Earnings Report
NAEEM Holding For Investments
1. Company Overview & Earnings Context
Al-Naeem Holding Company for Investments is an investment holding group with activities spanning securities brokerage, financial services, mortgage finance, investment funds, real estate investment, commodities trading and related investment activities through its subsidiaries.
H1 2026 showed a significant improvement in the Group's bottom line, although Al-Naeem remained loss-making for the six-month period. Net loss narrowed to USD 10.86 million from USD 44.52 million in H1 2025.
2. Financial Performance Snapshot
Fees, Commissions & Investment Management Revenue: USD 4.44 Million, vs. USD 1.55M
Coupon Revenue: USD 0.79 Million, vs. USD 0.30M
Gross Loss: USD 5.96 Million, vs. USD 3.59M gross profit
Total Expenses: USD 4.49 Million, vs. USD 47.88M
Loss Before Tax: USD 10.44 Million, vs. USD 44.30M loss
Net Loss: USD 10.86 Million, vs. USD 44.52M loss
Net Loss Attributable to Shareholders: USD 10.87 Million, vs. USD 45.06M loss
Q2 2026 Net Profit: USD 0.87 Million, vs. USD 44.11M loss in Q2 2025
The key headline was the sharp narrowing of losses, while the latest quarter returned to profitability.
3. Revenue & Operating Performance
Fees, commissions and investment management revenue increased strongly to USD 4.44 million from USD 1.55 million, representing growth of approximately 186% YoY.
Coupon revenue also increased to USD 791.9K from USD 301.9K, while other revenue stood at USD 451.6K.
However, the Group recorded an USD 11.64 million loss on the sale of investments in subsidiaries, which pushed the overall result to a gross loss of USD 5.96 million despite the improvement in operating revenue.
4. Key Performance Drivers
The biggest factor behind the YoY improvement was the absence of the large impairment charges recorded in H1 2025.
The prior-year period included an approximately USD 43.76 million goodwill impairment loss and an additional impairment loss on investments in associates. These charges were not repeated in H1 2026, causing total expenses to fall dramatically from USD 47.88 million to USD 4.49 million.
At the same time, general and administrative expenses increased to USD 2.69 million, while debit interest declined to USD 1.17 million.
Q2 was particularly encouraging, with the Group recording a USD 865K net profit, indicating a significant improvement from the extremely weak Q2 2025 comparison.
5. Balance Sheet & Cash Flow
Al-Naeem ended June 2026 with:
Total Assets: USD 167.22 Million
Total Equity including NCI: USD 140.36 Million
Equity Attributable to Holding Company Shareholders: USD 99.08 Million
Total Liabilities: USD 26.86 Million
Cash & Cash Equivalents: USD 7.61 Million
FVOCI Investments: USD 79.72 Million
Goodwill: USD 19.67 Million
Cash and cash equivalents increased substantially from USD 2.84 million to USD 7.61 million.
Operating cash flow, however, remained negative at USD 8.96 million, compared with negative USD 3.08 million in H1 2025. This was offset by USD 16.16 million of positive investing cash flow, helping overall cash balances increase during the period.
6. Investor Takeaway
Al-Naeem Holding's H1 2026 results showed a major recovery from the prior-year period, with the net loss narrowing by roughly 76% to USD 10.86 million.
The improvement was supported by much lower impairment-related expenses and stronger fees, commissions and investment management revenue. The return to a USD 865K net profit in Q2 2026 was another positive sign.
However, the Group still recorded a significant loss from the sale of investments in subsidiaries, while operating cash flow remained negative. This means the improvement in headline earnings does not yet represent a fully normalised operating recovery.
Going forward, the key areas to monitor are whether Q2 profitability can be sustained, continued growth in fee-based revenue, improvement in operating cash flow, investment-related gains or losses and the stability of the Group's equity position.
