On 2026-08-04 08:08:48 (Saudi Time), Derayah Financial Company announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026 (1H FY26), revenue increased 5.3% YoY to SAR 468.56 million, primarily driven by strong growth in special commission income supported by higher assets under custody (AUC), which rose 5.4% YoY to SAR 37.0 billion, while brokerage revenue remained broadly flat despite the introduction of zero-commission trading; this was partially offset by lower asset management revenue due to reduced subscription fees as geopolitical conditions delayed fund launches. Net profit declined 6.7% YoY to SAR 197.787 million, as operating profit fell 4.9% YoY to SAR 261.35 million, driven by operating expenses growing faster than revenue reflecting continued investment in strategic growth initiatives, technology, and product development aligned with the Company's Strategy 2030. Additionally, the Company recognized a share of loss from its associate D360 Bank, though this decreased 28.0% YoY, as the bank continues to scale its operations since commencing commercial activities in December 2024.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 5.6% to SAR 240.6 million in 2Q FY26, driven by stronger special commission income from the scaling of the Stock Yield Enhancement Program, higher asset management revenue, and increased investment gains. Net profit grew 3.8% QoQ to SAR 100.8 million, as the revenue uplift was partially offset by an 8.9% QoQ rise in operating expenses to SAR 108.0 million, reflecting higher personnel costs from new hires, increased IT spending, and higher marketing expenditure. Operating profit increased 3.0% QoQ to SAR 132.6 million, maintaining a 55% operating margin. Additionally, the share of loss from associate D360 Bank narrowed to SAR 27.6 million from SAR 29.7 million in 1Q FY26, providing a further modest tailwind to net profit.

Other Items

The external auditor issued an unmodified conclusion with no additional comments, reservations, or adverse opinions noted. Certain comparative figures have been reclassified and restated to conform to the current presentation period, with further details available in note 31 of the interim condensed consolidated financial statements for the period ended 30 June 2026. Total shareholders' equity (after deducting minority equity) stood at SAR 1,231.919 million as of 30 June 2026, compared to SAR 1,121.51 million in the same period of the prior year, representing a 9.844% increase. Earnings per share for the current period were SAR 0.81, compared to SAR 0.87 in the same period of the prior year. No material risks, going concern uncertainties, debt covenant breaches, or accumulated losses were disclosed in this announcement.

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