Alinma Bank · TADAWUL:1150
Alinma Bank — Q3 2022 Earnings Presentation
31 slides from Alinma Bank's earnings presentation, Nov 2, 2022
Slide 1: Earnings Presentation 3Q 2022
Earnings Presentation 3Q 2022 Earnings Call 02 November 2022 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 9M 2022 Financial Performance 5 Outlook & Guidance 3Q 2022 EARNINGS PRESENTATION 2/31
Slide 3: Alinma Overview
Alinma Overview 3Q 2022 digital. fast. convenient.
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 16.3m 538K 98.6% Monthly Average Users Smartphone Daily Average Users Digital Transactions Retail Digital Snapshot #1 in KSA #4 in KSA #4 in KSA 21.8% CAR 3.42% NIM 13.4% ROE (2Q 2022) (2Q 2022) (2Q 2022) 5.6% 6.2% Assets Financing (2Q 2022) (2Q 202
Slide 5: Financial Performance Highlights
Financial Performance Highlights 3Q 2022 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid income growth and lower risk cost translated into 31% growth of net income in 9M 2022 and 14.0% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Increase in financing of 11% YTD from growth in Operating income growth of 17% (+15% fun
Slide 7: Strategy Update
Strategy Update 3Q 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: Initiatives Completed to Date
Strategy Update 3Q 2022 Initiatives Completed to Date Bank-wide 18/27 Retail 6/18 Corporate 6/18 Treasury 6/12 UX/CX practices embedded within Introduced POS finance through Built excellence team capabilities by Expanded derivatives customer the overall business & technology branches adding more rol
Slide 11: Strategy Update: 2022 Initiatives In-Progress
Strategy Update 2022 Initiatives In-Progress Bank-wide 8/27 Retail 12/18 Corporate 8/18 Treasury 6/12 Designing exclusive Private Program lending products being Enhance offering of structured Expanding the digital factory for the Banking experience program introduced for SME customers deposit produc
Slide 12: 9M 2022 Financial Performance
9M 2022 Financial Performance 3Q 2022 digital. fast. convenient.
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 11% from increase in financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 11% YTD mainly driven by 11% financing growth and +11% 15% growth in investments. Total liabilities grew by 13% during 9M
Slide 14: P&L Trends
P&L Trends Net income for 9M 2022 grew by 31% YoY due to 17% income growth and lower impairment charges Management Commentary Net Income Movement YoY (SARmn) Net income for 9M 2022 grew 31% YoY to SAR 2,739mn from 17% income +31% growth and a 23% decrease in impairments despite 20% higher operatin
Slide 15: Financing
Financing Increase in gross financing of 10% during 9M 2022 from 28% growth in retail financing, and 5% in corporate financing Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +10% Corporate 13% Corporate 133.0 135.1 143.7 75% 125.5 130.3 SME 12% 98.8 102.3 102.1 102.2 107.9 3% 143.7 Ho
Slide 16: Deposits
Deposits Deposit growth of 9% driven by 9% CASA growth and 10% time deposits growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +9% +9% 128.0 130.4 132.0 4.2 6.8 132.0 116.7 121.1 121.1 79.7 88.0 92.4 86.4 75.9 40.7 41.4 40.0 38.0 45.6 QoQ 3Q 21 +4% 4Q 21 +6% 1Q 22 +2% 2Q 22
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 22% from 33% growth in investment income and 21% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +36% +22% 2,049 755 5,176 1,653 4,226 195 1,512 1,452 1,474 1,753 1,301 1,232 1,242 1,
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 9M 2022 increased by 23% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +22% +23% 496 519 113 53 1,417 1,148 54 48 373 402 329 225 222 95 73 117 257 256 271 297 307 QoQ 3Q 21 +13% 4Q 21 +33% 1Q 22 +5% 2Q 22 -23% 3Q 22 Non-funded Fees f
Slide 19: Operating Expenses
Operating Expenses 9M 2022 saw 20% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +15% +20% 710 20 179 2,015 684 642 663 1,676 140 616 327 253 284 305 265 63 66 66 69 70 2,015 287 291 323 310 334 Operating
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 9M 2022 declined by 33bps from 21% lower credit impairment charges YoY Impairments for Financing (SARmn) Impairments for Financing (SARmn) -2% -21% 279 289 273 963 241 248 762 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 9M 21 9M 22 QoQ +4% -17% +3% +10% Impairments Allow
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage NPL and NPL coverage ratios improved YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% +5% 2.27% 2.50% 2.01% 1.90% 2.9 1.75% 1.67% 2.7 2.6 2.00% 2.3 2.4 1.50% 1.00% 2.7 2.5 2.4 2.1 2.2 0.50% 0.2 0.1 0.2 0.2 0.2 0.00% QoQ 3Q 21 -20% 4Q 21 +17% 1Q 22 -4% 2Q 22 -7% 3Q 22 3Q
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 2.8ppts YoY Capitalization (%) Profitability (%) Management Commentary 15% 25% 14.0% CAR has declined 2.3ppts YoY to 20.1 due to 17.3% increase in credit risk weighted assets due to the 22.4% 11.2
Slide 23: Outlook & Guidance
Outlook & Guidance 3Q 2022 digital. fast. convenient.
Slide 24: Guidance
Guidance 2022 outlook remains promising. Revised guidance for financing growth 9M 2022A Drivers 2022G Balance Sheet Financing Growth +15% Strong Mid-Corp, SME & Retail growth from strategic High teens YoY initiatives; pick up in corporate financing (Revised from low teens) Net Profit Margin 3.59% +1
Slide 25: Q&A
Q&A 3Q 2022 digital. fast. convenient.
Slide 26: Appendix
Appendix 3Q 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: Alinma ESG Material
Alinma ESG Material Material issues were ranked based on their importance for the bank and our stakeholders Responsible Customer Relations and Satisfaction Talent Attraction, Retention and Development MOST Diversity and Inclusion IMPORTANT Digitalization and Innovation Governance, Accountability, Tr
Slide 29: 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 30: 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 31: 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