Alinma Bank (1150) Q1 2026 earnings summary

Executive summary

• Net income increased 11% year-on-year in Q1 2026, reaching SAR 1,678.5 million, driven by 7% operating income growth and strong retail and corporate financing momentum.

• Total assets grew to SAR 324.3 billion as of March 31, 2026, with customer deposits up 5% year-to-date to SAR 239.6 billion.

• Maintained a leading digital position with 6.8 million customers and a 98% digital transaction rate.

• Strategic focus on innovation, customer-centricity, and profitability, leveraging technology and AI across all segments.

• Expanded branch network to 129 branches, up from 116 in March 2025.

Financial highlights

• Operating income for Q1 2026 was SAR 3,009.7 million, up 7% year-on-year; funded income up 8% year-on-year.

• Net financing portfolio reached SAR 238.3 billion, up from SAR 209.4 billion a year earlier.

• CASA deposits grew 11% year-to-date, now representing 49.5% of total deposits.

• Operating expenses increased 9% year-on-year, with cost-to-income ratio at 32.6%.

• Earnings per share for Q1 2026 was SAR 0.48, compared to SAR 0.45 in Q1 2025.

Outlook and guidance

• No changes to previous guidance; full-year asset growth expected in low teens, with NIM contraction guidance at 5–3 basis points and cost-to-income ratio below 30.5%.

• ROE guidance above 19% by year-end; cost of risk guidance at 45–55 basis points.

• Long-term (2030) targets: double-digit asset CAGR, ROE above 22%, cost-to-income below 29%, CAR above 18%.

• Focused on capitalizing on Saudi Arabia’s robust medium-term growth prospects despite near-term macroeconomic uncertainties.

• Adjustments to ECL scenario weightings reflect a cautious approach due to regional geopolitical volatility.