Alinma Bank (1150) Q2 2025 earnings summary

Executive summary

• Net income for 1H 2025 increased by 13% year-over-year to SAR 3.081 billion, driven by 8% growth in operating income and strong performance in both retail and corporate financing.

• Financing grew 8% year-to-date to SAR 218.6 billion, with total assets up to SAR 297.2 billion and customer deposits up 9% to SAR 229.9 billion.

• CASA deposits grew 7% year-to-date, now representing 50.7% of total deposits.

• Digital transformation and strategic initiatives accelerated, with 91% of planned projects completed, including automation, new product launches, and expansion in sustainable finance.

• The bank is in the final year of its 2025 strategy and will present a new 2030 strategy for board approval in September.

Financial highlights

• Operating income increased 8% to SAR 5.76 billion, and net income rose 13% to SAR 3.081 billion year-to-date.

• Customer deposits grew 9% YTD, driven by a 7% increase in CASA and 11% in time deposits.

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

• Cost-to-income ratio for H1 was 31.6%, up 0.2ppt YoY.

• 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 elevated liquidity costs.

• 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.