The total value of mortgage loans from finance companies for the second quarter of 2023 was approximately 27 billion riyals, a slight increase from the same period in 2022, when the figure exceeded 26.7 billion riyals, while in 2021 it stood at approximately 25.4 billion riyals, according to data released by the Saudi Central Bank.
4.1 billion riyals in personal loans
Personal real estate loans from finance companies declined in the second quarter of 2023, reaching 4.1 billion riyals, compared to the second quarter of 2022, when they stood at approximately 4.4 billion riyals, and a slight increase compared to the same period in 2021, when they stood at 4 billion riyals.
22.9 billion riyals in corporate loans
corporate loans to real estate companies from finance companies for the second quarter of 2023 at approximately 22.9 billion riyals, compared to 22.2 billion riyals for the second quarter of 2022, while they stood at 21.3 billion riyals for the second quarter of 2021.
Decline in Profitability Index
On the other hand, profitability indicators for the finance companies sector declined, with the return on assets falling to 0.62 % in the first quarter of 2023, compared to 1.65 % in the same period of 2022—its highest level during that period—and the return on equity fell to 1.67 % compared to 4.03 % in the same period of 2022. Net income for finance companies fell to 379 million riyals in the first quarter of 2023, compared to 893 million riyals in the same period of 2022.
The Central Bank’s role is to supervise and regulate finance companies in general, including mortgage finance companies, to ensure the soundness of their financial positions, protect the rights of customers, and establish policies to regulate mortgage financing. In addition, it oversees the technical aspects of subsidized financing products offered by mortgage lenders to ensure compliance with credit and risk management policies, thereby safeguarding the stability of the financial system and the fairness of transactions.
Mortgage Loans
