Net foreign assets in the Kingdom’s banking sector dropped once again following a rebound in March, reaching a surplus of some SAR 1.47 tn by the end of April — the lowest level in the last twelve months and a 9.6% y-o-y drop, according to the Saudi Central Bank’s (Sama) latest monthly statistical bulletin (pdf).

The decline was once again driven by commercial banks, whose net foreign assets came in at an SAR 89.6 bn deficit, down from a surplus of SAR 37.6 bn in April 2024. Meanwhile, Sama’s foreign assets inched slightly down to SAR 1.56 tn by the end of the month, making up the bulk of the sector’s external position.

MEANWHILE- Bank credit across all segments increased 16.5% y-o-y to SAR 3.13 tn in April. Personal loans once again accounted for the majority of all credit handed out by local banks during the month at SAR 1.4 tn, followed by corporate credit to the real estate sector, and financial and ins. activities.

Residential mortgages financed by banks reached just under SAR 6.3 bn during the same period, up 17.9% y-o-y, with a total of 8.2k contracts. This includes SAR 3.9 bn for houses, less than SAR 2.1 bn for apartments, and SAR 304 mn for land contracts.

ALSO- Broad money supply (M3) grew by 9.3% y-o-y to SAR 3.05 tn. Demand deposits (47.8%) topped the list of currency supply components, followed by time and savings deposits (34.8%), other quasi-cash deposits (9.4%), and banknotes in circulation outside banks (7.99%). Meanwhile, total liabilities reached SAR 5.3 tn, clocking a 7.4% y-o-y growth.

SOUND SMART- M3 is the broadest measure of money supply in a given economy. It includes cash, current accounts, and other money that can be quickly mobilized (what econ-nerds call M2) as well as large time deposits, institutional money market funds, short-term repurchase agreements, and larger liquid funds.

Meanwhile, on the investment front: Government bonds rose for the tenth consecutive month to SAR 617.0 bn, up 0.7% m-o-m and 11.7% y-o-y, representing 73.9% of total public sector liabilities. At the same time, bank credit to public institutions increased 38.3% y-o-y to SAR 218.2 bn.

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