Derayah Financial (4984) investor relations material

Executive summary

• Operating income grew 5% year-on-year in H1 2026 to SAR 468 million, driven by client growth, special commission income, and recurring revenue expansion, despite geopolitical headwinds and risk-off sentiment.

• Net profit for H1 2026 was SAR 198 million, down 7% year-on-year, reflecting increased investments in technology, marketing, and platform capabilities.

• Customer base grew by approximately 40,000 in H1, reaching 660,000 clients, with total client assets rising 5% year-to-date to about SAR 60 billion.

• Assets under custody rose 10% year-to-date to SAR 37 billion, while assets under management remained stable at SAR 22 billion.

• Strategy 2030 targets 1.1 million clients, tripling AUM, doubling revenue, and increasing recurring revenue share to 55% by 2030, with ROE above 42%.

Financial highlights

• Operating income for H1 2026 was SAR 468 million, up 5% year-on-year; Q2 operating income was SAR 240 million, up 2% year-on-year and 6% sequentially.

• Net profit for H1 2026 was SAR 198 million, down 7% year-on-year but up sequentially from Q1.

• Special commission income surged 70% year-on-year to SAR 135 million in H1 2026.

• Operating expenses rose 22% to SAR 207 million, with a cost-to-income ratio of 44% due to heavy investment in IT and digital marketing.

• Dividend of SAR 0.66 per share for H1 2026, in line with post-IPO policy.

Outlook and guidance

• Strategy 2030 aims for over 1 million customers, SAR 60 billion in AUMs (3x current), recurring revenue share rising from 35% to 55%, and ROE targets above 40%.

• Revenue expected to double to SAR 2 billion by 2030.

• Investments in technology and marketing to peak in 2026-2027, normalizing thereafter.

• D360 Bank expected to break even by end-2027 and turn profitable in 2028.

• Plans to launch SAR 1.5 billion in real estate funds and SAR 750 million in alternative investment funds over the next 9-12 months, subject to market conditions.