Bank credit across all segments of the market increased 10.7% y-o-y to SAR 2.7 tn in 1Q 2024, according to the latest SAMA monthly statistical bulletin (pdf).

The segments leading the charge: Personal loans accounted for almost 47.6% of all credit handed out by local banks in 1Q. Meanwhile, corporate credit to the real estate sector rose 27.2% y-o-y to SAR 275.2 bn in 1Q, borrowing by the wholesale and retail sector climbed 11% y-o-y to SAR 189.8 bn, and credit to manufacturers sector remained unchanged at SAR 173 bn.

Mortgage finance: New residential mortgages financed by banks in 1Q dipped 3% y-o-y to SAR 22.1 bn. Mortgage financing for houses fell 6.9% y-o-y to SAR 14.6 bn, while that of apartments rose to SAR 6.2 bn, up 5.1% y-o-y. Land mortgages rose 10.3% y-o-y to SAR 1.3 bn in 1Q 2024. Mortgages have led banks’ lending growth in the Kingdom over the past five years, S&P Global said earlier this week.

Consumer loans remained essentially unchanged at SAR 450 bn last quarter, inching down 0.7% from the same quarter last year. Car loans accounted for the lion’s share at SAR 6.7 bn, followed by home improvement at SAR 10.6 bn, education (SAR 8.1 bn), furniture and durable goods (SAR 8 bn), tourism (SAR 990 mn) and healthcare at (SAR 512 mn).

Total credit card loans rose 15.7% y-o-y to SAR 27.3 bn in 1Q.

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