(MENAFN - Arab News) Profits of the commercial banks in the Kingdom rose by 9.1 percent to SR34.1 billion in the first 11 months of last year compared to figures of the same period last year, local media said.
On the other hand, the accumulated profits of the banks are poised to register a record level of nearly SR36 billion by the end of the year thus surpassing the highest level registered in 2006 at SR34.7 billion, Al-Riyadh daily quoting financial indicators released by Saudi Arabian Monetary Agency (SAMA).
The Saudi commercial banks realized record accumulated profits of SR33.5 billion in 2012 which is nearing the 2006 level. This good result was attributed to the reduction of provisions (allocated for bad debts) which fell by 12 percent in the fourth quarter of 2012, notably in certain banks such as Samba Financial Group, Alinma Bank, Bank Albilad, and Saudi British Bank (SABB), the report said.
Meanwhile, total reserves of the banks increased by 17.4 percent to reach SR114.8 billion in November whereas their capital jumped by 0.9 percent to SR113 billion in the comparable periods, the report said.
The banking sector has reportedly benefited from the outstanding performance achieved by the Saudi economy in the last three years. The budget surpluses registered record levels reaching SR291 billion, SR376 billion and SR206 billion in 2011, 2012 and 2013, respectively, thus bringing the total surpluses to nearly SR871 billion in the last three years, the report said.
In the meantime, total capital account (accumulated profits, capital and reserves) of the Saudi banks jumped to the highest level in history and increased by 8.6 percent to SR261.9 billion in November 2013 compared to figures of November 2012.
In a related development, total deposits at Saudi banks grew by 14 percent to SR1.37 trillion in November 2013 compared to SR1.2 trillion in November 2012, the report said.