Quara Finance Doubles Net Profit in Nine Months

Riyadh, Saudi Arabia — Quara Finance Co. more than doubled its net profit in the nine months ending September 30, 2026, posting 30.2 million SAR compared to 14.9 million SAR in the same period a year earlier — a gain of 101.8%. Higher Murabaha income and sharply lower expected credit losses drove the improvement. Revenue rose a more modest 5.1% to 208.4 million SAR.

The results reflect a company executing on two fronts simultaneously: growing its financing portfolio while tightening credit quality. That combination is rare and worth paying attention to.

Quarterly Breakdown

In the third quarter alone, Quara Finance earned 10.3 million SAR in net profit — up 112.3% from 4.9 million SAR in the same quarter last year. Quarter-on-quarter, net profit nudged up 1.8% from 10.2 million SAR. Revenue for the quarter reached 71.2 million SAR, up 8.6% year-on-year and essentially flat versus the prior quarter at 0.9% growth. Operational profit for the quarter surged 110.9% year-on-year to 12.9 million SAR, signaling strong underlying earnings leverage.

Key Drivers

• New financing contracts expanded the portfolio, lifting Murabaha income across both the quarter and the nine-month period.
• Expected credit losses fell meaningfully, reflecting improved portfolio quality — the single biggest contributor to profit growth.
• Gross profit for the nine-month period reached 177.5 million SAR, up 2.7% year-on-year, a slower rate than revenue growth, suggesting some margin compression at the gross level.
• Operational profit for nine months hit 37.1 million SAR, more than doubling from 18.4 million SAR — cost discipline amplified the revenue gains.
• Shareholders’ equity rose 4.9% to 497.4 million SAR, strengthening the balance sheet.
• Earnings per share reached 1.01 SAR for the nine-month period, up from 0.50 SAR a year ago.

Auditor Note

The external auditor issued an unmodified conclusion with no reservations or qualifications. Quara Finance also reclassified one line item: discount on settlement, previously netted against Murabaha income, has been moved to provision for expected credit losses. This is a presentation change and does not affect net profit totals.

What This Means for Investors

• Doubling net profit in nine months is a material improvement, but investors should track whether credit loss reductions are sustainable or a one-time tailwind.
• Revenue growing at 5.1% while operational profit doubled shows strong operating leverage — fixed costs are not rising as fast as income.
• The reclassification of settlement discounts changes how credit costs appear on the income statement; comparable prior-period figures have been restated accordingly.
• At 497.4 million SAR in equity and earnings per share of 1.01 SAR, Quara Finance’s capital base is growing — a positive signal for financing capacity going forward.

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THE SAUDI STANDARD’S VIEW: QUARA FINANCE’S PROFIT SURGE SIGNALS MATURING CREDIT DISCIPLINE IN SAUDI CONSUMER FINANCE

Quara Finance’s nine-month results are not simply a story of profit growth — they are evidence of a financing company finding structural efficiency at a moment when Saudi Arabia’s consumer and retail finance sector is under increasing competitive and regulatory scrutiny. A 101.8% gain in net profit against a 5.1% rise in revenue tells investors that the real work is happening below the top line, and that is where the strategic value lies.

• CREDIT QUALITY IS THE REAL STORY

The dramatic compression in expected credit losses is the dominant force behind the profit doubling, and it deserves careful monitoring rather than uncritical celebration. Sustained improvement in portfolio quality — rather than a cyclical or one-time reset — would confirm that Quara Finance has genuinely upgraded its underwriting standards. Investors should watch whether loss provisions remain suppressed as the financing book continues to grow.

• OPERATING LEVERAGE VALIDATES THE BUSINESS MODEL

When operational profit more than doubles while revenue grows at a single-digit pace, it confirms that fixed costs are well-controlled and that incremental revenue is flowing disproportionately to the bottom line. This kind of earnings leverage is a structural advantage in a rising-volume environment, particularly as Saudi Arabia’s retail financing market continues to expand. It positions Quara Finance to generate accelerating returns without requiring equivalent increases in overhead.

• BALANCE SHEET STRENGTH SUPPORTS GROWTH CAPACITY

Shareholders’ equity approaching 500 million SAR, growing at nearly 5%, provides Quara Finance with a credible capital foundation to scale its Murabaha portfolio further. A stronger equity base also improves the company’s standing with counterparties and regulators at a time when Saudi financial institutions face heightened expectations around capital adequacy. For investors, rising equity alongside rising earnings per share is a combination that reduces dilution risk.

• ACCOUNTING TRANSPARENCY BUILDS INSTITUTIONAL CONFIDENCE

The voluntary reclassification of settlement discounts, accompanied by restated prior-period comparatives and a clean auditor conclusion, reflects the kind of financial governance that institutional investors increasingly require before committing capital to mid-tier financial companies. Transparency in presentation changes — even when they carry no net profit impact — signals management credibility. In a market where retail investors are growing in number and sophistication, this matters for long-term valuation.

Quara Finance’s trajectory aligns with a broader imperative embedded in Vision 2030: deepening financial inclusion and expanding access to Sharia-compliant financing products for Saudi households and businesses. As the Kingdom works to raise the financial sector’s contribution to GDP and reduce dependence on oil revenues, companies that demonstrate disciplined growth in Islamic finance — combining portfolio expansion with tightening credit standards — become structurally important participants in that transformation. Quara Finance’s results suggest it is building the operational credibility to play that role.