Alinma Bank · TADAWUL:1150
Alinma Bank — Q4 2021 Earnings Presentation
28 slides from Alinma Bank's earnings presentation, Feb 16, 2022
Slide 1: Earnings Presentation 4Q 2021
Earnings Presentation 4Q 2021 Earnings Call 16 February 2022 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 FY 2021 Financial Performance 5 Outlook & Guidance 5 Appendix 4Q 2021 EARNINGS PRESENTATION 2/28
Slide 3: Alinma Overview
Alinma Overview 4Q 2021 digital. fast. convenient.
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 12.0 m 403K 98.94% Monthly Average Users Smartphone Daily Average Users Digital Transactions Retail Digital Snapshot #4 in KSA #3 in KSA #4 in KSA 33.7% C/I Ratio 1.72% ROA 11.2% ROE (9M 2021) (9M 2021) (9M 2021) 5.66% 6.44% Assets Financing (3Q 202
Slide 5: Financial Performance Highlights
Financial Performance Highlights 4Q 2021 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid balance sheet growth translating into 38% growth of net income in 2021 and 10.8% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Solid 14% increase in financing from growth in Operating income growth of 17% (+11% funded and Credit
Slide 7: Strategy Update
Strategy Update 4Q 2021 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: 2021 Achievements
Strategy Update 2021 Achievements Bank-wide 12/20 Retail 1/18 Corporate 5/16 Treasury 5/12 Digital factory operating model Designed new operating model Simplified the Corporate Credit Diversified funding base through finalized; Digital function created, for Private Banking and Affluent process – exp
Slide 11: Strategy Update: 2022 Initiatives In-Progress
Strategy Update 2022 Initiatives In-Progress Bank-wide 8/20 Retail 17/18 Corporate 7/16 Treasury 7/12 Empower Digital Enablement Design exclusive Affluent Expand Mid-Corporate presence Deepen collaboration with team to accelerate digitalization experience program and increase capabilities business u
Slide 12: FY 2021 Financial Performance
FY 2021 Financial Performance 4Q 2021 digital. fast. convenient.
Slide 13: Balance Sheet Trends
Balance Sheet Trends Solid balance sheet growth from growth in financing and investments Management Commentary Total Assets Movement YoY (SARbn) Growth in total assets of 11% YoY driven by 14% financing growth and 13% +11% growth in investments. 156.9 3.8 15.1 0.5 173.5 Total liabilities grew by
Slide 14: P&L Trends
P&L Trends Net income for 2021 grew by 38% YoY due to 17% income growth Management Commentary Net Income Movement YoY (SARmn) Net income for 2021 grew 38% YoY to SAR 2,709mn from 17% income growth +38% and an 11% decrease in impairments despite 14% higher operating expenses YoY. 496 152 2,709 489
Slide 15: Financing
Financing Solid 14% increase in gross financing from strong growth in both corporate and retail financing Financing, Gross (SARbn) Financing, Gross Movement YoY (SARbn) +14% +14% 120.7 123.5 125.5 130.3 114.5 11.6 0.4 130.3 114.5 2.7 1.1 94.8 97.1 98.8 102.3 90.3 24.2 25.9 26.4 26.7 28.0 QoQ 4Q 20 +
Slide 16: Deposits
Deposits Strong 14% CASA growth supported funding mix optimization Customers' Deposits (SARbn) Customers' Deposits Movement YoY (SARbn) +1% +1% 119.5 120.7 125.9 116.7 121.1 119.5 9.6 121.1 70.1 72.2 79.5 75.9 79.7 (8.0) 49.4 48.6 46.4 40.7 41.4 QoQ 4Q 20 +1% 1Q 21 +4% 2Q 21 -7% 3Q 21 +4% 4Q 21 Tota
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 5% from 17% growth in average profit-earning assets, partly offset by a 19bps lower profit margin YoY Funded Income, Gross (SARmn) Funded Income, Gross Movement YoY (SARmn) +5% +4% 1,511 1,452 1,377 1,349 1,362 100 5,674 5,470 105 1,193 1,
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 2021 increased by 48% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) -6% +48% 272 81 1,530 396 402 424 373 149 331 1,034 49 113 142 73 117 (5) 347 288 282 259 256 QoQ 4Q 20 +1% 1Q 21 +6% 2Q 21 -22% 3Q 21 +13% 4Q 21 Non-Funded Fees from
Slide 19: Operating Expenses
Operating Expenses 2021 saw 14% growth in operating expenses YoY mainly from a 29% increase in G&A mostly from VAT Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +31% +14% 684 618 524 543 521 78 221 2,365 266 327 2,066 231 203 197 61 61 63 66 64 (0) 2,365 229 279 263 288 291 QoQ
Slide 20: Impairments from Financing
Impairments from Financing The cost of risk has declined by 32bps mainly from 12% lower impairment charges YoY Impairments for Financing (SARmn) Impairments for Financing (SARmn) Impairments Composition (SARmn) 10% -55% -12% Retail 637 1,419 1,252 1,252 347 337 289 Corporate 279 90% 4Q 20 1Q 21 2Q 2
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage Credit quality has improved evidenced by an overall improvement in both NPL and NPL coverage ratios YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% -20% 2.49% 2.25% 2.26% 2.27% 2.50% 2.9 2.7 2.8 2.9 1.75% 2.00% 2.3 1.50% 2.6 2.6 2.7 1.00% 2.5 2.1 0.50% 0.3 0.2 0.2 0.2
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and capital ratios increased due to T1 sukuk issuance and retained earnings generation Capitalization (%) Total Capital Movement YoY (SARbn) Profitability (%) 25% 12% +24% 10.8% 23% 10% 22.8% 21.6% 8% 8.4% 21% 5.0 33.1 26.7 2.7 6% 19% 19.3% 18.2% 18.2% 4% (0.0) 17%
Slide 23: Outlook & Guidance
Outlook & Guidance 4Q 2021 digital. fast. convenient.
Slide 24: Guidance
Guidance Improving economic outlook and acceleration of strategic execution drive a promising outlook for 2022 2021A Drivers 2022G Strong Mid-Corp, SME & Retail growth from strategic Balance Sheet Financing Growth +14% initiatives; solid corporate growth from expected Mid-teens credit demand Rising
Slide 25: Q&A
Q&A 4Q 2021 digital. fast. convenient.
Slide 26: Appendix
Appendix 4Q 2021 digital. fast. convenient.
Slide 27: IR Contacts
IR Contacts Ahmed Sager Investor Relations Manager Mobile: +966-53-775-3352 Direct: +966-11-218-86364 Email: aosager@alinma.com Bader Al Yahya Investor Relations Analyst Mobile: +966-58-122-3445 Direct: +966-11-218-87606 Email: bmalyahya@alinma.com Al Anoud Tower, King Fahad Road P.O. Box 66674, Riy
Slide 28: 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