Saudi bank deposits hit $326bn in Q1
Jeddah, August 18, 2013
The total value of deposits made at Saudi Arabian banks reached a new record of SR1.36 trillion ($362 billion) by the end of first quarter of 2013, a report said.
Customer deposits at the National Commercial Bank (NCB) reached SR276.7 billion in March 2013 with a growth rate of 11.6 per cent year-on-year, said the report in Arab News.
Al Rajhi Bank claimed the second spot, reaching SR231.7 billion, according to the report.
Demand deposits remain the main beneficiary given the globally suppressed interest rate environment, the report said, quoting a report by the National Commercial Bank (NCB).
Demand deposits rose by 18.0 per cent year-on-year in Q1 2013, while time and savings deposits grew by 5.3 per cent annually. Meanwhile, foreign currency deposits continued to gain in line with 2011, expanding by 17.0 per cent year-on-year during 2012.
Despite the redeployment of assets and the expansion in financing portfolios, banks remain relatively liquid albeit at a relatively lower capacity than before, the report said.
The large influx of oil revenues has aided banks in increasing the most liquid form of assets, cash, as the cash ratio increased to 12.5 per cent by the end of 2012, in comparison to 11.7 per cent for 2011, the report said.
However, upon rising local financing opportunities, cash ratio decreased to 10.3 per cent in the first quarter of 2013.
The industry's Minimum Risk Assets (MRA) ratio has dropped for the fourth consecutive year in 2012 to 32.7 per cent, indicative of the improved confidence by local banks. NCB recorded the highest MRA ratio at 46.1 per cent for Q1, 2013, while the lowest ratio was recorded by The Saudi Investment Bank (SAIB) at 21.2 per cent.
Banks have extended SR153.0 billion in additional financing during last year. Over the first quarter of 2013, Saudi banks have expanded by a further SR40.2 billion, according to the NCB report.
The credit portfolio of Saudi banks continues to be largely compromised of the commerce sector, which holds a share of 18.7 per cent of banks' total financing, the report said.