Alinma Bank (1150) Q2 2024 earnings summary

Executive summary

• Net income for 1H 2024 rose 24% YoY to SAR 2.73 billion, with strong operating income and robust digital engagement.

• Balance sheet expanded 10% YTD, with total assets reaching SAR 260.1 billion as of June 30, 2024.

• Strategic initiatives accelerated, including digital transformation, product innovation, and expanded digital infrastructure.

• Comprehensive income for the period reached SAR 2.66 billion, reflecting strong operational performance.

Financial highlights

• Operating income for H1 2024 was SAR 5.31 billion, up 15% YoY; net income reached SAR 2,731mn.

• Funded income increased 16% YoY; non-funded income up 12% YoY.

• Net financing grew to SAR 189.9 billion, up 9% YTD; customer deposits rose to SAR 205.4 billion, up 9% YTD.

• Basic and diluted EPS for H1 2024 was SAR 1.06, up from SAR 0.88 (restated) in H1 2023.

• Interim dividend of SAR 621.4 million (SAR 0.25 per share) paid for Q1 2024.

Outlook and guidance

• 2024 guidance revised upward: high teens financing growth, ROE target above 18%.

• Net profit margin expected to remain flat; cost to income ratio guided below 31%.

• Cost of risk expected to moderate to 60-70bps; stable credit quality anticipated.

• Shareholders approved a SAR 5 billion capital increase via bonus shares, raising share capital to SAR 25 billion.

• No significant post-reporting events affecting the financials as of August 4, 2024.