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

CAIRO: Consumer lending by Saudi commercial banks increased by 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 revealed.

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% respectively year-on-year. 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 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.

FAST FACTS

• Home renovation and improvement, which accounts for 3.4% of the 10%, declined by 31.4% to SR15.2 billion as of June 30, 2022, from SR22.2 billion one year ago.

• Car loans declined by 20.6% year-on-year from SR 15.5 billion to SR 12.3 billion during the review period.

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 30 June 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.

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.

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 SR 19.7 billion to SR 28.2 billion. of SR during this period.

“Others,” which accounts for 21.2% of total POS transaction value in H1 2022, the highest share for any category, jumped 33.6% from SR42.7 billion in H1 2021 to SR 57.1 billion in the first half of 2022.

Food and beverages, another component that accounts for a large 14.7% share of point-of-sale 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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