SNB CEO expects mortgages to rise as interest rates ease

Tareq Al Sadhan, Saudi National Bank’s (SNB) CEO

Demand for real estate financing is expected to increase amid lower interest rates and the availability of ready units, said Tareq Al Sadhan, CEO of Saudi National Bank (SNB).

Real estate financing was under pressure over the past 18 months due to the increase in interest rates, he added in an interview with Al Arabiya TV.

Al Sadhan also expects that loan growth will continue at the same pace in 2024, and will accelerate in 2025 and 2026, noting that the momentum will be across all sectors.

He indicated that growth in lending activity will likely outpace that in deposits in the coming period.

The top executive also said that reviewing corporate strategies in light of the technological updates and the Fourth Industrial Revolution requires that it be done annually, noting that SNB reviews its strategy annually to keep pace with developments.

Liquidity in the Saudi banking sector is at high levels and there are no expected pressures next year. Pressure may be seen in H2 2026 if projects accelerate, but the government's financing management programs are capable of overcoming any liquidity challenges that may arise, according to Al Sadhan.

He also stated that the bank's issuances in the debt markets are linked to growth rates and its financing needs, indicating that the growth in Saudi banks' foreign liabilities is a sign of confidence in the sector, while attracting deposits from abroad is a source of confidence and is not a concern.

According to Argaam's data, SNB's net profit rose to SAR 15.63 billion by the end of the first nine months of 2024, compared to SAR 15.04 billion in the same period in 2023. Q3 profit amounted to about SAR 5.36 billion.