Morabaha Marina Financing Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Morabaha Marina Financing Company reported a consolidated net loss of SAR 27.88 million for the six-month period ended June 30, 2026, a significant increase from the SAR 216,090 loss recorded in the same period of 2025. For the second quarter alone, the net loss widened to SAR 24.26 million compared to SAR 2.89 million in Q2 2025.
Total operating income for the first half of 2026 declined by approximately 20% to SAR 70.34 million, down from SAR 87.81 million in the previous year. This performance was impacted by a drop in special commission income, which fell from SAR 105.14 million to SAR 85.23 million YoY.
Financial results were heavily pressured by a 55% increase in impairment losses on Islamic financing receivables, which rose to SAR 51.86 million from SAR 33.37 million YoY. These rising credit costs, combined with a decline in net special commission income, led to total operating expenses of SAR 98.05 million exceeding operating income.
The company's balance sheet saw a contraction in lending activity, with net Islamic financing receivables decreasing to SAR 1.01 billion as of June 30, 2026, compared to SAR 1.19 billion at the end of 2025. Total assets subsequently dec

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	38,534,427	52,975,079	-27.259	46,692,435	-17.471
Gross Profit (Loss)	27,784,404	43,060,776	-35.476	35,561,307	-21.869
Operational Profit (Loss)	-23,983,795	-2,202,632	988.869	-3,169,971	656.593
Net Profit (Loss) Attributable to Shareholders of the Issuer	-22,874,600	-1,243,840	1,739.03	-3,509,973	551.703
Total Comprehensive Income Attributable to Shareholders of the Issuer	-22,874,600	-1,046,882	2,085.021	-3,509,973	551.703
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	85,226,862	105,142,775	-18.941
Gross Profit (Loss)	63,345,711	83,280,869	-23.937
Operational Profit (Loss)	-27,153,766	1,094,869	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	-26,384,574	2,975,926	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-26,384,574	3,172,884	-
Total Shareholders Equity (after Deducting Minority Equity)	802,963,932	833,685,753	-3.685
Profit (Loss) per Share	-0.38	0.04
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Revenue decreased by 27.26% to reach SAR38.53 million during the current quarter compared to the corresponding period of the previous year, mainly due to the decrease in financing amounts granted to customers, in addition to the impact of non-performing loans.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The decrease in net profit by 1,739.03% to a net loss of SAR22.87 million during current quarter compared to corresponding period in prior year is due to the decrease in revenues, and an increase in impairment losses, partially offset by a decrease in losses from the subsidiary (Loop).
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Revenue decreased by 17.47% to reach SAR38.53 million during the current quarter compared to the previous period, primarily due to the decrease in financing amounts granted to customers in addition the impact of non-performing loans.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The decrease in net profit by 551.70% to a net loss of SAR22.87 million is due to a decrease in revenues and an increase in impairment losses.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Revenue decreased by 18.94% to reach SAR85.23 million during the current period compared to the corresponding period of the previous year, mainly due to the decrease in financing amounts granted to customers, in addition to the impact of non-performing loans.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The decrease in net profit to a net loss of SAR26.38 million during current period compared to corresponding period in prior year is due to the decrease in revenues, and an increase in impairment losses, partially offset by a decrease in losses from the subsidiary (Loop).
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	N/A
Reclassification of Comparison Items	In accordance with IAS 8, management has restated the comparative figures to adjust prior year consolidated financial statements: 1- Reclassification of transaction cost amortization from special commission expenses to special commission income,aligning with IFRS 9 effective interest method requirements. 2- Reclassification of repossessed assets held for sale back to Islamic financing receivables, as the company had not completed the foreclosure process nor obtained control over the underlying collateral. These disclosures strengthen the transparency of the company’s financial reporting and ensure compliance with applicable IFRS requirements.
Additional Information	1- In accordance with IAS 8, management has restated the comparative figures to adjust prior year consolidated financial statements: A. Separate disclosure of special commission income received, in accordance with IAS 7 “Statement of Cash Flows”, as this was not previously disclosed separately and the related movement was included within the movement of Islamic financing receivables 2- The company revised its ECL assumptions to reflect heightened geopolitical uncertaintyresulting in an additional ECL charge of SAR 544,555 for the six-month period ended 30 June 2026. 3- IFRS 18, effective from 1 January 2027, will replace IAS 1 and has not been early adopted by the company. Based on management’s preliminary assessment, its adoption is expected to affect the presentation, classification, aggregation, disaggregation and disclosure of financial information, without affecting total profit or equity. Financing income and related funding costs are expected to be classified within the operating category, as Islamic financing represents the company’s specified main business activity. The company continues to assess the remaining impacts, including management-defined performance measures, cash flow presentation, comparative information and other consequential amendments. These disclosures strengthen the transparency of the company’s financial reporting and ensure compliance with applicable IFRS requirements.
Attached Documents	Attached Documents