#Saudi-based Alinma Bank’s chief executive officer, Abdul Mohsen Al Fares discusses the bank's earnings and lending growth. Alinma Bank achieved a new record in the last quarter. Growth drivers include the infrastructure projects that started two years ago and will take other three of five years to complete. In terms of net interest margins, Al Fares believes that the recovery will come gradually. As interest rate is rising, the margin will also go up. Alinma Bank has expansion plans for 2017, it currently has 164 branches across the kingdom and it plans to open 12 new branches this year.
Alinma Jeddah Economic City Fund has secured shari'a compliant financing of up to SAR 3.6 Billion from Alinma Bank on December 10 2015. Formulating the financial model of the project with Alinma Bank was finalized based on a financing strategy that fulfills the project's needs in accordance with the first business plan covering the first phase of the project which is expected to take five years. The objective of the financing is to provide funding to build and develop the infrastructure for phase one of Jeddah Economic City project and to continue the construction of Jeddah Tower.
The Alinma Bank Board of Directors has recommended the distribution of share dividend to its shareholders for the 2015 fiscal year. After approval at the bank’s next general assembly meeting in March 2016, shareholders will receive SR0.50 per share (5% of nominal value). The total disbursal will amount to SR745 million. Alinma Bank Chairman Engr. Abdulaziz Al-Zamil congratulated the bank’s staff and shareholders on a year of growth and success.
The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable
Ratings agency Fitch has downgraded the outlooks on 3 Saudi Arabian banks as low Crude Oil prices continue to plague the Kingdom’s economy.
The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable, Fitch said in a statement.
The revision was based on the tougher operating environment facing the Saudi Arabian banking sector, mainly due to the effect of lower Crude Oil prices on government spending and the filter down effect this has on the rest of the economy.
Under the sponsorship of Alinma Bank, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held its Shariah standards hearing session in Riyadh. Participating in the event were Shariah-finance professionals from Alinma Bank, AAOIFI and other financial and research institutions from Saudi Arabia and abroad. Attendees discussed, debated and made comments on draft policies related to deposit and repurchase agreements. The meeting was the first time AAOIFI held for its Shariah standards hearing session outside Bahrain, and the move to Saudi Arabia represented an attempt on AAOIFI’s part to expand its activities and cooperation.
Kingdom Tower, the Saudi skyscraper set to be the world’s tallest building, will probably have construction funding in place by the end of the first half. The developer Jeddah Economic Co. is in talks to bring in Riyadh-based Alinma Bank as an adviser and lender. BNP Paribas (BNP) SA is currently advising the company, but the size of loan being sought hasn't been disclosed. The builder has been looking for financing since at least April 2012. Kingdom Holding Co. and partners, including tower builder Saudi Binladen Group, are trying to arrange funding after investing 8.7 billion riyals ($2.3 billion) in the project. They are seeking a bank loan with a maturity of five to seven years.
Alinma Bank registered a net income for the fourth quarter as high as SAR 208 million. Compared to that, it was SAR 136 million in the same period in the previous year. Thus, the increase is 53%. Compared to the third quarter of 2012, the increase is 6%. The total operating income in 2012 reached SAR 490 million, which with SAR 490 million is 0.6% higher than the SAR 487 million for the same quarter of last year.
Alinma Bank has been assigned a long-term issuer default rating (IDR) of ‘A-’ with a stable outlook, a short-term IDR of ‘F2’, a viability rating (VR) of ‘bbb-’, a support rating of ‘1’ and a support rating floor of ‘A-’ by Fitch Ratings. The bank's IDRs, support rating and support rating floor reflect the view of the rating agency that if needed, support from the Saudi authorities is extremely probable.
The main focus of Islamic Finance News Forum was the continuous rise of the Islamic capital markets in the Gulf region as well as worldwide. According to managing director and chief executive officer of Alinma Bank - Abdulmohsen A. Al-Fares - the Sukuk market is part of Islamic Capital Market (ICM) and is growing at a quick pace. He further pointed out that even though the total ICM make up less than 2% of the worldwide bond issues, it still is a promosing area since Sukuk issues in 2011 amounted to about 84.4 billion worldwide with the tendency to grow further.
Tokio Marine Saudi Arabia appointed Alinma Investment as lead manager and underwriter for the initial public offering (IPO) of 30 percent of its stocks (20,000,000 shares).
The share capital amount of the company will be SR200,000,000. The offer period will extend from March 19 until March 25.
Alinma Bank, Tokio Marine & Nichido Fire Insurance Co. Ltd., SABIC Industrial Investments Co. Ltd., Saudi Establishment for Trade and Distribution, Sheikh Abdullah Ben Mohammed Ben Abdul Aziz Al Romaizan and Geant Saudi Ltd. are the major shareholders.
Alinma Bank has launched a new financing services, through whichclients are given free promotional gifts with the first personal financing (real estate, car or share financing) deal they complete with the bank.
Fahad Al-Semari, Alinma’s GM for retail banking, said the bank would offer a wide range of valuable gifts including BMW cars, electrical appliances (televisions, refrigerators, air conditioners, etc.) as well as the Mobily Limited service.
Alinma Bank and Deutsche Gulf Finance signed an agreement that has the point to strengthen joint real estate financing and to provide real estate financing programs with affordable, long-term provisions with flexibility in repayment.
Alinma Bank was represented by Mr. Abdulmohsen Al-Fares, its CEO and Deutsche Gulf Finance was represented by Mr. Fahad Ben Abdullah Al Rajhi, chairman of the company's board of directors.
The signing ceremony took place at the head office of Alinma Bank in Riyadh.
Saudi's Alinma Bank and the Saudi arm of Tokio Marine have signed an agreement to set up an insurance firm with a capital of 200 million riyals ($53 million).
In the statement there was said that Saudi Basic Industries Corp will hold a 5 percent stake in the insurance firm which will float a 30 percent stake in an initial public offering after regulatory approval.
Prince Sattam was the guest-of-honor at the formal opening ceremony of Alinma Bank in Riyadh on Sunday. The event marked the official launch of the bank’s full operations at its branches across the Kingdom.
Prince Sattam ceremonially announced the commencement of all of Alinma’s banking services. Saudi Arabian Monetary Agency Gov. Muhammad Al-Jasser was also present at the function held at the Al-Anoud Novotel Hotel.
Newly launched Saudi bank Alinma said on Saturday its fourth quarter net profit fell 85 percent from the previous quarter due to increased operational costs.
Alinma Bank's profit fell by 85 percent in the fourth quarter of 2009 as its net income amounted to SR5.6 million ($1.49 million), compared to SR38.6 million ($10.29 million) for the previous quarter, according to a posting on the Saudi stock market (Tadawul) website on Saturday.
Mohammed Rasooldeen reported in Arab News on 12 January that Saudi-based Alinma Bank will launch operations at the end of the 2nd quarter of 2009. The bank had a declared net income of SAR 390 mn for the interim period, including SAR 274 mn pre-operating income. Total assets stood at SAR 15.56 bn with total investments of SAR 14.97 bn, and shareholders' equity SAR15.39 bn.
Abdulmohsen Al-Fares is the chief executive officer of Alinma.
The Shariah guidance committee members are Abdulrahman Ibn Saleh Al-Atram, president, Abdullah Ibn Wakeel Al-Shaikh and Suliman Ibn Turki Al-Turki, members of the board.