Alinma Bank

Consolidated Statement of Financial Position

as at 31 December

	Notes	2023 SAR’000	2022 SAR’000
ASSETS
Cash and balances with Saudi Central Bank (SAMA)	4	12,598,444	9,723,259
Due from banks and other financial institutions, net	5	1,700,907	1,454,458
Investments held at fair value through statement of income (FVSI)	6	2,610,274	1,641,496
Investments held at fair value through other comprehensive income (FVOCI)	6	13,505,282	12,084,604
Investments held at amortized cost, net	6	27,105,159	24,721,320
Investments in associate and joint venture	6	15,637	70,214
Financing, net	8	173,624,044	146,491,956
Property, equipment and right of use assets, net	9	2,888,209	2,632,794
Other assets	10	2,667,142	1,616,128
TOTAL ASSETS		236,715,098	200,436,229
LIABILITIES AND EQUITY
LIABILITIES
Due to SAMA, banks and other financial institutions	11	7,431,230	16,483,039
Customers’ deposits	12	187,900,581	145,168,490
Amount due to Mutual Funds’ unitholders	13	93,510	136,570
Other liabilities	14	6,956,176	6,771,817
TOTAL LIABILITIES		202,381,497	168,559,916
EQUITY
Share capital	15	20,000,000	20,000,000
Treasury shares	17.1	(225,611)	(66,021)
Statutory reserve	16	3,378,431	2,168,630
Other reserves	17.2	62,359	(507,396)
Retained earnings		1,118,422	4,285,004
Proposed issue of bonus shares	15.2	5,000,000	-
Proposed dividends	15.1	-	996,096
Equity attributable to the shareholders of the Bank		29,333,601	26,876,313
Tier 1 Sukuk	18	5,000,000	5,000,000
TOTAL EQUITY		34,333,601	31,876,313
TOTAL LIABILITIES AND EQUITY		236,715,098	200,436,229

	Notes	2023 SAR’000	2022 SAR’000
Income from investments and financing	20	13,227,509	7,612,961
Return on time investments	20	(5,572,995)	(1,546,495)
Income from investments and financing, net	20	7,654,514	6,066,466
Fee from banking services – income	21.1	2,426,703	1,901,510
Fee from banking services – expense	21.1	(967,712)	(692,578)
Fees from banking services, net	21.1	1,458,991	1,208,932
Exchange income, net		330,291	290,836
Income from FVSI financial instruments, net	6.1	211,721	279,308
Gain from FVOCI sukuk investments, net		-	993
Dividend income on FVOCI equity investments		30,798	30,545
Other operating income	21.2	39,342	85,980
Total operating income		9,725,657	7,963,060
Salaries and employee related expenses	22	1,466,521	1,325,324
Rent and premises related expenses		73,651	68,225
Depreciation and amortization	9	325,313	279,116
Other general and administrative expenses		1,178,041	1,092,312
Operating expenses before impairment charges		3,043,526	2,764,977
Impairment charge on financing, net of recoveries	8.2	1,272,104	1,197,700
Impairment charge / (reversal) on other financial assets		26,524	(8,982)
Total operating expenses		4,342,154	3,953,695
Net operating income		5,383,503	4,009,365
Share of income from associate and joint venture	6.5, 6.6	12,021	3,534
Income for the year before zakat		5,395,524	4,012,899
Zakat for the year	24	(556,318)	(413,759)
Net income for the year after zakat		4,839,206	3,599,140
Basic and diluted earnings per share (SAR)	23	2.33	1.73

	Notes	2023 SAR’000	2022 SAR’000
Net income for the year after zakat		4,839,206	3,599,140
Other comprehensive income / (loss):
Items that can be recycled back to consolidated statement of income in subsequent periods
Net change in fair value of FVOCI equity investments	17.2	461,304	(412,976)
Share of associate's other comprehensive income	17.2	10,868	-
Actuarial gain on re-measurement of End of Service Benefits	17.2	19,637	12,226
Items that can be recycled back to consolidated statement of income in subsequent periods
Net change in fair value of FVOCI sukuk investments	17.2	108,987	(247,262)
Net gain realized on sale of FVOCI sukuk investments	17.2	-	(993)
Total other comprehensive income / (loss)		600,796	(649,005)
Total comprehensive income for the year		5,440,002	2,950,135

