Saudi Arabia is expected to record a current account surplus of SAR 71 billion in the second quarter of 2018, governor of Saudi Arabian Monetary Authority (SAMA), Ahmed Alkholifey told the Saudi Press Agency.
“The current account is estimated to sustain growth for 2018,” Alkholifey added.
Expat remittances dropped by 7 percent during 2016 and 2017, he said, adding the remittances are forecast to decline further.
The Saudi banking sector recorded robust performance over the period. The capital adequacy ratio (CAR) stood at 21 percent, loan-to-deposit (LTD) ratio hit 78 percent, while the liquidity coverage (LCR) ratio reached 197 percent. The non-performing loans (NPLs) ratio rose from 1.5 percent to 1.8 percent, while the coverage ratio exceeded 190 percent, as per the data recorded last July.
Alkholifey said that the money supply recorded an annual decline at the end of July with less than 1 percent as a result of an 11 percent decrease in time deposits and savings. The monetary base grew by 2.2 percent in the same month, compared to the same month last year.
Bank loans for private sector increased by less than 1 percent compared to a 1.5 percent decrease last year. Consumer loans recorded an annual growth rate of 1 percent in the second quarter of 2018 while the small and medium enterprises loans increased to 3.9 percent of total loans during the second quarter.
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