{"id":100881,"date":"2025-09-25T00:00:00","date_gmt":"2025-09-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/"},"modified":"2025-09-25T00:00:00","modified_gmt":"2025-09-25T00:00:00","slug":"banks-net-income-grew-18-y-o-y-in-2q-2025-kamco","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/","title":{"rendered":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco"},"content":{"rendered":"

<\/strong>Saudi banks posted an 18% growth in their net profits y-o-y in 2Q 2025, <\/strong>surpassing consensus forecasts by 3%, according to a Kamco Invest report (pdf)<\/a>. Retail banks, including Al Rajhi, SNB, and Al Bilad, saw their bottomlines coming in about 4% higher than forecasts, while corporate banks exceeded expectations by about 3%.<\/p>\n

Aggregate lending growth remained robust at 16% y-o-y during the quarter, <\/strong>exceeding deposit growth and lifting up the system-wide loan-to-deposit ratio (LDR) to 106%. The growth was mainly backed by Riyad Bank, SAB, Alinma, and Al Rajhi, according to the report.<\/p>\n

Net interest margins (NIMs) extended their contraction during 2Q, <\/strong>hammered by tighter liquidity and rising competition in the corporate segment. Meanwhile, non-interest income jumped 26% y-o-y, boosted by higher fees, commissions, trading income, and foreign exchange gains.<\/p>\n

Sector breakdown: <\/strong>Corporate real estate loans saw a modest growth of 0.3% q-o-q to hit SAR 221 bn in 2Q 2025, while retail loans grew by 2% q-o-q during the quarter, recording SAR 712 bn. However, the retail mortgage market remained \u201cunder pressure,\u201d with new residential originations dipping 32% q-o-q in 2Q to SAR 19 bn, according to the report. <\/p>\n

LOOKING AHEAD- <\/strong>Kamco Invest predicts a pickup in mortgage demand by 4Q 2025, driven by September\u2019s rate cut, government housing initiatives, and seasonal bank promotions. \u201cThe recent amendment to the White Land Tax Law, which imposes a 5-10% tax on vacant plots to encourage development, is also expected to increase housing supply and support mortgage growth,\u201d according to the report.<\/p>\n

The segment will also be supported by the new real estate foreign ownership law<\/strong>, that will allow expatriates to buy homes in the Kingdom in designated zones starting January. The report also highlighted a shift in management focus towards cost optimization, looking to safeguard and gradually enhance NIMs. <\/p>\n

Asset quality remained strong despite softer oil prices<\/strong>, with the majority of lenders reporting robust rebounds. Net non-performing loans (NPLs) stands unchanged from the first quarter, at 1.9%. <\/p>\n

Time & savings deposits have also seen significant growth of 15.7% YTD, <\/strong>while demand deposits have reported only 3.7% growth, fueling competition for current and savings accounts and leading some banks, including SNB, to provide cost-bearing products, Kamco said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Banks\u2019 bottomline growth was 3% higher than expectations<\/p>\n","protected":false},"author":1,"featured_media":100882,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2617],"tags":[19,1001,27,10],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-100881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-banking","tag-banks","tag-economy","tag-enterpriseam-ksa","wpautop","entry"],"acf":{"mongo_id":"3a7a48e8-5550-4ba2-9685-6fd843d8cedb","order":"7","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/8\/1249.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco","related_issue":[100869],"teaser":"Banks\u2019 bottomline growth was 3% higher than expectations","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/9\/.29469a09-24b0-41f2-8b5e-ee1b30068b86.mp3"},"yoast_head":"\nBanks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco - KSA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco\" \/>\n<meta property=\"og:description\" content=\"Banks\u2019 bottomline growth was 3% higher than expectations\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\" \/>\n<meta property=\"og:site_name\" content=\"KSA\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-25T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco\",\"datePublished\":\"2025-09-25T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\"},\"wordCount\":355,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1\",\"keywords\":[\"BANKING\",\"Banks\",\"ECONOMY\",\"EnterpriseAM KSA\"],\"articleSection\":[\"BANKING\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\",\"name\":\"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco - KSA\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2025-09-25T00:00:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/ksa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#website\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/\",\"name\":\"KSA\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/ksa\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\",\"name\":\"KSA\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/42482.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/42482.svg\",\"caption\":\"KSA\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/ksa\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco - KSA","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/","og_locale":"en_US","og_type":"article","og_title":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco","og_description":"Banks\u2019 bottomline growth was 3% higher than expectations","og_url":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/","og_site_name":"KSA","article_published_time":"2025-09-25T00:00:00+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco","datePublished":"2025-09-25T00:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/"},"wordCount":355,"publisher":{"@id":"https:\/\/enterpriseam.com\/ksa\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1","keywords":["BANKING","Banks","ECONOMY","EnterpriseAM KSA"],"articleSection":["BANKING"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/","url":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/","name":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco - KSA","isPartOf":{"@id":"https:\/\/enterpriseam.com\/ksa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1","datePublished":"2025-09-25T00:00:00+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/09\/25\/banks-net-income-grew-18-y-o-y-in-2q-2025-kamco\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/ksa\/"},{"@type":"ListItem","position":2,"name":"Banks\u2019 net income grew 18% y-o-y in 2Q 2025 -Kamco"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/ksa\/#website","url":"https:\/\/enterpriseam.com\/ksa\/","name":"KSA","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/ksa\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/ksa\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/ksa\/#organization","name":"KSA","url":"https:\/\/enterpriseam.com\/ksa\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/42482.svg","contentUrl":"https:\/\/ent.news\/internal\/42482.svg","caption":"KSA"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/ksa\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/ksa\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2025\/8\/1249.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/100881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/comments?post=100881"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/100881\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/issue\/100869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/media\/100882"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/media?parent=100881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/categories?post=100881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/tags?post=100881"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/brand?post=100881"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=100881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}