Demand for financing still robust; portfolio hits SAR 4.4B: Amlak CEO

The finance sector is typically sensitive to movements in interest rates. Therefore, Amlak has adopted a proactive/dynamic pricing policy that adapts swiftly to market changes, he added.

The Saudi-listed company, according to the top executive, has responded to these changes by developing higher-yielding products, besides availing the pertinent hedging tools, when necessary. This helps to safeguard its financial strength without implying incremental burdens on clients.

As for the latest financial results, the CEO clarified that Amlak posted robust growth in its Q2 2025 net profit. He attributed this strong performance mainly to a 9.56% growth in its lending portfolio and higher return on financing.

Amlak’s lending portfolio reached SAR 4.38 billion by the end of Q2 2025, marking a 9.56% year-on-year (YoY). The corporate segment made up about 60% of the total, while the retail segment accounted for the remaining 40%. This reflected the company's balanced strategy towards both diversification and stability, according to the top executive.

Alshobely also clarified that the portfolio's 9.56% growth in Q2 2025 underscored the cumulative impact of the company's growth and digital transformation strategy, which focuses on expanding into attractive and highly profitable segments, while accelerating the pace of digitization through adopting modern technologies and reinforcing digital infrastructure to increase efficiency and enhance customer satisfaction.

Furthermore, the retail and SME financing products contributed strongly to this uptrend, leveraging the flexible financing solutions provided and the advanced digital experience that included the automation of most interface operations, including credit studies using artificial intelligence (AI), he added.

Amlak also intends to continue expanding its footprint in these segments inH2 2025, placing a greater focus on high-yield products and performance efficiency through digital platforms, according to the CEO.

He pointed out that the consumer finance segment represents a key pillar of the company's retail portfolio and contributes significantly to total the overall lending portfolio.

Amlak’s total market share in the financing sector is estimated at 6.3%, with the consumer finance segment accounting for nearly 3.5%. This share is on the rise, driven by its reliance on an integrated digital model.

“Despite the increase in borrowing costs, operating expenses, and provisions, Amlak’s revenues grew at a higher pace, driven by efficient pricing management, the allocation of financing to high-yield segments, in addition to cost control and better operational efficiency. This reflected the boon fueled by the company's strategy for smart expansion and maximizing sustainable return,” the CEO stated.

He also noted that Amlak's assets exceeded SAR 4.6 billion by the end of Q2 2025, thanks to rapid business growth and ongoing improvement in operational efficiency.

Alshobely further stated that Amlak is focusing on three main expansion tracks this year. The first is bolstering digital transformation through the development of smart platforms and the expanded use of AI and cloud computing technologies, as more than 70% of credit assessments are conducted automatically.

Meanwhile, the second track is to boost Amlak’s market share in segments with high profit margins by offering flexible financing solutions and an integrated digital customer experience that keeps pace with market needs and achieves higher pricing efficiency.

The third track, on the other hand, focuses on maintaining balanced growth between revenue and operational efficiency through innovation in financing products and services, while also providing carefully curated offerings that fit the changing market needs and enhance growth potential in the medium to long term, he added.

According to Argaam data, Amlak reported a net profit of SAR 32.3 million in the first half of 2025, a surge of 92% from SAR 16.8 million in the year-earlier period. The second-quarter net earnings soared 147.7% YoY to SAR 20.4 million.