Alinma Bank · TADAWUL:1150
Alinma Bank — Q3 2023 Earnings Presentation
29 slides from Alinma Bank's earnings presentation, Nov 1, 2023
Slide 1: Earnings Presentation 3Q 2023
Earnings Presentation 3Q 2023 Earnings Call 1 November 2023 digital. fast. convenient. Classification: Private
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 9M 2023 Financial Performance 5 Outlook & Guidance 3Q 2023 EARNINGS PRESENTATION 2/29 Classification: Private
Slide 3: Alinma Overview
Alinma Overview 3Q 2023 digital. fast. convenient. Classification: Private
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 19.3m 640K 98.9% Monthly Average Users Smartphone Daily Average Users Digital Transactions (Number of Smart Phone Users Logins) Retail Digital Snapshot #2 in KSA #3 in KSA #4 in KSA 3.79% NIMs 16.01% ROE 2.05% ROA (2Q 2023) (2Q 2023) (2Q 2023) 6.3%
Slide 5: Financial Performance Highlights
Financial Performance Highlights 3Q 2023 digital. fast. convenient. Classification: Private
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid operating income growth translated into 28% growth of net income in 9M 2023 and 17.0% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Increase in financing of 15% YTD from growth both Operating income growth of 23% mainly from NPL
Slide 7: Strategy Update
Strategy Update 3Q 2023 digital. fast. convenient. Classification: Private
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 Excellence most convenient bank in KSA Shariah Compliance Bank wide Be the #1 in Net Promoter Score (NPS) across KSA Banks Digital Corporate Be the #1 E
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: Strategy Update: Initiatives Completed to Date
Strategy Update 3Q 2023 Initiatives Completed to Date Bank-wide 24/28 Retail 15/18 Corporate 9/19 Treasury 12/12 Youth app is launched to limited Implemented digital execution Launched 1st phase of Corporate Continue to enhance investment number of customers for credit cards (40%) and Loans Originat
Slide 11: Strategy Update: 2023 Initiatives In-Progress
Strategy Update 2023 Initiatives In-Progress Bank-wide 4/28 Retail 3/18 Corporate 10/19 Treasury 0/12 Expanding the digital factory for the Enhancing family account New products and offerings Enhance offering of structured transformation ecosystem being created to drive liabilities deposit products
Slide 12: 9M 2023 Financial Performance
9M 2023 Financial Performance 3Q 2023 digital. fast. convenient. Classification: Private
Slide 13: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 16% from increase in financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 16% YTD mainly driven by 15% financing growth +16% and 6% growth in investments and 52% growth in balances with SAMA and int
Slide 14: P&L Trends
P&L Trends Net income for 9M 2023 grew by 28% YoY due to 23% income growth Management Commentary Net Income Movement YoY (SARmn) Net income for 9M 2023 grew 28% YoY to SAR 3,519mn from 23% income +28% growth. 12.6% higher operating expenses YoY. 1,202 140 3Q 2023 net income improved 34% YoY driv
Slide 15: Financing
Financing Increase in gross financing during 9M 2023 from 13% growth in retail financing, and 16% in corporate financing Financing, Gross (SARbn) Financing, Gross Composition (SARbn) +15% Large corporate & project finance 12% 165.9 173.5 Mid corporate Corporate 143.7 150.5 157.2 76% 12% SME 117.0 12
Slide 16: Deposits
Deposits Deposit growth of 24% driven by 9% CASA growth and 44% time deposits growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +24% +24% 177.9 180.2 27.6 7.5 180.2 159.9 132.0 145.2 145.2 87.2 90.0 84.7 82.5 86.4 75.2 90.7 90.2 45.6 62.7 QoQ 3Q 22 +10% 4Q 22 +10% 1Q 23 +11
Slide 17: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 83% from 50% growth in investment income and 89% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) Management Commentary +71% +83% Gross funded income for 9M 2023 increased by 3,515 3
Slide 18: Fee and Other Income
Fee and Other Income Non-funded income for 9M 2023 increased by 10% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +33% +10% 577 535 225 45 1,557 480 445 1,417 402 192 128 95 146 136 (81) (49) 334 385 407 307 308 QoQ 3Q 22 +19% 4Q 22 -7% 1Q 23 +30% 2Q 23 -7% 3Q 23 Non-funded Fe
Slide 19: Operating Expenses
Operating Expenses 9M 2023 saw 13% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +8% +13% 710 750 758 747 766 125 34 96 2,270 2,015 318 319 307 313 305 70 74 73 80 86 2,270 334 358 367 359 367 QoQ 3Q 22 +
Slide 20: Impairments for Financing
Impairments for Financing Cost of risk for 9M 2023 increased by 5bps from 26% higher credit impairment charges YoY Impairments for Financing (SARmn) Impairments for Financing (SARmn) +10% +26% 436 964 337 326 762 273 301 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 9M 22 9M 23 QoQ +60% -23% -3% -8% Impairments All
Slide 21: NPL & NPL Coverage
NPL & NPL Coverage NPL ratio increased and NPL coverage decreased YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) 3.00% +1% 2.50% 2.11% 1.94% 1.89% 3.3 2.00% 1.67% 1.69% 2.9 3.1 2.9 2.4 1.50% 2.6 1.00% 2.5 2.5 2.1 2.2 0.50% 0.5 0.7 0.6 0.8 0.2 0.00% QoQ 3Q 22 +22% 4Q 22 +13% 1Q 23 -5% 2Q 23 -6
Slide 22: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained healthy while ROE saw an increase of 3ppts YoY Capitalization (%) Profitability (%) Management Commentary 25% 20% CAR has declined 2.6ppts YoY to 17.5% due to increase in credit risk weighted assets. 20% 20.1% 17.0% 15% 17.5% 14.0%
Slide 23: Outlook & Guidance
Outlook & Guidance 3Q 2023 digital. fast. convenient. Classification: Private
Slide 24: Guidance
Guidance Acceleration of strategic execution drives a promising outlook for 2023. 3Q 2023A Drivers 2023G Balance Sheet Financing Growth +15% Strong Mid-Corp, SME & Retail growth from strategic initiatives; High teens YTD pick up in corporate financing Net Profit Margin 3.81% Rising rates and funding
Slide 25: Q&A
Q&A 3Q 2023 digital. fast. convenient. Classification: Private
Slide 26: Appendix
Appendix 3Q 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 Head of Investor Relations Mobile: +966-53-775-3352 Direct: +966-11-218-6364 Email: aosager@alinma.com Visit our new website here for more investor disclosures: Ibrahim Al Khudair • Financial statements Investor Relations Assistant Manager • Annual reports Mobile: +966-55-788
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