Alinma Bank Holds Its Second Ordinary General Assembly Meeting

Alinma Bank held its second ordinary general assembly meeting on Sunday, on March 27, 2011 (22 Rabi Thani 1432) at the Al-Anoud Novotel hotel in Riyadh. The meeting was attended by the bank’s chairman and members of the board of directors as well as 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, and thanked shareholders for their attendance.

The chairman then delivered a short speech in which he explained that the bank had excelled in introducing modern, Shariah-compliant products and services that meet partner needs. He said this success was reflected in the bank’s financial results.

In Alinma’s first financial year, which ended on December 31, 2010, the bank achieved a net income of SAR 15 million, thereby exceeding its break-even point in its first operational year. Total operating income during the same financial year reached SAR 662 million, total assets amounted to SAR 26,669 million, investments stood at SAR 2,624 million, financing portfolios amounted to SAR 15,593 million, and customer accounts reached SAR 8,316 million.

Mr. Abdulmohsen Al-Fares, the managing director and CEO of Alinma Bank, then delivered a speech in which he thanked everyone for their attendance and participation. He presented an overview of the most outstanding achievements of the bank, such as the development, design and deployment of all infrastructural and operations systems and the recruitment of qualified, experienced staff. Mr. Al-Fares then explained that the bank currently offers its services through 43 branches for both men and women and through more than 235 ATMs spread across the Kingdom. He also noted that the number of Alinma partners had increased significantly.

Mr. Al-Fares concluded his speech by reviewing the most important figures that show the tangible development achieved by the bank during the 2010 fiscal year. In particular, he noted that the number of branches rose from 22 to 35 and that the number of ATMs increased from 83 to 200. Likewise, he said that financing portfolios rose from SAR 1,112 million to SAR 15,593 million, customer deposits rose from SAR 1,501 million to SAR 8,315 million, and total assets increased from SAR 1,306 million to SAR 26,365 million.

Mr. Al-Fares further stated that the bank’s 2010 accomplishments confirmed that Alinma enjoys a strong partner base in the retail and corporate sectors and that its human capital, infrastructure, branch, ATM and electronic channel assets would help the bank deliver on the optimism it has for the new financial year. He concluded by saying that as part of its 2011 strategic plan, Alinma would increase its branch and ATM networks and would provide more special products and services to its partners.

Following the CEO’s speech, the audit and Shariah reports were read and the meeting agenda was voted on. The meeting approved the board of directors’ report, ratified the financial lists, and discharged the members of the board of directors for the financial year ended December 31, 2010. Moreover, the assembly approved the fiscal 2010 auditors’ report and the appointment of the fiscal 2011 auditors, who were selected from among candidates nominated by the Audit committee to audit the accounts of the bank and its quarterly financial statements. Auditors’ fees and rules for selecting the members of the Nomination and Remuneration and Audit committees and their membership terms and work plans were also approved.

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.