United International Holding Company (Tasheel) announced its financial results for the fourth quarter of 2025, reporting a significant 14.4% increase in net profit to SAR 73.5 million, compared to SAR 64.3 million in the same period of the previous year. These results reflect the company's strong operational performance and its ability to expand its market share in the consumer finance sector.
Details of financial performance and annual growth
According to the company's statement on the Saudi Stock Exchange (Tadawul) website, the primary driver of this profit increase was a 17.6% growth in revenue. This positive performance was directly reflected in the gross profit generated from Sharia-compliant financing contracts, which also saw a 16.7% increase. On an annual basis, the data showed a 23% rise in Tasheel's net profit compared to the previous year, supported by a 23.4% jump in annual revenue, confirming the sustainability of the company's growth trajectory.
Quarterly challenges and provisions
Despite strong year-on-year growth, net profit declined by 9.9% compared to the previous quarter (Q3). The company attributed this decrease to two main factors: higher financing expenses and an increase in provisions for expected credit losses. This increase in provisions is a standard precautionary measure in the financial sector to strengthen financial solvency and mitigate potential credit risks, reflecting the company's conservative risk management policy.
Context of the non-banking finance sector in Saudi Arabia
These results are particularly significant when viewed within the context of the evolving financial sector in Saudi Arabia. The non-banking financial sector is experiencing rapid growth, aligning with the objectives of Vision 2030 and the Financial Sector Development Program, which aims to diversify revenue streams and enhance financial inclusion. The growth in Tasheel's revenues indicates increased demand for Sharia-compliant financing products, driven by the digital transformation of financial services and rising consumer spending in the Saudi market.
Economic impact and investor expectations
The results of "Tasheel" are a positive indicator for investors in the Saudi stock market, reflecting the resilience of companies operating in the consumer finance sector and their ability to achieve healthy profit margins despite fluctuating interest rates and financing costs. This performance is expected to bolster shareholder confidence and support the company's future expansion plans, particularly as the government continues to support the legislative and regulatory environment for financial companies, thus opening up broader horizons for innovation in financing solutions offered to individuals.
