The preliminary financial results of the Saudi Tadawul Group Holding Company, the Tadawul Group, revealed that it recorded a decline in its net profits during the second quarter of 2023 by 23.6%, on an annual basis, while its net profits increased on a quarterly basis by 16%.
The company stated, according to a statement issued today, Sunday, on Tadawul that the net profit after zakat and tax amounted to about 105.2 million riyals, compared to 137.7 million riyals in the comparative quarter of last year, while it recorded a net profit in the first quarter of this year of about 91 million riyals.
The company said that the reason for the decrease in net profit is due to the decrease in operating revenues by 15.5% on an annual basis, to reach 252.0 million riyals during the second quarter of the year 2023 AD, compared to 298.1 million riyals in the same quarter of the previous year, and this is mainly due to the decrease in trading revenues and revenues from post-trading services due to a decrease in trading value by 28.4%.
Operating expenses also increased by 5.2% on an annual basis, to reach 168.1 million riyals during the second quarter of the year 2023 AD, compared to 159.8 million riyals in the same quarter of the previous year, and this is mainly due to the consolidation of the financial statements of Mubasher Financial Network Company as of May 7, 2023 AD, after acquiring 51% of the issued capital.
Profits from non-operating activities increased by 113.8% on an annual basis, to reach 33.4 million riyals during the second quarter of the year 2023 AD, compared to 15.6 million riyals in the same quarter of the previous year, due to the increase in investment income.
As for the company's profits in the first half, it declined by 29.6%, to reach 196 million riyals, compared to 278.3 million riyals for the comparative half of 2022.
