Derayah Financial (4984) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 performance with operating income up 13% YoY to 238 million, highlighting resilience of a diversified business model and robust international trading activity despite a soft local market environment.

• Client accounts grew 13% YTD to 603,000, with client assets surpassing SAR 55 billion and AUC up 24% YTD to 37.4 billion.

• Core net profit (excluding D360) increased 8% YoY to 412 million, while reported net profit declined 7% YoY to 313 million, impacted by associate losses.

• Regulatory reforms in Saudi Arabia are expected to expand the addressable market, support long-term growth, and open the market to global retail investors.

• Brokerage leadership reaffirmed, with non-margin traded value up 22% YoY and brokerage revenue up 12% YoY to 408 million.

Financial highlights

• Q3 total operating income reached SAR 238 million, up 13% YoY; 9M 2025 operating income totaled SAR 682 million, up 6% YoY.

• Operating profit for 9M 2025 was 410 million (+7% YoY); core net profit (ex-D360) at 412 million (+8% YoY); reported net profit for 9M 2025 was 313 million (-7% YoY).

• Brokerage revenue rose 12% YoY in 9M 2025 to 408 million; asset management fees declined 7% YoY due to subdued market performance.

• Special commission income for 9M 2025 was 138 million, down 11% YoY, but rebounded 60% QoQ in 3Q 2025.

• Cost-to-income ratio improved to 39.8%, and capital adequacy rose to 29.2%.

Outlook and guidance

• Regulatory changes, including removal of QFI and relaxed foreign ownership limits, are expected to boost market activity and drive significant growth.

• Medium-term guidance targets ~10% total operating income growth, 38-40% efficiency ratio, and return on equity at 44-46%.

• Dividend policy targets at least 1.30 per share for 2025 and 60% payout of distributable profits for 2026 and 2027.

• D360 bank expected to break even by 2027, with positive contribution from 2028.

• New fund launches and expansion into institutional investor space anticipated to drive future AUM and revenue growth.