Alinma Bank Dividend Payment Date 2024: All Key Details and Dates

Alinma Bank is one of the major commercial banks in the Kingdom of Saudi Arabia, established in 2006 and commencing operations in 2008 after its listing on the Saudi Stock Exchange (Tadawul) under the symbol 1150. Alinma stands out as one of the fastest-growing banks in the Kingdom, committed to offering Sharia-compliant banking products and adopting the latest digital banking technologies.

The bank benefits from an advanced branch network and integrated electronic services for individuals and corporates, with a focus on financing small and medium enterprises. From a regulatory perspective, Alinma Bank is supervised by the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA), ensuring adherence to the highest standards of transparency and governance, especially regarding dividend distributions and financial disclosures.

Alinma Bank’s dividends attract significant investor attention, as the bank follows a clear policy of distributing a rewarding portion of annual profits based on performance results and the annual board recommendation, subject to approval by the general assembly. This policy is a cornerstone of its stability and appeal in the Saudi financial market.

In 2024, Alinma Bank recorded strong financial performance, supported by higher interest income, an expanding loan portfolio, and an improved economic environment in the Kingdom. Net profit after zakat and tax for 2023 (announced and paid in 2024) reached approximately SAR 3.02 billion, an increase of 25% over 2022. Preliminary data for Q1 2025 showed an additional year-on-year net profit growth of about 15%.

The bank’s assets rose to over SAR 250 billion by the end of 2024, while the loan portfolio grew to around SAR 150 billion, with an annual increase of more than 10%. Alinma maintained liquidity and capital ratios above regulatory requirements, reflecting its financial strength.

The bank continued to distribute rewarding cash dividends, with 2023 distributions reaching SAR 2.0 per share (20% of capital), paid in two annual installments. These indicators confirm Alinma’s robust financial position and its ability to maintain a sustainable dividend policy for shareholders.

The Alinma Bank dividend payment date is determined through a regulated process subject to the requirements of the Saudi Capital Market Authority. The process begins with the board of directors preparing a dividend distribution recommendation after reviewing the annual financial results, which is then submitted to the general assembly for approval.

After the annual general assembly vote (typically in December), the distribution percentage and the entitlement and payment dates are officially announced. Listed companies, according to Tadawul regulations, must deposit shareholder dividends within 30 days of the general assembly meeting that approved the distribution.

In 2024, Alinma Bank’s general assembly was held in December, approving a dividend of 20% of capital (SAR 2.0 per share), with the dividend payment date set for mid-January 2025. This date is published on the Tadawul website and the bank’s website, along with details of dividend entitlement for shareholders registered at the end of the specified entitlement date.

Alinma Bank’s dividend distribution process follows a clear timeline with several key dates:

1. Announcement Date: The board’s dividend recommendation is announced, usually at the end of the fiscal year (December 2024).
2. Entitlement Date: The date on which shareholders eligible for dividends are determined, typically two business days after the general assembly.
3. Payment Date: The actual date dividends are transferred to eligible shareholders’ bank accounts, usually in mid-January of the following year (mid-January 2025 for 2024 dividends).

According to the bank’s announcement, the 2024 dividend payment date is set for January 2025, with only shareholders listed in Alinma’s shareholder register at the end of the entitlement date eligible to receive dividends. Date details are published via the official Tadawul website and the investor relations page on the bank’s website.

Alinma Bank dividends are automatically deposited into the bank accounts linked to investors’ portfolios at the Securities Depository Center (Edaa) in the Saudi financial market. Shareholders do not need to submit a separate request; the transfer is automatic, provided their bank details are updated with their broker or Edaa.

If dividends do not appear in the bank account after the announced date, shareholders are advised to verify the accuracy of their bank account details with Edaa or contact Alinma Bank’s customer service. In some cases, a change in bank account or incomplete data may delay the transfer, which can be easily rectified by updating information with the relevant authority.

It is worth noting that dividends are paid to all shareholders, Saudi or non-Saudi, as long as they are registered on the entitlement date, and there are no taxes on cash dividend distributions for individual investors in Saudi Arabia.

Alinma Bank’s share (Tadawul symbol: 1150) saw active trading in 2024, with the share price fluctuating between SAR 17 and SAR 24, closing at around SAR 21.3 at the end of December 2024. The average daily trading volume was in the millions of shares, reflecting high liquidity and investor appeal.

