Saudi Arabia’s banking sector set for further gains

Saudi Arabia’s banking sector set for further gains

Following a boom last year, Saudi Arabia’s banking sector is set for further gains in the coming years, according to a forecast by Boston Consulting Group.

The market assessment by Boston Consulting Group found that banking revenue hit SAR 57 billion last year, up from SAR 50 billion the year previous. While operating expenses did rise as well, they grew at a (much) slower pace than revenue, leading to a profit windfall. Combined, Saudi’s banks recorded a 14% rise in profits compared to the previous 12 months.

The researchers note that profits after taxes in the Kingdom have grown at an average of 7.9% CAGR per year since 2016 – although there are huge variations within that time frame due to global events such as the pandemic.