Saudi banks have invested SR287.8 billion in government bonds and treasury bills up to the end of April 2014, of which SR235.7 billion and SR52.2 billion spent on treasury bills and government bonds, respectively, according to a financial report.

The April figures were the highest of the Saudi banks’ investments in bonds and treasury bills, followed by March figures at SR260.3 billion, February (2014) at SR246.7 billion, January (2014) at SR237.3 billion and May (2011) at SR229.6 billion, the report, analyzed by Al-Eqtisadiah daily, said.

For comparative reasons, Saudi banks’ investments in government bonds and treasury bills in April were higher by 36 percent compared to the same period last year, which stood at SR211.8 billion, the report said.

Saudi banks have reportedly favored investments in the (short-term) treasury bills, or 82 percent of the total investments, while the remaining 18 percent went to government bonds. It’s natural that the Saudi banks prefer short-term securities for carrying least risks and generating quick liquidity to run their cash flows, the report said.

Year-on-year basis, banks’ investments in government bonds and treasury bills registered the highest records in 2013 at SR228.7 billion, or an increase of 26 percent compared to figures of 2012, which stood at SR220.8 billion. Treasury bills in 2013 captured 78 percent (SR179.1 billion) of the total investments while the remaining 22 percent (SR49.6 billion) went to government bonds, the report said.

Chronologically speaking, Saudi banks’ investments in government securities have steadily increased since 1993 when it was SR43.5 billion, then increased to SR150.7 billion in a ten-year period (2003), then jumped to SR 209.9 billion in 2008 but later dropped to SR154.2 billion.

However, Saudi banks once again began to inject more funds in government securities as from 2011 and have continued to grow since then to reach the highest record in 2013 at SR228.7 billion, the report said.