Alinma Bank profits jump 30% to SR925 mln in 2Q

Alinma Bank announced that its profits after zakat and tax rose 30.24% to SR 925.1 million in the second quarter of 2022 compared to SR 710.3 million during the same period of 2021.

This came after Alinma Bank announcement on Wednesday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The bank’s net profits during the first half surged 29% to SR 1.74 billion in the 2^nd quarter of the current year from SR 1.35 billion in the same period of the previous year.

Moreover, the profit per share soared to SR 0.85 from SR 0.68, while the total investments rose 22.8% to SR 37.7 billion from SR 30.6 billion.

Net income increased due to the increase in total operating income by 16.9%, mainly due to the increase in net income from financing and investment, fee income, FVIS investment income, exchange income and other operating income.

In the other hand, the total operating expenses were 4.9% higher than last year mainly due to the higher general and administrative expenses and salaries expenses partly offset by the 29.9% lower impairment charge for expected credit losses.

Net income increased due to the increase in total operating income by 6.9%, mainly due to the increase in net income from financing and investment, fee income and FVIS investments income partly offset by the lower other operating income and exchange income.

In the other hand, the total operating expenses increased by 2% mainly due to the higher general and dministrative expenses and rent expenses partly offset by the lower salaries expenses.

Net income increased due to the increase in total operating income by 14.8%, mainly due to the increase in net income from financing and investment, FVIS investment income, exchange income and other operating income.

In the other hand, the total operating expenses were 2.5% higher than last year mainly due to the higher general and administrative expenses, salaries expenses, rent expenses and depreciation expenses partly offset by the lower impairement charge for expected credit losses.

Additional Information:

Net impairment charge for expected credit losses reached to SAR 239.9mn for the current quarter against SAR 342.1mn in the similar quarter of previous year with a decrease of 29.9% and against SAR 243.4mn in the previous quarter this year with a decrease of 1.4%.

Net impairment charge for expected credit losses reached to SAR 483.3mn for the current period against SAR 686.1mn for the similar period of previous year with a decrease of 29.6%.

For calculation of earning per share, 8.6 million treasury shares have been excluded.

Earnings per share is calculated by dividing the net income after zakat for the period ended 30 June 2022 and 30 June 2021 (adjusted for Tier 1 Sukuk costs) by the weighted average number of outstanding shares, which reached 1,989.2 million shares (2021: 1,987.6 million shares).

The bank has issued T1 sukuk on 1/7/2021 with an amount of 5 billion SAR that is classified under total equity.