Saudi Arabia's banking sector saw a slowing of credit growth in February to +0.5% month-on-month (+9.6% y-o-y), vs 0.7% m-o-m in January 2026 and average 0.9% m-o-m in 2025. 

Nevertheless, corporate loan growth (+0.7% m-o-m, +13.6% y-o-y) was resilient, while retail loans (+0.2% m-o-m, +4.8% y-o-y) were subdued, said an Al Rajhi Capital report.

Mortgage: Monthly originations decelerated to SAR5.4 billion (-13.2% m-o-m and -39.7% y-o-y), versus 2H25’s average of SAR5.6 billion and also below the FY25 average of SAR6.7bn. 

Deposits: Total deposits, outpaced credit growth, +2.3% m-o-m, led by quasi deposits (+3.7% m-o-m) and demand deposits (+2.9% m-o-m). Demand deposits’ growth was led by government (+12.7% m-o-m). Time deposits also grew, albeit at a lower rate, +1.1% m-o-m led by private (+3.0%). The mix of time deposits declined 46bps m-o-m but remained elevated at 39.4%.  

Liquidity: As deposits outgrew credit for second consecutive month, simple LDR declined 200bps m-o-m to 109.7%, while the adjusted LDR declined by 39bps to 79.2%. Liquidity situation (SAIBOR–Term SOFR spread) has improved compared to Sep/Oct 2025, however, spreads remain elevated compared to average levels. 

Consumer spending (including PoS, cash withdrawals, e-commerce) declined 5.5% m-o-m in February to SAR133.5 billion (+8.4% y-o-y), with E-commerce spending leading the decline (-6.6% m-o-m, +45.6% y-o-y).  Profitability: Profit before Zakat and tax (PBT) for February was largely flat y-o-y at SAR8.3 billion, (January: +4.8% y-o-y), while 2M26 profit grew 2.4% y-o-y compared to 2M25.   - TradeArabia News Service