Alinma Bank · TADAWUL:1150
Alinma Bank — Q4 2024 Earnings Presentation
47 slides from Alinma Bank's earnings presentation, February 2025
Slide 1: Investor Presentation 4Q 2024
Investor Presentation 4Q 2024 February 2024 digital. fast. convenient. Classification: Private
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Strategy Update 3 Historical Financial Performance 4 FY 2024 Financial Performance 5 Segmental Performance 6 Outlook & Guidance 7 Appendix 4Q 2024 INVESTOR PRESENTATION 2 /47 Classification: Private
Slide 3: Alinma Overview
Alinma Overview Q4 2024 digital. fast. convenient. Classification: Private
Slide 4: History
History Alinma Bank was established in 2006 as full-fledged shariah compliant banking services provider. Est. > 2006 2007 Establishment Young Corporate Bank Alinma was established by Royal Decree by the Alinma began providing Shariah compliant Public Investment Fund (10%), the Public banking service
Slide 5: Alinma Overview
Alinma Overview The youngest bank in KSA Financial Position Retail Digital Snapshot KSA Market Share Net Profit Margin ROE ROA 23.8m 6.5% 7.2% #2 in KSA #2 in KSA #2 in KSA Monthly Assets Financing 3.72% 18.58% 2.28% Average Users (3Q 2024) (3Q 2024) (3Q 2024) (3Q 2024) (3Q 2024) (Smart Phone Users
Slide 6: Management Team
Management Team Alinma has built an experienced new management team poised to execute its strategy Abdullah Ali Al Khalifa Chief Executive Officer (CEO) Saleh Abdullah Al Zumaie Jameel Naif Al Hamdan Abdullah Jamaan Al Zahrani Adel Saleh Abalkhail Deputy CEO, Head of Retail Head of Corporate Banking
Slide 7: Strategy Update
Strategy Update Q4 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: 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 10: Strategy Progress Update
Strategy Progress Update Driving changes across the businesses and bank-wide 2021 - 2025 4Q 2024 2025 Strategic Ambitions Achievements Initiatives In-Progress Launched Alinma New API Portal Build digital factory and apply latest (CIB) Driving Agile delivery of IT projects Digital available technol
Slide 11: Retail
Retail Focus on building two customer franchises Focus to date Customer experience 1 Digitally-savvy 2 Digitally-savvy 3 Alinma Wealth Segments and operational Affluent and HNW Youth Retail Vision excellence Acquisition focused on classic segments > Experienced professionals and self-employed Saudis
Slide 12: Corporate
Corporate Evolve the bank and diversify across sectors Focus to date Global Transaction Large corporates and Large, mid-corporate & High-quality SME Alinma 1 2 3 Banking (GTB) – Cash & project finance project finance portfolio Corporate Vision Trade Management Focused on lending > Drive customer cen
Slide 13: Treasury
Treasury Become core partner for corporate clients and grow FI franchise Focus to date Liquidity management and Enhanced financial High Quality Asset Alinma 1 Derivative products 2 3 stable risk institutions franchise Liability Management Treasury Vision Strong track record with well-managed liquidi
Slide 14: Digital
Digital Build Digital to scale customer experience and operational excellence across the bank Focus to date World-Class Digital Improve Operating Drive Operational Alinma 1 2 3 Driving digital capabilities Capabilities Model Excellence Vision Pursuing initiatives across Advanced Analytics and Big >
Slide 15: Human Capital
Human Capital Fostering a great working environment and being the cultural transformation champions in the organization Focus to date Hiring and training Drive cultural Grow capabilities across Organizing Alinma for Alinma 1 2 3 activities change agenda the bank success Human Capital Vision Improve
Slide 16: Historical Financial Performance
Historical Financial Performance Q4 2024 digital. fast. convenient. Classification: Private
Slide 17: Balance Sheet Track Record
Balance Sheet Track Record Solid history of strong balance sheet momentum… Total Assets (SARbn) Financing (SARbn) Customers' Deposits (SARbn) +15% CAGR +16% CAGR +15% CAGR 276.8 202.3 210.5 236.7 173.6 187.9 200.4 146.5 145.2 156.9 173.5 111.2 126.3 119.5 121.1 2020 2021 2022 2023 2024 2020 2021 202
Slide 18: P&L Track Record
P&L Track Record …translating to consistently strong top-line growth and solid profitability Total Operating Income (SARmn) Total Operating Expenses (SARmn) Net Income (SARmn) +18% CAGR +31% CAGR +6% CAGR 10,940 5,832 9,726 4,342 4,433 4,839 7,963 3,624 3,954 3,484 3,599 6,660 5,682 2,709 1,966 2020
Slide 19: FY 2024 Financial Performance
FY 2024 Financial Performance digital. fast. convenient. Classification: Private
Slide 20: 4Q 2024 Balance Sheet Highlights
