Derayah Financial Co. announces its Interim Financial results for the Period Ending on 2025-05-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 209.419 | 221.896 | -5.622 | 232.641 | -9.981 |
| Gross Profit (Loss) | 131.888 | 151.73 | -13.077 | 132.805 | -0.69 |
| Operational Profit (Loss) | 131.888 | 151.73 | -13.077 | 132.805 | -0.69 |
| Net profit (Loss) | 106.219 | 136.153 | -21.985 | 107.586 | -1.27 |
| Total Comprehensive Income | 103.813 | 134.85 | -23.015 | 109.539 | -5.227 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 1,084.111 | 873.628 | 24.092 |
| Profit (Loss) per Share | 0.438 | 0.561 | |
| All figures are in (Millions) 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 (Millions) 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 | Revenue fell by 5.6% year-on-year to SAR 209.4 million in 1Q FY25, primarily due to unrealized drop in the fair value of FVTPL investments, reflecting unfavorable market conditions. Nonetheless, our core business segments continued to show resilience - supported by diversification within main businesses. |
The Brokerage segment recorded a 5.6% YoY revenue increase, reaching SAR 134.3 million, up from SAR 127.2 • million in 1Q FY24. This performance highlighted the diversification and profitability of our overall trading activity.
Asset management revenue declined by 22.3% to SAR 32.9 million, compared to SAR 42.4 million in the same • quarter of last year. Despite this, Assets under management (AUM) grew significantly reaching SAR 18.1 billion by the end of 1Q FY25 - a robust 41.8% increase year-on-year- helping drive management fees by 36% YoY. However, the overall revenue was offset mainly by lower performance fees, relative to the high base recorded in 1Q FY24, on lower market returns.
• Special commission income remained broadly stable at SAR 42.4 million (-1.1% YoY). This performance was supported by a strong 28% YoY increase in assets under custody (AUC), which exceeded SAR 36 billion at end-1Q FY25, but was negatively impacted by lower benchmark rates.
• Revenue: fell by 5.6% year-on-year to SAR 209.4 million in 1Q FY25, primarily due to unrealized drop in the fair value of FVTPL investments, reflecting unfavorable market conditions. Nonetheless, our core business segments continued to show resilience.
• Operating expenses: Rose by 10.5% YoY to SAR 77.5 million, mainly attributable to higher employee-related expenses associated with the transfer of vested shares to the relevant employees in accordance with the Employee Share Ownership Plan (ESOP) during 1Q FY25. Despite this, the Company maintained disciplined cost control, with the cost-to-income ratio contained at 37.0%.
• Operating Profit: Reached SAR 131.9 million, a decline of 13.1% YoY, equivalent to SAR 19.9 million. This decrease was primarily driven by a SAR 11.5 million reduction in investment gains and an SAR 8.6 million (non-cash expense) increase in employee expenses linked to the ESOP program. Nevertheless, operating profitability remained robust, with a margin of 63.0%.
• Net income, excluding losses from associates, stood at SAR 130.3 million in 1Q FY25, reflecting an 11.5% year-on-year decline from the SAR 147.2 reported in 1Q FY24.
• Share in losses in an associate: The Company recorded a loss of SAR 24.1 million from its investment in the digital bank D360, marking a 118.6% YoY increase. This higher loss reflects the bank’s early-stage operational ramp-up following its full commercial launch in December 2024. Since then, D360 has significantly accelerated its marketing and operational efforts, delivering promising early momentum and successfully attracting over 1 million clients as of early-May 2025.
• Revenue from the Brokerage segment rose by 7.6% QoQ to SAR 134.3 million, up from SAR 124.8 million in 4Q FY24. This This performance highlighted the diversification and profitability of our overall trading activity.
• Revenue from asset management declined by 16.5% to SAR 32.9 million, down from SAR 39.5 million last quarter on lower blended fees.
• Special commission income declined 11.7% QoQ. While assets under custody grew significantly - up 20.2% QoQ to exceed SAR 36 billion by the end of 1Q FY25 - overall revenue was impacted by lower benchmark interest rates.
• Revenue declined by 10.0% QoQ to SAR 209.4 million in 1Q FY25, predominately on drop in value of FVTPL investments, along with softer contributions from asset management and special commission income. These declines were partially offset by continued growth in brokerage revenue.
• Operating expenses decreased by 22.3% to SAR 77.5 million, largely driven by lower professional and commission expenses.
• Operating Profit came in flat at SAR 131.9 million, reflecting an operating margin of 63.0%, underscoring continued operational efficiency.
• Net income, excluding losses from associates stood at SAR 130.3 million in 1Q FY25 compared to SAR 133.7 million in last quarter.
• Share in loss in associate: The Company recorded a loss of SAR 24.1 million from its investment in the digital bank D360, a 7.9% QoQ decrease. D360 became fully commercially operational in mid-December 2024 and has since ramped up its marketing and operating activities and has achieved encouraging early traction, attracting over 1 million clients as of mid-May 2025.
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