Saudi Tadawul Group announces its FY 2021 financial results and achieves a net profit of SAR 587.70 million

Saudi Tadawul Group (the “Company” or the “Group”), a leading diversified capital markets group in the MENA region, announced its financial results for the full year 2021.

Financial Performance Highlights

Saudi Tadawul Group Holding Co. (“The Group”) achieved a net income after zakat of SAR 587.70 million in 2021, a 17.42% year on year (YoY) increase from SAR 500.52 million in 2020, This was mainly driven by the following:

Operating Revenues: Operating revenue increased by 8.01% YoY reaching to SAR 1,166.08 million in 2021 compared to SAR 1,079.64 million in 2020, which was predominantly due to solid growth in trading services, post trade services, and listing fees on the back of strong Saudi Capital Market performance in 2021.

Gross Profit: Group’s Gross profit increased by 8.79% YoY reaching to SAR 820.69 million in 2021 compared to SAR 754.40 million in 2020, due to the increase in the Group’s operating revenues.

Operating Profit: Group’s Operating profit increased by 12.64% YoY reaching to SAR 611.83 million in 2021 compared to SAR 543.16 million in 2020. This was mainly due to an increase in the Group’s gross profit by SAR 66.29 million against a more moderate increase of SAR 17.09 million in general and administrative expenses which was diluted by a reduction of SAR 19.47 million in an impairment charge on financial assets.

EBITDA: Group’s EBITDA increased by 13.10% YoY reaching to SAR 668.85 million in 2021 compared to SAR 591.37 million in 2020, on the back of the growth in the Group’s operating revenue against moderate growth in the Group’s operating expenditures.

Zakat Expense: Group’s Zakat expense decreased by 20.75% YoY reaching to SAR 66.22 million in 2021 compared to SAR 83.56 million in 2020, as a result of optimization of the Group’s financial assets in 2021.

Eng. Khalid Al-Hussan, Group Chief Executive Officer at Saudi Tadawul Group commented:

 “The Group’s financial results in 2021 reflect its resilient performance as it delivers on its growth plans, in line with the objectives of the Financial Sector Development Program and the Kingdom’s ambitious Vision 2030. The Group continued to contribute achieving these objectives through its ongoing support for the economic growth in the Kingdom and the advancement of its financial market through integration and technological enhancements, driven by the pillars of the program development of the financial sector.”

He added: “Through its subsidiaries, Saudi Tadawul Group continued to contribute to developing and diversifying the Saudi capital markets and diversify its instruments, with the new listings reflecting an increase by 7.5% in average daily traded value (ADTV) in 2021. The Group strengthened its role as the leading center for investors in the MENA region, attracting both regional and international investments to the Saudi market.”

He continued: “During 2021, Saudi Stock Exchange (Tadawul) was transformed into a holding Group named (Saudi Tadawul Group Holding Co.) comprising four subsidiaries including the newly-established Tadawul Advanced Solutions Company (WAMID), to support our ambitious goals deploy advanced technologies as well as world-class innovative services and solutions. WAMID’s mission is to enhance the Group’s services and strengthen its capabilities, supporting the vertically integrated and scalable business model with a diverse revenue profile and creating vast opportunities to further expand the Group’s service offering.”

Eng. Al-Hussan concluded: “The Group’s successful IPO and listing in December 2021, is a milestone to scale up our integrated and diverse business model and deliver further value for our shareholders while enhancing the Group’s services for issuers and investors alike through operational streamlining and new market infrastructure instruments.”

About Saudi Tadawul Group

Saudi Tadawul Group, a leading diversified capital markets group in the MENA region, is a holding company with a portfolio of four wholly owned integrated subsidiaries: the Saudi Exchange, one of the largest stock exchanges in the world by market capitalization, the Securities Depository Center Company (Edaa), the Securities Clearing Center Company (Muqassa) and Tadawul Advanced Solutions Company (WAMID), an innovative technology solutions company. In addition, the Group owns a 33.12% stake in Tadawul Real Estate Company (TREC), a company operating in the field of real estate management and development. The Company was established as a Saudi closed joint stock company with a share capital of SAR 1,200,000,000 divided into 120,000,000 shares, all of equal value, with a nominal value of SAR 10 per share.

The Group maintains a diversified business model that is integrated across all the relevant business lines, which allows the Company to offer a full array of capital markets related products and services. It has strong strategic and competitive positioning supported by its scale, growth profile, and position at the heart of a large-scale economic transformation agenda. The operational independence of each subsidiary promotes an agile environment which supports growth and innovation and enables rapid responses to evolving global and regional market trends. the Group is the foundational pillar for the delivery of the Financial Sector Development Program (FSDP) which has the stated goal of developing an advanced capital market to support the broader realization of Vision 2030.