Significant growth in Alinma Bank's financial performance
Alinma Bank, one of the leading Sharia-compliant banks in the Kingdom of Saudi Arabia, announced strong financial results for the fiscal year ending December 31, 2025. The bank recorded a 9.7% increase in net profit, reaching SAR 6.4 billion, compared to SAR 5.8 billion in the previous year. This growth reflects the bank's strong operational performance and its ability to adapt to economic changes.
According to the official statement published on the Saudi Stock Exchange (Tadawul), the primary reason for this increase in net income is the 8.8% growth in total operating income. This growth resulted mainly from an increase in net income from financing and investment portfolios, in addition to higher banking service fees, fair value income from investments, and other operating income. Conversely, the bank experienced a decrease in foreign exchange income and income from distributions, which did not significantly impact the overall positive result.
Economic context and the Kingdom's Vision 2030
This outstanding performance by Alinma Bank comes amidst the major economic transformations underway in Saudi Arabia as part of Vision 2030. The banking sector plays a pivotal role in financing mega-projects and supporting economic diversification efforts away from oil dependency. The bank's profit growth demonstrates the Saudi financial sector's ability to keep pace with these aspirations and contribute effectively to achieving its goals by providing innovative financing solutions for both individuals and businesses.
Strategic recommendation to increase capital
In a strategic move aimed at strengthening its capital base, Alinma Bank's board of directors recommended to the extraordinary general assembly a 20% increase in the bank's capital. This increase will be achieved by capitalizing SAR 5 billion from the statutory reserve and retained earnings, through the issuance of one bonus share for every five shares held.
Under this recommendation, the bank's capital will increase from SAR 25 billion to SAR 30 billion, and the number of shares will rise from 2.5 billion to 3 billion. The bank explained that this increase aims to strengthen its financial position and retain resources to support its operational activities, in line with its long-term strategic objectives. The bank received approval from the Saudi Central Bank (SAMA) for this move on January 27, 2026.
Expected impact and importance for investors
These positive results and the recommendation to increase capital are strong indicators of the bank's management's confidence in the future. Domestically, this move reinforces Alinma Bank's position as a key player in the Saudi banking market and enhances its capacity to finance development projects. For investors, the profit growth and bonus share distribution reflect the bank's commitment to delivering attractive returns for shareholders, which could positively impact the stock's performance in the financial market. These results also contribute to strengthening the reputation of the Saudi financial sector regionally and internationally, attracting further foreign investment.
