TOKYO: Japanese oil refiners will likely stop loading Iranian crude by mid-September with final shipments arriving in the first half of October, the head of the nation’s oil refiners association said on Thursday, as the US pressures countries to halt such imports.
US President Donald Trump’s administration has demanded nations cut all their imports of Iranian oil from November as it reimposes sanctions over Tehran’s nuclear program.
Although it has said that some allies who are particularly reliant on Iranian supplies may be granted waivers that would give them more time to wind down shipments.
“Japanese oil refiners have been making preparations for lifting plans on the assumption that US sanctions are to be applied,” the president of the Petroleum Association of Japan (PAJ), Takashi Tsukioka, said.
“Considering that payment is to be finished by end of October, it is important that the refiners would finish loading (Iranian oil) before mid-September.”
Tsukioka added that the industry is asking the Japanese government to push to maintain current levels of Iranian imports in talks with the United States. But a Japanese government source, who declined to be identified, said winning a waiver was seen as “difficult.”
PAJ had said last month that Japanese refiners would likely stop importing from Iran, but on Thursday gave more details on potential timings.
Many refiners in Japan, the world’s fourth-biggest oil importer, say they are resigned to completely halting imports from one of their historically important suppliers, unlike during a previous round of sanctions when they substantially reduced imports from the Middle Eastern country.
Three industry sources familiar with the matter said shipping companies had told refiners in Japan that they would stop carrying oil cargoes from Iran. The sources declined to be identified as they were not authorized to speak with media.
That would follow similar announcements by the world’s biggest shipping companies including A.P. Moller-Maersk of Denmark.
Unlike Japan, China and some countries in Europe have significantly raised purchases following the lifting of previous sanctions.
“It would be unreasonable for (Japanese refining) industry to be influenced similarly by such countries,” said Tsukioka, who also serves as chairman of Japan’s second-biggest refiner, Idemitsu Kosan.
Japan’s largest banks had already said they would stop handling all Iran-related transactions to meet the November deadline set by Trump, Reuters reported last week.
Japanese refiners are looking to secure alternative supplies from the Middle East and the US among others, industry sources have said.
Japan last year imported 172,216 barrels per day of Iranian crude, down 24.2 percent from a year earlier, with Iranian oil accounting for 5.3 percent of the nation’s total imports.
Japan’s last imports of Iranian oil could be in October
Japan’s last imports of Iranian oil could be in October
- US President Donald Trump’s administration has demanded nations cut all their imports of Iranian oil from November
- Japan’s largest banks had already said they would stop handling all Iran-related transactions to meet the November deadline
Saudi banks post 2.5% loan growth in Q3 as corporate credit leads: Alvarez & Marsal
RIYADH: Saudi Arabia’s 10 largest listed banks recorded a 2.5 percent increase in net loans and advances in the third quarter from the previous three months, underscoring sustained lending momentum in the Kingdom, a new analysis showed.
The growth was driven by corporate lending, which rose 3 percent during the period and accounted for roughly 59 percent of total loans, according to Alvarez & Marsal’s latest KSA Banking Pulse report.
This steady lending momentum aligns with the wider trend observed in the Gulf Cooperation Council region, where corporate lending continues to gain traction as economies diversify away from hydrocarbons.
In November, S&P Global Ratings said banks across the GCC are expected to maintain stable credit fundamentals in 2026, even as the region faces potential geopolitical and economic shocks.
The rating agency added that the sector’s outlook is supported by broadly steady profitability, solid capitalization, and resilient asset quality.
Commenting on the findings, Sam Gidoomal, managing director and head of Middle East Financial Services at Alvarez & Marsal, said: “Saudi banks continued to demonstrate operational resilience during the third quarter of 2025, supported by stable lending activity, disciplined cost management, and improving asset quality.”
Retail lending in the Kingdom increased by 1.7 percent quarter on quarter during the period, according to the report.
Deposit growth moderated to 2.2 percent, down from 2.7 percent in the second quarter.
“The deceleration in deposits was largely attributable to SNB, which recorded a 2.9 percent quarter on quarter decline, driven by a sharp 7.9 percent quarter on quarter contraction in time deposits,” the report stated.
Government-related entity deposits saw a marginal decline in the third quarter, with their share falling to 31.2 percent of total deposits.
Operating income among Saudi banks increased by 1.8 percent in the third quarter, moderating slightly from the 2 percent rise recorded over the previous three months.
Net interest income was broadly flat, edging up 0.1 percent quarter on quarter, while fee and commission income rose 3.8 percent during the same period.
Aggregate net income increased by 2.8 percent in the third quarter, compared with 3.4 percent growth in the previous three months.
“Despite margin compression, the sector’s strong capital position and consistent efficiency gains position banks well as they prepare for an evolving interest-rate environment in 2026,” added Gidoomal.
Net interest margins contracted by 7 basis points to 2.73 percent, reflecting continued pressure from rising funding costs, the report said.
Banks also demonstrated stronger cost discipline, with operating expenses declining 0.9 percent quarter on quarter, marking a third consecutive improvement in efficiency. The aggregate cost-to-income ratio fell 80 basis points to 28.7 percent in the third quarter.
Return on equity edged higher by 6 basis points to 15.5 percent, while return on assets remained steady at 2.1 percent, underscoring sustained sector resilience.
Asset quality strengthened further, with the non-performing loan ratio declining to 0.94 percent and the coverage ratio rising to 158.1 percent.
“Saudi banks are maintaining solid financial foundations despite periods of global market volatility,” said Quentin Mulet-Marquis, managing director, Financial Services at Alvarez & Marsal.
He added: “Strong earnings, low NPL rates, and comfortable capital buffers underpin investor confidence, while healthy valuation multiples and competitive dynamics continue to support growing appetite for mergers and acquisitions activity in the sector.”
The Saudi banks analyzed in the Alvarez & Marsal report are Saudi National Bank, Al Rajhi Bank, and Riyad Bank, as well as Saudi British Bank, and Banque Saudi Fransi.
Other banks covered include Arab National Bank, Alinma Bank, and Bank Albilad, alongside Saudi Investment Bank, and Bank Aljazira.
Earlier in December, a separate report by S&P Global said Saudi Arabia’s private credit market is set to expand rapidly as the Kingdom seeks to bridge funding gaps linked to its Vision 2030 transformation agenda.
The report noted that the Kingdom’s public and private sector debt — including bank lending, bond and sukuk issuance, and private capital financing — grew at a compound annual rate of 12 percent between 2021 and 2024.
