Saudi banks report SAR 30.5 bln in non-performing loans; SAR 4.1 bln written off in 3 months – Maaal

A monitoring conducted by Maaal newspaper revealed that non-performing loans (NPLs) at Saudi banks rose to SAR 30.5 billion by the end of the first quarter of this year, a 3% increase compared to the previous quarter (Q4 2024), which stood at SAR 29.5 billion.

The increase also reflects a 3.4% rise from Q1 2024. The cumulative balance of provisions reached SAR 47.2 billion, bringing the sector-wide coverage ratio to 154.8%, down from 161% at the end of 2024.

According to the monitoring, the loan portfolio at Saudi banks reached SAR 2.96 trillion by the end of March 2025, with Saudi National Bank (SNB) and Al Rajhi Bank accounting for the largest share, representing 48.3% of total loans. The two banks’ net loans amounted to SAR 1.429 trillion.

The report indicated that SNB topped Saudi Stock Exchange-listed banks in terms of non-performing loans by the end of March 2025, at SAR 6.5 billion. The bank’s net loans stood at SAR 706.4 billion, with provisions totalling SAR 9.4 billion and a coverage ratio of 145.6%.

Al Rajhi Bank ranked second, with SAR 5.4 billion in non-performing loans. The bank’s net loans stood at SAR 722.8 billion, with SAR 8.3 billion in provisions and a coverage ratio of 152.7%.

In contrast, Saudi banks’ provisions amounted to approximately SAR 2 billion in Q1 2025. According to the monitoring, Banque Saudi Fransi (BSF) had the highest coverage ratio at approximately 198.5%, with cumulative provisions of SAR 3.6 billion versus SAR 1.8 billion in NPLs by the end of March 2025.

Arab Bank posted the lowest coverage ratio at 131.7%, with non-performing loans amounting to SAR 2.4 billion and cumulative provisions of SAR 3.2 billion.

Banks listed on the Saudi Stock Exchange (Tadawul) reported profits of SAR 22.3 billion for the first quarter of this year, a 19.4% increase from SAR 18.6 billion in the same period of 2024.

According to quarterly results, all 10 banks posted profit increases compared to the first quarter of 2024, led by Al Rajhi Bank, whose profits surged to SAR 5.9 billion, a 34.1% rise from SAR 4.4 billion in the previous year. The bank attributed the increase to a 27.3% rise in total operating income, primarily driven by growth in net financing and investment income, banking service fees, income from other operations, and foreign exchange income. Operating expenses, including the provision for credit losses, rose by 12.9% due to higher depreciation, employee salaries, benefits, and other administrative expenses. The provision for credit losses grew 24.6%, from SAR 421 million to SAR 525 million.

Bank AlJazira followed with a 20.2% rise, posting profits of SAR 361 million, up from SAR 300.4 million in the first quarter of 2024. Riyad Bank reported a 19.9% increase in profits, reaching SAR 2.5 billion, compared with SAR 2.1 billion in the same period last year. Saudi National Bank followed with a 19.5% increase, BSF Bank with a 16.3% increase, Alinma Bank with a 14.7% increase, Alistithmar Capital (Saudi Investment Bank) with a 13.8% increase, Bank Albilad with an 8.9% increase, Arab National Bank with a 5.5% increase, and Al-Awwal Bank with a 4.5% increase.

According to the monitoring, five banks exceeded analysts’ profit forecasts. BSF Bank outperformed expectations with SAR 1,338 million in profits, surpassing forecasts of SAR 1,162.5 million by 15.1%. Saudi National Bank posted SAR 6.02 billion in profits, exceeding the forecast of SAR 5.48 billion. Bank Aljazira was 3.9% above the forecast, Al Rajhi Bank increased by 2.1%, and Arab Bank exceeded its forecast by 0.2%.

Meanwhile, profits for five other banks fell short of analysts’ expectations. Riyad Bank reported a 4.6% miss, followed by Al-Awwal Bank with a 4.5% decline, Albilad Bank with a 4.1% miss, Alinma Bank with a 1.8% shortfall, and Investment Bank with a 1.7% drop.