Tabby H1 2026 profit falls 12% to SAR 79.7M; Q2 at SAR 11.6M

Tabby reported a 64% rise in expected credit loss (ECL) provisions to SAR 128.8 million from SAR 78.7 million in H1 2025, reflecting growth in the financing portfolio and receivables. The ECL provision balance increased to SAR 272.4 million from SAR 225.9 million at end-2025.

Earnings were also weighed down by higher general and administrative expenses as the company continued to build its operational and technology capabilities in Saudi Arabia and localize functions previously handled by affiliates.

IT and infrastructure costs more than doubled to SAR 49.1 million, while customer support expenses rose to SAR 55.9 million. Processing and service costs increased to SAR 279.1 million amid higher transaction volumes, while employee benefits climbed to SAR 24.3 million due to operational expansion and hiring.

These increases were partly offset by lower franchise and service fees of SAR 39.9 million, compared with SAR 54.3 million a year earlier.

Gross finance costs rose to SAR 191.4 million from SAR 138.4 million in H1 2025 due to increased Murabaha financing. However, higher financing income partly offset the increase, limiting the rise in net finance costs to SAR 101.4 million from SAR 96.6 million.

Meanwhile, net fee and commission income jumped 31% to SAR 536.8 million. Merchant network revenue rose to SAR 671.71 million, while customer fee income surged to SAR 136.12 million. Loans receivable increased to SAR 3.23 billion from SAR 3.18 billion at end-2025.

The second-quarter net profit dropped 54% to SAR 11.6 million from SAR 25.1 million in Q2 2025.

On a quarterly basis, net earnings tumbled 83% from SAR 68.1 million in Q1 2026.

Total shareholders’ equity, no minority interest, stood at SAR 719.84 million as of June 30, 2026, up from SAR 523.80 billion a year earlier.

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