Derayah Financial (4984) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 performance with operating income up 13% YoY to 238 million, driven by brokerage and investment income, despite a soft local market.

• Client accounts reached 603,000 (+13% YTD), with client assets surpassing SAR 55 billion and AUC up 24% YTD to 37.4 billion.

• Core net profit (excluding D360) increased 8% YoY to 412 million, while reported net profit declined 7% YoY to 313 million, impacted by associate losses.

• Brokerage leadership reaffirmed, with non-margin traded value up 22% YoY and brokerage revenue up 12% YoY to 408 million.

• Regulatory reforms and new product launches, including the Share Yield Enhancement Program (SYEP), are expected to drive long-term growth.

Financial highlights

• Q3 operating income reached SAR 238 million, up 13% YoY; nine-month operating income totaled SAR 682 million, up 6% YoY.

• Operating profit for 9M 2025 was 410 million (+7% YoY); core net profit (ex-D360) at 412 million (+8% YoY).

• Brokerage revenue rose 12% YoY in 9M 2025 to 408 million; asset management fees declined 7% YoY.

• Special commission income for 9M 2025 was 138 million, down 11% YoY, but up 27% YoY in 3Q 2025.

• Cost-to-income ratio improved to 39.8%, and capital adequacy rose to 29.2%.

Outlook and guidance

• Regulatory changes, including removal of QFI and relaxed foreign ownership limits, are expected to boost market activity and expand the addressable market.

• Medium-term guidance targets ~10% total operating income growth and 38-40% efficiency ratio.

• Dividend policy targets at least 1.30 per share for 2025 and 60% payout of distributable profits for 2026 and 2027.

• D360 bank expected to break even by 2027, with positive contribution from 2028.

• New fund launches and expansion into institutional investor space anticipated to drive future AUM and revenue growth.