This report presents a comprehensive fundamental analysis of Alinma Bank’s performance in the first half of 2026, compared with the corresponding period in 2025, as part of an academic project for Principles of Finance (FIN 202), taught by Dr. Rasha Al-Humaidhi. The report reviews 6.6% growth in total operating income, which reached SAR 6,138.1 million, supported by a 10.3% increase in net financing and investment income, and a 6.2% rise in net income to SAR 3,273.7 million. It also discusses the slowdown in second-quarter earnings growth to 1.4%, following a 42.2% jump in credit loss provisions to SAR 400.0 million. The analysis covers the financial position and 11.6% growth in the financing portfolio to SAR 243.9 billion, compared with 6.7% deposit growth. This raised the financing-to-deposit ratio to 99.5% and resulted in negative operating cash flow of SAR 3,066.7 million. The report concludes by reviewing indicators of financial strength, including improved asset quality, with non-performing loans falling to 1.0%, and a strong capital adequacy ratio of 19.9%.
Team:
- Manal Mahmoud
- Sabine Abu Daqqa
- Hajerah Khan
Supervision:
- Financial and Economic Analyst: Mr. Hamad Al-Saeed @Hamad Alsaeed
- Administrative Organization Specialist: Dalal Bin Khudair @dalal BinKhudair
- Administrative Assistant: Alroutana Albadri @Alroutana Albadri
Disclaimer
This report was prepared as part of an academic project for Principles of Finance (FIN 202), supervised by Dr. Rasha Al-Humaidhi, for educational purposes only and does not constitute investment advice. Its figures are based on the preliminary financial statements published on the Tadawul website for the period ending in the first half of 2026. The report may contain inadvertent errors or omissions; readers are advised to consult the original statements for verification.
