Drayah Financial reported a 6% year-on-year drop in second-quarter net profit for 2026, driven by higher operating expenses tied to technology and product investments.
Saudi brokerage and asset management firm Drayah Financial posted net profit for the second quarter of 2026, marking a 6% decline compared to the same period last year, according to financial results disclosed on the Saudi exchange, Tadawul.
Operating Expenses and Strategic Investments Push Costs Higher
The contraction in quarterly earnings stems directly from a sharp rise in expenditures. Operating expenses jumped 15.9% year-on-year to reach 108.0 million riyals during the quarter. The company noted that the reason for the drop in profits during the current period compared to the previous period was partly due to asset management revenue growth being affected by lower subscription fees caused by the postponement of the launch of a number of investment funds during the first half of 2026 because of geopolitical challenges.
These investments caused the ratio of expenses to revenue to climb temporarily to 45% for the period. Management expects these outlays to pay off positively on operational performance in upcoming stages by widening the platform’s capacity, accelerating the pace of product and service development and launches, supporting revenue growth, raising operational efficiency, and enhancing long-term sustainable profitability.
Revenue Gains and Asset Growth Across Core Sectors
On the top line, Drayah Financial saw steady improvement. Furthermore, brokerage revenues maintained stability at levels similar to the same period of the previous year despite the implementation of commission-free trading in the Saudi stock market during the period, reflecting continued trading activity, trading volume momentum, and enhanced customer engagement levels.
The firm also expanded its retail footprint during the first half of the year, adding accounts to push total investment accounts past hundreds of thousands.
Board Declares Interim Cash Dividends for Shareholders
Regarding the schedule for entitlement and disbursement, the company designated Tuesday, 28 Safar 1448 AH, corresponding to August 11, 2026 AD, as the eligibility date for shareholders owning shares at the end of trading on that day who are registered in the company’s shareholder registry at the Securities Depository Center (Edaa) at the end of the second trading day following the eligibility date. Dividend disbursements and deposits into the bank accounts of eligible parties are scheduled to begin on 7 Rabi’ al-Awwal 1448 AH, corresponding to August 20, 2026 AD. Drayah Financial noted that the dividend distribution process will be carried out through the Securities Depository Center to ensure the smooth and prompt arrival of funds to shareholders’ investment portfolios, while urging shareholders to ensure they update their data with the banks linked to their investment accounts to avoid any obstacles that might face the automated deposit of entitled profits. On the front of tax obligations, the company drew the attention of non-resident foreign investors to the fact that cash distributions transferred through a resident financial intermediary will be subject to a 5% withholding tax in compliance with the provisions of Article (68) of the Income Tax Law and Article (63) of its Executive Regulations in the Kingdom of Saudi Arabia, with this percentage being deducted upon the transfer of profits or upon crediting them to the bank accounts of that category of investors.
D360 Bank Investment Narrows Losses and Expands Capital
Drayah’s financial statement also detailed its stake in D360 Bank.
With its capital base enhanced, D360 Bank enters a new phase of growth, transitioning from the establishment phase to operational expansion, with a focus on growing the lending portfolio, enhancing operational efficiency, and diversifying sources of revenue.
