Alinma Bank has announced its financial results for the 2010 fiscal year, covering the period from January 1, 2010 through December 31, 2010. Speaking on the results, Mr. Abdulmohsen Al-Fares, the CEO of Alinma Bank, provided some summary figures of the bank’s performance.
Regarding Alinma’s Q4 2010 results, Mr. Al-Fares noted the following:
1. Net income for Q4 2010 amounted to SAR 67 million, compared to SAR 6 million for the corresponding period of 2009, an increase of 1,017%. The result represented a 235% increase over the net profit of SAR 20 million achieved Q3 2010.
2. Total operating income amounted to SAR 209 million, compared to SAR 138 million for the corresponding period of 2009, an increase of 51%.
3. Income from core business activities amounted to SAR 201 million, compared to SAR 138 million for the same period last year, an increase of 46%.
Regarding Alinma’s aggregate results for the entire 2010 fiscal year, Mr. Al-Fares noted the following:
1. Net income during 2010 (12 months) amounted to SAR 15 million, compared to SAR 605 million for the previous fiscal year (19 months covering the period from May 28, 2008 through December 31, 2009).
2. Total operating income during 2010 reached SAR 662 million compared to SAR 954 million for 2009, a decrease of 31%.
3. Income from core business activities for the period (12 months) reached SAR 619 million compared to SAR 945 million for the previous fiscal year (19 months), a decrease of 35%.
4. Total assets reached SAR 26,669 million, compared to the SAR 17,306 million in assets that existed as of December 31, 2009, an increase of 54%.
5. Investments reached SAR 2,624 million, compared to the SAR 1,000 million in investments that existed as of December 31, 2009, an increase of 162%.
6. Amount due from other banks and financial institutions amounted to SAR 5,803 million.
7. The bank’s financing portfolio stood at SAR 15,593 million, compared to SAR 1,112 million for 2009, an increase of 1,302%.
8. Partners’ deposits amounted to SAR 8,316 million, compared to SAR 1,498 million for 2009, an increase of 456%.
Mr. Al-Fares noted that although year-over-year comparisons are useful in assessing a company’s performance, Alinma’s 2010 results differed from its 2009 results in some significant ways. He pointed to the 2010 decline in net income, which was accentuated due to the fact that the bank recorded, in 2009, pre-operational net income of SAR 290 million that was included in Alinma’s 2009 fiscal year net income figure. Al-Fares also pointed to the fact that the bank’s 2009 fiscal year extended to 19 months (May 28, 2008 – December 31, 2009), thus skewing comparisons. Another factor contributing to the decline in net income, said Al-Fares, was the surge in operational expenses incurred by Alinma in 2010 related to the bank’s expansion activities, which included the launching of several branches and the continued deployment of its ATM network.
Throughout 2010, Alinma saw significant operational growth. Nowhere was this more evident than in the launch of its new, standalone branches. These branches are characterized by their strategic locations and unique design, which leverages the latest technology and architectural planning to provide a “partner journey” that ensures that partner (client) needs are efficiently and thoroughly addressed.
Alinma Bank also serves its partners through its ATM network and other 24-hour electronic channels such as Alinma Internet and Alinma Phone, which puts more than 40 services at the partner’s fingertips. Alinma also provides mobile phone notices, allows partners to activate/deactivate internet purchasing capabilities for their cards, and offers fully Shariah-compliant services such as education financing and its Global Limit credit service.
As part of its expansion strategy, Alinma plans to launch more than 100 branches within the next 5 years. In addition to the large number of branches the bank already has across Saudi Arabia, further branches are nearing completion in the cities of Riyadh, Dammam, Jeddah, Makkah, Buraidah, Unaizah, Ha’il, Arar, Tabuk, Najran, Ahsa, Abha and Hafr Al-Batin.