2023 (SAR ‘000)	Notes	Share capital	Treasury shares	Statutory reserve	Other reserves	Retained earnings	Proposed issue of bonus shares / dividends	Total equity attributable to the shareholder	Tier 1 Sukuk	Total equity
Balance at the beginning of the year		20,000,000	(66,021)	2,168,630	(507,396)	4,285,004	996,096	26,876,313	5,000,000	31,876,313
Net income for the year after zakat		-	-	-	-	4,839,206	-	4,839,206	-	4,839,206
Net change in fair value of FVOCI equity investments	17.2	-	-	-	461,304	-	-	461,304	-	461,304
Actuarial gain on re-measurement of End of Service Benefits	17.2	-	-	-	19,637	-	-	19,637	-	19,637
Net change in fair values of FVOCI sukuk investments	17.2	-	-	-	108,987	-	-	108,987	-	108,987
Share of associate's other comprehensive income	17.2	-	-	-	10,868	-	-	10,868	-	10,868
Total comprehensive income		-	-	-	600,796	4,839,206	-	5,440,002	-	5,440,002
Gain on sale of FVOCI equity investments	17.2	-	-	-	(120,052)	120,052	-	-	-	-
Realized share of associate's other comprehensive income	17.2	-	-	-	(10,868)	10,868	-	-	-	-
Transfer to statutory reserve	16	-	-	1,209,801	-	(1,209,801)	-	-	-	-
Tier 1 Sukuk costs		-	-	-	-	(200,000)	-	(200,000)	-	(200,000)
Final dividends paid for 2022	15.1	-	-	-	-	-	(996,096)	(996,096)	-	(996,096)
Interim dividends paid for 2023	15.1	-	-	-	-	(1,690,389)	-	(1,690,389)	-	(1,690,389)
Proposed issue of bonus shares for 2023	15.2	-	-	-	-	(5,000,000)	5,000,000	-	-	-
Employee share based plans and other reserve movements	17.1, 17.2	-	(159,590)	-	99,879	(36,518)	-	(96,229)	-	(96,229)
Balance at the end of the year		20,000,000	(225,611)	3,378,431	62,359	1,118,422	5,000,000	29,333,601	5,000,000	34,333,601

2022 (SAR ‘000)	Notes	Share capital	Treasury shares	Statutory reserve	Other reserves	Retained earnings	Proposed dividends	Total equity attributable to the shareholder	Tier 1 Sukuk	Total equity
Balance at the beginning of the year		20,000,000	(94,159)	1,268,845	122,601	3,618,609	795,131	25,711,027	5,000,000	30,711,027
Net income for the year after zakat		-	-	-	-	3,599,140	-	3,599,140	-	3,599,140
Net change in fair value of FVOCI equity investments	17.2	-	-	-	(412,976)	-	-	(412,976)	-	(412,976)
Actuarial gain on re-measurement of End of Service Benefits	17.2	-	-	-	12,226	-	-	12,226	-	12,226
Net change in fair values of FVOCI sukuk investments	17.2	-	-	-	(247,262)	-	-	(247,262)	-	(247,262)
Gain on sale of FVOCI sukuk investments	17.2	-	-	-	(993)	-	-	(993)	-	(993)
Total comprehensive income		-	-	-	(649,005)	3,599,140	-	2,950,135	-	2,950,135
Loss on sale of FVOCI equity investments	17.2	-	-	-	347	(347)	-	-	-	-
Transfer to statutory reserve	16	-	-	899,785	-	(899,785)	-	-	-	-
Tier 1 Sukuk costs		-	-	-	-	(150,000)	-	(150,000)	-	(150,000)
Final dividends paid for 2021	15.1	-	-	-	-	-	(795,131)	(795,131)	-	(795,131)
Interim dividends paid for 2022	15.1	-	-	-	-	(896,121)	-	(896,121)	-	(896,121)
Proposed final dividends for 2022	15.1	-	-	-	-	(996,096)	996,096	-	-	-
Employee share based plans and other reserve movements	17.1, 17.2	-	28,138	-	18,661	9,604	-	56,403	-	56,403
Balance at the end of the year		20,000,000	(66,021)	2,168,630	(507,396)	4,285,004	996,096	26,876,313	5,000,000	31,876,313

