Consumer loans from Saudi commercial banks in June rise 13% to $118.9 billion


CAIRO: Consumer lending by Saudi commercial banks rose 13% to SR445.8 billion ($118.9 billion) on June 30, 2022, from SR394.2 billion on the same day on last year, the Central Bank of Saudi Arabia, also known as SAMA, revealed. .

This growth, however, pales in comparison to the 17.4% growth between June 30, 2021 and June 30, 2020, according to the data.

Moreover, the share of consumer loans in total bank credit fell to 19.9% ​​as of June 30, 2022, the lowest percentage on record, data compiled by Arab News showed.

It should be mentioned that consumer lending does not include real estate financing, leasing and margin lending, according to SAMA.

From June 2017 to 2022, consumer loans experienced a positive trend. The value increased by 0.5, 0.6, 5.3, 17.4 and 13.1% year over year, respectively. Consumer loans amounted to SR315.1 billion as of June 30, 2017.

According to SAMA, 90% of consumer loans fall under the “other” product category.

“The ‘other’ major component of lending relates to general short- to medium-term financing of consumer bank overdrafts, as credit card lending is accounted for separately,” said Mohamed Ramady, a consultant and former professor based at London.

The balance of consumer loans to fund “other” products increased by 19% to SR402.3 billion on June 30 this year, from SR338.2 billion on the same day last year.

The remaining 10% is split between renovation and home improvement, vehicles and private transport, furniture and durable goods, education, health, tourism and travel.

Home renovation and improvement, which accounts for 3.4% of the 10%, saw a decline of 31.4% to SR15.2 billion on June 30, 2022, from SR22.2 billion on June 30, 2022. a year ago.

Additionally, car loans declined by 20.6% year-on-year from SR 15.5 billion to SR 12.3 billion during the review period.

“Consumer lending declined in some items, particularly in capital goods and home renovations as well as in vehicles, as consumers wait to take stock of rising input prices,” a- he added.

Furniture and durable goods declined by 31.1% from SR 12.6 billion to SR 8.7 billion over the same period. Education loans, on the other hand, increased by 33% to SR 5.9 billion.

Regarding consumer spending during the first half of 2022, the total value of point-of-sale transactions increased by 12.9% year on year, reaching SR 271.2 billion in June since the start of the year, compared to SR 240.3 billion over the same period in 2021. , SAMA data shown.

“Point-of-sale transactions increased in the first half of 2022 in items expected to increase with the gradual easing of lockdown restrictions such as food and beverages, restaurants and cafes, and goods and services,” revealed Ramady while pointing out that this trend was also apparent. in other countries coming out of lockdown.

The largest change in POS value between the first half of 2021 and 2022 was in “miscellaneous goods and services”, which increased by 42.6% from SR19.7 billion to SR28.2 billion. of SR during this period.

The “others” category in outlets, which accounts for 21.2% of total transaction value in the first half of 2022, jumped 33.6% from SR42.7 billion in the first half of 2021 to 57 SR.1 billion in the first half of 2022.

“‘Others’ in outlets captures general sales of personal services, including home delivery and uber services not captured in the broader elements,” Ramady clarified.

Food and beverages, another component that accounts for a large 14.7% share of POS sales, posted a 14.8% increase from SR 35.8 in June since the start of the last year to SR 41.0 billion in June this year.

On the other hand, restaurants and cafes increased by 31.4% from SR 28.3 billion in the first half of 2021 to SR 37.2 billion in the first half of 2022.


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