Saudi Central Bank headquarters
The total value of the loan portfolio of financing firms in Saudi Arabia grew by 11% year-on-year (YoY) to SAR 75.45 billion by the end of 2022, data issued by the Saudi Central Bank (SAMA) showed.
The volume of new financing reached nearly SAR 27.62 billion, rising 9% YoY.
According to the report, total assets, including data of Saudi Real Estate Refinance Co. (SRC), stood at SAR 78 billion, while the total assets of finance companies stood at SAR 57.02 billion.
The aggregate net income of the financing companies sector rose to SAR 1.86 billion by the end of 2022.
The following table shows the most important indicators of financing companies:
|
Key Indicators of Financing Sector |
|||
|
Indicator |
2021 |
2022 |
Growth (%) |
|
Aggregate Capital |
19.56 |
19.64 |
0.4% |
|
Aggregate Assets |
66.95 |
78.02 |
16.5% |
|
Loan Portfolio |
68.12 |
75.45 |
10.8% |
|
Net Income |
1.81 |
1.86 |
2.8% |
Loans granted to the retail sector constituted the largest part of the total net financing portfolio at 76% by 2022-end, while the financing granted to the micro, small and medium enterprises (MSMEs) sector came at 21%. Corporate sector financing represented 3%.
The real estate sector accounted for 35% of the portfolio, while other sectors accounted for 65% of the financing.
The residential real estate finance sector accounted for SAR 22.5 billion of the total credit portfolio of financing firms in Saudi Arabia.
The below table indicates the credit portfolio by activity for 2022:
|
Loan Portfolio by Activity |
||
|
Activity |
Value (SAR bln) |
Percentage to total |
|
Residential Real Estate |
22.48 |
30% |
|
Vehicles |
19.19 |
25% |
|
Consumer Finance |
19.19 |
25% |
|
Commercial Real Estate |
4.55 |
6% |
|
Equipment |
1.63 |
2% |
|
Credit Cards |
0.94 |
1% |
|
Other |
7.46 |
10% |
Riyadh marked 39.1% of the total loan portfolio of financing companies in 2022, followed by Makkah at 23.9% and the Eastern Province at 18.9%, as shown in the following table:
|
Loan Portfolio by Region |
|
|
Region |
Percentage (%) |
|
Riyadh |
39.1 % |
|
Makkah |
23.9 % |
|
Eastern Province |
18.9 % |
|
Aseer |
4.8 % |
|
Al Madinah |
3.7 % |
|
Qassim |
2.2 % |
|
Jazan |
2.0 % |
|
Tabuk |
%1.7 |
|
Northern Borders |
1.1 % |
|
Hail |
1.0 % |
|
Najran |
0.7 % |
|
Al Jouf |
0.5 % |
|
Al Baha |
0.4 % |
The ratio of non-performing loans (NPLs) for the financing portfolio reached 6.3% in 2022, distributed as follows:
|
NPLs by Sector |
|
|
Sector |
Percentage |
|
Real Estate Financing Companies |
3.8 % |
|
Other Financing Companies |
7.2 % |
|
Total |
6.3 % |
The number of employees in financing firms reached about 6,062 by the end of last year, including 5,223 Saudis. The nationalization rate stood at 86%.
|
Saudization Rate by Administrative Level in Financing Firms |
|
|
Administrative level |
Saudization (%) |
|
Human Resources |
94 % |
|
Internal Audit |
92 % |
|
Credit and Risk |
89 % |
|
Sales |
87 % |
|
Operations |
86 % |
|
Finance |
72 % |
|
Information Systems |
67 % |
|
Other |
90 % |
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