Alinma Bank · TADAWUL:1150
Alinma Bank — Q3 2021 Earnings Presentation
24 slides from Alinma Bank's earnings presentation, Nov 2, 2021
Slide 1: Earnings Presentation 3Q 2021
Earnings Presentation 3Q 2021 Earnings Call 2 November 2021 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Profile 2 Financial Performance Highlights 3 Strategy 4 9M 2021 Financial Performance 5 Appendix 3Q 2021 EARNINGS PRESENTATION 2/24
Slide 3: Alinma Profile
Alinma Profile 3Q 2021 digital. fast. convenient.
Slide 4: At a Glance
At a Glance Alinma is the youngest bank in KSA 11.4 m 381K 98.92% Monthly Average Users Smartphone Daily Average Users Digital Transactions Retail Digital Snapshot #2 in KSA #3 in KSA #4 in KSA 32.6% C/I Rati 1.69% ROA 10.9% ROE (1H 2021) (1H 2021) (1H 2021) 5.67% 6.53% Assets Financing (2Q 2021) (2
Slide 5: Financial Performance Highlights
Financial Performance Highlights 3Q 2021 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid balance sheet growth translating into 33% growth of net income in 9M 2021 and 11.2% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Solid 15% increase in financing from growth in both Operating income growth of 22% (+11% funded Cr
Slide 7: Strategy
Strategy 3Q 2021 digital. fast. convenient.
Slide 8: Strategic Positioning
Strategic Positioning Alinma Bank's strategic positioning cascades down into each business strategy > Be recognized and celebrated as the fastest and most convenient bank in KSA > Be the #1 in Net Promoter Score (NPS) across KSA Banks > Be the most digitally advanced, fastest, and most convenient Re
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 proje
Slide 10: 9M 2021 Financial Performance
9M 2021 Financial Performance 3Q 2021 digital. fast. convenient.
Slide 11: Balance Sheet Trends
Balance Sheet Trends Solid balance sheet growth from growth in financing and investments Management Commentary Total Assets Movement YTD (SARbn) +6% Growth in total assets of 6% YTD driven by 9% financing growth and 8% growth in investments. 156.9 2.4 10.1 0.1 166.8 Total liabilities grew by 3%
Slide 12: P&L Trends
P&L Trends Net income for 9M 2021 grew by 33% YoY due to 22% income growth Management Commentary Net Income Movement YoY (SARmn) Net income for 9M 2021 grew 33% YoY to SAR 2,090mn from 22% income +33% growth despite a 26% increase in impairments and 9% higher operating expenses 519 394 2,090 3Q
Slide 13: Financing
Financing Solid 10% increase in gross financing mainly from growth in corporate Financing, Gross (SARbn) Financing, Gross Movement YTD (SARbn) +10% +10% 120.7 123.5 125.5 108.1 114.5 8.3 0.2 125.5 114.5 2.0 0.5 90.3 94.8 97.1 98.8 84.9 23.2 24.2 25.9 26.4 26.7 QoQ 3Q 20 +6% 4Q 20 +5% 1Q 21 +2% 2Q 21
Slide 14: Deposits
Deposits Modest decline of 2% in deposits in 9M 2021 from balance sheet optimization Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) -2% -2% 119.5 120.7 125.9 116.7 111.3 119.5 5.9 116.7 66.3 70.1 72.2 79.5 75.9 (8.7) 45.0 49.4 48.6 46.4 40.7 QoQ 3Q 20 +7% 4Q 20 +1% 1Q 21 +4% 2Q
Slide 15: Income from Financing & Investments
Income from Financing & Investments Growth of 3% in gross funded income from growth in both investments and financing income Funded Income, Gross (SARmn) Funded Income, Gross Movement YoY (SARmn) +12% +3% 1,511 61 4,222 1,355 1,377 1,349 1,362 68 4,093 1,185 1,193 1,166 1,161 1,300 169 184 183 201 2
Slide 16: Fee and Other Income
Fee and Other Income Non-funded income for 9M 2021 grew strongly by 81% YoY from banking service fees and investment gains/dividends Non-Funded Income (SARmn) Non Funded Income, Movement (SARmn) +12% +81% 396 402 424 279 15 331 1,157 295 49 240 113 142 73 638 57 347 (16) 238 288 282 259 QoQ 3Q 20 +3
Slide 17: Operating Expenses
Operating Expenses 9M 2021 saw 9% growth in operating expenses YoY mainly from a rise in Government and other expenses Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +15% +9% 618 537 524 543 521 266 1,542 16 125 1,681 198 203 197 231 59 61 61 63 64 1,681 (2) 280 229 279 263 288 Q
Slide 18: Impairments from Financing
Impairments from Financing The impairment charge for 3Q 2021 increased 21% YoY due to increased provision coverage Impairments for Financing (SARmn) Impairments Composition (SARmn) +21% 10% 637 Retail 347 337 279 279 231 Corporate 90% 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 QoQ +176% -46% -3% -17% Cost of Ris
Slide 19: NPL & NPL Coverage
NPL & NPL Coverage Credit quality has remained stable and NPL coverage was improved. Non-Performing Loans, Gross (SARbn) NPL Ratio (%) +0% 3.0% 2.5% 2.2% 2.3% 2.3% 2.1% 2.9 2.7 2.8 2.9 2.0% 2.2 2.6 2.5 2.6 2.7 1.0% 2.0 0.2 0.3 0.2 0.2 0.2 0.0% QoQ 3Q 20 +29% 4Q 20 -5% 1Q 21 +3% 2Q 21 +2% 3Q 21 3Q 20
Slide 20: Capitalization & Liquidity
Capitalization & Liquidity Capital and capital ratios remained stable while liquidity position is healthy and comfortably within regulatory limits Capital Adequacy Ratio (%) Total Capital Movement YTD (SARbn) Profitability (%) 22.4% 10.9% 11.2% 23% 12% 10.4% 9.0% +22% 10% 8.4% 21% 19.7% 19.3% 19.2%
Slide 21: Q&A
Q&A 3Q 2021 digital. fast. convenient.
Slide 22: Appendix
Appendix 3Q 2021 digital. fast. convenient.
Slide 23: IR Contact
IR Contact Ahmed Sager Investor Relations Manager Mobile: +966-53-775-3352 Direct: +966-11-218-86364 Email: aosager@alinma.com Al Anoud Tower, King Fahad Road P.O. Box 66674, Riyadh 11586 Kingdom of Saudi Arabia Tel.: +966-11-218-5555 Fax: +966-11-218-5000 Website: www.alinma.com digital. fast. conv
Slide 24: 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