Alinma Bank (1150) Q2 2025 earnings summary

Executive summary

• Net income for 1H 2025 increased by 13% year-over-year to SAR 3,081 million, driven by 8% growth in operating income and strong performance in both retail and corporate financing.

• Total assets reached SAR 297.2 billion, up from SAR 276.8 billion at year-end 2024, and customer deposits rose 9% to SAR 229.9 billion.

• Strategic focus remains on digital transformation, customer experience, and expansion in retail, SME, and project finance, with 91% of strategic initiatives completed.

• The bank operates 121 branches in Saudi Arabia and consolidates several subsidiaries and funds.

• Interim condensed consolidated financial statements for the six months ended June 30, 2025, reviewed by KPMG and PwC, with no material misstatements identified.

Financial highlights

• Operating income increased 8% year-on-year to SAR 5,760 million, and net income rose 13% to SAR 3,081 million for the first half of 2025.

• Gross financing expanded 8% year-to-date, with corporate financing up 9% and retail financing up 8%.

• Non-interest income rose 5% year-on-year, with a 27% sequential increase in non-yield income in Q2.

• Operating expenses increased 9% year-on-year, mainly due to higher personnel and depreciation costs.

• Earnings per share for the six months was SAR 1.15, up from SAR 1.06 year-over-year.

Outlook and guidance

• Full-year financing growth guidance maintained at mid-teens, with continued momentum in mid-corporate, SME, and retail segments.

• NIM guidance revised to -10 to -20 basis points for the year, reflecting ongoing funding cost pressures.

• Cost-to-income ratio guidance revised to below 31% (from 30.5%).

• ROE guidance revised to above 18.5% (from above 19%).

• Cost of risk guidance unchanged at 40-50 basis points; capitalization guidance at 18%-19%.