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1150

Governance: B

ALINMA

Alinma Bank

24.00 SAR / Share

As of: May 28, 2026

10.9x P/E Ratio Trailing 12 Months

1.4x P/B Ratio Price to Book Value

5.0% Dividend Yield Annual Dividend / Share

71.71B SAR Market Cap Total Valuation

0.90 Beta Systematic Risk Index

54.3% Net Margin Net Profit / Revenue

The Story

Alinma Bank demonstrates a robust balance of high capital adequacy and disciplined credit expansion within a fully Sharia-compliant framework.

Source: Q1 2026 (2026-04-29)

Value Creation +5.0% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

5.0%

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

+3.6%

Payout Ratio Percent of net profits distributed as dividends

54.6%

Net Margin Net profit margin generated from total operational revenue

54.3%

ROE Return on Equity

13.2%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

10.9x

P/B Ratio Market capitalization compared to corporate book value

1.4x

NIM Operating multiple reflecting core operational leverage

3.0%

Cost to Income Asset pricing multiple relative to total topline revenue

39.5%

Growth Story

Alinma's growth is anchored by a net loan book of SAR 238.3B, which is nearly matched by a customer deposit base of SAR 239.6B, resulting in a high Loan-to-Deposit Ratio of 99.47%. This indicates a highly utilized balance sheet geared toward maximizing deployment. The bank's Net Investment Income (NII) reached SAR 9.6B TTM, supported by a strategic expansion of its physical footprint and the consolidation of subsidiaries like Ersal Financial Remittance. Beyond traditional lending, the bank is diversifying through its digital and real estate funds. With a sustainable growth rate of 3.61%—derived from an ROE of 13.24% and a retention rate of approximately 45%—the bank maintains the internal capacity to fund future expansion while distributing SAR 3.6B in dividends.

Profitability Dynamics

The bank maintains a healthy Net Interest Margin (NIM) of 2.95%, reflecting disciplined pricing in its financing activities despite a competitive funding environment. Operational efficiency remains a key pillar, evidenced by a cost-to-income ratio of 39.51%, which allows a significant portion of operating income to flow to the bottom line, resulting in a Net Income of SAR 6.6B TTM. Most importantly, Alinma’s ROE of 13.24% comfortably exceeds its estimated cost of equity (Ke) of 8.25%, signaling consistent value creation for shareholders. This profitability is further supported by a strong Return on Assets (ROA) of 2.03%, showcasing effective management of its SAR 324.3B total asset base.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

0.90

Cost of Equity Minimum required rate of return demanded by shareholders

8.3%

Loan-to-Deposit Ratio (LDR) Ratio of customer loans relative to deposited reserves

99.5%

CASA Ratio Demand deposit balances as a percentage of total reserves

42.6%

ECL Coverage Credit loss provisioning coverage relative to gross lending assets

1.6%

Capital Adequacy Ratio (CAR) Risk-weighted asset coverage capital backing ratio

—

Non-Performing Loans (NPL) Ratio Percent of gross lending assets classified as non-performing

—

Risk Factors

Alinma exhibits superior asset quality with an NPL ratio of just 0.93% and a robust NPL coverage ratio of 166.45%, indicating conservative provisioning with SAR 958M in TTM charges. The bank’s capital position is exceptionally strong, with a Total Capital Adequacy Ratio of 20.00% and a CET1 ratio of 13.00%, both well above SAMA’s regulatory minimums. To further stabilize its funding and capital structure, the bank established a USD 5B Sukuk program and issued international sustainable Tier 1 Sukuks. While the bank proactively monitors geopolitical volatility in the region by adjusting its forward-looking ECL scenario weightings, its diversified portfolio and high capital buffers provide a significant safety margin.

Governance Disclosures

Rating: B

We track 13 key governance and oversight matters for this company in our database.

Significance: 3/10 Entrenchment

Employee Stock Incentive Program and Treasury Shares

The bank's Extraordinary General Assembly approved the purchase of 5 million shares to be held as treasury shares for an Employee Stock Incentive Program.

Mitigating Factors: The program was approved by the Extraordinary General Assembly, ensuring shareholder oversight of the incentive structure.

Significance: 7/10 Asset Risk

Discretionary Non-Cumulative Tier 1 Sukuk Distributions

The bank has issued multiple tranches of Tier 1 Sukuk (including SAR 5 billion and USD 2 billion in total). These instruments are perpetual and subordinated. Crucially, the bank maintains the 'sole discretion' to elect not to make periodic profit distributions, and any unpaid amounts are non-cumulative and do not constitute an event of default.

Mitigating Factors: These issuances were approved by regulatory authorities and the Board of Directors to strengthen the bank's capital base.

For more, click here to view the full governance profile →

In-Depth Analysis