At Alinma Bank, we always strive to continue to provide services that live up to the aspirations of our customers, meet their needs by adopting the latest technologies, and providing the best banking services and products to distinguish our capabilities in terms of speed, safety and ease.
Abdulmalek bin Abdullah Al-Hogail
Chairman
It is my pleasure, on behalf of the Board of Directors, to present to you the Annual Report of Alinma Bank for the financial year ended 31 December 2021.
After a tumultuous twenty months following the COVID-19 pandemic, a sense of normalcy is setting in the global economy. In the Middle East, resumption of international travel without major restrictions provided the Gulf Cooperation Council (GCC) economies an opportunity to regroup and start a cautious recovery process. Furthermore, the robust and diligent strategy of the Saudi government and the stellar progress of the vaccination drive facilitated the Kingdom to refocus on its economic priorities. In this milieu, the Saudi banking sector continued to lead the charge towards recovery in 2021. The successful initiatives taken by the government, regulators and banks, enabled the banking sector to post strong results without reporting any single domestically significant corporate credit default.
Our performance was in tandem with our strong operating foundations, which continued to take advantage of growth opportunities. Consequently, the net income amounted to SAR 2.7 Bn. which is an increase of SAR 743 Mn. compared to 2020, with year-on-year (YoY) growth of 38%, and total operating income increased by 17% (YoY) to SAR 6.7 Mn. in fiscal year 2021. Total assets increased to SAR 173.5 Bn. as at 31 December 2021, reflecting a YoY growth of 11%. The net financing portfolio increased by 14% to SAR 126.3 Bn. as at 31 December 2021 and customer deposits increased to SAR 121.1 Bn. for the same period.
The Board remains committed to ensuring that the Bank is future-ready and resilient, through effective corporate governance and risk management oversight with a focus on internal controls, policies and procedures that would lead to long-term value creation.
Alinma Bank remained resilient against potential risks and was poised to benefit from the recovery. We continued to accord the highest priority to ongoing service to our customers and the safety of our employees. Our employees demonstrated utmost dedication and immense professionalism towards the successful navigation of the Bank, upholding the ethos of the Institution. The risk framework of the Bank, within which the business was conducted, proved resilient in the face of the disruption caused by the pandemic.
Our strategic positioning is to be recognized and celebrated as the fastest and most convenient bank in the Kingdom of Saudi Arabia (KSA) and be the number one in Net Promoter Score (NPS) across the KSA banks. The strategy which is aligned with the Saudi Vision 2030, is based on three pillars that represent the Nation’s competitive advantages – vibrant society, thriving economy and an ambitious nation. Our strategic positioning is built on four strategic pillars, namely: be the most digitally advanced, fastest, and most convenient retail bank in the KSA, be the corporate bank with the best customer experience offering the fastest turnaround time in the KSA, be the most innovative Shariah-compliant treasury partner across the KSA, and be the number one employer of choice across the KSA banks.
At Alinma Bank, we always strive to continue to provide services that live up to the aspirations of our customers, meet their needs by adopting the latest technologies, and providing the best banking services and products to provide distinguished services in terms of speed, safety and ease. The Bank made a significant contribution towards the goals of Vision 2030 by focusing on women empowerment, improving financial inclusion, expanding home-ownership and developing the SME sector. Our customer-centric strategy enabled us to launch digital alternatives for customers to stay connected and meet their financial needs. In recognition of the Bank’s commitment to digital excellence through the provision of Shariah-compliant products and services that adhere to the best international standards, assuring the highest levels of reliability and security, Alinma Bank is proud to be named the Best Digital Innovation Bank in the Kingdom of Saudi Arabia by the Union of Arab Banks. We continue to work cooperatively with the regulators and the government to develop and support the growth of digital transactions and to bring about tangible development in financial services and products in Saudi Arabia and the broader region, whilst keeping pace with the aspirations of our customers. Furthermore, surpassing some of the largest financial institutions in the Kingdom, Alinma Bank topped the Forbes Middle East list, and was named the Strongest Islamic Retail Bank in Saudi Arabia affirming the strength and resilience of the Bank in the highly competitive Saudi banking sector.
In conclusion, we at Alinma Bank express our gratitude to The Custodian of the Two Holy Mosques, His Royal Highness, The Crown Prince, the Deputy Prime Minister, and Minister of Defense for their ongoing support of the economy and development of the Kingdom, including elevation of the banking sector, which is a core pillar of our national economy. We extend our thanks to the Ministry of Finance, the Ministry of Commerce, the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and other related government authorities for their ongoing support of the banking sector and the national economy. I express my gratitude to the Honourable Head and members of the Shariah Board at Alinma Bank for their valuable advice and guidance. I thank my esteemed colleagues, the members of the Board of Directors, for their consistent support in leading the Bank. My gratitude is extended to the staff members for their dedication and tireless efforts at all times.
Abdulmalek bin Abdullah Al-Hogail
Chairman of the Board of Directors