Nayifat Finance Co. saw its financing portfolio reach SAR 1.79B by Q2-end. NPL ratio stood at 15.95%; CEO expects gradual improvement. Net profit surged 137% in Q2 to SAR 36.9M, supported by credit discipline and collection efforts.
Nayifat Finance Co. ended the second quarter with a total financing portfolio of roughly SAR 1.79 billion, CEO Khalid AlJenaidel told Argaam. The company also reported a 137% leap in second-quarter net profit to SAR 36.9 million, bringing first-half earnings to SAR 60.1 million – up 54% from a year earlier.
The portfolio number reflects what AlJenaidel described as a focus on credit discipline and portfolio quality. The non-performing loan ratio stood at 15.95% at the end of Q2, a figure the CEO said management plans to address through a combination of tighter underwriting and more aggressive collection work. He pointed to a gradual improvement expected over the coming periods, without giving a specific target.
Consumer finance and SME lending remain the two main revenue drivers, AlJenaidel said. Nayifat continues to develop products for those segments while looking for ways to diversify income. The CEO mentioned a measured approach to expansion in both areas, alongside efforts to cut costs and improve the customer experience.
“We continuously evaluate sectors and opportunities that align with our strategy and market needs,” AlJenaidel said. He added that the company aims to launch new financing products in the future.
On market share, AlJenaidel said the company's competitive position depends on offering a wider range of solutions and maintaining portfolio quality. He tied the long-term outlook to those factors rather than any single product line.
The Q2 profit jump – SAR 36.9 million versus SAR 15.57 million a year earlier – marks a sharp acceleration from the first quarter, when earnings came in at SAR 23.2 million. The improvement came from the same strategy the CEO outlined: better portfolio quality, higher collections, and operational efficiency. Whether the pace of improvement can continue will depend on how quickly the NPL ratio declines and whether consumer demand in Saudi Arabia holds up through the second half of the year.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.