Derayah Financial (4984) Q4 2024 earnings summary

Executive summary

• Raised SAR 1.5 billion ($400m) in IPO with 15x subscription coverage, strong institutional demand, and a market capitalization of approximately #7.5 billion.

• Achieved record operating income of SAR 877m in 2024, up 41% year-over-year, and net income of SAR 444m, with a net profit margin of 50.6%.

• Client accounts grew 23% year-over-year to 532,000, and assets under management surged 66% to #17.2 billion.

• Pioneered technology-led services, including full digital onboarding, robo-advisory, and a strategic stake in digital bank D360.

Financial highlights

• Total operating income reached SAR 877m in 2024, up 41% year-over-year; operating profit was SAR 518m.

• Net income for 2024 was SAR 444m, with a 44% CAGR from 2020-2024 and a net profit margin of 50.7%.

• Efficiency ratio improved to 40.9% in 2024; cost-to-income ratio also at 40.9%.

• Return on average equity reached 50.2% in 2024.

• Dividend payout ratio was 66% in 2024.

Outlook and guidance

• 2024 group operating income growth was 41%; medium-term guidance targets ~10% annual growth.

• Brokerage revenue expected to grow 7-8% annually; asset management revenue 22-24%; special commission income 7-8%.

• Efficiency ratio targeted at 38-40% and return on equity at 44-46% in the medium term.

• Dividend payout ratio to remain above 60% from 2025, subject to market and regulatory conditions.

• Growth strategy focuses on enhancing product and technology offerings, expanding into institutional trading, and diversifying revenue streams.