Al Rajhi Capital: Credit growth in the Kingdom slows in June due to weak mortgage lending

A report issued by Al Rajhi Capital, based on data from the Saudi Central Bank, indicated that credit growth in the Kingdom slowed month-on-month in June due to weak mortgage loan issuance (stable year-on-year and -28% month-on-month). However, corporate loan growth maintained its strong trajectory.

Deposit growth (month-on-month) was the second consecutive month, led by the private sector, pushing the unadjusted loan-to-deposit ratio down by 54 basis points month-on-month. Consumer spending grew by about 9% in June, which was reassuring amid fears of a slowing economy. According to the Al Rajhi Capital report, banks’ profitability was strong in June, a trend also confirmed by their second-quarter earnings. The total profits of the 10 Saudi banks in the second quarter of 2025 rose to approximately SAR 23 billion, a 17.4% increase compared to the second quarter of 2024, which was SAR 19.5 billion.