Net foreign assets in the Kingdom’s banking sector showed almost no change in June, holding steady at a surplus of around SAR 1.5 tn by the end of the month, according to the Saudi Central Bank’s (Sama) latest monthly statistical bulletin (pdf).

The breakdown: Sama’s net foreign assets ended June with a surplus of SAR 1.62 tn, a slight decrease from May’s SAR 1.63 tn. Meanwhile, commercial markets saw a mild improvement in their net foreign assets, recording a deficit of around SAR 123 bn by the end of the month, a reduction from SAR 129.9 bn deficit reported a month before.

The total assets of commercial banks grew to SAR 4.8 tn by the end of June, a 14.1% y-o-y increase from SAR 4.2 tn in the same month last year. Bank credit across all segments also increased 15.8% y-o-y to nearly SAR 3.19 tn by the end of the month.

Personal loans once again accounted for the majority of all credit, coming at nearly SAR 1.4 tn, followed by corporate credit to real estate activities with SAR 383.9 bn, wholesale and retail trade at SAR 213 bn, and electricity, gas and water supplies at some SAR 199.3 bn

Residential mortgages financed by banks reached SAR 5.3 bn during the same period, slightly up 0.2% y-o-y, with a total of 7.4k contracts. This includes around SAR 3.3 bn for houses, about SAR 1.6 bn for apartments, and SAR 482 mn for land contracts.

Settled letters of credit financing private sector imports received increased 9.9% y-o-y to hit SAR 15.2 bn by the end of June. SAR 2.6 bn went to motor vehicles, while SAR 2.4 bn was allocated to building materials, SAR 1.3 bn for food items, SAR 928 mn for machinery, and SAR 295 mn for appliances. The second quarter saw a total of SAR 45.6 bn.

New letters of credit — an indicator for future imports — also rose 28.92% y-o-y to some SAR 14.4 bn in June. This includes SAR 3.6 bn for motor vehicles, SAR 1.7 bn for building materials, SAR 857 mn for food items, SAR 519 mn for machinery, and SAR 166 mn for appliances. The figure brings 2Q’s total to SAR 41.3 bn.

ALSO- Broad money supply (M3) continued to increase, growing 7.63% y-o-y during the month to SAR 3.12 tn. Demand deposits (47.93%) topped the list of currency supply components, followed by time and savings deposits (35.25%), other quasi-cash deposits (8.99%), and banknotes in circulation outside banks (7.83%). Meanwhile, total liabilities surpassed SAR 5.4 tn, recording a 6.6% y-o-y increase.

M3 is the broadest measure of money supply in a given economy. It includes banknotes, 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.

AND- Gov’t bonds maintain an upward trajectory: Government bonds increased for the 12th consecutive month to SAR 636.3 bn, up 2.15% m-o-m and 14.4% y-o-y. Meanwhile, bank credit to public institutions increased 42.63% y-o-y to SAR 226.8 bn.

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