The credit portfolio of financing firms in Saudi Arabia grew by 11% year-on-year (YoY) to SAR 80.7 billion by the end of the first half of 2023, data issued by the Saudi Central Bank (SAMA) showed.
Loans granted to the retail sector constituted the lion’s share at 76% of the total by H1 2023-end. Meanwhile, financing provided to micro, small and medium enterprises (MSMEs) sector came in at 21%. Corporate sector financing represented 3%.
The volume of new financing reached nearly SAR 16.4 billion, rising 22% YoY.
According to the report, the aggregate assets of financing firms stood at SAR 62.4 billion, up 13% YoY.
The aggregate net income of the financing companies sector in Saudi Arabia declined 36% YoY to SAR 739 million by the end of H1 2023.
The following table shows the most important indicators of financing companies:
|
Key Indicators of Financing Companies Sector |
|||
|
Indicator |
H1 2022 |
H1 2023 |
Growth (%) |
|
Aggregate Capital (SAR bln) |
15.0 |
15.4 |
2% |
|
Aggregate Assets (SAR bln) |
55.0 |
62.4 |
13% |
|
Credit Portfolio (SAR bln) |
72.6 |
80.7 |
11% |
|
Net Income (SAR mln) |
1153 |
739 |
36% |
The residential real estate sector accounted for 28% of the financing companies’ credit portfolio, or SAR 22.9 billion, followed by consumer and vehicle financing, at 27% and 25%, respectively.
The below table indicates the credit portfolio by activity for H1 2023:
|
Credit Portfolio by Activity |
||
|
Activity |
Value (SAR bln) |
Percentage to Total |
|
Residential Real Estate |
22.9 |
28% |
|
Consumer Finance |
21.4 |
27% |
|
Vehicles |
19.9 |
25% |
|
Commercial Real Estate |
4.1 |
5% |
|
Equipment |
1.9 |
2% |
|
Credit Cards |
1.2 |
1% |
|
Other |
9.3 |
11% |
|
Total |
80.7 |
100% |
Riyadh marked 39.8% of the credit portfolio of financing companies in the six-month period, followed by Makkah at 24% and the Eastern Province at 19%, as shown in the following table:
|
Credit Portfolio by Province |
|
|
Province |
Percentage (%) |
|
Riyadh |
39.8% |
|
Makkah |
24.0% |
|
Eastern Province |
19.0% |
|
Asir |
4.7% |
|
Madinah |
3.1% |
|
Qassim |
2.2% |
|
Jazan |
1.9% |
|
Tabuk |
1.6% |
|
Northern Borders |
1.1% |
|
Hail |
1.1% |
|
Najran |
0.7% |
|
Al Jouf |
0.4% |
|
Al Baha |
0.4% |
The number of employees in financing firms reached about 6,074 by the end of H1 2023, including 5,218 Saudis, with an 86% Saudization rate.
|
Saudization Rate by Administrative Level in Financing Firms |
|
|
Administrative level |
Saudization (%) |
|
Compliance |
99.3% |
|
Internal Audit |
95.2% |
|
Human Resources |
94.3% |
|
Credit and Risk |
89.4% |
|
Sales |
87.1% |
|
Operations |
86.5% |
|
Financial |
73.7% |
|
Other |
83.8% |
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