Alinma Bank (1150) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 rose 15% year-over-year to SAR 1.51 billion, driven by strong operating income growth and robust performance in both corporate and retail segments.

• Total assets reached SAR 287.2 billion as of March 31, 2025, up from SAR 244.9 billion a year earlier.

• Return on equity (ROE) stood at 18%, supported by digital adoption and customer growth.

• Customer deposits increased 4% YTD, with CASA deposits up 8% and now comprising about 54% of total deposits.

• Strategic initiatives focused on digital transformation, customer experience, and expansion in corporate, SME, and retail banking.

Financial highlights

• Operating income for Q1 2025 was SAR 2.81 billion, up 9.7% year-over-year, with funded income up 13% and non-funded income down 4%.

• Gross financing grew 16% year-over-year and 4% sequentially, reaching SAR 213.7 billion.

• Cost-to-income ratio was 32.2% for Q1 2025, down 0.3ppt YoY, and cost of risk improved to 43 basis points.

• NPL ratio stable at 1.27%, with NPL coverage at 156.4%.

• Customer deposits grew to SAR 218.8 billion, up from SAR 189.0 billion a year earlier.

Outlook and guidance

• Guidance targets mid-teens financing growth for 2025, with net profit margin flat to slightly lower and cost-to-income ratio below 30.5%.

• Cost of risk guidance improved to 40-50 basis points, and ROE guidance remains above 19%.

• Tier 1 and Tier 2 capital ratio guidance unchanged at 18%-19%.

• The Board proposed a final 2024 dividend of SAR 746.1 million (SAR 0.30 per share).