Tamara’s Saudi Q2 revenue more than doubles as new lending book closes in on BNPL

Tamara Finance Company’s Saudi business more than doubled revenue year-on-year in Q2 as its new Sharia-compliant consumer-financing book closed in on its original buy-now-pay-later (BNPL) receivables. Revenue for the three months to 30 June reached SAR 707 million ($188 million), up 152% from SAR 280 million a year earlier and 5.5% from Q1, while net profit was SAR 84 million ($22 million), down 32% sequentially from SAR 123 million. At quarter-end consumer-financing receivables stood at SAR 3.14 billion, narrowly behind pay-in-instalments receivables of SAR 3.36 billion, as the gross consumer loan book reached SAR 6.50 billion.

“It nevertheless said it remained too early for any potential deterioration to be reflected through its credit staging criteria, macroeconomic assumptions or portfolio overlays.”

That sentence—repeated by Tamara in its interim financial information authorised on 28 July 2026—highlights management’s cautious stance amid rapid balance-sheet expansion and rising credit costs. Licensed by the Saudi central bank in early 2025, Tamara’s Islamic financing product generated SAR 228 million of revenue in Q2 and now represents 48% of the gross loan book, up from 34% at year-end. Overall loan-book growth was 16% during the quarter, from SAR 5.59 billion at the end of March.

• Consumer-financing receivables: SAR 3.14 billion
• Pay-in-instalments receivables: SAR 3.36 billion
• Gross consumer loan book: SAR 6.50 billion
• Q2 revenue: SAR 707 million; Q2 net profit: SAR 84 million
• Securitisation/funding commitments: SAR 5.79 billion (fully utilised at end-June)

Financing that growth has become more visible on Tamara’s balance sheet. Tamara’s securitisation facility—backed by Goldman Sachs, Citi and Apollo—was fully utilised at the end of June after being upsized to SAR 5.8 billion. The company drew SAR 2.15 billion of new loans during the first half of 2026 against SAR 133 million of repayments, leaving no remaining headroom on total commitments of SAR 5.79 billion (SAR 703 million of unused commitments existed at year-end).

Credit impairment and funding costs rose sharply. Net expected credit losses reached SAR 191 million ($51 million) in Q2, up 14% from Q1 and more than six times the SAR 29 million charge a year earlier; credit charges absorbed 27% of quarterly revenue. Write-offs rose about 74% from Q1 to roughly SAR 180 million. Total expenses increased 31% sequentially to SAR 163 million, funding costs climbed 19% to SAR 104 million, and service charges related to affiliate Tamara FZE were SAR 38 million in the quarter, up 40%.

Tamara’s results widened the gap with its nearest regional rival. Tabby Financing Company CJSC reported Q2 revenue of SAR 389 million and net profit of SAR 11.6 million—figures on which Tamara’s Saudi finance business generated 82% more revenue and more than seven times the profit for the quarter. Tamara ended June with SAR 175 million in retained earnings and shareholder equity of SAR 777 million, up from SAR 556 million at the end of 2025, signalling an improved capital position after years of accumulated losses.

Looking ahead, management’s stated view on regional security and macroeconomic risks will be watched closely as the company integrates a rapidly growing Islamic financing portfolio alongside its core BNPL product. With securitisation fully utilised and credit charges rising, the near-term outlook will hinge on asset-quality trends, funding stability from partners including Goldman Sachs, Citi and Apollo, and whether stage 3 receivables—currently 1.49% of the gross loan book—stay contained as the portfolio expands.