Alinma Bank is a new bank with huge capital, which was founded in 2006. The financial structure of the company is represented by 146 branches and four divisions: Al-Tanweer, Alinma Investment Company, Alinma Tokio Marine, and Alinma. The bank has its information channels: Alinma Phone, Alinma Internet, Alinma Mobile.
Alinma Bank is engaged in corporate and investment banking services, among which there are atypical for European and American banking:
Murabaha - the bank and the buyer, enter into a contract in which they agree on the profit for the first instead of dripping interest. A service often accessed in the Islamic finance industry. It helps to avoid interest transactions that are prohibited under Sharia law.
Bai Al-Ajel is an agreement to repay the entire amount and profit for a bank on a specific date. The service is designed to facilitate the financing of working capital.
Forward Ijara - sale of an asset that is not yet ready for future delivery.
Alinma Bank shareholders are organizations such as the State Pension Agency, the State Investment Fund, and the General Organization for Social Insurance. They own 30% of the shares.
At Alinma Bank, it is generally accepted that business success depends on Islamic values, and therefore Sharia rules represent the foundation of relations with customers and are reflected in all systems of the bank. This direction is called Islamic banking. This feature demonstrates Alinma Bank's policies aimed inside the state, which sets it apart from others and attracts state investors.
Islamic banking prohibits specific financial instruments, such as speculation, futures transactions, and loan interest. Thus, Alinma Bank is committed to project investment: it develops business strategies for its customers, considers risks, and does not receive a benefit.
The bank's social position is aimed at combating money laundering and terrorist financing. The bank directly associates its activities with risk assessment. Therefore, Alinma Bank analyzes in detail the possible negative consequences that are associated with the client. Among the primary principles are innovation and excellence.
The bank is attractive in that there is a significant opportunity to speculate on its shares without risk.
What is the reason? With the indicators below, which are presented on the official page of the bank and are confirmed in reliable sources:
In the first half of 2019, Alinma Bank's net profit increased by 21%, which amounts to 1,459 million riyals.
The indicators of promotional dividends are rising, and they are 22.3%. The bank is on the 4th line in the rating for the most significant IPOs. The initial public offering was $2.8 billion. The stock price has increased by 81% since the issue.
The return on equity of the bank is increasing. It is predicted that soon, Alinma Bank will post open access indicators of net profit growth of 14%.
The loan portfolio is growing. The figures for June 30, 2019, indicate that it increased by 7%, which amounts to 87.7 billion riyals.
For the first half of 2019, earnings per share rose to SAR 0.98. In 2019, customer deposits increased by 4% and amounted to 92.8 billion riyals. The proportion of costs/incomes fell to 42%, and the bank's net interest margin improved.
Alinma Bank shares rose 18.4%.
Three places to buy four places to sell and 6 to hold.
Over the years, the bank has received many national and international awards. Among the achievements of 2019 are the following: “The Islamic Bank of the Year KSA” by The Banker, “Excellence in Islamic Banking” by Finnovex, “Best Digital Banking Service for Clients” from the World Union of Arab Banks, and “General Director of the Year” from the Global Islamic Finance Awards. Also, Abdulmohsen al-Fares, CEO of Alinma Bank, spoke at the Cambridge Islamic Finance Leadership Program.
Summing up, it is worth noting that confident financial progress is noticeable in Alinma Bank. For traders, this is a significant indicator, which suggests that this is a winning case.