Semi-Annual Performance Report Finance Companies Sector 2023

Semi Annual Performance of Finance

Companies Sector and Real Estate
Refinance

2023

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Semi-Annual Performance Report Finance Companies Sector 2023

Content:
1. EXECUTIVE SUMMARY OF FINANCE COMPANIES __________________________________________ 2

2. FINANCE COMPANIES _____________________________________________________________ 3

3. CAPITAL _______________________________________________________________________ 4

4. BALANCE SHEET _________________________________________________________________ 4

5. FINANCING PORTFOLIO ____________________________________________________________ 4

6. PROFITABILITY __________________________________________________________________ 5

7. PROFITABILITY INDICATORS ________________________________________________________ 5

8. LEVERAGE _____________________________________________________________________ 5
9. COMBINED BALANCE SHEET ________________________________________________________ 6

10. CLASSIFICATION OF FINANCING PORTFOLIO _____________________________________________ 6

11. CLASSIFICATIONS OF FINANCING PORTFOLIO BY ECONOMIC ACTIVITY _________________________ 7

12. CLASSIFICATIONS OF FINANCING PORTFOLIO BY ACTIVITY _________________________________ 7

13. CLASSIFICATIONS OF FINANCING PORTFOLIO BY PROPERTY TYPE ____________________________ 8

14. CLASSIFICATIONS OF CREDIT PORTFOLIO BY REGION______________________________________ 8

15. NON-PERFORMING LOANS OF FINANCING PORTFOLIO _____________________________________ 9

16. SAUDIZATION RATE AT ADMINISTRATIVE LEVELS IN FINANCE COMPANIES ______________________ 9

17. NUMBER OF FINANCE COMPANIES’ EMPLOYEES __________________________________________ 9

18. SAUDI REAL ESTATE REFINANCE COMPANY ____________________________________________ 10

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Semi-Annual Performance Report Finance Companies Sector 2023

1. EXECUTIVE SUMMARY of Finance Companies

Total Assets Paid-up Share Capital

62.4 15.4
9% 5%
Billion SAR Billion SAR Compared to the
Compared to the previous Year
previous Year

Net income Total Portfolio(1)

739 80.7
36% 7%
Million SAR Compared to the Billion SAR Compared to the
correspond period previous Year

Saudization Rate New Financing

Originations

86% 16.4
86% 22%
Of Total Employee Billion SAR
Rate in the previous Compared to the
Year previous Year

to the correspond
period
(1)
Including On and Off balance sheet

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Semi-Annual Performance Report Finance Companies Sector 2023

2. Finance Companies (included in the report(

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Semi-Annual Performance Report Finance Companies Sector 2023

3. Capital

Total Paid-up Share Capital

Billion SAR

15.04 15.36
14.26 14.51 14.64
12.83

H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023

4. Balance Sheet

Balance Sheet
62.36
55.03 57.02
53.49
50.05
45.58

34.67 39.2
33.27
Billion SAR

29.64 33.09
27.52

20.41 20.40 21.76 22.35 23.16

18.06

H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023

Total Equity Total Liabilities Total Assets

5. Financing Portfolio

Total Portfolio
"By Financed Sector "
80.7
72.6 75.4
68.1 2.3
61.6 2.2 2.2 17.3
54.1 2.2 15.4 15.8
2.1 14.6
1.8 13.5
Billion SAR

11.9
55.0 57.5 61.1
46.0 51.2
40.4

H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023

Retail MSME's Corporate - Non SME's Total Portfolio

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Semi-Annual Performance Report Finance Companies Sector 2023

6. Profitability

Net Income
Million SAR

1,088 1,153
729 712 739
548

H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023

7. Profitability Indicators

Profitability indicators H1-2022 H1-2023

Return on Assets (ROA) 2.1% 1.2%

Return on Equity (ROE) 5.3% 3.2%

Return on Capital 7.7% 4.8%

8. Leverage

Finance Companies Sector: 2.24 times

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Semi-Annual Performance Report Finance Companies Sector 2023