The bank’s market capitalization was about SAR 74 billion, with a price-to-earnings (P/E) ratio between 20-25 based on 2023 earnings, levels within sector averages. Dividend distributions reached SAR 2.0 per share (yielding 9-10% depending on price), making the share a preferred choice for investors seeking regular income from equities.

Historically, Alinma Bank has maintained regular distributions, except for certain exceptional periods (such as the COVID-19 pandemic), and has one of the highest payout ratios among Saudi banks, supporting investor confidence in the continuity of returns.

Alinma Bank follows a clear and transparent dividend policy aimed at balancing shareholder rewards with strengthening the bank’s financial position. The board typically recommends distributing 20% to 30% of capital annually, one of the highest rates in the local banking sector.

Dividends are usually paid in two installments during the year, taking into account net profits after zakat and tax, and regulatory reserve requirements. This policy enhances the share’s attractiveness for long-term investment, providing shareholders with a regular income source in addition to potential capital gains from share price appreciation over time.

The distribution policy is subject to general assembly approval and full compliance with Capital Market Authority regulations, reinforcing transparency and trust in the bank’s financial policies.

Alinma Bank holds a strong competitive position among major Saudi banks such as Saudi National Bank, Al Rajhi Bank, and Saudi British Bank (SABB). Compared to peers, Alinma stands out for its higher dividend payout ratio, diverse digital services, and rapid growth in loans and assets.

While payout ratios at other banks range from 15-25% of capital, Alinma often approaches the upper end of this range. The cash yield per share is also above the sector average in some years, enhancing the share’s appeal for investors seeking regular returns.

These advantages are reflected in investor confidence and share price stability, especially given the bank’s commitment to regular disclosure and transparency regarding its financial policies.

The year 2024 saw continued global and local interest rate hikes, which positively impacted Alinma Bank’s interest income. Profit margins on loans increased, and net interest income rose significantly, driven by repricing of existing and new loans.

At the same time, higher interest rates can slow loan demand growth in some sectors. However, Alinma managed to maintain credit portfolio growth through geographic and sector diversification, and a focus on financing government and private projects with low risk.

These developments strengthened the bank’s ability to maintain rewarding distributions, with sufficient flexibility to face any future economic changes.

Alinma Bank has invested heavily in digital transformation, positively impacting operational efficiency and expanding its customer base. The bank launched advanced banking applications for individuals and corporates, and expanded its electronic services through smart payment and transfer solutions.

These investments have reduced operating costs and increased net profits, enabling the bank to continue its regular dividend policy. Digital transformation has also enhanced the bank’s ability to attract new customers, retain existing ones, and offer innovative services aligned with the Saudi market’s move toward a digital economy.

Thanks to this strategy, Alinma was among the first banks to offer remote account opening and fully digital savings and investment products.

Despite Alinma Bank’s strong financial performance, several challenges could impact its dividend policy in the future. Key challenges include:

- Volatility in global oil prices and its impact on the Saudi economy overall.
- Changing regulatory requirements, such as increased capital requirements under Basel III standards.
- Intensifying competition from local and foreign digital banks.
- Risks of rising non-performing loans in the event of a sudden economic slowdown.

Nonetheless, Alinma has a strong capital base and sufficient reserves, along with prudent financial management focused on balancing dividend distributions and financial stability, mitigating the impact of these challenges in the short and medium term.

All dividend-related announcements are published on the Saudi Stock Exchange (Tadawul) website and in the investor relations section of Alinma Bank’s website. Announcements include general assembly dates, distribution percentages, entitlement and payment dates, and any additional shareholder information.

Investors are always advised to follow these official announcements and not rely on rumors or unverified news to avoid misunderstandings or loss of dividend rights. Subscribing to newsletters or following the bank’s official social media accounts can provide instant notifications of every update.

Continuous monitoring helps shareholders protect their rights and maximize the benefit from dividend distributions with every announcement.

Based on Alinma Bank’s strong financial performance in 2024 and its ongoing digital transformation and customer base expansion, the outlook for dividend distributions appears positive in the near future. This outlook is supported by:

- Stable growth rates in net profit and assets.
- Management’s commitment to a regular dividend policy.
- Expansion in digital products and diversified income sources.

With positive developments such as sukuk issuance, credit rating upgrades, and strategic partnerships, the bank is expected to continue providing shareholders with stable and rewarding distributions while maintaining financial flexibility to face any economic changes.