Nayifat profits down 27% to SR42 mln during Q3‎

Nayifat Finance Co. revealed that the net profit after zakat and tax in the third quarter decreased to SR 42.03 million, compared to SR 57.6 million in the same quarter of last year, at a rate of 27%.

This came after the announcement on Sunday of the preliminary consolidated financial results for the period ending on September 30, 2022 (nine months).

The operational profit amounted to SR47.4 million in the third quarter, compared to SR63.9 million in the same quarter of the previous year, a decrease of 25.8%.

The net profit after zakat and tax in the 9-month period amounted to SR135.3 million, compared to SR173.6 million in the same period last year, a decline of 22%.

Profits per share in the current period reached SR1.35, compared to SR1.74 in the same period last year.

The reason for decline in net profit is due to increase in finance cost which is directly linked with increase in SAIBOR rates (Saudi Arabian Interbank Offered Rate), increase in ECL impairment charge and operating expenses, which mainly includes marketing expense and cyber security upgradation expenses.

The reason for decline in net profit is due to increase in finance cost and ECL impairment charge.

The reason for decline in net profit is due to increase in finance cost which is directly linked with increase in SAIBOR rates (Saudi Arabian Interbank Offered Rate), increase in ECL impairment charge and operating expenses, which mainly includes marketing expense and cyber security upgradation expenses.