Time and savings deposits in Saudi bank grew at the fastest pace in nearly 16 years, since March 2007.
Time and savings deposits rose 33% year-on-year (YoY) in November 2022 to SAR 635.3 billion, according to the latest data issued by the Saudi Central Bank (SAMA).
These deposits also jumped 32% YoY to SAR 654.8 billion in December 2022.
The growth in time and savings deposits came after SAMA hiked interest rates seven times last year.
The following table illustrates the total value of time and savings deposits since January 2021:
|
Time & Savings Deposits (SAR bln) |
|||
|
Month |
2021 |
2022 |
Change |
|
January |
448.33 |
482.82 |
+8% |
|
February |
449.38 |
488.93 |
+9% |
|
March |
452.71 |
504.40 |
+11% |
|
April |
437.26 |
530.57 |
+21% |
|
May |
439.10 |
517.43 |
+18% |
|
June |
445.19 |
542.99 |
+22% |
|
July |
450.87 |
519.34 |
+15% |
|
August |
461.38 |
525.12 |
+14% |
|
September |
460.05 |
543.22 |
+18% |
|
October |
475.18 |
603.92 |
+27% |
|
November |
476.49 |
635.31 |
+33% |
|
December |
495.33 |
654.76 |
+32% |
Demand deposits fall for two straight months
On the other hand, demand deposits fell on an annual basis for the first time since February 2017, reaching SAR 1.329 trillion in November.
They continued the downturn for the second consecutive month, dropping 2% to stand at SAR 1.328 trillion in December, the lowest level since October 2021.
Demand deposit accounts are banks account from which deposited funds can be withdrawn at any time and without paying interest.
|
Demand Deposits (SAR bln) |
|||
|
Month |
2021 |
2022 |
Change |
|
January |
1276.64 |
1344.22 |
+5% |
|
February |
1295.16 |
1361.20 |
+5% |
|
March |
1312.68 |
1378.82 |
+5% |
|
April |
1327.54 |
1363.96 |
+3% |
|
May |
1324.34 |
1363.17 |
+3% |
|
June |
1333.34 |
1391.06 |
+4% |
|
July |
1316.75 |
1392.06 |
+6% |
|
August |
1311.42 |
1396.27 |
+6% |
|
September |
1326.10 |
1397.30 |
+5% |
|
October |
1323.63 |
1330.94 |
+1% |
|
November |
1337.78 |
1329.00 |
(1%) |
|
December |
1360.11 |
1328.16 |
(2%) |
Total deposits in the Saudi banks grew by 9% in December to an all-time high of SAR 2.29 trillion.
There are three types of deposits, demand, time and savings and quasi-monetary.
The percentage of demand deposits, which account for the largest share in Saudi banks, decreased to the lowest level since December 2011 at 57.9% last December, from 64.6% in early 2022.
The share of time and savings deposits rose to 28.5% from 23.5% in January 2022, hitting the highest level since September 2017.
|
Percentage to Total Deposits |
|||
|
Period |
Demand deposits |
Time & savings deposits |
Others semi-cash |
|
January 2021 |
66.4 % |
23.3 % |
10.2 % |
|
February |
66.2 % |
23.0 % |
10.9 % |
|
March |
66.3 % |
22.9 % |
10.9 % |
|
April |
66.6 % |
21.9 % |
11.5 % |
|
May |
66.2 % |
21.9 % |
11.9 % |
|
June |
65.7 % |
21.9 % |
12.4 % |
|
July |
64.6 % |
22.1 % |
13.3 % |
|
August |
64.5 % |
22.7 % |
12.8 % |
|
September |
64.4 % |
22.4 % |
13.2 % |
|
October |
64.0 % |
23.0 % |
12.4 % |
|
November |
64.6 % |
23.0 % |
12.4 % |
|
December |
64.6 % |
23.5 % |
11.8 % |
|
January 2022 |
64.3 % |
23.1 % |
12.7 % |
|
February |
64.0 % |
23.0 % |
13.0 % |
|
March |
63.6 % |
23.3 % |
13.1 % |
|
April |
62.5 % |
24.3 % |
13.2 % |
|
May |
62.6 % |
23.8 % |
13.7 % |
|
June |
62.3 % |
24.3 % |
13.4 % |
|
July |
62.5 % |
23.3 % |
14.3 % |
|
August |
62.3 % |
23.4 % |
14.3 % |
|
September |
61.7 % |
24.0 % |
14.4 % |
|
October |
58.6 % |
26.6 % |
14.8 % |
|
November |
58.1 % |
27.8 % |
14.2 % |
|
December |
57.9 % |
28.5 % |
13.6 % |
|
Change in Interest Rates in Saudi Arabia During 2022 |
||
|
Date |
Reverse repo rate |
Repo rate |
|
March |
75 basis points (+25 bps) |
125 basis points (+25 bps) |
|
May |
125 basis points (+50 bps) |
175 basis points (+50 bps) |
|
June |
175 basis points (+50 bps) |
225 basis points (+50 bps) |
|
July |
250 basis points (+75 bps) |
300 basis points (+75 bps) |
|
September |
325 basis points (+75 bps) |
375 basis points (+75 bps) |
|
November |
400 basis points (+75 bps) |
450 basis points (+75 bps) |
|
December |
450 basis points (+50 bps) |
500 basis points (+50 bps) |
View More Details on “Banks Aggregated Data”
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