4Q 2024 Balance Sheet Highlights Balance sheet growth from financing and investments growth funded mainly from customers' deposits Total Assets (SARbn) Total Liabilities (SARbn) Total Equity (SARbn) +17% +16% +21% 267.0 276.8 235.4 260.1 220.1 225.8 236.7 244.9 202.4 205.5 40.0 41.2 41.4 39.3 34.3 4
Slide 21: FY 2024 P&L Highlights
FY 2024 P&L Highlights Net income for FY 2024 grew by 21% YoY from 12% operating income growth Total Operating Income (SARmn) Total Operating Expenses (SARmn)* Net Income (SARmn) +10% +16% +1% 1,571 1,529 2,746 2,815 2,815 1,417 2,569 2,565 1,161 1,320 1,315 1,098 1,098 1,061 1,113 4Q 23 1Q 24 2Q 24
Slide 22: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 17% YTD driven by financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 17% YTD mainly driven by 17% financing growth +17% and 12% growth in investments. 28.7 2.0 276.8 Total liabilities grew by 16
Slide 23: P&L Trends
P&L Trends Net income for FY 2024 grew by 21% YoY supported by growth in operating income. Management Commentary Net Income Movement YoY (SARmn) Net income for FY 2024 grew 21% YoY to SAR 5,832mn from 12% operating +21% income growth. 994 220 249 5,832 4,839 FY 2024 funded income increased by 13
Slide 24: Financing
Financing Gross financing growth of 16% during FY 2024 is driven by 17% increase in retail financing, and 15% in corporate financing. Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +16% Large corporate & project 12% finance 193.6 199.7 206.1 178.1 185.0 Mid corporate Corporate 76% 12%
Slide 25: Investments
Investments 12% growth in investments YoY from additional investment grade securities Investments (SARbn) Investments Movement YTD (SARbn) +12% +12% 46.6 46.9 48.6 5.0 48.6 43.2 45.3 43.2 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 Total investments Sukuk Funds Equities & other Total investments +5% +3% +1% +4% 4
Slide 26: Deposits
Deposits Deposit growth of 12% driven by strong CASA growth of 20% Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +12% +12% 210.5 18.2 210.5 205.4 209.1 187.9 4.5 187.9 189.0 103.9 107.5 108.7 90.6 95.8 97.3 93.2 101.5 101.7 101.8 QoQ 4Q 23 +1% 1Q 24 +9% 2Q 24 +2% 3Q 24 +1% 4Q
Slide 27: Income from Financing & Investments
Income from Financing & Investments Gross funded income continues a strong growth driven by 22% growth in both investment and financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +12% +22% 3,962 4,188 4,207 3,754 3,799 2,560 16,155 13,228 368 3,288 3,339 3,48
Slide 28: Net Profit Margin
Net Profit Margin Average balance of investments and financing grew 9%; while net profit margin decreased 10bps YoY Average Balance of Investments & Financing (SARbn) Net Profit Margin Movement YoY (%) +9% -10bps 224.0 229.0 233.7 215.1 219.2 3.81% 0.04% 0.30% 3.70% 172.9 176.9 181.3 185.3 188.8 -0.
Slide 29: Fee and Other Income
Fee and Other Income Non-funded income for FY 2024 increased by 11% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +7% +11% 553 595 595 149 49 28 2,291 515 549 2,071 158 191 194 141 156 (7) 359 394 404 402 408 QoQ 4Q 23 +7% 1Q 24 +8% 2Q 24 +0% 3Q 24 -8% 4Q 24 Non-funded Fees fr
Slide 30: Operating Expenses
Operating Expenses Operating expenses grew at a rate of 11% YoY, driven by higher employee and G&A costs. Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +12% +11% 834 834 852 864 774 198 29 114 3,384 3,044 334 338 344 349 313 87 87 87 89 90 374 413 408 419 424 QoQ 4Q 23 +8% 1Q 24
Slide 31: Impairments for Financing
Impairments for Financing Cost of risk for FY 2024 improved by 22bps to 0.55% Impairments for Financing (SARmn) Impairments for Financing (SARmn) -18% -17% 309 320 1,272 266 252 1,050 212 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 FY 23 FY 24 QoQ -14% +20% -34% +19% Impairments Allowance Composition Cost of Risk
Slide 32: Non-Performing Loans
Non-Performing Loans NPL ratio decreased YoY Non-Performing Loans, Gross (SARbn) NPL, Gross Movement YTD (SARbn) -24% -24% 2.9 2.4 2.9 2.2 2.2 1.5 1.6 2.0 1.5 (0.3) 1.7 (0.3) 1.1 1.1 0.9 0.9 0.4 0.5 0.5 QoQ 4Q 23 -17% 1Q 24 -36% 2Q 24 +3% 3Q 24 +40% 4Q 24 Total NPL Retail Corporate Total NPL 4Q 23 4
Slide 33: NPL Coverage
NPL Coverage NPL coverage increased YoY Stage-Wise Financing, Gross (SARbn) Stage-Wise Financing, Gross Composition (SARbn) +16% 6% 1% 193.6 199.7 206.1 178.1 185.0 Stage 1 1.6 2.2 2.4 1.5 11.3 2.9 12.0 10.6 10.9 10.5 Stage 2 164.6 171.8 181.6 186.2 192.6 206.1 Stage 3 QoQ 4Q 23 +4% 1Q 24 +5% 2Q 24
Slide 34: Capitalization
Capitalization Capital grew 19% YTD while ROE saw an increase of 159bps YTD Total Capital (SARbn) Risk Weighted Assets (SARbn) +19% +17% 242.1 248.2 221.1 231.6 42.1 42.9 44.0 44.0 211.6 3.7 7.3 3.7 3.3 7.3 5.4 37.0 5.4 7.3 2.6 2.7 2.8 2.6 6.0 7.3 2.4 210.0 220.9 231.2 235.5 39.5 40.2 41.1 41.5 200.
