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The Saudi Central Bank, also known as SAMA, released its monthly statistical bulletin for June, offering vital insights into the Kingdom’s financial health, banking sector performance, and key macroeconomic indicators. 

The report highlighted the continued stability of the banking sector and the expansion of electronic payments, aligning with the goals of Saudi Vision 2030.

As of June, SAMA maintained a solid financial standing, with total assets rising to SR1.96 trillion ($522 billion), compared to SR1.89 trillion a year earlier, representing an increase of 3.3 percent in year-on-year growth. 

Money supply, M3, surged from SR2.90 trillion in June 2024 to SR3.1 trillion a year later, representing an increase of 8 percent. The increase is driven by credit growth and economic activity. 

Reserve assets stood at approximately SR1.72 trillion in June, reflecting an annual 2.2 percent decline from SR 1.75 trillion. 

In June, total banking assets in º£½ÇÖ±²¥ reached SR4.8 trillion, reflecting robust growth compared to the same period of the previous year. 

However, deposit growth lagged credit expansion, as reflected in the increase of the loan to deposit ratio to 81.63 percent compared to 79.29 percent in the same period of the previous year. 

This prompted banks to diversify their funding sources through increased bond issuances and external borrowings. 

Despite these pressures on funding, lending activity remained strong, with claims on the private sector reaching approximately SR3.1 trillion 

Mortgages continued their steady rise, reaching SR922 billion, further supporting key housing development initiatives.

The banking sector sustained robust capital adequacy ratios, well above regulatory thresholds, with reserve buffers remaining healthy. 

Profitability also strengthened, as aggregate net income — before zakat and taxes — rose to SR51 billion in June, up from SR42.5 billion a year earlier in what was an increase of approximately 20 percent year on year.

Credit facilities extended to small and medium-sized enterprises reached SR383.2 billion in the first quarter of 2025, reflecting a 30.6 percent year-on-year increase.

As Vision 2030 initiatives accelerate, SAMA’s data underscores a stable and resilient financial foundation capable of supporting long-term economic diversification and development.

Talat Zaki Hafiz

Financial soundness indicators of the sector as of the first quarter of 2025 continued to reflect the strength of the banking sector, with the regulatory capital-to-risk-weighted assets ratio at a robust 19.2 percent — well above the minimum thresholds set by Basel.

Electronic payments continued to gain strong momentum in June, reflecting growing consumer adoption and ongoing digital transformation in the Kingdom’s financial sector. 

The number of point-of-sale terminals rose to 2.1 million, up from 1.8 million in June 2024, indicating broader merchant acceptance. 

Concurrently, POS sales reached SR54 billion, while the number of transactions surged to 919 million — demonstrating increased usage, efficiency, and trust in digital payment channels.

E-commerce transactions using Mada cards recorded strong growth in June compared to the same period last year, with total sales reaching approximately SR26 billion. 

The number of transactions also increased significantly to 141.6 million, up from 88.8 million in June 2024 — reflecting rising consumer reliance on digital payment channels for online purchases.

The monthly average of market interest rate benchmark 3-month SAIBOR declined to 5.48 percent in June, down from 6.27 percent a year earlier, reflecting easing liquidity conditions. 

Similarly, the Repo and Reverse Repo rates were reduced to 5 percent and 4.5 percent, respectively, indicating a more accommodative monetary policy stance.

In conclusion, the June bulletin highlights the continued strength of SAMA’s financial position and the resilience of the banking sector. This performance reflects the prudence of SAMA’s regulatory oversight and the competence of bank management in navigating evolving global and domestic dynamics.

As Vision 2030 initiatives accelerate, SAMA’s data underscores a stable and resilient financial foundation capable of supporting long-term economic diversification and development. 

The banking sector’s strong asset growth, robust capital and liquidity buffers, and expanding private sector credit highlight its pivotal role in advancing the Kingdom’s economic transformation.

Overall, the banking sector’s strong asset growth, sound capital and liquidity positions, and continued expansion in private sector lending reinforce its critical role in supporting the Kingdom’s economic progress.

The bulletin successfully highlighted the continued momentum in supporting SME growth and enhancing their access to financing, as part of broader efforts toward economic diversification.

It also successfully highlighted the growth in electronic transactions in line with the Kingdom’s Vision 2030, which aims to transition Saudi society to a non-cash economy by the end of the decade. This progress is reflected in achieving a 79 percent increase last year of electronic transactions, surpassing the original target of 70 percent set for 2030.

• Talat Zaki Hafiz is an economist and financial analyst