In 2024, Saudi Arabia's top 10 listed banks reported record net profits of SR79.64 billion (approximately $21.23 billion), representing a 13.84 percent increase year-on-year, as revealed by the Saudi Exchange.

This surge in profitability was primarily attributed to significant lending growth, a decline in interest rates, and increased participation in debt markets.

The Saudi National Bank (SNB AlAhli) led the sector with a net profit of SR21.19 billion, constituting 26.6 percent of total banking profits.

Al Rajhi Bank closely followed with a net profit of SR19.72 billion, accounting for 24.8 percent of the sector's profits.

Together, these banks represented approximately 51.4 percent of the total profits for the Saudi banking sector.

Among the banks experiencing notable growth, Arab National Bank achieved a 21.98 percent rise in net profits, reaching SR4.97 billion, while Bank AlJazira reported a 20.69 percent increase to SR1.23 billion, despite having the smallest share of sector profits at 1.5 percent.

The total assets of the top 10 Saudi banks reached SR4.21 trillion in 2024, reflecting a year-on-year increase of 13.6 percent.

The largest asset base was held by SNB AlAhli at SR1.1 trillion, followed by Al Rajhi Bank with SR974.39 billion.

These two banks accounted for nearly 49 percent of the sector's total assets.

Al Rajhi Bank also recorded the highest asset growth rate, expanding by 20.58 percent, with the Saudi Investment Bank closely following at 20.53 percent, reaching SR156.67 billion.

A report from S&P Global, published in January 2025, projects that Saudi Arabia's banking sector will continue to sustain its profitability throughout 2025, buoyed by anticipated strong credit growth and corporate lending tied to the Kingdom's Vision 2030 initiatives.

The report estimates bank lending to expand by 10 percent, primarily driven by corporate loans as the country invests heavily in economic projects.

The outlook indicates that stable credit growth, alongside easing interest rates, will allow banks to maintain profitability, with expected return on assets remaining between 2.1 percent and 2.2 percent.

The report also suggests that banks might seek to finance Vision 2030-related investments through international capital markets, thereby ensuring a consistent liquidity flow.

Additionally, an increase in mortgage lending is anticipated, supported by lower borrowing costs and demographic trends that are expected to elevate demand for residential properties.

During the fourth quarter of 2024, Saudi banks dominated the stock market, leading Tadawul's trading activity with a 17 percent market share, which surpassed contributions from both the materials and energy sectors.

In terms of lending, total loans and advances to customers rose by 14.41 percent year-on-year in 2024 to reach SR2.81 trillion.

Deposits also demonstrated growth, increasing by 7.87 percent to SR2.68 trillion.

Al Rajhi Bank was the leader in loan issuance, offering SR693.4 billion—a 16.8 percent increase from the previous year—followed by SNB AlAhli with SR654.25 billion and Riyadh Bank at SR274.4 billion.

The Saudi Arabian Monetary Authority (SAMA) reported that 11.28 percent of total bank loans—comprising 21 percent of corporate loans—were designated for real estate, integral to the Kingdom's infrastructure projects.

The highest loan growth was recorded by Saudi Investment Bank at 23.18 percent, reaching SR99.47 billion, followed by Saudi First Bank, which saw a 20.10 percent rise to SR259.35 billion.

Bank deposits among the top 10 listed banks totaled SR2.68 trillion in 2024, with Al Rajhi Bank holding the largest share at SR628.24 billion, while SNB AlAhli accounted for SR579.76 billion.

Riyadh Bank exhibited the strongest deposit growth, expanding by 20.21 percent to reach SR306.42 billion, followed by Bank AlJazira with a 15 percent increase to SR108.19 billion.

As lending growth outpaced deposit expansion, Saudi banks have increasingly utilized the debt capital market to finance these expansions.

According to Fitch Ratings, banks in the Kingdom have significantly ramped up their international debt issuance since 2020, aligning with long-term growth strategies and foreign-currency funding needs.

The Gulf Cooperation Council (GCC) banking sector is anticipated to issue over $30 billion in US dollar-denominated debt in 2025, following a record $42 billion in 2024. This surge is primarily driven by maturing debt, lower interest rates in the US, and ongoing credit demand, particularly in Saudi Arabia and the UAE.

In 2024, GCC banks accounted for 18 percent of all emerging-market bank debt issuance in US dollars, a figure that escalates to 36 percent when excluding Chinese banks.

Strong investor confidence, bolstered by stable oil prices projected around $70 per barrel in 2025, is expected to reinforce regional debt markets.

Additionally, short-term certificates of deposit have become increasingly important within GCC bank funding strategies, comprising 21 percent of total debt issuance in 2024.