Microsoft Word - DMIT FINANCIAL STATEMENTS 2025-Final draft.

5 However, the global outlook has been materially reshaped in early 2026 by the escalation of geopolitical tensions, particularly the conflict involving the United States and Iran. The disruption of the Strait of Hormuz, through which approximately 20% of global oil supply flows, has introduced a significant external shock to the global economy. Oil prices have surged toward $120–$150 per barrel in stress scenarios, reigniting inflationary pressures across both advanced and emerging economies. In addition, the conflict has disrupted supply chains, increased transportation and insurance costs, and driven higher prices across key commodities including natural gas, fertilizers, and industrial inputs. These developments are expected to weigh on global growth prospects into 2026, while increasing volatility across financial markets and complicating the policy response of central banks. Regi al Dynamics Kingdom of Saudi Arabia According to the World Bank and Fitch, Saudi Arabia, the leading economy in the GCC, has demonstrated relative resilience amid current geopolitical developments. While partial disruptions to oil export routes have impacted volumes, the Kingdom has effectively mitigated this through alternative infrastructure, including increased utilization of westbound pipeline capacity. Higher oil prices have largely offset export volume reductions, supporting fiscal revenues and maintaining growth momentum. Real GDP growth is expected to remain around 3.0%–3.1% in 2025–2026, with stronger recovery anticipated thereafter. Tourism and non-oil sectors have experienced some moderation; however, the Kingdom remains structurally better positioned than other regional economies due to its scale, diversification strategy, and infrastructure resilience. Egypt According to Fitch Ratings and the World Bank Macro Poverty Outlook, Egypt’s economy in 2025 reflects a phase of adjustment following significant macroeconomic reforms and external financing support. While inflationary pressures remain elevated, there are obvious signs of stabilization supported by policy measures and improving investor sentiment. The Egyptian Pound has continued to experience pressures, reflecting structural imbalances and external constraints. Despite this, the banking sector has remained resilient, supported by strong deposit growth, and sustained demand for local currency instruments. Economic growth is gradually recovering, although the operating environment remains sensitive to global commodity price volatility and regional uncertainty. Pakistan According to the World Bank and Reuters reporting, Pakistan’s economy remains highly exposed to current global and regional shocks. The surge in oil prices—driven by geopolitical tensions—has significantly increased the country’s import bill, given its reliance on imported energy, placing pressure on both fiscal and external balances. The Pakistani Rupee has continued to experience pressures, driven by rising external financing needs and constrained foreign exchange reserves. Inflation, which had begun to moderate, is expected to rise again due to higher fuel, electricity, and transportation costs, contributing to widespread cost-push inflation. The widening trade deficit, pressure on the current account, and risks to remittance inflows—particularly from Gulf economies—highlight the structural vulnerabilities of the economy. While ongoing reforms and engagement with international financial institutions provide a pathway for stabilization, the near-term outlook remains challenging. Review of Operations Despite the complex backdrop, the Group delivered a resilient performance with a continued strengthening in underlying operating fundamentals. Net profit for 2025 amounted to $28.7 million, compared to $30.6 million in 2024, while net profit attributable to Unitholders stood at $8.8 million, compared to $11.5 million in the prior year. The modest decline in headline profitability was primarily driven by higher taxation and increased operating costs, partially offset by stronger core income generation. Operationally, performance improved meaningfully. Operating profit increased to $134.0 million, compared to $128.8 million in 2024, reflecting higher fee and commission income, stronger foreign exchange activity, and improved underlying business momentum. Total operating income rose to $381.8 million, compared to $328.0 million, supported by broad-based growth across core revenue streams, particularly financing and transactional income. Total assets increased to $7.8 billion, compared to $7.1 billion in 2024, reflecting continued balance sheet expansion, particularly in financing assets and customer balances. Total Trust Capital also strengthened to $186.7 million, compared to $174.9 million in 2024, while Trust Capital per Unit improved from$44.26 to $47.24, reflecting 6.7% enhanced value creation for Unitholders. While headline profitability reflects the impact of taxation and margin pressures, the underlying trajectory of the Group continues to improve, supported by stronger diversification of income streams, disciplined cost management, and the early benefits of ongoing restructuring and strategic realignment.