RIYADH: Saudi banks’ aggregate assets rose to SR5.07 trillion ($1.35 trillion) at the end of February, up from SR5.02 trillion a month earlier and an annual increase of 8.98 percent, according to the Kingdom’s central bank. .
The rise was driven in part by continued expansion in lending to the private sector, which climbed to SR3.19 trillion in February from SR3.18 trillion in January and SR2.93 trillion a year earlier.
Claims on the private sector were up about 0.44 percent month on month and 8.8 percent year on year, remaining the largest asset component on banks’ consolidated balance sheets.
Claims on government and quasi-government entities also edged higher, reaching SR910 billion in February, compared with SR907.3 billion in January and SR821.3 billion in February 2025.
That reflected a 0.3 percent monthly increase and a stronger 10.8 percent annual rise, indicating that sovereign-related exposures continued to support overall asset growth.
The rise in banks’ exposure to government and quasi-government entities comes as Saudi Arabia maintains an expansionary fiscal stance.
In its 2026 budget statement, the Finance Ministry projected a budget deficit of about SR165 billion, while outlining continued spending across sectoral priorities and medium-term development plans.
Foreign assets, by contrast, eased slightly on a monthly basis to SR431.1 billion from SR435.9 billion in January, a decline of about 1.1 percent, although they remained 10 percent higher than the SR391.7 billion recorded a year earlier.
Claims on banks rose to SR52.9 billion, up from SR45.2 billion in January and SR42.8 billion in February 2025, while other assets increased to SR141.3 billion.
Broader monetary survey data also pointed to continued balance-sheet expansion across the banking system.
Total monetary survey assets stood at SR5.57 trillion in February, little changed from January’s SR5.57 trillion but up from SR5.24 trillion a year earlier.
Separately, broad money supply rose to SR3.29 trillion in February from SR3.22 trillion in January and SR3.03 trillion a year earlier, suggesting liquidity conditions remained supportive as bank assets continued to grow.
