‎“Nayifat” profits decline to SR171.4 mln during 2022, by 24%‎

Nayifat Finance Company revealed that the net profit after zakat and tax decreased during the year ending on December 31 to 171.4 million riyals, compared to 225 million riyals in the previous year, by 23.8%. This came after today’s announcement of the annual financial results ending on December 31, 2022. ..

Moreover, operational profit amounted to 191.1 million riyals during the year ending on December 31, compared to 250.5 million riyals in the previous year, a decrease of 23.7%.

Total shareholders’ equity “without minority rights” amounted to 1.28 billion riyals in the current year, compared to 1.19 billion riyals in the previous year, an increase of 8.09%.

Earnings per share in the current year reached 1.71 riyals, compared to 2.25 riyals in the previous year.

The reason for the decrease in the net profit during this year compared to the previous year is due to:

– An increase in the cost of provisions as a result of developing and improving the performance of the provision model according to IFRS 9 standard.

– An increase in the interest rate (SIBOR 3 months) from December 2021 (0.91%) to December 2022 (5.4%), which led to an increase in financing costs.

– An increase in other general and administrative expenses, as a result of the increase in marketing expenses, listing expenses and other general expenses.

– An increase in depreciation and amortization expenses due to the increase in enhancing cyber security and related expenses.