Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, Alinma Bank's total income from special commission of financing and investment rose 7.564% and 7.263% YoY to SAR 7,761.2 million and SAR 1,240.5 million respectively, driven primarily by growth in financing and investment volumes. Total operations profit increased 6.558% YoY to SAR 6,138.1 million, while net profit attributable to shareholders grew 6.244% YoY to SAR 3,273.7 million, supported by a 6.6% rise in total operating income, mainly from higher net income from financing, investment, and FVIS income, partially offset by lower fee income, exchange income, and other operating income. Operating expenses before provisions rose 6.042% YoY to SAR 1,932.3 million, and total provisions for expected credit losses increased 9.475% YoY to SAR 555.7 million, reflecting the expansion of the financing and investment portfolio.

Quarter-on-Quarter Performance Drivers

QoQ net profit attributable to shareholders declined 4.962% from SAR 1,678.5 million to SAR 1,595.2 million, primarily driven by a sharp 156.904% surge in provisions for expected credit losses (rising from SAR 155.7 million to SAR 400.0 million), largely due to recoveries from written-off accounts in the prior quarter and continued growth in the financing and investment portfolio. This was only partially offset by a 3.943% increase in total operating income (from SAR 3,009.7 million to SAR 3,128.4 million), supported by higher net income from financing and investment, exchange income, FVIS income, and other operating income. Operating expenses before provisions also declined modestly by 3.328% QoQ, providing a marginal buffer against the provision headwind.

Other Items

Alinma Bank's interim financial results for the six-month period ending 30 June 2026 received an unmodified conclusion from the external auditor, with no additional comments noted in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. No accumulated losses or fair value losses on investment properties were reported. Balance sheet metrics showed total assets of SAR 329,287.4 million (up 10.79% YoY), total loans and advances portfolio of SAR 243,911.2 million (up 11.58% YoY), client deposits of SAR 245,254.2 million (up 6.658% YoY), investments of SAR 56,616.9 million (up 9.638% YoY), and total shareholders' equity of SAR 50,124.5 million (up 11.948% YoY). Earnings per share for the current period stood at SAR 0.98 (vs. SAR 0.96 in the same period last year), calculated based on a weighted average of 2,988.5 million outstanding shares after excluding 14.8 million treasury shares and adjusting for Tier 1 Sukuk costs. No material risks or going concern uncertainties were disclosed. Some prior period comparison items have been reclassified.

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Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.