Alinma Bank · TADAWUL:1150
Alinma Bank — Q1 2023 Earnings Presentation
29 slides from Alinma Bank's earnings presentation, May 10, 2023
Slide 1: Earnings Presentation 1Q 2023
Earnings Presentation 1Q 2023 Earnings Call 10 May 2023 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 1Q 2023 Financial Performance 5 Outlook & Guidance 1Q 2023 EARNINGS PRESENTATION 2/29
Slide 3: Alinma Overview
Alinma Overview 1Q 2023 digital. fast. convenient.
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 18.8m 628K 98.5% Monthly Average Users Smartphone Daily Average Users Digital Transactions (Number of Smart Phone Users Logins) Retail Digital Snapshot #4 in KSA #3 in KSA #4 in KSA 1.9% ROA 18.6% CAR (T1) 13.7% ROE (4Q 2022) (4Q 2022) (4Q 2022) 5.9
Slide 5: Financial Performance Highlights
Financial Performance Highlights 1Q 2023 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 18% growth of net income in 1Q 2023 and 14.1% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Increase in financing of 5% YTD from growth in Operating income growth of 21% (+32% funded and N
Slide 7: Strategy Update
Strategy Update 1Q 2023 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: 1Q 2023 Initiatives Completed to Date
Strategy Update 1Q 2023 Initiatives Completed to Date Bank-wide 22/28 Retail 12/18 Corporate 9/19 Treasury 12/12 Introduced Chat-bot service Launched Off-plan commodity Product bundling designed and Expanded derivatives customer product introduced for SME customers base Launched new Alinma mobile ap
Slide 11: Strategy Update: 2023 Initiatives In-Progress
Strategy Update 2023 Initiatives In-Progress Bank-wide 6/28 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: 1Q 2023 Financial Performance
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Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 7% from increase in financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 7% YTD mainly driven by 5% financing growth and +7% 4% growth in investments and 47% growth in balances with SAMA. Total li
Slide 14: P&L Trends
P&L Trends Net income for 1Q 2023 grew by 18% YoY due to 21% income growth Management Commentary Net Income Movement YoY (SARmn) Net income for 1Q 2023 grew 18% YoY to SAR 970mn from 21% income +18% growth even with 18% higher operating expenses YoY. 423 1Q 2023 net income improved 13% QoQ drive
Slide 15: Financing
Financing Increase in gross financing during 1Q 2023 from 8% growth in retail financing, and 3% in corporate financing Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +18% Corporate Total Corporate 157.2 13% 143.7 150.5 74% 133.0 135.1 SME 117.0 13% 113.2 102.1 102.2 107.9 157.2 Home f
Slide 16: Deposits
Deposits Deposit growth of 10% driven by 3% CASA growth and 20% time deposits growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +25% +10% 159.9 12.6 2.2 159.9 145.2 145.2 128.0 130.4 132.0 84.7 82.5 88.0 92.4 86.4 62.7 75.2 40.0 38.0 45.6 QoQ 1Q 22 +2% 2Q 22 +1% 3Q 22 +10%
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 89% from 48% growth in investment income and 96% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) Management Commentary +89% +89% Gross funded income for 1Q 2023 increased by 2,783 8
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 1Q 2023 decreased by 10% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) -10% -10% 496 519 480 402 445 37 14 496 445 225 222 146 136 95 (49) (53) 271 297 307 334 308 QoQ 1Q 22 +5% 2Q 22 -23% 3Q 22 +19% 4Q 22 -7% 1Q 23 Non-funded Fees fr
Slide 19: Operating Expenses
Operating Expenses 1Q 2023 saw 18% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +18% +18% 710 750 758 6 65 758 642 663 642 44 305 318 319 253 284 66 70 74 73 69 758 323 310 334 358 367 QoQ 1Q 22 +3% 2Q 2
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 1Q 2023 increased by 15bps from 40% higher credit impairment charges YoY Impairments for Financing (SARmn) Impairments for Financing (SARmn) +40% +40% 436 337 337 241 241 248 273 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 1Q 22 1Q 23 QoQ +3% +10% +60% -23% Impairments A
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage NPL ratio increased and NPL coverage decreased YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% +24% 2.50% 2.01% 2.11% 1.90% 1.94% 3.3 2.00% 1.67% 2.7 2.9 2.6 2.4 1.50% 2.6 1.00% 2.5 2.5 2.4 2.2 0.50% 0.5 0.7 0.2 0.2 0.2 0.00% QoQ 1Q 22 -4% 2Q 22 -7% 3Q 22 +22% 4Q 22 +1
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 1.5ppts YoY CAR (%) Profitability (%) Management Commentary 25% 15% CAR has declined 3.6ppts YoY to 19.1% due to 22.7% 14.1% 12.6% increase in credit risk weighted assets and market 20% 19.1% risk
Slide 23: Outlook & Guidance
Outlook & Guidance 1Q 2023 digital. fast. convenient.
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2023 1Q 2023A Drivers 2023G Balance Sheet Financing Growth +19% Strong Mid-Corp, SME & Retail growth from strategic Mid teens YoY initiatives; pick up in corporate financing Net Profit Margin 3.80% Rising rates and funding m
Slide 25: Q&A
Q&A 1Q 2023 digital. fast. convenient.
Slide 26: Appendix
Appendix 1Q 2023 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: IR Contacts
IR Contacts Ahmed Sager Head of Investor Relations Mobile: +966-53-775-3352 Direct: +966-11-218-6364 Email: aosager@alinma.com Visit our new website here for more investor disclosures: Ibrahim Al Khudair • Financial statements Investor Relations Assistant Manager • Annual reports Mobile: +966-55-788
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