The top 10 listed banks in Saudi Financial Services Landscape have achieved an unprecedented SAR 79.64 billion in net profits in 2024—a 13.84% annual increase. This impressive performance has been driven by strong lending growth, declining interest rates, and expanded debt market participation. As the sector moves into 2025, robust credit expansion and corporate lending tied to Vision 2030 projects are expected to sustain profitability.
Market Leaders: Profitability Hits New Highs
Saudi National Bank (SNB AlAhli) and Al Rajhi Bank continued their dominance in the Saudi financial services landscape, accounting for 51.4% of total banking profits. Saudi National Bank (SNB AlAhli) contributed 26.6% of total banking profits, amounting to SAR 21.19 billion. Close behind, Al Rajhi Bank posted SAR 19.72 billion, accounting for 24.8% of total sector earnings.
Meanwhile, smaller institutions showed remarkable growth. Among the banks with the highest year-on-year profit growth, Arab National Bank topped the list, registering a 21.98% increase to SAR 4.97 billion. Meanwhile, Bank AlJazira reported a 20.69% rise in earnings, despite maintaining the smallest market share at 1.5%.
Saudi Banking Sector Hits SAR 4.21 Trillion in Assets
Saudi Arabia’s top banks expanded their total assets to SAR 4.21 trillion in 2024, reflecting a 13.6% year-on-year increase. SNB AlAhli maintained the largest asset base at SAR 1.1 trillion, while Al Rajhi Bank followed with SAR 974.39 billion.
Among the fastest-growing institutions, Al Rajhi Bank’s assets surged 20.58%. Similarly, Saudi Investment Bank saw a 20.53% increase, reaching SAR 156.67 billion. This broad-based asset growth highlights strong institutional confidence in Saudi Arabia’s economic trajectory.
Loan Growth Fuels Expansion Amid Declining Interest Rates
Saudi banks reported SAR 2.81 trillion in total loans and advances in 2024, marking a 14.41% increase. Al Rajhi Bank led the sector, issuing SR693.4 billion in loans, while SNB AlAhli provided SR654.25 billion, emphasizing their role in corporate financing and economic development.
Interest rate cuts that began in September 2024 played a pivotal role in increasing loan accessibility. As a result, corporate borrowing surged, particularly in real estate and infrastructure investments.
Real estate financing remained crucial, with 21% of corporate loans allocated to this sector. Saudi Investment Bank recorded the highest loan growth at 23.18%, followed by Saudi First Bank with a 20.10% increase. These trends align with Saudi Arabia’s Vision 2030 goals for urban development and infrastructure expansion.
International Capital Markets and Rising Debt Issuance
As lending growth outpaces deposit expansion, Saudi banks are turning to international debt markets to sustain their credit expansion. Fitch Ratings reported a surge in dollar-denominated debt issuance, with GCC banks expected to raise over $30 billion in 2025 after a record $42 billion in 2024.
Saudi banks represented 18% of total emerging-market bank debt issuance last year—a figure rising to 36% when excluding Chinese banks. Investor confidence remains strong, supported by stable oil prices projected at $70 per barrel in 2025.
Saudi Financial Services Landscape Outlook for 2025
Saudi Financial Services Landscape is poised for continued strength, fueled by corporate lending growth, Vision 2030 investments, and expanding mortgage markets. Return on assets is projected to remain between 2.1% and 2.2%, with stable credit demand sustaining profitability.
With easing interest rates, rising consumer demand, and increased access to international capital markets, Saudi banks remain a cornerstone of regional financial stability and investment growth.
