of net profit, achieving the highest growth rate between the banks, 34 percent and his profits crossed 5.9 billion. Riyadh Bank ranks third, with 2.48 billion reals gains, growth 19.94 %.

Operating earnings

Financial Market Analyst and Member of the Saudi “Economy Association”, Dr. Sulaiman al -Hamid al -Kaldi, said that the performance of this historical profit was attributed to many major causes.

In a statement to Ashark Al -Avasat, he said that lending and expansion of financing by the bank and expanding financing, and the increase in net income from commissions and operational income, declining allocation regulations with banks, and that these profits are decisive factors.

Al -Kaldi explained that the “strong support and main factor” in strengthening the profits is a decrease in the rules of allocation (banks to cover the potential risks of troubled loans). The benefit of banks from debt tools and the great expansion of real estate financing also contributed to these positive results.

The four -fold performance of Al -Kaldi banks is described as “strong and successful in the expansion of the studies in the study of providing financial services, improving operational efficiency and benefit from available economic opportunities.” The performance “enhances its role as the main driver of the Saudi economy and supported it to achieve its goals in the framework of the financial sector (Vision 2030) and is active in pushing a large, varied, digital and sustainable economy and national economy.”

Al -Khalidi expressed that in the coming quarter of 2025, Saudi banks will continue to perform their strong performance, and their profits can exceed 85 billion reals, to achieve 90 billion riyles by the end of this year, to achieve new record and historical levels, from the strongest expression of the financial market, from the strongest expression of the financial market. Did not see ”.

Useful interest rates

As a result of his financial analyst and CEO Mohammed Hamdi Omar of “G -World”, the standard financial results of the banks were attributed to the continuous strength and strength of the Saudi banking sector.

Omar Ashark explained to Al -Avasat, the main reasons for the continuation of high interest rates, and maintaining cash policies around the world, along with the affiliation of Saudi Rial dollars. These factors have strengthened lucrative margins on loans, especially for individuals and companies.

Omar said the growth of the financing portfolio with the support of the “Vision 2030” programs and heavy infrastructure projects has contributed significantly to increase the expansion, commissions and management profit income in real estate financing and corporate financing and corporate financing.

He believes that improving the quality of assets is another important factor, as the improvement of the business environment and the continuous government support for the key sectors has declined in payments, which reduced the allocation of credit losses and strengthened net profits. The efforts of the banks have helped to varied income and to increase their financial income, such as banking, investment revenues and economic technology services, and to give them flexibility in financial performance. Omar emphasizes that the continuation of banks in investing in digital transformation and increasing the efficiency of banks will be positively reflected on the cost of income and improving revenue on shareholder’s rights.

Diversity of sources of income

Omar hopes to maintain a positive future outlook of the banking sector and the strong performance of the upcoming quarter of 2025, with high demand for interest rates stability and financing, especially with major projects in the kingdom.

However, Omar has warned that any global trend that reduces interest rates will pressure the margins of profitability in the future, which requires the banks to “variety and increase digital services”.

He emphasized the need to monitor geographical political consequences and oil prices, “This is the main factors that affect liquidity and credit demand in the Saudi market.”

In conclusion, Omar has emphasized the importance of investing in Financial Technology «Fintech) and digital transformation is” deciding to increase the competitiveness of banks and attract new sections of customers “, as well as the diversity of the investment portfolio of the sector.