Alinma Bank (1150) investor relations material

Executive summary

• Financing and total assets grew 6% year-to-date to SAR 329.3 billion, with net income up 6% to SAR 3,274 million for H1 2026.

• Operating income rose 7% year-on-year to SAR 6,138 million, with customer deposits up 8% and CASA deposits up 6%.

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

• Strategic focus on customer-centricity, innovation, and digital leadership, with significant progress on AI and digital initiatives.

• Interim financials reviewed by KPMG and PwC, prepared under IAS 34 as endorsed in Saudi Arabia.

Financial highlights

• Net profit margin contracted by 6 basis points year-on-year to 3.46%.

• ROE reached 17.8%, down from 18.4% in Q1.

• Operating expenses grew 6% year-on-year but fell 3% sequentially in Q2.

• Impairment charges increased, with Q2 seeing SAR 388 million for financing and SAR 12 million for investments.

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

Outlook and guidance

• Full-year financing growth guidance maintained at low teens percentage.

• Net interest margin guidance unchanged at -5 to -10 basis points contraction.

• Cost to income ratio guidance remains below 30.5%.

• Cost of risk guidance revised upward to 45-55 basis points due to project-related provisions.

• 2030 targets: asset growth low double digits CAGR, ROE above 22%, cost to income below 29%, CAR above 18%.