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Bank credit across all segments of the market rose 11.4% y-o-y to SAR 2.8 tn in 2Q 2024, according to EnterpriseAM Saudi calculations based on the latest Sama monthly statistical bulletin (pdf).
The segments leading the charge: Personal loans accounted for almost 47% of all credit handed out by local banks in 2Q and grew 7% y-o-y to SAR 1.3 tn. Corporate credit to the real estate sector rose 26.1% y-o-y to SAR 286.3 bn in 2Q, borrowing by the wholesale and retail sector climbed 8.4% y-o-y to SAR 195.9 bn. Manufacturers were extended SAR 175.2 bn in credit, up 1.2% y-o-y.
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Mortgage finance: New residential mortgages financed by banks in 2Q rose 8.3% y-o-y to SAR 18.3 bn. Mortgage financing for houses was up 4.4% y-o-y to SAR 12.2 bn, while that of apartments grew 22.4% to SAR 5.2 bn, and land mortgages fell 5.2% y-o-y to SAR 942 mn in 2Q 2024.
Consumer loans saw little change at SAR 452 bn in 2Q 2024, inching up 1.9% from the same quarter last year. Car loans accounted for the lion’s share at SAR 11.8 bn, followed by home improvement at SAR 10.1 bn, furniture and durable goods (SAR 8 bn), education (SAR 8 bn), tourism (SAR 991 mn), and healthcare at (SAR 493 mn).
Total credit card loans rose 20.6% y-o-y to SAR 30 bn in 2Q.
Commercial banks in Saudi saw their cumulative net income reach SAR 42.4 for 1H 2024, up from SAR 38.1 bn in 1H 2023. Net income in the sector grew 104.3% on a quarterly basis from SAR 20 bn in the preceding quarter. Also, total assets owned by commercial banks in 2Q 2024 increased by 10.2% amounting to SAR 4.2 tn, while total liabilities grew 2.6% to SAR 4.2 tn over the same period.
Bank lending to the private sector in 2Q 2024 increased by SAR 273.5 bn y-o-y to SAR 2.7 tn, while total bank credit grew by SAR 255 bn to SAR 2.6 tn over the same period.
Saudi’s international reserve assets recorded SAR 1.8 tn in June, growing 5.5% y-o-y to their highest level in 19 months, according to the data. The bulk of the assets (95%) are international currency holdings — which includes currency and deposits abroad as well as investments in foreign securities — amounting to SAR 1.7 tn. Special drawing rights, the IMF’s reserve position, and monetary gold follow.
