‏“‏SAMA”: return on capital index in financing companies ‎increased to 12.7% in 2022‎

Data published by the Saudi Central Bank “SAMA” for the financing companies sector for the year 2022 showed a decrease in the return on assets and return on equity indices, while only the return on capital index increased.

In the details, the return on capital index in financing companies increased to 12.7% in 2022 compared to 12.4% in 2022, as financing companies other than real estate recorded an increase in return on capital by 0.5%, reaching 14% in 2022. Compared to 13.5% in 2021, while this indicator for real estate finance companies decreased by 8.9% in 2022 compared to 9.5% in 2021.

The return on assets index in financing companies, in general, recorded a decrease of 0.1% during the year 2022 AD, reaching 3.3% compared to the 3.4% recorded in 2021, and the return on assets in real estate finance companies decreased to 2.4% in 2022 compared to 2.6% in 2021, as for financing companies other than real estate, the return on assets recorded a slight decrease, to be at 3.5% in 2022 compared to 3.6% in 2021.

The return on equity index in financing companies decreased to 8.3% in 2022 compared to 8.8% in 2021, and the return on equity index for real estate finance companies recorded the highest percentage of decline in the returns indicators for the financing sector, with a decline of 0.7%, but it remained acceptable at 6.4% in 2022 compared to 7.1% in 2021, and non-real estate financing companies for the same indicator recorded a decrease of 8.9% in 2022, compared to 9.4% in 2021.

On the other hand, the report revealed that the residential real estate financing activity topped the classification of the financing portfolio for the financed activities by 30%, followed by the personal financing and vehicle financing activities with the same percentage of 25.4%, then other activities by 10%, the commercial real estate financing activity by 6% and the equipment activity. Finally, credit card financing activity increased by 2%, at a rate of 1.2%, and the aforementioned

The report indicated that, according to the classification of the financing portfolio inside and outside the budget, the share of the financing portfolio within the budget amounted to 64%, and as for the financing portfolio outside the budget, it was divided into two parts (sold and under the management of the company) and its share amounted to 23%, and (sale contracts by proxy). with a share of 13%. Most of the indicators of the financing companies sector achieved growth rates at varying rates in the Kingdom during the year 2022, as the total financing portfolio amounted to 75.45 billion riyals, a growth of 10.8% compared to the previous year.