Alinma Bank (1150) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended September 2025 increased by 9% year-on-year to SAR 4,673 million, driven by 7% growth in operating income and strong retail and corporate performance.

• Financing grew 12% year-to-date, customer deposits rose 11%, and total assets reached SAR 307,214 million.

• CASA deposits increased 14% year-to-date, now representing a significant portion of total customer deposits.

• Digital transformation led to 98.4% of transactions being digital and 95% digital onboarding of accounts.

• The bank is preparing to launch a new five-year strategy (2030), focusing on AI, customer centricity, and adjacent businesses.

Financial highlights

• Operating income grew 7% year-on-year; funded income increased 8%, and non-funded income rose 4%.

• Gross funded income reached SAR 12.8 billion, with investment income up 22% and financing income up 6%.

• Cost-to-income ratio increased to 31.6% year-on-year; operating expenses rose 9% to SAR 2.7 billion.

• Net profit margin declined by 27 basis points year-on-year to 3.46%.

• Basic and diluted EPS for nine months: SAR 1.72, up from SAR 1.62 year-over-year.

Outlook and guidance

• Full-year financing growth guidance maintained at mid-teens; net profit margin guidance unchanged at -10 to -20 basis points year-on-year.

• Cost-to-income ratio targeted below 31% for the full year through digital investment and process optimization.

• Return on equity guidance remains above 18.5%; cost of risk guidance unchanged at 40-50 basis points.

• Management expects margin improvement in Q4 due to lower funding costs and repricing.

• Asset quality expected to remain stable, with no significant post-reporting period events affecting financials.