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Saudi Arabia's first digital bank could stop losing money within two years, according to one of its main backers, as commission-free trading pulls new investors into the stock market.
D360 Bank is targeting break-even by the fourth quarter of 2027, Mohammed AlShammasi, chief executive of brokerage Derayah Financial, said in television interviews on Monday. It is the first public timeline the company has given.
D360 now has more than 3.4 million customers, over four billion Riyal ($1.07 billion) in deposits and about $187 million in loans, and is already generating revenue, he said.
New clients, lower fees
Derayah added 34,000 clients in the third quarter, its fastest growth in two years. AlShammasi credited a relaunched app, commission-free trading and free service packages.
Recurring income now makes up about 45% of revenue, he said.
Not every business is moving ahead. Derayah is reviewing launch dates for some real estate development funds because of market uncertainty, and attracting foreign investors is still at an early stage.
The numbers
Third-quarter net profit rose 5.7% to $28.1 million, the company said in a filing on Monday. Revenue edged up 1.8% to $64.6 million, held back as zero-commission trading and weaker margin lending cut brokerage income.
Derayah's share of D360's losses narrowed to $8.2 million from $9.6 million a year earlier. The company will pay a dividend of 0.33 Riyal a share for the quarter.
The bigger picture
Saudi digital banks are still burning cash as they race to sign up customers. D360, backed by the Public Investment Fund and Derayah, started operating in December 2024 and raised about $400 million in new capital this year at a valuation of about $1.6 billion.
A firm break-even date gives investors a yardstick for whether that bet is paying off.
What to watch
Whether D360's quarterly losses keep shrinking, and whether the flood of new trading accounts survives a weak market.
