Alinma Bank · TADAWUL:1150
Alinma Bank — Q2 2024 Earnings Presentation
29 slides from Alinma Bank's earnings presentation, Aug 13, 2024
Slide 1: Earnings Presentation 2Q 2024
Earnings Presentation 2Q 2024 13 Aug 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 1H 2024 Financial Performance 5 Outlook & Guidance 2Q 2024 EARNINGS PRESENTATION 2 /29 Classification: Private
Slide 3: Alinma Overview
Alinma Overview Q2 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 22.7m 6.4% 7.1% #3 in KSA #2 in KSA #2 in KSA Monthly Assets Financing 3.69% 17.55% 2.18% Average Users (1Q 2024) (1Q 2024) (1Q 2024) (1Q 2024) (1Q 2024) (Smart Phone Users
Slide 5: Financial Performance Highlights
Financial Performance Highlights Q2 2024 digital. fast. convenient. Classification: Private
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 24% growth of net income in 1H 2024 and 18% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity 9% increase in financing YTD mainly from growth Operating income growth of 15% YoY driven by NPL a
Slide 7: Strategy Update
Strategy Update Q2 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: 2Q 2024 Initiatives Completed to Date
Strategy Update 2Q 2024 Initiatives Completed to Date Bank-wide 27/31 Retail 16/22 Corporate 13/21 Treasury 12/12 Launched Youth App (iz) to Launched 2 new credit cards Launched eCLO phase 2 covering Successfully completed the first public and grand reveal tailored for youth segment & all corporate
Slide 11: Strategy Update: 2024 Initiatives In-Progress
Strategy Update 2024 Initiatives In-Progress Bank-wide 4/31 Retail 6/22 Corporate 8/21 Treasury 0/12 Digitalize mortgage journey New products and offerings being Enhance offering of structured Expanding the digital factory created to drive liabilities growth deposit products for the transformation E
Slide 12: 1H 2024 Financial Performance
1H 2024 Financial Performance digital. fast. convenient. Classification: Private
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 10% YTD driven by financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 10% YTD mainly driven by 9% financing growth and 8% growth in investments. +10% Total liabilities grew by 9% YTD mainly from
Slide 14: P&L Trends
P&L Trends Net income for 1H 2024 grew by 24% YoY supported by growth in operating income. Management Commentary Net Income Movement YoY (SARmn) Net income for 1H 2024 grew 24% YoY to SAR 2,731mn from 15% operating +24% income growth. 1H 2024 funded income increased by 16% YoY, and the non-funde
Slide 15: Financing
Financing Gross financing growth of 9% during 1H 2024 is driven by 4% increase in retail financing, and 10% in corporate financing. Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +9% Large corporate & project 12% finance 185.0 193.6 165.9 173.5 178.1 Mid corporate Corporate 76% 12% 14
Slide 16: Deposits
Deposits Deposit growth of 9% driven by 15% CASA growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +9% +9% 205.4 13.3 205.4 177.9 180.2 187.9 189.0 187.9 4.2 90.6 103.9 87.2 90.0 95.8 90.7 90.2 97.3 93.2 101.5 QoQ 2Q 23 +1% 3Q 23 +4% 4Q 23 +1% 1Q 24 +9% 2Q 24 Total customer
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income continues a strong growth driven by 25% growth in investment income and 31% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +25% +30% 3,754 3,799 3,962 1,614 7,761 3,176 3,515 5,959 188 3,
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 1H 2024 increased by 12% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +3% +12% 577 553 595 106 3 26 1,148 535 515 1,022 192 128 158 191 156 (8) 385 407 359 394 404 QoQ 2Q 23 -7% 3Q 23 -4% 4Q 23 +7% 1Q 24 +8% 2Q 24 Non-funded Fees fro
Slide 19: Operating Expenses
Operating Expenses 1H 2024 saw 11% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +12% +11% 834 834 46 1,668 747 766 774 95 22 1,504 313 334 338 307 313 80 86 87 87 87 359 367 374 413 408 QoQ 2Q 23 +3% 3Q
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 1H 2024 declined by 21bps Impairments for Financing (SARmn) Impairments for Financing (SARmn) -2% -12% 326 309 320 663 301 586 266 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 1H 23 1H 24 QoQ -8% +3% -14% +20% 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% 2.50% -47% 1.89% 3.1 2.00% 1.69% 1.61% 2.9 2.9 2.4 1.28% 1.50% 1.5 0.78% 2.5 2.1 2.0 1.5 1.00% 1.1 0.50% 0.6 0.8 0.9 0.9 0.4 0.00% QoQ 2Q 23 -6% 3Q 23 -3% 4Q 23 -17% 1Q 24 -3
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy. ROE increased 202bps YoY Capitalization (%) Profitability (%) Management Commentary 25% 20% 18.0% CAR increased by 10bps YoY to 18.5%. 20% 18.4% 18.5% 15% 16.0% NSFR decreased 2.7ppts YoY to 109.4%. 15% 10% LDR ratio inc
Slide 23: Outlook & Guidance
Outlook & Guidance Q2 2024 digital. fast. convenient. Classification: Private
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2024. 2Q 2024A Drivers 2024G Balance Sheet Financing Growth +9% Strong Mid-Corp, SME & Retail growth from strategic High teens YTD initiatives; continuing the growth in corporate financing (Revised from mid teens) Net Profit
Slide 25: Q&A
Q&A Q2 2024 digital. fast. convenient. Classification: Private
Slide 26: Appendix
Appendix Q2 2024 digital. fast. convenient. Classification: Private
Slide 27: Sustainability
Sustainability Alinma Bank released its 2023 sustainability report In the second annual sustainability report, we feature our sustainability commitments, strategy, and journey as part of our ongoing commitment to transparently communicating our sustainability credentials, performance, and progress.
Slide 28: IR Contacts
IR Contacts Investor Relations team Email: IR@alinma.com Visit our IR website: ir.alinma.com 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
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