Alinma Bank · TADAWUL:1150
Alinma Bank — ESG Presentation (2022)
35 slides from Alinma Bank's sustainability presentation, 2022
Slide 1: Inaugural ESG Investor Presentation 2022
Inaugural ESG Investor Presentation 2022 digital.fast.convenient. Strictly confidential digital. fast. convenient.
Slide 2: Vision and Mission
Vision and Mission Our Vision To be your preferred financial partner Our Mission To provide our customers with total Shariah-compliant financial solutions through the best workplace that achieves sustainable development and participates in serving our community Inaugural ESG Investor Presentation 20
Slide 3: Alinma Bank at a Glance
Alinma Bank at a Glance # Customers # Staff 3.93 million 3,676 Corporate Retail KPI 2019 2020 2021 2022 PROGRESS Treasury Branches 95 98 100 104 110 0 Sales Centres 0 0 4 4 5 0 Digital ATMs 1,523 1,551 1,584 1,564 1.6K POS 43,933 74,277 100,764 125,247 130K Shariah Compliance Remittances Center 53 5
Slide 4: Alinma Bank at a Glance: key figures
% Transactions executed Total assets digitally 98.6% SAR 200.4 billion 0% 100% Customer financing and Customer deposits advances SAR 146.5 billion SAR 145.2 billion Tier 1 capital ratio Major shareholders Foreign ownership PIF 18.6% 17.6% 10% 0% 100% 0% 100% 0% 100% Inaugural ESG Investor Presentati
Slide 5: 2022 Financial Performance and Strategy
2022 Financial Performance and Strategy 16 Inaugural ESG Investor Presentation 2022 5
Slide 6: Stable global business
Stable global business Financial highlights as at 31 December 2022 Total Assets (SARbn) Financing (SARbn) Customer Deposits (SARbn) CAGR 12% CAGR 14% CAGR 10% 200.4 146.4 145.2 114.8 79.1 89.1 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 YoY 6% 8% 19% 11%
Slide 7: Strategy overview
Strategy overview Key success factors for Alinma Bank's strategic positioning digital fast convenient "Most digitally advanced, fastest, "Best customer experience and and most convenient bank" fastest turnaround time" #1 NPS Large, Mid Corporate Affluent & HNW Project Finance Youth Retail Corporate
Slide 8: Materiality of Sustainable Issues
Materiality of Sustainable Issues Inaugural ESG Investor Presentation 2022 8
Slide 9: Materiality of Sustainable Issues
Materiality of Sustainable Issues Global sustainability standards were applied to ensure a tailored materiality assessment To commence our formal sustainability journey, Alinma Bank undertook a thorough and comprehensive analysis of the most material issues for both the bank and its stakeholders. Th
Slide 10: These material issues form the basis of our Sustainability Strategy
These material issues form the basis of our Sustainability Strategy Alinma arrived at a Materiality Matrix by mapping the most important elements to the bank Scale of 1-5 1 = Most Important 3 = Important 5 = Least Important Responsible Customer Relations and Satisfaction 1.56 MOST IMPORTANT The crit
Slide 11: Materiality Matrix and Material Issues
Materiality Matrix and Material Issues 15 ESG issues were identified to be of the highest relevance for Alinma Bank Most important 1 Responsible Customer Relations and Satisfaction 2 Talent Attraction, Retention and Development 3 Diversity and Inclusion 3 6 4 Digitalisation and Innovation 4 1 2 5 Go
Slide 12: High-level sustainability strategy
High-level sustainability strategy Key 3-year strategy targets: ESG ratings ESG ratings affect access to borrowing, cost of borrowing, and other financial considerations. ESG ratings also provide investors with insights and guidance on the extent to which a company is likely to outperform as markets
Slide 13: Sustainability Strategy
Sustainability Strategy Accelerate Sustainable Finance Foster Founded on Robust Environmental Governance and We manage and execute our Stewardship a Responsible Circular Economy Operations sustainability strategy according to this materiality matrix. This execution is focused around the following si
Slide 14: Alinma Bank's sustainability strategy and roadmap
Summary: Alinma Bank’s sustainability strategy and roadmap Roadmap to a Sustainable Future PHASE 1 PHASE 2 PHASE 3 Send a clear message on Benefit financially from Implement commitments to intention to lead in both recognized • As part of the ongoing transformation, Alinma Bank national and internat
Slide 15: Sustainability Strategy in Action
Sustainability Strategy in Action Accelerate As an Islamic bank, it is in our business culture and principles to treat Sustainable the customers fairly, to share risk, to serve them with best efforts, and Finance to prioritise sustainable and responsible endeavours in our financing and service deliv
Slide 16: Sustainability Strategy in Action
Sustainability Strategy in Action Strengthen Our We are an integral of the Kingdom of Saudi Arabia. As such, we Communities and bear a responsibility to participate in society. Contribute to Greater Alinma donates 1% of its profit each year to social, community Financial Inclusion activities and don
Slide 17: Creating a Thriving Workplace
Creating a Thriving Workplace Our people are the most important resource to ensure the execution of our sustainability strategy. Our sustainability strategy involves a cultural change to ensure that it is delivered bottom up, as well as top down. The bank is committed to listening to its people, add
Slide 18: Sustainability Key Focus Areas
Sustainability Key Focus Areas Inaugural ESG Investor Presentation 2022 18
Slide 19: Sustainability pillars and alignment to UN SDGs
Sustainability pillars and alignment to UN SDGs Our Sustainability Strategy is organized around six pillars, each designed to impact and contribute to Saudi Vision 2030 and the UN Sustainable Development Goals 6-pillar Framework Alignment to UN SDGs: • Accelerate sustainable finance • Foster environ
