Derayah Financial (4984) investor relations material

Executive summary

• Operating income grew 5% year-on-year in H1 2026 to SAR 468 million, driven by client growth, special commission income, and recurring revenue expansion, despite geopolitical uncertainty and risk-off sentiment.

• Net profit for H1 2026 was SAR 198 million, down 7% year-on-year, reflecting increased investments in technology, marketing, and platform capabilities.

• Customer base grew by over 40,000 in H1, reaching 660,000 clients, with total client assets rising 5% year-to-date to about SAR 60 billion.

• Assets under custody increased 10% year-on-year to SAR 37 billion, while assets under management remained stable at SAR 22 billion.

• Strategy 2030 targets 1.1 million clients, tripling AUM, doubling revenue, and ROE above 42%.

Financial highlights

• Operating income for H1 2026 was SAR 468 million, up 5% year-on-year; Q2 operating income was SAR 240 million, up 2% year-on-year and 6% sequentially.

• Net profit for H1 2026 was SAR 198 million, down 7% year-on-year; Q2 net profit was SAR 101 million, up 4% sequentially.

• Special commission income surged 70% year-on-year to SAR 135 million.

• Cost-to-income ratio increased to 44.4% in H1 2026, up 6 percentage points year-on-year, due to higher IT and marketing spend.

• Recurring revenue share increased to 44.7% in H1 2026, up 8 percentage points year-on-year.

Outlook and guidance

• Strategy 2030 aims to double operating income, triple AUM, increase recurring revenue share to 55%, and reach over 1 million clients by 2030.

• Asset and Wealth Management expected to drive most growth, with AUM targeted to triple over four years.

• Technology investments to peak in 2026-2027, with normalization expected from 2028.

• Minimum 60% payout ratio for FY 2026 and FY 2027, with quarterly distributions through 4Q 2027.

• Plans to launch SAR 1.5 billion in real estate funds and SAR 750 million in alternative investment funds over the next 9-12 months, subject to market conditions.