Saudi Arabia’s bank demand deposits advance to SAR 927 billion last year, Argaam survey

Saudi Arabia’s bank demand deposits gained 16 percent to SAR 927 billion by the end of 2013, according to a survey conducted by Argaam.

Demand deposits, which are funds held in accounts and can be withdrawn at any time without advance notice, have been increasing since 2008 as interest and Islamic Murabaha yield declined to 1 percent from 5 percent. Meanwhile, interests on saving and time accounts have stagnated for the past 5 years.

Demand deposits in al-Rajhi Bank, Saudi Arabia’s largest listed lender, represent 89 percent of its total SAR 232 billion deposits, while they account for 78 percent of deposits in Bank al-Bilad and the National Commercial Bank.

Total deposits in Saudi listed banks and the National Commercial Bank, rose 10 percent to SAR 1.459 trillion last year.

All banks reported an increase in deposits except the Arab National Bank.

The National Commercial Bank topped the list, gaining SAR 27 billion in deposits last year, followed by the Saudi British Bank (SABB), an affiliate of HSBC Holdings and the country’s 4th largest listed lender, which attracted  SAR 18 billion. The Saudi Investment Bank came third with SAR 17 billion more in deposits.

Deposits growth at the Saudi Investment Bank was the highest among Saudi banks, increasing 41 percent. Deposits in  al-Inma Bank and Bank al-Bilad advanced 31 percent and 23 percent respectively, compared to the previous year.