Riyadh – Mubasher: Al Rajhi Capital cited recent data from the Saudi Central Bank (SAMA) for November 2024 bulletin which indicated the highest mortgage origination since August 2022.
The monthly mortgage origination of SAR 10.10 billion in November grew over 50% year-on-year (YoY) and clocked the highest monthly origination since August 2022.
In addition, total credit growth posted a month-on-month (MoM) growth of 1.70%, the best growth in the last green years, led by corporate loans and mortgage.
This supports the view, mentioned in the recently published banking note on 8 December, that rising rents, supply of affordable homes and declining interest rates should drive another leg of mortgage growth.
At the same time, corporate credit growth was also a record, over 2.40% MoM and more than 17% YoY.
Amid the positives, the deposit growth disappointed with just 0.40% MoM growth and the time deposits mix rose sharply for the second month mainly owing to rise in time deposits from the government.
Nevertheless, the profits for November touched SAR 7 billion, up 14% YoY and the combined profits for October and November 2024 are up 19% YoY, indicating positive fourth-quarter (Q4) earnings trends for the banking sector.
