Saudi consumer loans register highest record at SR358bn in Q3

The volume of consumer loans given by Saudi local banks hit the highest record when it rose by 7 percent to SR358.2 billion in Q3, 2014 compared to SR334.9 billion in the same period in 2013, according to a financial report.
The consumer loans jumped by 32 times in a 17-year period where they stood at SR11.2 billion in 1998, or more than 3,100 percent, the report filed and analyzed by Al-Eqitisadiah daily, said.
In addition to credit card loans, consumer loans are composed of three major sections: They are meant to purchase cars and equipment, property and other consumer items, the report said.
Loans given to purchase car and equipment captured 20 percent of the total consumer loans by the end of Q3, 2014, at SR 70.2 billion whereas property loans captured 10 percent at SR37.5 billion. Meanwhile, loans to purchase other consumer items had the lion’s share of the loans, or 67 percent, to reach SR240.7 billion, the report said.
On the other hand, loans for credit cards accounted for 3 percent of the total consumer loans by the end of Q3, 2014, or SR9.8 billion, the report said.
In the last 17 years, consumer loans grew steadily where they rose from SR11.2 billion in 1998 to hit SR188 billion by the end of 2006 but, however, dropped slightly to SR187.7 billion and SR183.4 billion in 2007 and 2008, respectively, the report said.
Since 2009, the consumer loans have registered continued growth to stand at SR188.5 billion by the end of 2009 and rose to SR207.2 billion and SR250 billion in 2010 and 2011, respectively.
Likewise, consumer loans grew to SR281.5 billion in 2012 and SR340.5 billion in 2013 and to a record of SR358.2 billion by the end of Q3, 2014, the report said.