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

Nayifat Finance Co. reported a net profit of 36.9 million SAR for the quarter ending June 30, 2026, representing a significant 136.97% increase year-on-year and a 59.21% rise over the previous quarter.
For the first six months of 2026, the company achieved a total net profit of 60.1 million SAR, a 53.58% increase compared to the same period in 2025, driven by higher earnings per share of 0.52 SAR versus 0.33 SAR previously.
Revenue for the current quarter decreased by 11.15% to 73.5 million SAR as the company strategically shifted toward higher credit quality customer segments and saw a reduction in the net financing portfolio due to premature settlements.
The growth in net profit despite lower revenues was primarily driven by reduced operating expenses and successful recovery efforts, which resulted in a net reversal of the expected credit loss (ECL) allowance.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	73,502	82,725	-11.148	82,224	-10.607
Gross Profit (Loss)	60,680	72,266	-16.032	68,380	-11.26
Operational Profit (Loss)	42,186	20,371	107.088	26,126	61.471
Net Profit (Loss) Attributable to Shareholders of the Issuer	36,898	15,571	136.966	23,176	59.207
Total Comprehensive Income Attributable to Shareholders of the Issuer	36,898	15,571	136.966	23,176	59.207
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	155,726	169,903	-8.344
Gross Profit (Loss)	129,060	150,055	-13.991
Operational Profit (Loss)	68,312	48,917	39.648
Net Profit (Loss) Attributable to Shareholders of the Issuer	60,074	39,117	53.575
Total Comprehensive Income Attributable to Shareholders of the Issuer	60,074	39,117	53.575
Total Shareholders Equity (after Deducting Minority Equity)	1,299,591	1,436,212	-9.512
Profit (Loss) per Share	0.52	0.33
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Thousands) 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	The decrease in revenues during the current quarter compared to the corresponding quarter of last year is primarily attributable to the Company's continued focus on enhancing portfolio quality through a shift toward higher credit quality customer segments, together with a reduction in the net financing portfolio resulting from premature settlements that no longer contribute to financing revenues.
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 increase in net profit during the current quarter compared to the corresponding quarter of last year was primarily driven by lower operating expenses, together with the positive impact of the Company's continued recovery efforts, which contributed to higher recoveries and a net reversal of expected credit loss allowance.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The decrease in revenues during the current quarter compared to the previous quarter primarily reflects the Company's continued strategy of strengthening portfolio quality through selective customer acquisition, together with the impact of premature settlements on the consumer financing portfolio.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The increase in net profit during the current quarter compared to the previous quarter was driven by the positive impact of the Company's continued recovery efforts, which contributed to higher recoveries and a net reversal of expected credit loss allowance.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The decrease in revenues during the current period compared to the corresponding period of last year is primarily attributable to the Company's continued focus on enhancing portfolio quality through a shift toward higher credit quality customer segments, together with a reduction in the net financing portfolio resulting from premature settlements that no longer contribute to financing revenues.
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 increase in net profit during the current period compared to the corresponding period of last year was primarily driven by lower operating expenses, together with the positive impact of the Company's continued recovery efforts, which contributed to higher recoveries and a net reversal of expected credit loss allowance.
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)	NA
Reclassification of Comparison Items	NA
Additional Information	NA