alinma 2025
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Theme of the Year

Strategy delivered.

Accelerating innovation.

Driving sustainable growth.

Our strategy is designed to be practical, measurable, and executable across economic cycles. In 2025, execution was the central theme. Across the organization, teams delivered against well-defined priorities with stronger coordination, sharper accountability, and improved speed of decision-making, achieving our Strategy 2025 goals and laying a strong foundation for our Strategy 2030 that was launched this year.

We advanced our core banking activities, maintaining a disciplined approach to capital allocation and risk management. Growth was pursued selectively, with a focus on segments where alinma has clear competitive strengths and the ability to build long-term relationships. At the same time, we continued to refine our internal processes, governance frameworks, and performance management, ensuring that scale did not come at the expense of control.

This execution has resulted in measurable outcomes supported by structural change. Over the course of the strategy cycle, operating income more than doubled, while net income grew by more than three times. Returns strengthened materially, with return on equity and return on assets improving significantly. This execution discipline has become a differentiating strength. It allows alinma to move faster where opportunities exist, adapt to changing conditions, and deliver consistently across business cycles.

Investor Relations Department

P.O. Box 66674, Riyadh 11586

Al Anoud Tower, King Fahad Road, Riyadh

Kingdom of Saudi Arabia

E-mail: IR@alinma.com

Phone: +966-11-218-5555

Consolidated Statement of<br/>Cash Flows

Consolidated Statement of
Cash Flows

Cash flows for the reporting period.

ALINMA BANK (A Saudi Joint Stock Company)

Consolidated Statement of Cash Flows

For the year ended December 31

Notes 2025
'000
2024
'000
OPERATING ACTIVITIES
Income for the year before zakat 7,125,951 6,502,072
Adjustments to reconcile income for the year before zakat
Depreciation and amortization 9 431,055 353,839
Loss / (gain) on disposal of property and equipment, net (2,808) 4,172
Unrealized loss / (gain) from FVSI financial instruments, net (143,138) 26,710
Gain from FVOCI sukuk investments, net (1,115) (911)
Fair value adjustment to derivatives (108,302) (34,783)
Dividend income on FVOCI equity investments (30,053) (33,004)
Impairment charge on financing, net of recoveries 8.2 1,030,365 1,049,809
Impairment charge / (reversal) on other financial assets 29,706 (550)
Recoveries of previously written-off bad debts 8.2 228,096 197,137
Unwinding of deferred payment program modification loss (8,750) (15,228)
Unwinding of fair value impact of SAMA deposits 749 10,110
Employees share based plans reserve 17.2 77,125 62,141
Share of loss from associates and joint venture 6.5, 6.6 4,713 5,106
8,633,594 8,126,620
Net (increase) / decrease in operating assets:
Statutory deposit with Saudi Central Bank (1,165,889) (2,448,205)
Due from banks and other financial institutions with original maturity of more than three months (1,590) (376,268)
Investments held at FVSI (609,979) (520,398)
Financing (29,563,693) (29,460,082)
Other assets 361,252 (1,118,163)
Net increase / (decrease) in operating liabilities:
Due to SAMA, banks and other financial institutions 2,275,960 6,494,916
Customers' deposits 16,829,280 22,644,069
Other liabilities 1,765,036 2,957,319
Financing cost on lease liability (19,988) (14,745)
Net cash from operating activities before Zakat paid (1,496,017) 6,285,063
Zakat paid, net of refund 24 (664,476) (556,318)
Net cash (used in) / from operating activities (2,160,493) 5,728,745
INVESTING ACTIVITIES
Purchases of investments held at FVOCI (1,059,729) (1,217,789)
Purchases of investments held at amortized cost 6.4 (10,328,074) (8,558,637)
Purchases of investment in joint venture - (218,579)
Purchases of investment in an associate (86,667) -
Proceeds from sales and maturities of investments held at FVOCI 1,194,589 783,011
Proceeds from sales and maturities of investments held at amortized cost 6.4 3,046,134 3,985,029
Proceeds from derecognition of investment in joint venture - 167,290
Proceed from sale of investment in subsidiary 183,000 -
Purchase of property and equipment (1,367,623) (788,806)
Proceeds from disposal of property and equipment 10,862 6,748
Dividends received from FVOCI equity investments 36,210 33,004
Net cash used in investing activities (8,371,298) (5,808,729)
FINANCING ACTIVITIES
Proceeds for the issuance of Tier 1 Sukuk, net of related costs 3,730,598 3,735,351
Payment for Tier 1 Sukuk costs (504,538) (321,921)
Proceeds for the issuance of Sukuks and certificates of deposit 7,526,473 -
Cash payment for principal portion of lease liability (100,454) (109,293)
Dividend paid 17.1 (2,984,625) (1,988,419)
Net cash from financing activities 7,667,454 1,315,718
Net change in cash and cash equivalents (2,864,337) 1,235,734
Cash and cash equivalents at beginning of the year 6,408,581 5,172,847
Cash and cash equivalents at end of the year 25 3,544,244 6,408,581
Income received from investments and financing 17,058,701 16,561,599
Return paid on time investments 7,706,098 7,797,323
Supplemental non-cash information:
Right-of-use assets (187,243) (85,851)
Lease liabilities 92,894 (20,683)
Net change in fair value of FVOCI investments (38,081) (150,539)

The accompanying notes from 1 to 41 form an integral part of these consolidated financial statements.