The combined profits of Saudi banks rose by nearly 19% in H1 2025 to SAR 45.25 billion, compared to SAR 38.18 billion in the same period last year. The second-quarter profits alone grew by 18% to SAR 23 billion, from SAR 19.5 billion in Q2 2024, driven by profit growth across all banks, according to data from Argaam.
Speaking to Argaam, several industry experts saidthat the banks’ quarterly clearly benefit from the surge in lending activity, despite growing funding challenges stemming from slower deposit growth. This dynamic has pushed banks to tap more debt instruments to meet their financing needs, while asset quality remained resilient. 
Saad Al-Thaqfan, economist and a board member of the Saudi Economic Association (SEA)
Saad Al-Thaqfan, economist and a board member of the Saudi Economic Association (SEA), described the performance as historicaland above expectations, noting that banks benefited from a nearly 16% increase in loan demand.
He toldArgaamthat asset quality remainedsteady, with credit provisions rising only slightly by around 5%, despite aggressive lending.
Joseph Dahrieh, Chief Market Strategist at Tickmill
Meanwhile, Joseph Dahrieh, Chief Market Strategist at Tickmill, said the banking sector demonstrated mixed performance in Q2 2025. He highlighted that loan portfolios continued to grow at a robust pace for major banks such as Riyad Bank (up 21.8%) and Al Rajhi Bank (up 19.3%), while other banks faced challenges on the deposit level, including Banque Saudi Fransi (BSF), which saw deposits falling by 6.9%.
The combined profits of Saudi banks rose by nearly 19% in H1 2025 to SAR 45.25 billion, compared to SAR 38.18 billion in the same period last year. The second-quarter profits alone grew by 18% to SAR 23 billion, from SAR 19.5 billion in Q2 2024, driven by profit growth across all banks, according to data from Argaam.
Speaking to Argaam, several industry experts saidthat the banks’ quarterly clearly benefit from the surge in lending activity, despite growing funding challenges stemming from slower deposit growth. This dynamic has pushed banks to tap more debt instruments to meet their financing needs, while asset quality remained resilient.
Saad Al-Thaqfan, economist and a board member of the Saudi Economic Association (SEA)
Saad Al-Thaqfan, economist and a board member of the Saudi Economic Association (SEA), described the performance as historicaland above expectations, noting that banks benefited from a nearly 16% increase in loan demand.
He toldArgaamthat asset quality remainedsteady, with credit provisions rising only slightly by around 5%, despite aggressive lending.
Joseph Dahrieh, Chief Market Strategist at Tickmill
Meanwhile, Joseph Dahrieh, Chief Market Strategist at Tickmill, said the banking sector demonstrated mixed performance in Q2 2025. He highlighted that loan portfolios continued to grow at a robust pace for major banks such as Riyad Bank (up 21.8%) and Al Rajhi Bank (up 19.3%), while other banks faced challenges on the deposit level, including Banque Saudi Fransi (BSF), which saw deposits falling by 6.9%.
