Amlak CEO: Higher-yield products drive growth; loan book at SAR 4.46B

Adnan Alshobely,CEO of Amlak International for Finance Co.

Amlak International for Finance Co. operates in a highly competitive financing market valued at around SAR 76 billion at the end of 2025. Its market share stood at about 5.74% across all business lines, CEO Adnan Alshobely told Argaam in an interview.

Amlak continued to outpace the market in retail financing, with its share rising to 3.86%, with annual growth of nearly 26%, compared to overall market growth of about 13% over the same period.

He added that the company’s loan portfolio grew 2.8% year-on-year (YoY) to SAR 4.46 billion at the end of Q1 2026, and was up 4.7% quarter-on-quarter. This implies a pickup in activity alongside continued disciplined expansion.

Alshobely also addressed the company’s financial highlights in Q1 2026, the financing products driving growth, and developments in non-performing loans (NPLs) within its portfolio.

Here is the full interview:

Q: Profit rose 33% YoY to SAR 15.8 million in Q1 2026. What were the performance drivers?

A: The Q1 2026 results reflect continued improvement in Amlak International’s financial and operating performance. Net profit attributable to shareholders rose to SAR 15.8 million, up from SAR 11.9 million a year earlier, marking growth of about 33%.

This was primarily driven by a 16% increase in net special commission income to around SAR 94.4 million, indicating stronger profitability quality rather than purely higher volumes, alongside a 2.8% expansion in the financing portfolio.

The improvement was supported by repricing certain products, a shift in the portfolio mix toward higher-yield products, and lower funding costs, which together lifted net margins. The results also reflect the company’s continued focus on balanced growth—expanding business volumes while controlling funding costs, improving operational efficiency, and maintaining a prudent approach to risk and provisioning.

Q: How have interest rate changes affected demand for financing products?

A: Compared to the previous quarter, interest rates remained broadly stable, limiting their direct impact on demand during the period.

That said, interest rates remain a key factor in financing decisions, particularly for retail clients in long-term products, where sensitivity to borrowing costs has increased.

In the corporate segment, the impact varies by industry, although demand from financially strong companies has remained resilient, particularly for expansion and restructuring financing.

Overall, the company continues to navigate this environment through disciplined pricing and selective underwriting to balance growth with asset quality.

Q: How did the loan portfolio grow, and has its composition changed?

A: The loan and advances portfolio grew 2.8% YoY to about SAR 4.46 billion by the end of Q1 2026, and increased 4.7% quarter-on-quarter (QoQ) from Q4 2025.

This reflects a pickup in activity while maintaining a disciplined expansion strategy.

The portfolio remains well balanced between corporate and retail financing, supporting risk diversification and stable returns. There were no material changes in its composition, with growth continuing to focus on higher-margin and better risk-adjusted products, without pursuing scale at the expense of asset quality.

Q: What is your current market share, and how has it evolved?

A: The company operates in a broad and competitive financing market, estimated at around SAR 76 billion within its scope of activities by the end of 2025. Its overall market share stands at about 5.74%.

In retail financing, the company has continued to outperform the market, with its share reaching around 3.86%, reflecting annual growth of nearly 26%, compared with market growth of about 13%.

In corporate financing, the focus remains on high-credit-quality clients to support stable returns and asset strength.

This performance reflects a stronger market presence driven by product development, digital channel expansion, and improvements in customer experience, within a framework of balanced and sustainable growth.

Q: How do you assess portfolio risk and NPLs?

A: Risk levels in the current portfolio remain within targeted thresholds and in line with the company’s risk management framework, supported by disciplined credit policies and ongoing portfolio reviews.

The company continues to regularly update its expected credit loss models to reflect market developments, while adhering to regulatory standards and central bank guidelines.

NPL levels remain stable and are disclosed in the financial statements. Amlak International also continues to enhance collection efficiency and manage delinquencies proactively to preserve portfolio quality over the medium to long term.

Q: Which segments are driving growth, and how has digital transformation supported performance?

A: Growth is currently supported by both retail and corporate financing portfolios, alongside improvements in returns, turnaround time, and customer experience across products.

Digital transformation has played a central role, helping reduce approval times and improve credit decision quality, which has accelerated financing processes and enhanced operational efficiency.

Today, Amlak International offers a fully digital customer journey without the need to visit branches or submit paper documents, enabled by strong integration with relevant entities.

The use of artificial intelligence has further strengthened credit assessment and operational efficiency, contributing positively to overall performance.

These initiatives are reflected in improved cost-to-income ratios on both a yearly and quarterly basis, highlighting the company’s success in enhancing efficiency while growing the business.

Looking ahead, the company expects growth to continue, supported by both segments, with a focus on scalable, high-margin financing solutions, in line with its strategy of sustainable, profitability-driven expansion.