Alinma Bank held its first ordinary general assembly meeting on Sunday, 19 Rabi II 1431, corresponding to April 4, 2010, in Makarim Hall, at the Marriott Hotel in Riyadh. The meeting was attended by the bank’s chairman, members of the board of directors and the bank’s shareholders.
Eng. Abdulaziz Al-Zamil, the chairman of the board of directors, convened the meeting in accordance with Article 91 of the Saudi Companies Law issued by the Ministry of Commerce and Industry and Article 31 of the bank’s Articles of Association. According to the attendance cards, the number of shares represented in person or by proxy was 458,612,688, or 30.5742% of the share capital, which, in total, amounts to one billion and five hundred million shares.
The chairman then delivered a speech in which he noted the efforts that had been made by the bank during its various phases of establishment and emphasized that through all said phases, the bank had diligently adhered to Shariah guidelines related to all aspects of the bank’s development and operation. The chairman explained that Alinma has excelled in offering modern products and services that meet partner (client) needs. He said that this was reflected in the bank’s financial results.
For the first financial year, which ended on December 31, 2009, the bank achieved a net income of SAR 605 million, which included net income from the bank’s pre-operating period of SAR 290 million. Total operating income during the first financial year reached SAR 954 million, total assets amounted to SAR 17,306 million, investments stood at SAR 1,000 million, and balances with banks and other financial institutions reached SAR 13,846 million. The bank’s financing portfolio amounted to SAR 1,126 million, its customer accounts reached SAR 1,501 million and total equity equaled SAR 15,605 million.
Mr. Abdulmohsen Al-Fares, the managing director and CEO of Alinm Bank, then delivered a speech in which he began by thanking everyone for their attendance and participation. He presented an overview of the most outstanding achievements of the bank, such as the development/design/deployment of all systems and facilities related to bank operations and the recruitment of more than 1100 qualified, experienced staff (both men and women with a Saudization rate of more than 83%). Mr. Al-Fares informed attendees that by the end of 2009, the bank had begun serving its partners through a kingdom-wide network of 22 branches (13 for men and 9 for women) and more than 80 ATMs and that it had also launched its corporate banking operations.
With regard to its promotional efforts, Al-Fares said that the bank had launched its “Aspire” campaign in the final quarter of 2009 to promote the bank’s launch, create greater awareness of the bank, establish a public image of the bank and develop a positive impression regarding the role of the bank in society. Mr. Al-Fares also highlighted some of the recognition the bank had received throughout its phases of development including achieving ISO 27001 global certification for online banking information security services and receiving the award for “Equities Deal of the Year” for the Middle East region from The Banker magazine.
At the end of his speech, Mr. Al-Fares, stated that the bank, still in its first year of operation, is optimistic about the future and is focused on establishing a financial entity that supports the national economy and achieves sustainable growth. He added that what has been achieved by the bank to date represents the foundation from which it will strive for further achievements. He said that Alinma Bank continues to work on behalf of its partners and shareholders in pursuit of mutual aspirations.
Mr. Al-Fares concluded by saying that during this year and the next, the bank will focus on building its financial position, completing the construction of its branch and ATM network, providing more products and services to its partners and launching subsidiary operations.
Following the CEO’s speech, the audit and Shariah reports were read and the meeting agenda was voted on. Consequently, the meeting approved and ratified the board of directors’ report and discharged them for the financial year ended 31/12/2009. Moreover, the assembly approved the auditors’ report for the financial year ended 31/12/2009, the appointment of Mr. Abdulmuhsin Abdulaziz Al-Hussein as a member of the board of directors in place of Mr. Adel Mohammed Al-Zaid and the appointment of auditors to audit the bank’s accounts and quarterly financial statements for the financial year 2010.
At the end of the meeting, shareholders were given the opportunity to raise questions, which were answered by the board’s chairman and the CEO.
It should be noted that Alinma Bank’s first financial year, which ended December 31, 2009, covers the period from May 26, 2008 (the date of the ministerial resolution establishing the bank) through December 31, 2009. The bank is still in its first year of operation and the number of its partners (clients) continues to increase with the expansion of its network of branches.