Margin lending to investors grow 47% to SAR 17.44 bln in Q3 2021

23/11/2021 Argaam Special

Logo of Capital Market Authority


The total margin commitment offered by capital market institutions to clients on the Saudi Exchange (Tadawul) rose 47% to SAR 17.44 billion in Q3 2021, from SAR 11.89 billion in Q3 2020, the Capital Market Authority (CMA) said in a report. 

  

Accordingly, the total margin lending granted by capital market institutions to clients reached its highest in five years, since Q2 2016 when they totaled SAR 17.5 billion.  

  

The number of clients rose 76% to 7,113 from 4,036 clients in Q3 2020. 

  

On the other hand, the outstanding balance increased 72% to SAR 13.76 billion in Q3 2021, compared to SAR 8.02 billion in the same period last year. 

  

Moreover, the ratio of outstanding balance to total margin commitment increased to 78.9% by the end of Q3 2021 from 67.4% in the third quarter of 2020.

 

Value of Margin Lending for Share Trading

Period

Q3 2020

Q3 2021

Variation

No. of Investors

4036

7113

+ 76%

Total Margin Commitment (SAR mln) 

11890

17443

+ 47%

Outstanding Balance 

(SAR mln) 

8018

13764

+ 72%

Outstanding Balance/ Total Margin Commitment 

(%) 

67.4 %

78.9 %

--

 

On a quarterly basis, the number of clients increased by 13%. Total margin commitment rose by 8%, while outstanding balance jumped 11%. 

 

Margin Facilities since Q1 2016 (SAR mln)

Period

Number of Clients

Total Margin Commitment (SAR mln) 

Outstanding Balance 

(SAR mln) 

Q1 2016

2752

21697

11022

Q2 2016

2575

17530

10177

Q3 2016

2289

15182

9003

Q4 2016

2021

11776

6848

Q1 2017

1910

10047

5895

Q2 2017

1803

7559

4880

Q3 2017

1642

7245

4736

Q4 2017

1666

8206

5516

Q1 2018

1821

8970

6542

Q2 2018

1930

9743

7044

Q3 2018

2024

9606

6851

Q4 2018

2153

9562

6700

Q1 2019

2313

9364

6752

Q2 2019

2217

9369

6289

Q3 2019

2234

9364

6190

Q4 2019

2601

11171

7560

Q1 2020

3123

11763

7499

Q2 2020

3251

10668

6517

Q3 2020

4036

11890

8018

Q4 2020

4708

12660

8783

Q1 2021

5441

14252

10582

Q2 2021

6299

16082

12373

Q3 2021

7113

17443

13764

 

 

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