Alinma Bank (1150) Q1 2026 earnings summary

Executive summary

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

• Strategic focus on innovation, customer-centricity, and technology/AI integration, with 98% digital transaction rate and 6.8 million customers.

• Launched new digital and open banking products, expanded SME and mid-corporate lending, and issued new funding instruments.

• Expanded branch network to 129 branches and acquired full ownership of Ersal Financial Remittance Company.

Financial highlights

• Operating income for Q1 2026 was SAR 3,009.7 million, up 7% year-on-year; net income reached SAR 1,679 million (+11% YoY); EPS at SAR 0.48.

• Gross financing grew 4% YTD, led by 10% retail and 2% corporate growth; net financing portfolio at SAR 238.3 billion.

• CASA deposits grew 11% YTD, now comprising 49.5% of total deposits; non-funded income rose 1% YoY, mainly from investment gains.

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

• Impairment charges down 50% YoY due to a one-off SAR 400 million recovery; impairment charge on financing, net of recoveries, was SAR 153.6 million.

Outlook and guidance

• 2026 guidance: asset/financing growth in low teens, cost-to-income below 30.5%, ROE above 19%, cost of risk 45-55 bps, CAR around 19%.

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

• Loan growth expected to remain strong, with sectoral shifts possible due to Vision 2030 and PIF strategies.

• The bank remains 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.