Alinma Bank (1150) Q4 2024 earnings summary

Executive summary

• Achieved 21% YoY net income growth for FY 2024, driven by 12% operating income growth and robust expansion in both retail and corporate financing.

• Maintained strong digital engagement, with 98.6% of transactions digital and 23.8 million average monthly smartphone logins.

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

Financial highlights

• FY 2024 net income reached SAR 5,832mn, up 21% YoY; operating income rose 12% YoY to SAR 10,940mn.

• Gross financing grew 16% YoY, with retail up 17% and corporate up 15%.

• Customer deposits increased 12% YoY, with CASA deposits up 20% and now 51.6% of total deposits.

• Cost to income ratio improved to 30.9% (down 0.4ppts YoY).

• NPL ratio decreased by 55bps YoY to 1.06%; NPL coverage rose to 172.3%.

Outlook and guidance

• 2025 guidance targets mid-teens financing growth, net profit margin stable within ±5bps, cost to income ratio below 30%, and ROE above 19%.

• Asset quality expected to remain stable, with cost of risk guided at 45-55bps.

• Capital adequacy ratio expected between 17%-18%.