Slide 35: Liquidity
Liquidity Alinma’s liquidity position is healthy and comfortably within regulatory limits NSFR (%) LDR SAMA Ratio (%) 115% 90% 90% 108.8% 108.5% 109.4% 109.2% 108.2% 110% 85% 83.3% 105% 80.5% 80% 100% 100% 95% 75% 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 NSFR Regulatory Minimum LD
Slide 36: Segmental Performance
Segmental Performance Q4 2024 digital. fast. convenient. Classification: Private
Slide 37: Segmental Performance Highlights
Segmental Performance Highlights Retail and corporate comprise the majority of segmental income Operating Income Composition (SARmn) Net Profit Before Zakat Composition (SARmn) 9% 9% Retail Retail 15% Corporate 18% Corporate 47% 50% 10,940 Treasury 6,502 Treasury Investments & brokerage Investments
Slide 38: Segmental Performance Highlights
Segmental Performance Highlights Retail and Corporate reported growth in operating income YoY Operating Income Movement YoY (SARmn) Net Income Before Zakat Movement YoY (SARmn) +12% +20% 681 480 149 10,940 9,726 1,206 445 69 6,502 (95) 5,396 (613) Total operating Retail Corporate Treasury Investment
Slide 39: Segmental Performance - Retail
Segmental Performance - Retail Strong financing and deposit growth driving operating income growth of 15% YoY SAR (mn) FY 2024 FY 2023 Δ% 4Q 2024 4Q 2023 Δ% Retail NPL (%) 2.4% 2.0% Income from investments and financing, 4,700 4,030 +17% 1,190 1,142 +4% 1.6% net Fees from services & other income 474
Slide 40: Segmental Performance - Corporate
Segmental Performance - Corporate Corporate net income decreased by 30% in FY 2024 SAR (mn) FY 2024 FY 2023 Δ% 4Q 2024 4Q 2023 Δ% Financing, Gross Composition (SARbn) Real Estate Income from investments and financing, net 2,791 2,911 -4% 701 748 -6% 26% 20% Services Fees from services & other income
Slide 41: Segmental Performance - Treasury
Segmental Performance - Treasury Operating income and net income increased YoY SAR (mn) FY 2024 FY 2023 Δ% 4Q 2024 4Q 2023 Δ% Investments (SARbn) +12% Income from investments and financing, net 1,037 612 +69% 342 141 +143% Investment-related income 271 243 -12% 12 63 +80% 48.6 45.3 46.6 46.9 Fees fr
Slide 42: Segmental Performance – Investments & Brokerage
Segmental Performance – Investments & Brokerage Modest operating income growth in FY 2024 Assets Under Management (SARbn) SAR (mn) FY 2024 FY 2023 Δ% 4Q 2024 4Q 2023 Δ% +9% 84.9 87.8 88.3 90.1 Income from investments and financing, net 120 101 +19% 32 23 +38% 82.7 Fees from services & other income 8
Slide 43: Outlook & Guidance
Outlook & Guidance Q4 2024 digital. fast. convenient. Classification: Private
Slide 44: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2024. FY 2024A 2024G 2025G Drivers Balance Sheet Financing Growth +16.5% High teens Mid teens Solid Mid-Corp, SME & Retail growth from strategic YTD initiatives; continuing the growth in corporate financing Net Profit Margin
Slide 45: Appendix
Appendix Q4 2024 digital. fast. convenient. Classification: Private
Slide 46: IR Contacts
IR Contacts Investor Relations 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 of S
Slide 47: 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