Slide 20: Sustainability focus areas
Sustainability focus areas In addition to ESG ratings, the following KPIs serve as the highest level/ most important KPIs in the strategy Focus Area Indicator/commitment 2022 Baseline Awards for sustainable finance Accelerate Sustainable Finance Launch of new sustainable None • EMEA Special Award Gr
Slide 21: Energy consumption and intensity
Energy consumption and intensity Areas covered Objectives • Facilities Management • Align to PIF’s net zero carbon emissions by 2050 commitment • Energy and Water Usage • Enable a circular carbon economy • Reduce other environmental impacts KPI Unit 2022 Total Number of branches # 104 Petrol consump
Slide 22: Current projects for branches
Current projects for branches Project Project Target Progress 20% Solar Energy System 70 12 12 8 18 Alinma has helped to green its branches by installing hundreds of plants and green displays. 22% Building Energy Smart 96 20 17 3 56 Water consumption in 2022 Control System 8% 7,623,510 litres Improv
Slide 23: Current projects for branches
Current projects for branches KPIs and achievements # of branches in remote areas Areas covered • Responsible Customer Relations and 2019 2020 2021 2022 15 6 7 7 Satisfaction • Financial Inclusion and Accessibility Digitisation and Innovation Objectives # of ATM in remote areas • Achieve differentia
Slide 24: Digital performance
Digital performance Digitally active customers (%) New accounts for existing customers opened digitally (%) 100% 100% 80% 64% 67% 80% 68% 69% 56% 59% 55% 61% 60% 60% 40% 40% 20% 20% 0% 0% 2019 2020 2021 2022 2019 2020 2021 2022 New customers onboarded digitally (%) Retail transactions made through m
Slide 25: Small and medium enterprises are the lifeblood of any economy
“Small and medium enterprises are the lifeblood of any economy, and they have a critical part to play in the delivery of Saudi Vision 2030.” Abdullah bin Al-Khalifa, Chief Executive Officer Inaugural ESG Investor Presentation 2022 25
Slide 26: Micro, small and medium sized enterprises (MSME)
Micro, small and medium sized enterprises (MSME) In 2022, Alinma more than doubled the number of SME customers MSME Financing 2019 2020 2021 2022 MSME Financing – On Balance Sheet MSME Financing – Off Balance Sheet Number of Financing transactions guaranteed by Kafalah program MSME Financing – On Ba
Slide 27: Workforce: diversity, talent and engagement
Areas covered Objectives Total workforce (excluding trainees, • Diversity and Inclusion • Reinforce desired cultural students and outsourced staff) Total workforce (management employees) • Talent Attraction, Retention and change and employee empowerment 4,500 500 Development • Develop ESG capacity b
Slide 28: UN Women's Empowerment Principles
UN Women’s Empowerment Principles Female workforce (management employees) Male and female employees 50 3,000 40 2,500 2,000 30 1,500 20 1,000 10 500 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Middle management Lower management Female employees Male employees employees employees Alinma Bank is one o
Slide 29: Cyber security initiatives
Cyber security initiatives Areas covered • Data Privacy and Cybersecurity Governance, Accountability, Transparency and Ethics Risk • Systemic Risk Management assessments Objectives • Encourage good governance practices, integrity and transparency Policies, standards PCI DSS V4.0 • Set the bar for su
Slide 30: How we Govern Sustainability at Alinma Bank
How we Govern Sustainability at Alinma Bank Governance is arranged at three levels ESG in action: Governance and sustainability committee objectives Governance and Sustainability Committee (Board The committee members are to be Alinma’s management team committee), Sustainability Committee (managemen
Slide 31: We have a sustainability committee
We have a sustainability committee Committee member 5-Juy-2022 31-Aug-2022 6-Dec-2022 Total Saad Abdulaziz Al Kroud 3 Saud bin Mohammed Al Nemer 3 Ahmed Abdullah Al Alsheikh 2 Committee Members Saad Abdulaziz Al Kroud Ahmed Abdullah Al Alsheikh Committee Chairman Committee Member Saud bin Mohammed A
Slide 32: Alinma Bank's Stakeholders
Alinma Bank’s Stakeholders The Bank defines stakeholders as individuals or entities who potentially have the most significant impact on the Bank’s value creation process, and those who are materially impacted by its activities. There is an extensive range of stakeholders who, directly or indirectly
Slide 33: Corporate Social Responsibility: Our Communities
Corporate Social Responsibility: Our Communities 2022 community programs Community service is central to our value system at Alinma Bank. Not only does our Extended donations to public charities (For the Autism Centre in Riyadh) CSR program reflect the role we play in the communities in which we ope
Slide 34: Using leverage to drive impact
Using leverage to drive impact Given the leveraging effect of each of these opportunities, a successful differentiation strategy could be achieved with even a small number of them implemented. The combination of the six leveraging factors proposed in this strategy, if successfully executed, will pos
Slide 35: For more information contact Investor Relations
For more information contact Alinma Bank’s Investor Relations team: Website ir.alinma.com Email ir@alinma.com Tel +966-11-218-5555 Alinma Bank Al Anoud Tower, King Fahad Road, P.O. Box 66674, Riyadh 11586, Kingdom of Saudi Arabia Tel +966-11-218-5555 digital.fast.convenient. Strictly confidential Fa