Saudis boost bank balances despite pandemic

The Saudi banking sector reported an average increase of 41.4 percent in expected credit losses. (FILE/Shutterstock)

• Deposits rose 3 percent to $496.5 billion compared to the year-earlier period despite mounting pandemic-related pressures elsewhere in the banking system
• The Saudi banking sector reported an average increase of 41.4 percent in expected credit losses

LONDON: Saudi bank deposits edged up in the second quarter compared to a year earlier according to a report from KPMG.
Deposits rose 3 percent to $496.5 billion compared to the year-earlier period despite mounting pandemic-related pressures elsewhere in the banking system.
The Saudi banking sector reported an average increase of 41.4 percent in expected credit losses for the three-month period ended June 30, 2020, to $2.293 billion, KPMG said.
Still, the injection of $19.467 billion into the Kingdom's banks by the regulator helped to improve the financial position of lenders in Saudi Arabia.
“It has not been all ‘doom-and-gloom’, and as a silver lining, we have seen success stories of the proactive role played by governments, central banks and regulators," said Khalil Ibrahim Al-Sedais, office managing partner for Riyadh at KPMG.
Overall bank profits fell 7.4 percent in the second quarter to $5.504 billion compared to a year earlier.