Cairo: Saudi Arabia’s finance companies have shown outstanding performance as their net worth reached SR67 billion ($17.85 billion) in 2021, a 26 percent increase from 2020, according to a report by the Saudi Central Bank. Also known as SAMA.
Total capital increased by 37 percent to SR19.6 billion in 2021 from SR14.3 billion in 2020.
The report said that net profit also increased by 114 percent to SR1.9 billion in 2021.
The credit portfolio stood at SR68.1 billion at the end of 2021, which is 26 percent higher than its value in 2020.
The new financing provided during 2021 was SR25.4 billion, an increase of 47 percent from 2020.
Shareholder equity rose 30 percent to SR25.5 billion in 2021 compared to SR19.6 billion in 2020, the report said.
Looking at the net profit breakdown by type of finance company, non-real estate ones recorded SR1.4 billion while real estate finance companies reported a net profit of SR0.4 billion in 2021.
Further, the share of non-real estate finance companies in the total credit portfolio was 62 per cent versus 38 per cent for real estate finance companies.
The breakdown of the credit portfolio by customer segment is 75 per cent for retail customers, 22 per cent for micro, small and medium enterprises and 3 per cent for corporates.
In terms of credit portfolio by priority sectors, residential real estate grew by 32 per cent, followed by auto-finance loans at 27 per cent and personal loans by 21 per cent.
Evaluating the breakdown of credit portfolios by economic activity, the top three sectors with the highest shares were trading at 21 per cent, construction at 20 per cent, services at 14 per cent and transportation and telecommunications at 9 per cent.
Another 22 per cent credit facilities went to other services which are not mentioned in detail.
For non-performing loans, their share in the total loan portfolio of real estate finance companies stood at 4.9 per cent in 2021, while for non-real estate finance companies the figure was more than double at 10.1 per cent. The total share of such loans for all finance companies stood at 8.6 per cent in 2021.
With respect to non-performing loans based on the type of activity financed, loans granted to finance instruments accounted for the highest share of 28.9 per cent in total lending provided for that particular activity, followed by auto finance at 12 per cent, other Activity and commercial real estate recorded at 8 per cent. each, consumer finance at 7 percent.
The share of non-performing loans granted for residential real estate stood at 4.1 per cent and credit card loans at 1.4 per cent, respectively.
As far as analyzing non-performing loans by customer type is concerned, the share of such loans was the highest in the corporate segment at 21 per cent, followed by MSMEs at 10.8 per cent and retail at 6.8 per cent.