SHL Finance profits decline to SAR 4.8 million during Q3, by 71%

The net profit after zakat and tax for SHL Finance Company decreased to SAR 4.8 million during the third quarter, compared to SAR 16.4 million in the same quarter of last year, by 71%. This came after the announcement on Wednesday of the interim summary consolidated financial results for the period ending September 30, 2023 (nine Months).

Net operating profit amounted to SAR 32 million in the third quarter, compared to SAR 38 million in the same quarter of the previous year, a decline of 17%.

Net profit after zakat and tax in the 9-month period amounted to SAR 10 million, compared to SAR 80 million in the same period last year, a decrease of 80,040%.

Earnings per share in the current period amounted to SAR 0.1, compared to SAR 0.8 in the same period last year.

Net profit of the company is SAR 4.8 million during current quarter compared to SAR 16.4 million for the same quarter of the last year with a decrease of 71%, and the reason for the decrease is due to the increase in the cost of borrowing from banks.

Net profit increased for the current quarter by 83.7% compared to last quarter. The main reason for this increase is due to the gain from the positive impact of the financial derivatives.

Net profit for the current period decreased by 87.7% compared with same period last year (Q3-2023: SAR 9.8 million – Q3-2022: SAR 80.0 million), the main reason of this decrease is due the increase in the cost of fund.

Some of the comparative figures for prior period had been reclassification in accordance with the requirements of IAS 1 & IAS 8, items reclassified in the balance sheet are (advance to property owners, advance tax paid, and restricted cash balance), items reclassified in the income statement are (evaluation and insurance expense reclassified from G& A to direct cost, origination expense reclassified from G& A and deducted from total revenue)

Additional Information:

The company did not receive any Deposit taking is this period and therefore it is not applicable.

Net income from special commission amount represents the difference between total income from special commission (Total operating income) and the finance charge amount and the direct cost in the income statement.