Consumer loans decreased by 0.40% during Q2 to SR 443.9 ‎billion ‎

According to recent data, the total consumer loans granted by banks decreased by a slight percentage of 0.40% to 443.9 billion riyals during the second quarter of 2023, compared to 445.7 billion riyals in the same period of 2022, according to the bulletin of the Central Bank of Saudi Arabia.

The loans were distributed among a number of activities, and the (other activities) classification accounted for the largest share, with a value of 405.1 billion riyals in the second quarter, compared to 402.2 billion riyals, an increase of 0.7% while loans for real estate restoration and improvement activities decreased to 11.7 billion riyals, compared to 15.2 billion riyals in the same period of 2022, a decrease of 22.5%. This was followed by the activity of cars and personal transportation, where its loans decreased to 10.8 billion riyals in the second quarter, compared to 12.3 billion riyals in the corresponding period, a decline of 11.7%.

Consumer loans for furniture and durable goods activity amounted to 8 billion riyals in the second quarter, compared to 8.6 billion riyals in the second quarter of 2022, a decrease of 6.8% while consumer loans for education activity increased to 6.6 billion riyals in the second quarter, compared to 5.9 billion riyals in the same period in 2022, with an increase rate of 12%. The tourism and travel activity brought about an increase in consumer loans, as its share reached 834 million riyals in the second quarter, while in the same period last year it was 750 million riyals, an increase of 11.2%. The health care activity concluded the activities that had consumer loans worth 533 million riyals in the second quarter of 2023, compared to 583 million riyals in the same period of 2022, with a decrease in consumer loans for health care activity by 8.5%.

In March 2022, Mal monitored an increase in the level of consumer loans in the Kingdom in the last five years by approximately 35%, as a result of citizens’ trend towards different patterns of consumption, with the consumer spending bill in the Kingdom accelerating.

Individuals’ demand for consumer loans or credit card loans also increases with the increase in inflation levels in the Kingdom to meet their daily needs for various goods and services.