Derayah Financial Co. announces its Interim Financial results for the Period Ending on 30-06-2025 ( Six Months )

• The Brokerage segment recorded a 17.9% YoY revenue increase, reaching SAR 135.2 million, up from SAR 114.6 million in 2Q FY24, benefitting from heightened market volatility and stronger trading activity. Non-margin traded values executed during the quarter through our platform exceeded SAR 120 billion, an 80% YoY increase, reflecting the strength of Derayah’s diversified brokerage platform, which continues to perform across varying market conditions.

• Asset management revenue increased by 8.2% to SAR 29.9 million, compared to SAR 27.6 million in the same quarter of last year. This was predominantly due to higher management fees on the back of a 13.8% YoY growth in assets under management (AUM) reaching SAR 17.2 billion by the end of 2Q FY25.

• Special commission income dropped to SAR 36.9 million, down from SAR 65.8 million in 2Q FY24, affected by lower benchmark rates and a decline in securities lending revenues.

• Investment gains totaled SAR 30.0 million in 2Q FY25, up from SAR 3.8 million in 2Q FY24 driven primarily by positive revaluation of private investments.

• Revenue: increased by 10.7% YoY to SAR 235.0 million in 2Q FY25, primarily due to strong performance in both brokerage operations and asset management business alongside gains on investments, which was partially offset by lower special commission income.

• Operating expenses: Declined by 14.4% YoY to SAR 93.6 million, despite a marginal YoY increase in employee and marketing expenses, reflecting ongoing investment in growth initiatives.

• Operating Profit: Reached SAR 141.4 million, an increase of 37.3% YoY, on higher revenue and lower expenses. Operating profitability remained strong, with an operating profit margin of 60.2%.

• Net profit, excluding losses from associates, stood at SAR 145.4 million in 2Q FY25, reflecting an 35.8% YoY increase from the SAR 107.1 reported in 2Q FY24.

• Share in losses in an associate: The Company recorded a loss of SAR 38.4 million from its investment in the digital bank D360, compared to SAR 15.2 million same quarter last year. This higher loss comes in line with expectations as the bank ramps-up its commercial operations.

• Revenue from the Brokerage segment remained broadly stable at SAR 135.1 million for the quarter. While non-margin traded value on our platform exceeded SAR 120 billion, representing a 33% increase QoQ, the positive volume impact was offset by a shift in traded securities mix.

• Asset management revenue declined by 9.3% QoQ to SAR 29.9 million, due to a 5.4% drop in AUM, driven mainly by market-related valuation effects.

• Special commission income declined 13.0% QoQ mostly on lower interest income on cash balances.

• Investment gains totaled SAR 30.0 million in 2Q FY25, compared to a loss of SAR 2.1 million in 1Q FY25, driven primarily by positive revaluation of private investments.

• Revenue increased by 12.2% quarter-on-quarter (QoQ) to SAR 235.0 million in 2Q FY25, predominately on investment gains.

• Operating expenses increased by 20.7% to SAR 93.6 million, largely due to higher personnel costs from new hires and increased spending on IT expenses as part of ongoing infrastructure enhancements. Despite this marginal increase, operating leverage remained healthy with cost-to-income ratio at 39.8%.

• Operating Profit recorded a 7.2% QoQ increase to SAR 141.4 million, maintaining a strong operating margin of 60.2%.

• Net profit, excluding losses from associates stood at SAR 145.4 million in 2Q FY25 compared to SAR 130.3 million in previous quarter – an increase of 11.6% QoQ.

• Share in loss in associate: The Company recorded a loss of SAR 38.4 million from its investment in the digital bank D360, up from SAR 24.1 million in 1Q FY25, as the bank continues scaling up operations.

Net profit excluding losses from associates, which reflects the performance of the core operations of Derayah stood at SAR 275.7 million in 1H FY25 compared to SAR 254.3 million in same period last year – an increase of 8.5% YoY. This solid operating performance was supported by 7.3% YoY growth in operating profit, driven by continued revenue momentum coupled with disciplined expense control.