KSA Business: Saudi banking sector Q1 net profit increases 22.83pc – Gulf Digital News

KSA Business: Saudi banking sector Q1 net profit increases 22.83pc – Gulf Digital News

Saudi Arabia’s banking sector returned a sturdy industry performance, highlighting a year-on-year (YoY) increase in net profit by 22.83% in Q1 2022. Total assets of the banking industry have also increase by 3.75% as compared to December 31, 2021.

KPMG’s latest Banking perspectives: Saudi Arabia 2022 publication, titled “Purpose-led banking,” said at the close of 2021, the banking industry showed a resurgence of the era of severe impact by the pandemic was passed, with an increase in profit of 40.15%. Expected credit loss (ECL) charge declined by 11.47% YoY in Q1 2022.

Meanwhile, total customer deposits reported modest growth of 3.90% since December 31, 2021, evidencing that the liquidity has not been a challenge to date.

Purpose-led banking

Saudi banks are in pursuit of purpose-led banking, encompassing the developing environmental, social and governance (ESG) considerations and customer-centric perspectives that are underpinning boardroom discussions, the report said.

Banks will be required to look beyond loans and think of ways to support beneficiaries and the community. For example, banks need to understand their beneficiaries, their needs and business opportunities, partner with them through sustainable funding models. Such purpose-led businesses will be increasingly in demand as organisations gravitate towards sustainable growth.

The report emphasises the evolving landscape in the