5 days ago
Saudi credit growth slows in June; consumer spending increases: Report
Riyadh: Credit growth slowed month-on-month (MoM) in June 2025 across Saudi banks, attributed to weak mortgage origination (flat Year-on-year (YoY) and -28% MoM), according to the recent Saudi Banking Monthly Report by Al Rajhi Capital Research.
Corporate loans maintained a solid trajectory in June, with growth remaining supportive for the second consecutive month, led by the private sector, pushing the unadjusted LDR down by 54 basis points (bps) on a monthly basis.
On the other hand, consumer spending soared by almost 9% in June, which was reassuring amid concerns of a slowdown in the Saudi economy.
Banks' profitability in June was solid, which was also confirmed by their second-quarter (Q2) 2025 earnings.
Al Rajhi Capital Research concluded: 'Guidance from banks that conducted calls so far showed some pessimism on NIMs, but remained confident about asset quality.'
