Saudi banks achieve 9.4% growth in special commissions from financing to SAR 95.4 billion during H1

By: Hazem Mahmoud

Listed Saudi banks achieved a 9.4% growth in special commission income from financing during the first half of 2025, an increase of SAR 8.2 billion year-on-year, reaching SAR 95.4 billion compared to SAR 87.2 billion during the same period in 2024.

This is primarily due to the increase in financing returns resulting from the growth of banks’ credit portfolios and the increase in bank lending in the Kingdom during the year. This was reinforced by the country’s economic diversification projects, which led to a 15.7% year-on-year increase in bank credit granted by listed Saudi banks during the period, representing an increase of SAR 413 billion. This amount exceeded SAR 3 trillion, reaching SAR 3,047 billion compared to SAR 2,634 billion.

During the period, all listed Saudi banks increased their special commission income from financing, but at varying rates. The highest growth was achieved by the National Bank of Saudi Arabia. Al Rajhi Bank recorded an 18.8% increase, equivalent to 3,517 million riyals, reaching 22,205 million riyals. Al Jazira Bank followed, achieving 3,220 million riyals compared to 2,755 million riyals, a growth rate of 16.9%. Meanwhile, National Commercial Bank (NCB) ranked last in terms of growth in special commission income from financing, with a growth rate of 3.3%. Together, National Commercial Bank (NCB) and Al Rajhi Bank accounted for approximately 46.8% of the total special commission income from financing generated by all listed Saudi banks, amounting to 44.7 billion riyals during the current period, representing nearly half of the banks’ financing revenues. Net special commission income from financing reached 52.1 billion riyals compared to 48.4 billion riyals, a growth rate of 7.7%. This growth rate is lower than the growth in commission income from financing. This is due to the rise in the cost of deposits during the year, which was higher than the growth in financing revenues, which reached 11.5%. Banks incurred deposit costs of SAR 43.4 billion, compared to SAR 38.9 billion, a year-on-year increase of SAR 4.5 billion. Listed banks recorded record net profits, the highest ever, for the first half of 2025, exceeding expectations by 18.5%, representing a double-digit increase of SAR 7,066.5 million. This increase reached SAR 45.2 billion, compared to SAR 38.2 billion, supported by the highest loan-to-deposit utilization rates ever.

The banking sector is the leading sector in generating returns compared to other listed sectors in the financial market, and it has continued to lead the financial market in terms of profit volume and sustainability, achieving historically growing record profits and consistently good business results.