Alinma Bank (1150) Q3 2024 earnings summary

Executive summary

• Achieved 22% YoY net income growth in Q3 2024, with net income after zakat for 9M 2024 at SAR 4,302.8 million and ROE at 18.6%.

• Total assets grew to SAR 266.98 billion as of September 30, 2024, up from SAR 232.59 billion a year earlier.

• Balance sheet expanded 13% YTD, driven by strong corporate and retail financing growth.

• The bank expanded its branch network to 113 branches, up from 108 branches as of September 2023.

• Strategic initiatives focused on digital transformation, customer experience, and operational excellence.

Financial highlights

• Net income for 9M 2024 rose 22% YoY to SAR 4,303mn, supported by 14% growth in operating income.

• Operating income for the nine months was SAR 8,125.4 million, up from SAR 7,156.9 million year-over-year.

• Net financing increased to SAR 195.90 billion from SAR 169.06 billion year-over-year.

• Customer deposits increased 11% YTD to SAR 209.14 billion, with CASA deposits up 19% and now 51.4% of total deposits.

• Funded income increased 26% YoY, while non-funded income rose 12% YoY.

Outlook and guidance

• High teens financing growth expected for 2024, with flat net profit margin guided at -10bps to 0bps YoY.

• ROE target for 2025 set above 18%, with cost-to-income ratio expected below 31%.

• Asset quality expected to remain stable, with cost of risk guided at 50-60bps.

• The bank continues to focus on expanding its retail and corporate banking segments and enhancing digital offerings.

• No significant events after the reporting period that would affect the financial statements.