9. Combined Balance Sheet (in Billion SAR)

2022 H1-2023 Change 2022 H1-2023 Change

Total current assets 21.46 24.23 11% Total current liabilities 18.57 19.66 6%

Total long-term assets 35.56 38.14 7% Total long-term liabilities 16.10 19.54 21%

Total liabilities 34.67 39.21 13%

Paid-up capital 14.64 15.36 5%

Total reserves 1.90 1.76 -7%

Retained earnings 5.79 6.03 4%

The net change in fair value of
0.01 0.01 0%
investments
Total equity 22.35 23.16 4%

Total assets 57.02 62.37 9% Total liabilities and equity 57.02 62.37 9%

10. Classification of Financing Portfolio

Classification of Finance Portfolio Classification of Finance Portfolio

"by Financed Activity"
"On and Off-Balance Sheet"
Residential real estate
On-balance sheet
finance
financing portfolio 2% 12% Commercial real estate
11.9% finance
28% Auto finance
Off-balance sheet
21.3% financing portfolio (sold
Credit card finance
27%
and under company 5% Personal finance
66.8% management)
Off-balance sheet Equipment
25%
financing portfolio (proxy 1%
contracts) Other

Retail Financing Portfolio Retail Financing Portfolio Retail Financing Portfolio

"By Income" " By Employer Type" " By Age"
Younger than 30
5,000 or less Government years
3.1%
9% sector
10.2% 16.9%
24.4% 15.5%
5,001 to 10,000 8% Private sector
Older than 30 years
to younger than 50
26.2% 10,001 to 15,000 50% years

14.8% Self-employed Older than 50 years

33% to younger than 60
15,001 to 20,000 years
24.4% Retired 64.5% Older than 60 years
More than 20,000

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Semi-Annual Performance Report Finance Companies Sector 2023

11. Classifications of Financing Portfolio by Economic Activity

Transport and Services Commerce Building and

Communications Construction

Agriculture Mining Electricity Manufacturing

and Fishing and Water

Other Finance

12. Classifications of Financing Portfolio by Activity (1) (in Billion SAR)

Commercial Residential Real

Credit Cards Auto
Real Estate Estate

Other Equipment Consumer Finance

(1)
Performnce of financing portfolio compared with 2022

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13. Classifications of Financing Portfolio by Property Type

Classifications of Finance Portfolio by Classifications of Finance Portfolio

Property Type (Commercial) by Property Type (Residential)

Land plots 1%

7% Commercial 3% Villas
9% buildings
Other
24% Apartmen
39%
13% 4.1 Billion Office buildings
22.9 Billion ts

SAR Land
Villas SAR
plots
13% 2222 Apartments 72% Other
19% Malls
2222

14. Classifications of Credit Portfolio by Region

Ha’il
Al-Jawf
1.1% Qassim
0.4% 2.2%
Tabuk Northern borders Riyadh
1.6% 1.1% 39.8%

Eastern Region

19%
Madinah
3.1%

Makkah
24%

Baha Asir
0.4%
4.7%
Jazan Najran

1.9% 0.7%

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Semi-Annual Performance Report Finance Companies Sector 2023

15. Non-Performing Loans of Financing Portfolio

Finance companies sector %

Total finance companies sector 6.4%

16. Saudization Rate at Administrative Levels in Finance Companies

Saudization Rate at Administrative Levels

95.2% 94.3% 99.3%

87.1% 89.4% 86.5% 83.8%
73.7%

Sales Credit and Internal audit Finance Human Complaince Operations Other
risks resources

17. Number of Finance Companies’ Employees

Total Employees Saudi Employees Saudization Rate

6,074 5,218 86%

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Semi-Annual Performance Report Finance Companies Sector 2023

18. Saudi Real estate Refinance Company

Balance Sheet of Saudi Real Estate Refinince Company

25.03
21.00
18.65
13.40
Billion SAR

11.39 19.75
13.50 15.80
7.52
6.36 8.30
6.02
5.03 5.10 5.15 5.20 5.28
1.50
H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023
Total Equity Total Liabilities Total Assets

Net Income of Saudi Real Estate Refinince Company

Million SAR

80.51
66.12
40.80 49.73 52.45
28.63

H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023

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