Alinma Bank · TADAWUL:1150
Alinma Bank — Q2 2022 Earnings Presentation
30 slides from Alinma Bank's earnings presentation, Aug 8, 2022
Slide 1: Earnings Presentation 2Q 2022
Earnings Presentation 2Q 2022 Earnings Call 08 August 2022 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 1H 2022 Financial Performance 5 Outlook & Guidance 2Q 2022 EARNINGS PRESENTATION 2/30
Slide 3: Alinma Overview
Alinma Overview 2Q 2022 digital. fast. convenient.
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 14.9 m 496K 98.8% Monthly Average Users Smartphone Daily Average Users Digital Transactions Retail Digital Snapshot #2 in KSA #3 in KSA #4 in KSA 22.7% CAR 3.31% NIM 12.6% ROE (1Q 2022) (1Q 2022) (1Q 2022) 5.7% 6.3% Assets Financing (1Q 2022) (1Q 20
Slide 5: Financial Performance Highlights
Financial Performance Highlights 2Q 2022 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid income growth and lower risk cost translated into 29% growth of net income in 1H 2022 and 13.4% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Increase in financing of 4% YTD from growth in Operating income growth of 15% (+12% fund
Slide 7: Strategy Update
Strategy Update 2Q 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: 2Q 2022 Initiatives Completed to Date
Strategy Update 2Q 2022 Initiatives Completed to Date Bank-wide 14/27 Retail 3/18 Corporate 6/17 Treasury 7/12 UX Lab was introduced as a best-in- Introduced Musawama products Established excellence team to Expanded derivatives customer class enabler to empower UX driven for services & retail sector
Slide 11: Strategy Update: 2022 Initiatives In-Progress
Strategy Update 2022 Initiatives In-Progress Bank-wide 12/27 Retail 15/18 Corporate 7/17 Treasury 5/12 Designing exclusive Private Program lending products being Continuing the implementation Expanding the digital factory for the Banking experience program introduced for SME customers of Treasury sy
Slide 12: 1H 2022 Financial Performance
1H 2022 Financial Performance 2Q 2022 digital. fast. convenient.
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 6% from increase in financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 6% YTD mainly driven by 4% financing growth and +6% 13% growth in investments. Total liabilities grew by 7% during 1H 2022
Slide 14: P&L Trends
P&L Trends Net income for 1H 2022 grew by 29% YoY due to 15% income growth and lower impairment charges Management Commentary Net Income Movement YoY (SARmn) Net income for 1H 2022 grew 29% YoY to SAR 1,750mn from 15% income +29% growth and a 30% decrease in impairments despite 23% higher operatin
Slide 15: Financing
Financing Increase in gross financing of 4% during 1H 2022 from 17% growth in retail financing Financing, Gross (SARbn) Financing, Gross Movement YTD (SARbn) +4% +4% 123.5 125.5 130.3 133.0 135.1 2.2 2.7 0.4 135.1 130.3 102.2 (0.5) 97.1 98.8 102.3 102.1 26.4 26.7 28.0 30.8 32.9 QoQ 2Q 21 +2% 3Q 21 +
Slide 16: Deposits
Deposits Deposit growth of 8% driven by 16% CASA growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +8% +8% 125.9 121.1 128.0 130.4 121.1 12.8 130.4 116.7 79.5 75.9 79.7 88.0 92.4 (3.4) 46.4 40.7 41.4 40.0 38.0 QoQ 2Q 21 -7% 3Q 21 +4% 4Q 21 +6% 1Q 22 +2% 2Q 22 Total customer
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 15% from 29% growth in investment income and 13% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +21% +15% 1,511 1,653 302 3,127 1,363 1,452 1,474 2,714 111 1,300 1,232 1,242 1,391 1,
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 1H 2022 increased by 24% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +23% +24% 496 519 106 50 1,015 422 819 4 36 331 373 225 222 142 117 73 280 259 256 271 297 QoQ 2Q 21 -21% 3Q 21 +13% 4Q 21 +33% 1Q 22 +5% 2Q 22 Non-Funded Fees fro
Slide 19: Operating Expenses
Operating Expenses 1H 2022 saw 23% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +28% +23% 684 642 663 140 1,306 618 93 13 519 1,060 266 327 253 284 196 63 66 66 69 61 1,306 262 288 291 323 310 QoQ 2Q 21
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 1H 2022 declined by 41bps from 28% lower credit impairment charges YoY Impairments for Financing (SARmn) Impairments for Financing (SARmn) -26% -28% 337 684 279 289 241 248 489 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 1H 21 1H 22 QoQ -17% +4% -17% +3% Impairments Allo
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage NPL and NPL coverage ratios improved YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% +13% 2.26% 2.27% 2.50% 2.01% 1.90% 1.75% 2.8 2.9 2.7 2.00% 2.6 2.3 1.50% 1.00% 2.6 2.7 2.5 2.4 2.1 0.50% 0.2 0.2 0.1 0.2 0.2 0.00% QoQ 2Q 21 +2% 3Q 21 -20% 4Q 21 +17% 1Q 22 -4% 2Q 22 2
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 2.5ppts YoY Capitalization (%) Total Capital (SARbn) Profitability (%) 25% 15% +23% 13.4% 23% 21.8% 33.1 33.9 10% 10.9% 21% 27.5 20.7% 1.7 1.8 19% 19.2% 1.6 5% 18.1% 17% 17.4% 25.9 31.4 32.1 1.7% 2.
Slide 23: Outlook & Guidance
Outlook & Guidance 2Q 2022 digital. fast. convenient.
Slide 24: Guidance
Guidance 2022 outlook remains promising. Revised guidance for NPM and financing growth 1H 2022A Drivers 2022G Strong Mid-Corp, SME & Retail growth from strategic Balance Sheet Financing Growth +10% initiatives; modest growth on large corporate given Low teens YoY expected pricing competition Net Pro
Slide 25: Q&A
Q&A 2Q 2022 digital. fast. convenient.
Slide 26: Appendix
Appendix 2Q 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: Governance and Sustainability Committee
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 Head of Investor Relations Mobile: +966-53-775-3352 Direct: +966-11-218-86364 Visit our new website here for more investor disclosures: Email: aosager@alinma.com • Financial statements Ibrahim Al Khudair Investor Relations Assistant Manager • Annual reports • Investor present
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