Alinma Bank · TADAWUL:1150
Alinma Bank — Q3 2024 Earnings Presentation
29 slides from Alinma Bank's earnings presentation, Nov 4, 2024
Slide 1: Earnings Presentation 3Q 2024
Earnings Presentation 3Q 2024 4 Nov 2024 digital. fast. convenient. Classification: Private
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 9M 2024 Financial Performance 5 Outlook & Guidance 3Q 2024 EARNINGS PRESENTATION 2 /29 Classification: Private
Slide 3: Alinma Overview
Alinma Overview Q3 2024 digital. fast. convenient. Classification: Private
Slide 4: Alinma Overview
Alinma Overview The youngest bank in KSA Financial Position Retail Digital Snapshot KSA Market Share Net Profit Margin ROE ROA 23.4m 6.6% 7.2% #2 in KSA #2 in KSA #2 in KSA Monthly Assets Financing 3.74% 18.02% 2.20% Average Users (2Q 2024) (2Q 2024) (2Q 2024) (2Q 2024) (2Q 2024) (Smart Phone Users
Slide 5: Financial Performance Highlights
Financial Performance Highlights Q3 2024 digital. fast. convenient. Classification: Private
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 22% growth of net income in Q3 2024 and 18.6% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity 13% increase in financing YTD mainly from growth Operating income growth of 14% YoY driven by NP
Slide 7: Strategy Update
Strategy Update Q3 2024 digital. fast. convenient. Classification: Private
Slide 8: Strategic Positioning
Strategic Positioning Alinma Bank's strategic positioning cascades down into each business strategy Excellence Be recognized and Be the #1 Be the #1 celebrated as the fastest in Net Promoter Score Employer of Shariah Compliance Bank wide and most convenient (NPS) choice bank in KSA across KSA Banks
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 project c
Slide 10: Strategy Update: 3Q 2024 Initiatives Completed to Date
Strategy Update 3Q 2024 Initiatives Completed to Date Bank-wide 27/31 Retail 16/22 Corporate 14/21 Treasury 12/12 New investment pool for Bulk Payment Swift Transfer Successfully completed three Launched new API channel that Non-Zakat paying Assets through CIB years bilateral deal of USD 100 Mn woul
Slide 11: Strategy Update: 2024 Initiatives In-Progress
Strategy Update 2024 Initiatives In-Progress Bank-wide 4/31 Retail 6/22 Corporate 7/21 Treasury 0/12 Digitalize mortgage journey New products and offerings being Enhance offering of structured Expanding the digital factory created to drive liabilities growth deposit products for the transformation E
Slide 12: 9M 2024 Financial Performance
9M 2024 Financial Performance digital. fast. convenient. Classification: Private
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 13% YTD driven by financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 13% YTD mainly driven by 13% financing growth and 9% growth in investments. +13% Total liabilities grew by 12% YTD mainly fro
Slide 14: P&L Trends
P&L Trends Net income for 9M 2024 grew by 22% YoY supported by growth in operating income. Management Commentary Net Income Movement YoY (SARmn) Net income for 9M 2024 grew 22% YoY to SAR 4,303mn from 14% operating +22% income growth. 9M 2024 funded income increased by 14% YoY, and the non-funde
Slide 15: Financing
Financing Gross financing growth of 12% during 9M 2024 is driven by 11% increase in retail financing, and 13% in corporate financing. Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +12% Large corporate & project finance 199.7 12% 185.0 193.6 173.5 178.1 Mid corporate Corporate 76% 12%
Slide 16: Deposits
Deposits Deposit growth of 11% driven by strong CASA growth of 19% Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +11% +11% 205.4 209.1 16.9 209.1 180.2 187.9 189.0 187.9 4.3 103.9 107.5 90.0 90.6 95.8 90.2 97.3 93.2 101.5 101.7 QoQ 3Q 23 +4% 4Q 23 +1% 1Q 24 +9% 2Q 24 +2% 3Q 24
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income continues a strong growth driven by 19% growth in investment income and 26% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +19% +26% 3,962 4,188 3,515 3,754 3,799 2,195 11,948 9,473 280 3
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 9M 2024 increased by 12% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +11% +12% 553 595 595 79 1,743 535 515 1,557 100 21 128 158 191 194 156 (15) 407 359 394 404 402 QoQ 3Q 23 -4% 4Q 23 +7% 1Q 24 +8% 2Q 24 +0% 3Q 24 Non-funded Fees
Slide 19: Operating Expenses
Operating Expenses 9M 2024 saw 11% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +11% +11% 834 834 852 766 774 148 25 78 2,520 2,270 334 338 344 313 313 86 87 87 87 89 367 374 413 408 419 QoQ 3Q 23 +1% 4Q
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 9M 2024 declined by 23bps Impairments for Financing (SARmn) Impairments for Financing (SARmn) -30% -17% 309 320 964 301 266 798 212 QoQ 3Q 23 +3% 4Q 23 -14% 1Q 24 +20% 2Q 24 -34% 3Q 24 9M 23 9M 24 Impairments Allowance Composition Cost of Risk (%) Managemen
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage NPL ratio decreased and NPL coverage increased YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% 2.50% -46% 2.00% 1.69% 1.61% 2.9 2.9 2.4 1.28% 1.50% 1.5 1.6 0.78% 0.78% 2.1 2.0 1.00% 1.5 1.1 1.1 0.50% 0.8 0.9 0.9 0.5 0.4 0.00% 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 QoQ -3% -17%
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy. ROE increased 163bps YoY Capitalization (%) Profitability (%) Management Commentary 25% 20% 18.6% 17.0% CAR increased by 70bps YoY to 18.2%. 20% 18.2% 15% 17.5% NSFR increased 1.9ppts YoY to 109.2%. 15% 10% LDR ratio inc
Slide 23: Outlook & Guidance
Outlook & Guidance Q3 2024 digital. fast. convenient. Classification: Private
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2024. 3Q 2024A Drivers 2024G Balance Sheet Financing Growth +13% Strong Mid-Corp, SME & Retail growth from strategic High teens YTD initiatives; continuing the growth in corporate financing 3.72% Declining rates mixed with i
Slide 25: Q&A
Q&A Q3 2024 digital. fast. convenient. Classification: Private
Slide 26: Appendix
Appendix Q3 2024 digital. fast. convenient. Classification: Private
Slide 27: Sustainability
Sustainability Alinma Bank released its 2023 sustainability report In the second annual sustainability report, we feature our sustainability commitments, strategy, and journey as part of our ongoing commitment to transparently communicating our sustainability credentials, performance, and progress.
Slide 28: IR Contacts
IR Contacts Investor Relations Email: IR@alinma.com Visit our IR website: ir.alinma.com for more investor disclosures: Financial statements Annual reports Sustainability reports Investor presentations Earnings call transcripts Al Anoud Tower, King Fahad Road P.O. Box 66674, Riyadh 11586 Kingdom of S
Slide 29: 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