Saudi bank lending rises 3.6% in Q1 2019

The total loan book of Saudi Arabia’s banking sector increased 3.6 percent year-on-year (YoY) to SAR 1.44 trillion in Q1 2019, registering a 10-year CAGR of 6.9 percent, Aljazira Capital noted in its latest quarterly report.

About 49.6 percent (up from 50 percent in Q1 2018) of the loans extended have a maturity of less than a year.

Loans with a maturity of one to three years fell by 13.5 percent YoY, due to which its share plunged to 16 percent in Q1 2019 from 19.1 percent in Q1 2018, the brokerage noted in the report.

The commerce sector is the largest borrower among all sectors, accounting for 22.5 percent of total loans, followed by the manufacturing sector (11.3 percent of total loans) and construction sector, which ranks third (6.8 percent of total loans).

NCB, the sector’s biggest lender, witnessed a rise in market share to 18.8 percent in Q1 2019 from 18.4 percent in Q1 2018. Al Rajhi Bank, with the second largest market share, remains unchanged at 16.7 percent in Q1 2019.

Riyad Bank was the biggest gainer in terms of market share in the loans market, whereas Saudi British Bank declined the most.