Alinma Bank · TADAWUL:1150
Alinma Bank — Q4 2024 Earnings Presentation
28 slides from Alinma Bank's earnings presentation, Feb 4, 2025
Slide 1: Earnings Presentation 4Q 2024
Earnings Presentation 4Q 2024 4 Feb 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 FY 2024 Financial Performance 5 Outlook & Guidance 4Q 2024 EARNINGS PRESENTATION 2 /29 Classification: Private
Slide 3: Alinma Overview
Alinma Overview Q4 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 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 5: Financial Performance Highlights
Financial Performance Highlights Q4 2024 digital. fast. convenient. Classification: Private
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth drove a 21% increase in net income for FY 2024, and a strong ROE of 18.8% Balance Sheet Income Statement Credit Quality, Capital and Liquidity 17% increase in financing YTD, driven primarily by Operating income growth of 12% YoY driv
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: 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: 4Q 2024 Initiatives Completed to Date
Strategy Update 4Q 2024 Initiatives Completed to Date Bank-wide 28/31 Retail 19/22 Corporate 16/21 Treasury 12/12 Launched Easy Payment Launched Corporate Overdraft Successfully Executed Interbank Launched the new Alinma Plan (EPP) for credit cards repo transactions of SAR 1.2 Bn Business Platform (
Slide 11: Strategy Update: 2025 Initiatives In-Progress
Strategy Update 2025 Initiatives In-Progress Bank-wide 3/31 Retail 3/22 Corporate 5/21 Treasury 0/12 Accelerating insurance products New products and offerings being Enhance offering of structured Expanding the digital factory sales for retail customers created to drive liabilities growth deposit pr
Slide 12: FY 2024 Financial Performance
FY 2024 Financial Performance digital. fast. convenient. Classification: Private
Slide 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: NPL & NPL Coverage
NPL & NPL Coverage NPL ratio decreased and NPL coverage increased YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% -24% 2.50% 2.9 2.00% 1.61% 2.4 2.2 1.28% 1.50% 1.06% 1.5 1.6 2.0 0.78% 0.78% 1.5 1.00% 1.7 1.1 1.1 0.50% 0.9 0.9 0.5 0.5 0.4 0.00% 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 4Q 23 1Q 24 2
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy. ROE increased 159bps YTD Capitalization (%) Profitability (%) Management Commentary 25% 20% 18.8% CAR increased by 20bps YoY to 17.7%. 20% 17.2% 15% NSFR decreased 60bps YoY to 108.2%. 17.5% 17.7% 15% 10% LDR ratio incre
Slide 23: Outlook & Guidance
Outlook & Guidance Q4 2024 digital. fast. convenient. Classification: Private
Slide 24: 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 25: Q&A
Q&A Q4 2024 digital. fast. convenient. Classification: Private
Slide 26: Appendix
Appendix Q4 2024 digital. fast. convenient. Classification: Private
Slide 27: 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 28: 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