{"id":94813,"date":"2025-02-27T00:00:00","date_gmt":"2025-02-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/"},"modified":"2025-02-27T00:00:00","modified_gmt":"2025-02-27T00:00:00","slug":"moodys-downgrades-saudi-banking-sector-outlook-to-stable","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/","title":{"rendered":"Moody\u2019s downgrades Saudi banking sector outlook to stable"},"content":{"rendered":"

<\/strong>Moody's revised its<\/strong> outlook for Saudi Arabia's banking sector from positive <\/strong>to stable due <\/strong>to tightening funding conditions, <\/strong>it said in its most recent Banking System Outlook report seen by EnterpriseAM. Customer deposits will remain the main funding source, although the share of higher-cost term deposits will increase, bringing down the overall rating. <\/p>\n

The rationale: <\/strong>Reliance on confidence-sensitive capital market funding is expected to rise as credit demand outpaces deposit growth, pushing the loan-to-deposit ratio further above 100% in the next 12 to 18 months. Inflow of government deposits will help bridge the gap, while also increasing concentration risks.<\/p>\n

Loan performance is expected to remain stable<\/strong>, with problem loans staying low at a 1.5% ratio. Exposure to high-risk sectors like real estate is expected to increase, but will be mitigated by strong government support, the agency said.<\/p>\n

REMEMBER-<\/strong> Bank credit grew 14.4% y-o-y<\/a> to SAR 3.0 tn in 4Q 2024. Personal loans continued to account for the lion\u2019s share (46.2%), followed by corporate credit to the real estate sector, wholesale and retail trade, and electricity, gas, and water supplies.<\/p>\n

The banking sector\u2019s net income is projected to stabilize at 1.8%<\/strong>. While margins may face slight pressure from costlier funding, fee income is expected to rise in tandem with increasing loans, letters of credit and guarantee volumes.<\/p>\n

A favorable environment:<\/strong> Moody\u2019s forecasts non-oil GDP growth to remain strong at 4-5% this year, with high business confidence supporting positive operating conditions. The government\u2019s diversification agenda and job creation will continue to drive economic expansion, boosting credit demand in the corporate sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

Credit growth to outpace deposit growth, increasing funding pressures<\/p>\n","protected":false},"author":1,"featured_media":94814,"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":[19,10,586],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-94813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-banking","tag-enterpriseam-ksa","tag-moodys","wpautop","entry"],"acf":{"mongo_id":"1abf1a7f-d49c-4825-9378-2774fd0417de","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/9\/2020.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Moody\u2019s downgrades Saudi banking sector outlook to stable","related_issue":[94808],"teaser":"Credit growth to outpace deposit growth, increasing funding pressures","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/2\/.b9e8f281-0515-4cf7-9419-1c8ca7f6ba42.mp3"},"yoast_head":"\nMoody\u2019s downgrades Saudi banking sector outlook to stable - 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\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Moody\u2019s downgrades Saudi banking sector outlook to stable\" \/>\n<meta property=\"og:description\" content=\"Credit growth to outpace deposit growth, increasing funding pressures\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\" \/>\n<meta property=\"og:site_name\" content=\"KSA\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-27T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.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=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Moody\u2019s downgrades Saudi banking sector outlook to stable\",\"datePublished\":\"2025-02-27T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\"},\"wordCount\":265,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1\",\"keywords\":[\"BANKING\",\"EnterpriseAM KSA\",\"Moody\u2019s\"],\"articleSection\":[\"BANKING\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\",\"url\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\",\"name\":\"Moody\u2019s downgrades Saudi banking sector outlook to stable - KSA\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2025-02-27T00:00:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/ksa\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Moody\u2019s downgrades Saudi banking sector outlook to stable\"}]},{\"@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":"Moody\u2019s downgrades Saudi banking sector outlook to stable - 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\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/","og_locale":"en_US","og_type":"article","og_title":"Moody\u2019s downgrades Saudi banking sector outlook to stable","og_description":"Credit growth to outpace deposit growth, increasing funding pressures","og_url":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/","og_site_name":"KSA","article_published_time":"2025-02-27T00:00:00+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.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":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/ksa\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Moody\u2019s downgrades Saudi banking sector outlook to stable","datePublished":"2025-02-27T00:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/"},"wordCount":265,"publisher":{"@id":"https:\/\/enterpriseam.com\/ksa\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1","keywords":["BANKING","EnterpriseAM KSA","Moody\u2019s"],"articleSection":["BANKING"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/","url":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/","name":"Moody\u2019s downgrades Saudi banking sector outlook to stable - KSA","isPartOf":{"@id":"https:\/\/enterpriseam.com\/ksa\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1","datePublished":"2025-02-27T00:00:00+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/ksa\/2025\/02\/27\/moodys-downgrades-saudi-banking-sector-outlook-to-stable\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/ksa\/"},{"@type":"ListItem","position":2,"name":"Moody\u2019s downgrades Saudi banking sector outlook to stable"}]},{"@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\/2024\/9\/2020.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/2020.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\/2024\/9\/2020.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/94813","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=94813"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/posts\/94813\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/issue\/94808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/media\/94814"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/media?parent=94813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/categories?post=94813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/tags?post=94813"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/brand?post=94813"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/ksa\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=94813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}