Alinma Bank · TADAWUL:1150
Alinma Bank — Q1 2024 Earnings Presentation
29 slides from Alinma Bank's earnings presentation, May 9, 2024
Slide 1: Earnings Presentation 1Q 2024
Earnings Presentation 1Q 2024 9 May 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 1Q 2024 Financial Performance 5 Outlook & Guidance 1Q 2024 EARNINGS PRESENTATION 2 /29 Classification: Private
Slide 3: Alinma Overview
Alinma Overview Q1 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 21m 6.4% 7.1% #3 in KSA #2 in KSA #1 in KSA Monthly Assets Financing 3.81% 17.22% 2.21% Average Users (4Q 2023) (4Q 2023) (4Q 2023) (4Q 2023) (4Q 2023) (Smart Phone Users Lo
Slide 5: Financial Performance Highlights
Financial Performance Highlights Q1 2024 digital. fast. convenient. Classification: Private
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 36% growth of net income in 1Q 2024 and 17.5% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity 4% increase in financing YTD mainly from growth Operating income growth of 18% YoY mainly from N
Slide 7: Strategy Update
Strategy Update Q1 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: 1Q 2024 Initiatives Completed to Date
Strategy Update 1Q 2024 Initiatives Completed to Date Bank-wide 25/28 Retail 16/18 Corporate 9/19 Treasury 12/12 Launched Mortgage Re- Completed the RM tech enabled Successfully completed Tier 1 Implemented donations to finance product tailored to sales tools Sukuk issuance of USD 1 bn charities usi
Slide 11: Strategy Update: 2024 Initiatives In-Progress
Strategy Update 2024 Initiatives In-Progress Bank-wide 3/28 Retail 2/18 Corporate 10/19 Treasury 0/12 Expanding the digital factory Digitalize mortgage journey Building of integrated portal for Enhance offering of structured for the transformation Corporate segments deposit products Enhancing family
Slide 12: Q1 2024 Financial Performance
Q1 2024 Financial Performance digital. fast. convenient. Classification: Private
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 3% from increase in financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 3% YTD mainly driven by 4% financing growth and 5% growth in investments. +3% Total liabilities grew by 2% YTD mainly from
Slide 14: P&L Trends
P&L Trends Net income for 1Q 2024 grew by 36% YoY mainly from 18% operating income growth Management Commentary Net Income Movement YoY (SARmn) Net income for 1Q 2024 grew 36% YoY to SAR 1,315mn from 18% operating +36% income growth despite 10% higher operating expenses YoY. 1Q 2024 funded incom
Slide 15: Financing
Financing 4% increase in gross financing during 1Q 2024 from 1% growth in retail financing, and 5% in corporate financing Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +18% Large corporate & project finance 12% 173.5 178.1 185.0 Mid corporate Corporate 157.2 165.9 76% 12% SME 131.2 1
Slide 16: Deposits
Deposits Deposit growth of 1% driven by 6% CASA growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +18% +1% 177.9 180.2 187.9 189.0 187.9 5.2 189.0 159.9 87.2 90.0 90.6 95.8 (4.1) 84.7 75.2 90.7 90.2 97.3 93.2 QoQ 1Q 23 +11% 2Q 23 +1% 3Q 23 +4% 4Q 23 +1% 1Q 24 Total customer
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 37% from 34% growth in investment income and 37% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +37% +37% 3,515 3,754 3,799 900 3,799 3,176 116 2,783 2,783 3,077 3,288 3,339 2,439 2,
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 1Q 2024 increased by 24% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +24% +24% 577 535 553 86 28 3 553 515 445 445 192 128 158 156 (9) 136 385 407 359 394 308 QoQ 1Q 23 +30% 2Q 23 -7% 3Q 23 -4% 4Q 23 +7% 1Q 24 Non-funded Fees from E
Slide 19: Operating Expenses
Operating Expenses 1Q 2024 saw 10% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +10% +10% 834 15 834 758 747 766 774 46 14 758 313 313 334 319 307 73 86 87 87 80 367 359 367 374 413 QoQ 1Q 23 -1% 2Q 23 +
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 1Q 2024 declined by 29bps Impairments for Financing (SARmn) Impairments for Financing (SARmn) -21% -21% 337 337 326 266 301 309 266 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 1Q 24 QoQ -3% -8% +3% -14% Impairments Allowance Composition Cost of Risk (%) Management
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% -28% 2.50% 2.11% 1.89% 3.3 3.1 2.00% 1.69% 1.61% 2.9 2.9 2.4 1.28% 1.50% 2.6 2.5 2.1 2.0 1.00% 1.5 0.50% 0.7 0.6 0.8 0.9 0.9 0.00% QoQ 1Q 23 -5% 2Q 23 -6% 3Q 23 -3% 4Q 23 -17
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 345bps YoY Capitalization (%) Profitability (%) Management Commentary 25% 20% 17.5% CAR remained stable YoY at 19.1%. 20% 19.1% 19.1% 15% 14.1% NSFR improved 1.5ppts YoY to reach 108.5%. 15% 10%
Slide 23: Outlook & Guidance
Outlook & Guidance Q1 2024 digital. fast. convenient. Classification: Private
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2024. 1Q 2024A Drivers 2024G Balance Sheet Financing Growth +18% Strong Mid-Corp, SME & Retail growth from strategic Mid teens YoY initiatives; continuing the growth in corporate financing Net Profit Margin 3.69% Declining r
Slide 25: Q&A
Q&A Q1 2024 digital. fast. convenient. Classification: Private
Slide 26: Appendix
Appendix Q1 2024 digital. fast. convenient. Classification: Private
Slide 27: Sustainability
Sustainability Alinma Bank released its 2022 sustainability report The first step for the Alinma journey to complete disclosure and reporting for all material factors to give investors and other stakeholders the complete picture on sustainability credentials and progress. It has been prepared using
Slide 28: IR Contacts
IR Contacts Investor Relations team Email: IR@alinma.com Visit our new website 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 Saudi Arab
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