Derayah Financial Company announces its Interim Financial results for the Period Ending on 30-06-2026 (Six Months)

• Revenue: Revenue increased by 2.3% year-on-year (YoY) to SAR 240.6 million in 2Q FY26.

• Operating expenses: Increased by 15.9% YoY to SAR 108.0 million reflecting the Company's continued investment in strategic growth initiatives, technology, and product development. This increase in cost to income ratio of 45% is temporary as these investments are expected to support future operating leverage by enabling the Company to scale its platform, accelerate the rollout of new products and services, and drive long-term revenue and profitability growth.

• Operating Profit: Reached SAR 132.6 million, a decline of 6.7% YoY, as operating expenses grew at a faster pace than revenue. Despite this, operating profitability remained healthy, with an operating margin of 55%, demonstrating the resilience of the underlying business model.

• Share of results from associate: The Company recognized a SAR 27.6 million share of loss from its investment in D360 Bank, compared with SAR 38.4 million in the same period last year, reflecting a 28.0% YoY decrease, as the Bank continues to invest in scaling its business.

Since commencing commercial operations in December 2024, D360 Bank has demonstrated strong commercial momentum, reaching more than 3 million customers, SAR 3.6 billion in customer deposits, and SAR 500 million in disbursed loans as of end-June 2026. Building on this progress, the Bank recently launched a capital increase targeting raising SAR 1.50 billion at a pre-money valuation of SAR 4.50 billion (USD 1.20 billion) on a fully diluted basis, with Derayah contributing SAR 100 million as part of its continued support for the Bank's long-term growth strategy.

Strengthened by this additional capital, D360 Bank is entering its next phase of development, transitioning from its initial build-out to scaled operations. The Bank's strategic focus is shifting toward expanding its lending portfolio, enhancing monetization, and further diversifying its revenue streams.

The strong growth in both asset management and special commission income increased the contribution of recurring income, further enhancing the quality of the Company's earnings.

• Revenue increased by 5.6% quarter-on-quarter (QoQ) to SAR 240.6 million in 2Q FY26 supported by continued growth in recurring revenue streams and higher investment gains.

• Operating expenses increased by 8.9% QoQ to SAR 108.0 million, largely due to higher personnel costs from new hires and increased spending on IT expenses as well as higher marketing spend as part of our strategic investments. This has led to a temporary spike in cost to income ratio to 45% as these investments are expected to support future operating leverage by enabling the Company to scale its platform, broaden its product offering, and drive long-term revenue growth.

• Operating Profit recorded a 3.0% QoQ increase to SAR 132.6 million, while maintaining a strong operating margin of 55%.

• Share of results from associate: The Company recorded a loss of SAR 27.6 million from its investment in the digital bank D360, down from SAR 29.7 million in 1Q FY26. The sequential decline in losses is in line with management's guidance and reflects the bank's continued progress in executing its operating plan, alongside the ongoing expansion of its business and improving operating efficiency.

This performance was partially offset by lower asset management revenue, primarily reflecting reduced subscription fees as challenging geopolitical conditions throughout 1H26 delayed the launch of funds within the Company's product pipeline.