Riyadh – Mubasher: Saudi banking deposits fell 2.6% to SAR 1.59 trillion in the second quarter of 2016 compared to SAR 1.63 trillion in the same period of 2015.
Al Jazira Capital attributed the decline to the draw down by the government for balancing its budget deficit.
Demand deposits fell 11%year-on-year to SAR 963.9 billion in Q2-16.
Of the total deposits, demand deposits account for 60.6%, whereas time and savings deposits account for only 27.9%, said the report.
The Saudi banking sector has 12 listed banks, of which, Alrajhi, Alinma, Albilad, and Aljazira are Shariah-compliant banks, accounting for 24.5% of the total banking assets.
National Commercial Bank (NCB) is the biggest bank in the Kingdom, accounting for 20.0% of the total market, with assets of more than SAR 452.7 billion, followed by Alrajhi Bank with asset base of SAR 331.4 billion and 14.7% of market share.
The sector’s total loan book advanced 8.9% year-on-year to SAR 1.44 trillion by the end of Q2-16.
“Almost 52% of the loans extended have a maturity of less than one year. However, loans with maturity of one to three years posted strong growth of 22.1%, increasing its share from 17.4% in Q2-15 to 19.5% in Q2-16,” Al Jazira Capital reported.
