Derayah Financial (4984) Q2 2026 earnings summary

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 approximately 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.

• Recurring revenue share increased by 8 percentage points year-on-year to 44.7%, indicating a more resilient revenue model.

Financial highlights

• Operating income for H1 2026 reached SAR 468 million, up 5% year-on-year; Q2 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, but up sequentially from SAR 97 million to SAR 101 million.

• Special commission income surged 70% year-on-year to SAR 135 million in H1 2026.

• Brokerage revenue declined 3% year-on-year to SAR 261 million; asset management revenue fell 8% year-on-year to SAR 58 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.

Outlook and guidance

• Strategy 2030 targets include growing client accounts to 1.1 million, tripling AUM to SAR 60 billion, doubling revenue to SAR 2 billion, and increasing recurring revenue share to 55% by 2030.

• Return on equity targeted above 42% by 2030.

• Peak investment in technology and marketing expected in 2026-2027, with normalization thereafter.

• Dividend policy to maintain at least 60% payout through 2027, with quarterly distributions.

• 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.