Alinma Bank · TADAWUL:1150
Alinma Bank — Q1 2022 Earnings Presentation
28 slides from Alinma Bank's earnings presentation, May 10, 2022
Slide 1: Earnings Presentation 1Q 2022
Earnings Presentation 1Q 2022 Earnings Call 10 May 2022 digital. fast. convenient.
Slide 2: Table of Contents
Table of Contents 1 Alinma Overview 2 Financial Performance Highlights 3 Strategy Update 4 1Q 2022 Financial Performance 5 Outlook & Guidance 1Q 2022 EARNINGS PRESENTATION 2/28
Slide 3: Alinma Overview
Alinma Overview 1Q 2022 digital. fast. convenient.
Slide 4: Alinma Overview
Alinma Overview Alinma is the youngest bank in KSA 14.3 m 476K 98.8% Monthly Average Users Smartphone Daily Average Users Digital Transactions Retail Digital Snapshot #1 in KSA #3 in KSA #4 in KSA 22.8% CAR 3.42% NIM 10.8% ROE (FY 2021) (FY 2021) (FY 2021) 5.7% 6.5% Assets Financing (4Q 2021) (4Q 20
Slide 5: Financial Performance Highlights
Financial Performance Highlights 1Q 2022 digital. fast. convenient.
Slide 6: Financial Performance Highlights
Financial Performance Highlights Solid income growth and lower risk cost translated into 28.5% growth of net income in 1Q 2022 and 12.6% ROE Balance Sheet Income Statement Credit Quality, Capital and Liquidity Increase in financing of 2% YTD from growth in Operating income growth of 13% (+9% fun
Slide 7: Strategy Update
Strategy Update 1Q 2022 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 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: 1Q 2022 Initiatives Completed to Date
Strategy Update 1Q 2022 Initiatives Completed to Date Bank-wide 13/27 Retail 1/18 Corporate 5/16 Treasury 5/12 Digital factory operating model Launch of new tailored products; Simplified the corporate credit Expanded derivatives customer completed & operations kick-off retired segment buyout and pro
Slide 11: Strategy Update: 2022 Initiatives In-Progress
Strategy Update 2022 Initiatives In-Progress Bank-wide 13/27 Retail 17/18 Corporate 7/16 Treasury 7/12 Design exclusive Affluent Expand Mid-Corporate presence Deepen collaboration with Expand the digital factory for the experience program and increase capabilities business units to improve transform
Slide 12: ESG in Action
ESG in Action Alinma is progressing on key initiatives to drive the ESG agenda and enhance its ratings Deployment of digital channels Energy efficient lighting are now Air conditioning timers Renewable (solar) energy Environment and digital signatures to reduce in all branches installed in few branc
Slide 13: 1Q 2022 Financial Performance
1Q 2022 Financial Performance 1Q 2022 digital. fast. convenient.
Slide 14: Balance Sheet Trends
Balance Sheet Trends Balance sheet growth of 3% from increase in financing and investments Management Commentary Total Assets Movement YTD (SARbn) Growth in total assets of 3% YTD driven by 2% financing growth and 8% +3% growth in investments. 173.5 1.1 2.7 2.7 179.5 Total liabilities grew by 4%
Slide 15: P&L Trends
P&L Trends Net income for 1Q 2022 grew by 28% YoY due to 13% income growth and lower impairment charges Management Commentary Net Income Movement YoY (SARmn) Net income for 1Q 2022 grew 28% YoY to SAR 825mn from 13% income +28% growth and a 29% decrease in impairments despite 18% higher operating
Slide 16: Financing
Financing Increase in gross financing of 2% during 1Q 2022 from 10% growth in retail financing Financing, Gross (SARbn) Financing, Gross Movement YTD (SARbn) +10% +2% 123.5 125.5 130.3 133.0 120.7 1.8 0.1 133.0 130.3 1.1 94.8 97.1 98.8 102.3 102.1 (0.3) 25.9 26.4 26.7 28.0 30.8 QoQ 1Q 21 +2% 2Q 21 +
Slide 17: Deposits
Deposits Deposit growth of 6% driven by 10% CASA growth Customers' Deposits (SARbn) Customers' Deposits Movement YTD (SARbn) +6% +6% 120.7 125.9 121.1 128.0 116.7 8.4 128.0 121.1 72.9 79.5 75.9 79.7 88.0 (1.4) 47.8 46.4 40.7 41.4 40.0 QoQ 1Q 21 +4% 2Q 21 -7% 3Q 21 +4% 4Q 21 +6% 1Q 22 Total customers
Slide 18: Income from Financing & Investments
Income from Financing & Investments Gross funded income grew 9% from 27% growth in investment income and 6% growth in financing income Funded Income, Gross (SARmn) Total Funded Income, Gross Movement YoY (SARmn) +9% +9% 1,511 1,452 1,472 1,349 1,362 74 1,472 1,349 49 1,166 1,161 1,300 1,232 1,240 18
Slide 19: Fee and Other Income
Fee and Other Income Non-funded income for 1Q 2022 increased by 24% YoY Non-Funded Income (SARmn) Non-Funded Income Movement YoY (SARmn) +24% +24% 498 402 424 331 373 40 50 498 402 22 113 142 225 73 117 288 282 259 256 273 (15) QoQ 1Q 21 +6% 2Q 21 -22% 3Q 21 +13% 4Q 21 +34% 1Q 22 Non-Funded Fees fro
Slide 20: Operating Expenses
Operating Expenses 1Q 2022 saw 18% growth in operating expenses YoY mainly from higher employee and G&A costs Operating Expenses (SARmn) Operating Expenses Movement YoY (SARmn) +18% +18% 684 642 618 543 521 44 5 50 642 327 543 266 253 203 197 63 66 66 61 61 642 279 263 288 291 323 QoQ 1Q 21 -4% 2Q 2
Slide 21: Impairments for Financing
Impairments for Financing Cost of risk declined by 45bps from 30% lower impairment charges YoY Impairments for Financing (SARmn) Impairments Allowance Composition (SARmn) -30% 11% Retail 347 337 279 289 241 4,019 Corporate 89% 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 QoQ -3% -17% +4% -17% Cost of Risk (%) Mana
Slide 22: NPL & NPL Coverage
NPL & NPL Coverage NPL and NPL coverage ratios improved YoY Non-Performing Loans, Gross (SARbn) NPL Ratio (%) -1% 2.5% 2.25% 2.26% 2.27% 2.01% 1.75% 2.7 2.8 2.9 2.7 2.0% 2.3 1.5% 1.0% 2.5 2.6 2.7 2.5 2.1 0.5% 0.2 0.2 0.2 0.1 0.2 0.0% QoQ 1Q 21 +3% 2Q 21 +2% 3Q 21 -20% 4Q 21 +17% 1Q 22 1Q 21 2Q 21 3Q
Slide 23: Capitalization & Liquidity
Capitalization & Liquidity Capital and liquidity ratios remained stable while ROE saw an increase of 220bps YoY Capitalization (%) Total Capital Movement YTD* Profitability (%) 25% (SARbn) 15% 23% +2% 12.6% 22.7% 21.6% 10% 10.4% 21% 33.1 0.8 33.9 19% 18.2% 5% 17% 1.6% 1.9% 15% 0% 1Q 21 1H 21 9M 21 F
Slide 24: Outlook & Guidance
Outlook & Guidance 1Q 2022 digital. fast. convenient.
Slide 25: Guidance
Guidance Guidance is unchanged and the 2022 outlook remains promising 1Q 2022A Drivers 2022G Unchanged Strong Mid-Corp, SME & Retail growth from strategic Balance Sheet Financing Growth +10% initiatives; solid corporate growth from expected Mid-teens YoY credit demand Net Profit Margin 3.31% Rising
Slide 26: Q&A
Q&A 1Q 2022 digital. fast. convenient.
Slide 27: IR Contacts
IR Contacts Ahmed Sager Investor Relations Manager Mobile: +966-53-775-3352 Direct: +966-11-218-86364 Visit our new website here for more investor disclosures: Email: aosager@alinma.com • Financial statements Ibrahim Al Khudair Investor Relations Assistant Manager • Annual reports • Investor present
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