Financing firms’ credit portfolio up 11% to SAR 75.5 bln in 2022

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:

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:

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:

The ratio of non-performing loans (NPLs) for the financing portfolio reached 6.3% in 2022, distributed as follows:

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%.