	Notes	2023 SAR’000	2022 SAR’000
OPERATING ACTIVITIES
Income for the year before zakat		5,395,524	4,012,899
Adjustments to reconcile income for the year before zakat to net cash from operating activities:
Depreciation and amortization	9	325,313	279,116
Gain on disposal of property and equipment, net		(7,878)	(678)
Unrealized gain from FVSI financial instruments, net		(67,011)	(209,139)
Gain from Sukuk investments held at amortized cost	21.2	-	(52,196)
Gain from FVOCI sukuk investments, net	17.2	-	(993)
Dividend income on FVOCI equity investments		(30,798)	(30,545)
Impairment charge on financing, net of recoveries	8.2	1,272,104	1,197,700
Impairment charge / (reversal) on other financial assets		26,524	(8,982)
Recoveries of previously written-off bad debts		141,705	43,036
Unwinding of deferred payment program modification loss		(22,548)	(34,444)
Unwinding of fair value impact of SAMA deposits		55,901	55,951
Employees share based plans reserve	17.2	57,113	27,187
Share of income from associate and joint venture	6.5, 6.6	(12,021)	(3,534)
Gain on derecognition of an associate	6.5	(5,143)	-
		7,128,785	5,275,378
Net (increase) / decrease in operating assets:
Statutory deposit with Saudi Central Bank		(1,505,499)	(778,951)
Due from banks and other financial institutions with original maturity of more than three months		(13,927)	(123,262)
Investments held at FVSI		(901,767)	(207,388)
Financing		(28,386,725)	(21,254,697)
Other assets		(1,069,472)	48,757
Net increase / (decrease) in operating liabilities:
Due to SAMA, banks and other financial institutions		(9,155,325)	1,137,212
Customers’ deposits		42,732,091	24,107,939
Other liabilities		(40,488)	323,541
Financing cost on lease liabilities		(13,773)	(14,164)
Net cash from operating activities before Zakat paid		8,773,900	8,514,365
Zakat paid		(413,759)	(311,545)
Net cash from operating activities		8,360,141	8,202,820
INVESTING ACTIVITIES
Purchases of investments held at FVOCI		(2,141,530)	(5,486,723)
Purchases of investments held at amortized cost	6.4	(3,425,272)	(3,818,613)
Proceeds from sales and maturities of investments held at FVOCI		1,373,749	1,340,902
Proceeds from sales and maturities of investments held at amortized cost	6.4	1,037,737	2,519,131
Purchase of property and equipment		(557,195)	(464,764)
Proceeds from disposal of property and equipment		68,206	21,000
Dividends received from FVOCI equity investments		30,798	30,545
Net cash used in investing activities		(3,613,507)	(5,858,522)
FINANCING ACTIVITIES
Payment for Tier 1 Sukuk costs		(200,000)	(200,000)
Cash payment for principal portion of lease liabilities		(93,861)	(90,627)
Dividend paid		(2,686,485)	(1,691,252)
Purchase of treasury shares	17.1	(166,384)	-
Net cash used in financing activities		(3,146,730)	(1,981,879)
Net change in cash and cash equivalents		1,599,904	362,419
Cash and cash equivalents at beginning of the year		3,572,943	3,210,524
Cash and cash equivalents at end of the year	25	5,172,847	3,572,943
Income received from investments and financing		12,122,334	6,677,781
Return paid on time investments		4,648,505	1,087,834
Supplemental non-cash information:
Right-of-use assets		(83,383)	(84,736)
Lease liabilities		(9,999)	(5,891)
Net change in fair value of FVOCI investments		581,159	(661,231)

Financial
statements

Consolidated Statement of Financial Position

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows