Alinma Bank (1150) investor relations material

Executive summary

• Net income grew 6% year-on-year to SAR 3,274 million for H1 2026, with ROE at 17.8% and net profit margin at 3.46%.

• Total assets increased 6% year-to-date to SAR 329.3 billion, driven by 6% financing growth and 8% deposit growth.

• Maintained strong credit quality with NPL ratio at 0.96% and NPL coverage at 176%.

• Strategic focus on customer-centricity, innovation, and digital leadership, with significant investments in AI and digital platforms.

• Interim financial statements for H1 2026 reviewed by KPMG and PwC, prepared under IAS 34 as endorsed in Saudi Arabia.

Financial highlights

• Operating income rose 7% year-on-year to SAR 6,138 million, with net income up 6% to SAR 3,274 million.

• Funded income from financing grew 10% year-on-year; investment income up 9% year-on-year.

• Non-funded income declined 8% year-on-year, mainly due to lower fees and exchange income, partially offset by higher investment gains.

• Cost to income ratio improved to 31.5% for H1 2026.

• Basic and diluted EPS for H1 2026 was SAR 0.98, up from SAR 0.96 in H1 2025.

Outlook and guidance

• 2026 guidance targets low teens financing growth, net profit margin contraction of 5–10 basis points, cost to income ratio below 30.5%, and ROE of 18–19%.

• 2030 targets include low double-digit asset growth CAGR, ROE above 22%, cost to income ratio below 29%, and CAR above 18%.

• Preparing for IFRS 18 implementation in 2027, with ongoing assessments of presentation and disclosure impacts.

• Management continues to monitor regional geopolitical volatility and adjusts ECL scenario weightings accordingly.