Chairman’s Statement

Outstanding performance

As chairman of the alinma Board of Directors, I am pleased to present the annual report for the fiscal year ending December 31, 2024, during which we surpassed our ambitious expectations and delivered value to our many and varied stakeholders.

By the end of the year, we had successfully completed the majority of the Bank’s Strategy 2025 initiatives well ahead of schedule, achieving significant milestones such as issuing our first tranche of Sukuk, worth USD 1 billion. The strong investor response to this issuance reflects continued confidence in alinma’s strategy and growth trajectory.

I was particularly heartened by our notable progress in customer satisfaction, with a significant improvement in our Net Promoter Score (NPS), positioning alinma as the second highest-rated bank in the Kingdom for customer satisfaction and service recommendations.

In 2024, alinma achieved one of its strongest financial performances since its inception in 2006, recording exceptional profits and delivering solid returns for shareholders. Our total assets grew by 17%, reaching % 276.8 billion, while our financing portfolio expanded significantly, empowering corporate clients to achieve their aspirations. Net income increased by 21% to % 5.8 billion, with robust performance across all sectors. Additionally, our net financing portfolio grew by 17%, reaching % 202.3 billion, underscoring our continued commitment to supporting both businesses and individuals.

Current and savings accounts outperformed the local market average, driven by our proactive development strategy, competitive banking products, and the high level of trust we have cultivated with our customers.

In the retail sector, alinma recorded a growth rate exceeding significantly higher than the market average, a testament to our relentless focus on improving products, enhancing customer experience, and investing in cutting-edge digital infrastructure.

Economic and regulatory environment

The 2024 fiscal year presented both challenges and opportunities in the global economy and banking sector, with monetary policies and economic conditions influencing growth and profitability. Locally, regulatory frameworks in the Kingdom underwent significant developments, prompting alinma to reinforce its compliance, transparency, and governance in alignment with the most rigorous banking standards and best practices.

Thanks to our balanced financial strategies and proactive planning, the Bank maintained steady growth, demonstrating resilience and agility in adapting to market changes, and responding to the needs of customers.

Vision 2030: Unleashing potential

Saudi Vision 2030 was a key driver of the Bank’s growth in 2024, creating numerous business development opportunities; and alignment of alinma’s Strategy 2025 with the pillars of Vision 2030 has significantly contributed to our overall success. From the outset, we have aimed to be a competitive, innovative banking institution that actively supports the vision’s goals and supports societal development. In 2024, we expanded financing for Vision 2030-related projects and infrastructure, enhancing our f inancial performance and delivering strong returns on equity.

Digital Leadership: Youth and SMEs

Digital transformation is the core of alinma’s Strategy 2025. We have extended our reach to various customer segments, particularly youth, through advanced digital platforms tailored to their needs and lifestyles.

Key digital achievements in 2024 included the launch of the iz Youth app and a major update to the alinma app, both of which received widespread acclaim for their enhanced user experience. These initiatives have reinforced our position as a pioneer in digital banking services, and as a leader of transformation at this pivotal moment in the Kingdom’s history.

Additionally, we expanded our digital services for SMEs, introducing specialized products to support their growth. We established strategic partnerships with fintech companies and invested in artificial intelligence to optimize operational efficiency and elevate customer experience across all digital channels.

We also launched new platforms facilitating international trade financing, significantly boosting business support and investment opportunities. This contributed to a fourfold increase in our corporate customer base compared to 2020.

Sustainability and social responsibility

Sustainability remains a fundamental pillar of alinma’s operations, positioning alinma as a constructive member of the communities we serve. In 2024, we launched an integrated sustainability strategy aligned with both local and global standards. Our initiatives included sustainable financing, adherence to responsible banking principles, participation in the Carbon Disclosure Project, and the expansion of corporate social responsibility (CSR) programs.

A key milestone was the launch of the alinma Sustainability and Social Responsibility Program, “Amad”, which serves as the umbrella for our sustainability and CSR efforts, ensuring alignment with national and global objectives.

In 2024, we introduced initiatives to provide home ownership solutions for 37,000 low-income families, earning us the Social Responsibility Award. Additionally, the Bank allocated % 5 million in scholarships to promote financial inclusion in partnership with the Ministry of Education and the Education Support Association, “Ta’alum”. We also collaborated with the Cultural Development Fund to support vital cultural sector projects in the Kingdom.

Human capital and career excellence

Our employees are the cornerstone of our success, and our ability to successfully cooperate and collaborate creates synergies throughout our value chains. In 2024, we significantly invested in training and development, achieving a participation rate of 75%, with training hours exceeding 86,309 hours. Our efforts were recognized with the “Innovation & Creativity Award for Employee Happiness” from the Corporate Happiness Awards GCC, reflecting the impact of our dynamic work environment and enhanced employee benefits.

The Bank also advanced its Saudization efforts, creating numerous job opportunities for Saudi citizens and increasing the participation of women across various functions and levels of responsibility.

Governance and compliance

The Board of Directors remains dedicated to upholding best practices in governance and risk management. In 2024, we strengthened confidence in our governance frameworks while ensuring compliance with Saudi Central Bank and Capital Market Authority regulations. Additionally, we enhanced our customer data privacy policies to reinforce cybersecurity, reaffirming our commitment to ethical standards and adherence to Shariah principles.

Looking to the future

As we step into 2025, we will continue to drive innovation and expansion, with a strong focus on enhancing digital services, integrating artificial intelligence, and increasing investments in Vision 2030 initiatives, particularly in infrastructure and sustainability. We will also launch our next five-year strategy leading up to 2030, aiming to establish alinma as the premier financial services provider in the Kingdom.

Acknowledgments

I extend my deepest gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, for their unwavering support of the financial sector, driving national development and prosperity.

On behalf of alinma, I also express my sincere appreciation to the Ministry of Finance, the Ministry of Commerce, the Saudi Central Bank, the Capital Market Authority, and all regulatory bodies for their vital role in advancing the financial sector in the Kingdom.

Lastly, I extend my heartfelt thanks to my fellow Board members, executive management, and all alinma employees for their dedication and invaluable contributions, which have been instrumental in the bank’s success and growth.