Saudi banks' Q2 results ‘historical'; higher loans weigh on liquidity: Analysts
Speaking to Argaam, several industry experts said that 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 historical and above expectations, noting that banks benefited from a nearly 16% increase in loan demand.
He told Argaam that asset quality remained steady, with credit provisions rising only slightly by around 5%, despite aggressive lending.
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%.
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Arab News
11 minutes ago
- Arab News
WPP Media's MENA CEO on multinational group's AI-centric approach
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Arab News
an hour ago
- Arab News
Startup Wrap: Saudi firms surge as AI, food tech, and fintech deals highlight ecosystem's rapid ascent
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Kamco Invest Director of Private Equity Dalal Al-Shaya said: 'We are proud to back a regional tech champion like Foodics. Its scale, innovation, and strong investor base signal an exciting growth trajectory.' The company is targeting a public listing on Tadawul within the next two to three years. Foodics' most recent $170 million funding round was led by Prosus and Sanabil Investments, a fund owned by the Public Investment Fund, with participation from Sequoia Capital India, STV, Raed Ventures, and Endeavor Catalyst. Calo raises $39m in series B extension to fuel global growth Saudi food tech startup Calo has secured a $39 million series B extension led by AlJazira Capital, bringing its total series B funding to $64 million. The latest round follows a $25 million tranche closed in December 2024 and was oversubscribed beyond the originally targeted $50 million due to strong investor interest. 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The funding will be used to strengthen Mataa's logistics network, expand its warehouse capacity, and onboard new suppliers and product categories. Founder and CEO Ibrahim Shuwehdi stated that the round reflects growing investor confidence in Libya's entrepreneurial potential and geographic advantage. The company supports merchants in reaching over 6 million internet users and offers Facebook integration for easier product listing and reduced advertising costs. 'This round is not just a financial boost but a signal to the wider ecosystem to encourage more venture investment in Libyan startups and SMEs,' Shuwehdi said. Mataa is also looking to recruit experienced regional talent to support its long-term strategy.
Asharq Al-Awsat
3 hours ago
- Asharq Al-Awsat
Iran Condemns US Sanctions on 'Shadow Fleet' Controlled by Shamkhani's Son
Iran on Thursday as 'malicious' the new US sanctions targeting a fleet of oil tankers and container ships controlled by Mohammad Hossein Shamkhani, the son of Ali Shamkhani, a close political adviser to Iran's supreme leader. On Wednesday, the US Treasury Department announced fresh sanctions on over 115 Iran-linked individuals, entities and vessels, in a sign the Trump administration is doubling down on its 'maximum pressure' campaign after bombing Tehran's key nuclear sites in June. The sanctions broadly target the shipping interests of Mohammad Hossein Shamkhani, widely known as 'Hector,' one of biggest oil traders in Iran, and he owns a group of companies active in the Iranian oil trade. He is also involved in the management of the network's illicit activities through various companies. Iran relies heavily on the so-called 'shadow fleet' to circumvent western oil sanctions. The US Treasury said the new sanctions were the most significant Iran-related action since 2018, during President Donald Trump's first administration. According to Treasury, Mohammad Hossein Shamkhani controls a vast network of container ships and tankers through a complex web of intermediaries that sell Iranian and Russian oil and other goods throughout the world. It accused him of using personal connections and corruption in Tehran to generate tens of billions of dollars in profits, much of which is used to prop up the Iranian regime. Overall, the new sanctions target 15 shipping firms, 52 vessels, 12 individuals and 53 entities involved in sanctions evasion in 17 countries, ranging from Panama to Italy to Hong Kong. A US official said the new sanctions would make it 'much more difficult' for Iran to sell its oil, but added that the administration did not anticipate any sustained disruption to global oil markets. The official said that Iran's oil exports had already declined to around 1.2 million barrels per day, from 1.8 million barrels per day at the start of the year, after the Trump administration imposed several smaller rounds of sanctions targeting Iran's oil business. 'We're still engaging further action to bring that number down even more,' the official said, noting that sanctions pressure during Trump's first term had cut Iran oil flows to a few hundred thousand barrels per day. Secretary of the Treasury Scott Bessent said: 'The Shamkhani family's shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime's dangerous behavior.' Iranian Foreign Ministry spokesman Esmail Baghaei called the sanctions 'a clear example of America's hostility towards the Iranian nation.' He condemned 'the new US sanctions against Iranian oil trade' as 'a malicious act aimed at sabotaging economic development and the well-being of the Iranian people.' He also pointed to what he described as recent US and Israeli 'military aggression' against Iranian territory, saying it was part of a broader campaign to destabilize the country and obstruct its development, according to AFP. He accused Washington of pursuing 'economic terrorism' through unilateral and coercive measures that he said violated international law and the basic rights of Iranians. A US official said that Wednesday's action would impact both Russia and Iran, but the action was focused on Iran. 'From our perspective, given where this individual fits, given his connection to the Supreme Leader and his father's previous sanctions activities, given the Iran-related authorities, it's critically important to emphasize that this is an Iran action that is meaningful and very impactful,' the official said. European sanctions Earlier in July, the European Union sanctioned Mohammad Hossein Shamkhani, citing his role in the Russian oil trade. He was added to the bloc's sanctions list for his role in the Russian oil trade and as 'a central player' in the country's so-called 'shadow fleet,' the EU said, reported Bloomberg. Iran's oil exports reached around $35 billion in the 12 months to end-March 2024. A Bloomberg News investigation last year showed how the Mohammad Hossein Shamkhani network had become a major player in the export of Russian and Iranian oil, and established a hedge fund with offices in London, Dubai and Geneva to help manage the proceeds. He has consistently contested Bloomberg's reporting on his business affairs. Ali Shamkhani, Mohammad Hossein's father, was sanctioned by the United States in 2020. The latest sanctions announcement came as prospects for renewed US-Iran diplomacy remained dim in the aftermath of the US bombing of Iranian nuclear sites in June.
