Alinma Bank · TADAWUL:1150
Alinma Bank — 4Q 2022 Earnings Presentation
30 slides from Alinma Bank's earnings presentation, Feb 9, 2023
Slide 1: Earnings Presentation 4Q 2022
Earnings Presentation 4Q 2022 Earnings Call 09 February 2023 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 FY 2022 Financial Performance 5 Outlook & Guidance 4Q 2022 EARNINGS PRESENTATION 2/30
Slide 3: Alinma Overview
Alinma Overview 4Q 2022 digital. fast. convenient.
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 16.5m 545K 98.6% Monthly Average Users Smartphone Daily Average Users Digital Transactions Retail Digital Snapshot #2 in KSA #3 in KSA #4 in KSA 2.0% ROA 20.1% CAR 14.0% ROE (3Q 2022) (3Q 2022) (3Q 2022) 5.8% 6.4% Assets Financing (3Q 2022) (3Q 2022
Slide 5: Financial Performance Highlights
Financial Performance Highlights 4Q 2022 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 33% growth of net income in FY 2022 and 13.7% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Increase in financing of 16% YoY from growth in Operating income growth of 20% (+18% funded NPL
Slide 7: Strategy Update
Strategy Update 4Q 2022 digital. fast. convenient.
Slide 8: Strategic Positioning
Strategic Positioning Alinma Bank's strategic positioning cascades down into each business strategy Be recognized and celebrated as the fastest and Excellence most convenient bank in KSA Shariah Compliance Bank wide Be the #1 in Net Promoter Score (NPS) across KSA Banks Digital Corporate Be the #1 E
Slide 9: Strategic Ambitions
Strategic Ambitions Driving changes across the businesses and bank-wide > Bank-wide Retail Corporate Treasury Build Digital Factory to scale > Build digitally-savvy affluent Become core bank for large, Become core partner for customer experience and and HNW customer franchise mid-corporate and proje
Slide 10: Strategy Update: 4Q 2022 Initiatives Completed to Date
Strategy Update 4Q 2022 Initiatives Completed to Date Bank-wide 21/27 Retail 12/18 Corporate 9/19 Treasury 12/12 Implemented DevOps and Introduced Real Estate re-finance Product bundling designed and Expanded derivatives customer completed QA testing framework product introduced for SME customers ba
Slide 11: Strategy Update: 2023 Initiatives In-Progress
Strategy Update 2023 Initiatives In-Progress Bank-wide 6/27 Retail 6/18 Corporate 10/19 Treasury 0/12 Expanding the digital factory for the Designing exclusive private Implementation of Corporate Enhance offering of structured transformation banking experience program Loan Origination System deposit
Slide 12: FY 2022 Financial Performance
FY 2022 Financial Performance 4Q 2022 digital. fast. convenient.
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 16% from increase in financing and investments Management Commentary Total Assets Movement YoY (SARbn) Growth in total assets of 16% YoY mainly driven by 16% financing growth and +16% 16% growth in investments. 5.3 20.2 0.2 200.4 Total liabilities gre
Slide 14: P&L Trends
P&L Trends Net income for FY 2022 grew by 33% YoY due to 20% income growth and slightly lower impairment charges Management Commentary Net Income Movement YoY (SARmn) Net income for FY 2022 grew 33% YoY to SAR 3,599mn from 20% income +33% growth and a 6% decrease in impairments despite 17% higher
Slide 15: Financing
Financing Increase in gross financing during FY 2022 from 33% growth in retail financing, and 11% in corporate financing Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +15% Corporate Total Corporate 150.5 12% 130.3 133.0 135.1 143.7 75% SME 13% 107.9 113.2 102.3 102.1 102.2 150.5 Home
Slide 16: Deposits
Deposits Deposit growth of 20% driven by 4% CASA growth and 51% time deposits growth Customers' Deposits (SARbn) Customers' Deposits Movement YoY (SARbn) +20% +20% 145.2 21.3 2.8 145.2 128.0 130.4 132.0 121.1 121.1 82.5 79.7 88.0 92.4 86.4 62.7 41.4 40.0 38.0 45.6 QoQ 4Q 21 +6% 1Q 22 +2% 2Q 22 +1% 3
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 34% from 40% growth in investment income and 33% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) Management Commentary +68% +34% Gross funded income for FY 2022 increased by 34% YoY
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for FY 2022 increased by 25% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +29% +25% 496 519 480 172 1,897 135 76 371 402 1,519 225 222 146 (6) 95 117 271 297 307 334 254 QoQ 4Q 21 +34% 1Q 22 +5% 2Q 22 -23% 3Q 22 +19% 4Q 22 Non-funded Fee
Slide 19: Operating Expenses
Operating Expenses FY 2022 saw 17% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +10% +17% 710 750 209 28 171 2,765 682 642 663 2,358 305 318 326 253 284 66 69 70 74 66 2,765 290 323 310 334 358 QoQ 4Q 21
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for FY 2022 declined by 17bps from 4% lower credit impairment charges YoY Impairments for Financing (SARmn) Impairments for Financing (SARmn) +51% -4% 436 1,252 1,198 289 273 241 248 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 FY 21 FY 22 QoQ -17% +3% +10% +60% Impairments A
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage The NPL ratio increased while NPL coverage decreased YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% +28% 2.50% 2.01% 1.90% 1.94% 2.9 2.00% 1.75% 1.67% 2.7 2.6 2.3 2.4 1.50% 2.5 1.00% 2.5 2.4 2.2 2.1 0.50% 0.1 0.2 0.2 0.2 0.5 0.00% QoQ 4Q 21 +17% 1Q 22 -4% 2Q 22 -7% 3Q
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 2.9ppts YoY CAR (%) Profitability (%) Management Commentary 25% 15% CAR has declined 3ppts YoY to 19.8% due to 20.6% 22.8% 13.7% increase in credit risk weighted assets due to the 20% 19.8% growth
Slide 23: Outlook & Guidance
Outlook & Guidance 4Q 2022 digital. fast. convenient.
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2023 FY 2022A 2022G 2023G Drivers Balance Sheet Financing Growth +16% High teens Mid teens Strong Mid-Corp, SME & Retail growth from strategic YoY initiatives; pick up in corporate financing Net Profit Margin 3.62% +20bps to
Slide 25: Q&A
Q&A 4Q 2022 digital. fast. convenient.
Slide 26: Appendix
Appendix 4Q 2022 digital. fast. convenient.
Slide 27: ESG in Action
ESG in Action Alinma is progressing on key initiatives to drive the ESG agenda and enhance its ratings Deployment of digital channels Energy efficient lighting are now Air conditioning timers Renewable (solar) energy Environment and digital signatures to reduce in all branches. Planning to installed
Slide 28: ESG in Action
ESG in Action In 2Q 2022 Alinma BoD formed a Governance and Sustainability committee to oversee the ESG framework and progress Governance and Sustainability Committee Objectives The committee members are to be actively engaged in ESG Alinma’s management team manages the implementation initiatives an
Slide 29: IR Contacts
IR Contacts Ahmed Sager Ibrahim Al Khudair Head of Investor Relations Investor Relations Assistant Manager Mobile: +966-53-775-3352 Mobile: +966-55-788-5520 Direct: +966-11-218-6364 Direct: +966-11-218-6181 Email: aosager@alinma.com Email: iaalkhudair@alinma.com Visit our new website here for more i
Slide 30: Disclaimer
Disclaimer This presentation is being provided to you for general information purposes only. The information contained in the presentation has been obtained from sources believed by Alinma Bank (“Alinma") to be up to date, correct and reliable, but Alinma does not make any representation or warranty