Alinma Bank · TADAWUL:1150
Alinma Bank — Q4 2023 Earnings Presentation
29 slides from Alinma Bank's earnings presentation, Feb 7, 2024
Slide 1: Earnings Presentation 4Q 2023
Earnings Presentation 4Q 2023 7 February 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 2023 Financial Performance 5 Outlook & Guidance 4Q 2023 EARNINGS PRESENTATION 2 /29 Classification: Private
Slide 3: Alinma Overview
Alinma Overview Q4 2023 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 19m 6.4% 7.0% #2 in KSA #2 in KSA #2 in KSA Monthly Assets Financing 3.81% 16.96% 2.17% Average Users (3Q 2023) (3Q 2023) (3Q 2023) (3Q 2023) (3Q 2023) (Smart Phone Users Lo
Slide 5: Financial Performance Highlights
Financial Performance Highlights Q4 2023 digital. fast. convenient. Classification: Private
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 34% growth of net income in FY 2023 and 17.2% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Solid 18.5% YoY increase in financing from growth Operating income growth of 22% mainly from NPL
Slide 7: Strategy Update
Strategy Update Q4 2023 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 2023 Initiatives Completed to Date
Strategy Update 4Q 2023 Initiatives Completed to Date Bank-wide 25/28 Retail 16/18 Corporate 9/19 Treasury 12/12 Implemented advanced Integrated with the Chamber Launched first phase of the RM Continue to enhance investment analytics and smart targeting of Commerce to fully tech enabled sales tools
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: FY 2023 Financial Performance
FY 2023 Financial Performance Q4 2023 digital. fast. convenient. Classification: Private
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 18% from increase in financing and investments Management Commentary Total Assets Movement YoY (SARbn) Growth in total assets of 18% YoY mainly driven by 18.5% financing growth +18% and 12% growth in investments and 28% growth in balances with SAMA and
Slide 14: P&L Trends
P&L Trends Net income for FY 2023 grew by 34% YoY mainly from 22% operating income growth Management Commentary Net Income Movement YoY (SARmn) Net income for FY 2023 grew 34% YoY to SAR 4,839mn from 22% operating +34% income growth despite 10% higher operating expenses YoY. 4Q 2023 net income i
Slide 15: Financing
Financing Solid increase in gross financing during FY 2023 from 16% growth in retail financing, and 19% in corporate financing Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +18% Large corporate & project finance 12% 165.9 173.5 178.1 Mid corporate Corporate 150.5 157.2 76% 12% SME 11
Slide 16: Deposits
Deposits Deposit growth of 29% driven by 10% CASA growth and 55% time deposits growth Customers' Deposits (SARbn) Customers' Deposits Movement YoY (SARbn) +29% +29% 177.9 180.2 187.9 8.1 187.9 159.9 34.7 145.2 145.2 87.2 90.0 90.6 84.7 82.5 75.2 90.7 90.2 97.3 62.7 QoQ 4Q 22 +10% 1Q 23 +11% 2Q 23 +1
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 74% from 45% growth in investment income and 79% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +54% +74% 3,515 3,754 5,103 13,228 3,176 2,783 2,437 7,613 512 3,077 3,288 2,439 2,775
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for FY 2023 increased by 9% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +7% +9% 577 535 480 515 39 445 250 2,071 1,897 192 128 146 156 136 (68) (47) 334 385 407 359 308 QoQ 4Q 22 -7% 1Q 23 +30% 2Q 23 -7% 3Q 23 -4% 4Q 23 Non-funded Fees
Slide 19: Operating Expenses
Operating Expenses FY 2023 saw 10% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +3% +10% 750 758 747 766 774 141 46 91 3,044 2,765 318 319 307 313 313 74 73 80 86 87 358 367 359 367 374 QoQ 4Q 22 +1% 1Q
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for FY 2023 declined by 8bps Impairments for Financing (SARmn) Impairments for Financing (SARmn) -29% +6% 436 1,272 1,198 337 326 301 309 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 FY 22 FY 23 QoQ -23% -3% -8% +3% Impairments Allowance Composition Cost of Risk (%) Managemen
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% 2.50% 2.11% 1.94% 1.89% 3.3 3.1 2.00% 1.69% 1.61% 2.9 2.9 2.9 1.50% 2.6 2.5 2.1 2.0 1.00% 2.5 0.50% 0.5 0.7 0.6 0.8 0.9 0.00% QoQ 4Q 22 +13% 1Q 23 -5% 2Q 23 -6% 3Q 23 -3%
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 3.5ppts YoY Capitalization (%) Profitability (%) Management Commentary 25% 20% 17.2% CAR has declined 2.3ppts YoY to 17.5% mainly 20% 19.8% 15% due to increase in credit risk weighted assets. 17.5
Slide 23: Outlook & Guidance
Outlook & Guidance Q4 2023 digital. fast. convenient. Classification: Private
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2024. FY 2023A 2023G 2024G Drivers Balance Sheet Financing Growth +18.5% High teens Mid teens Strong Mid-Corp, SME & Retail growth from strategic YoY initiatives; continuing the growth in corporate financing Net Profit Margi
Slide 25: Q&A
Q&A Q4 2023 digital. fast. convenient. Classification: Private
Slide 26: Appendix
Appendix Q4 2023 digital. fast. convenient. Classification: Private
Slide 27: Sustainability
Sustainability Alinma Bank released its 2022 ESG Investor Presentation 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 us
Slide 28: IR Contacts
IR Contacts Ahmed Sager Ibrahim Al Khudair Head of Investor Relations Investor Relations Assistant Manager Mobile: +966-53-775-3352 Mobile: +966-55-060-6368 Direct: +966-11-218-6364 Direct: +966-11-218-6181 Email: aosager@alinma.com Email: iaalkhudair@alinma.com Visit our new website for more invest
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