Alinma Bank eyes higher loan, deposit growth, says CEO

Alinma Bank is planning to increase its market share of loans and deposits as the Saudi market offers very promising opportunities, chief executive and managing director, Abdulmohsen Al-Fares, told Argaam in an exclusive interview on the sidelines of KFUPM Islamic Banking Conference.

Customer deposits grew by 13 percent year-on-year (YoY) to SAR 87.2 billion as of September 30, while the bank’s credit portfolio saw a 12 percent YoY rise to SAR 77.8 billion in the same period.

Alinma has been the fastest-growing bank over the last five years, backed by its strategy that aims to maintain asset quality.

Al-Fares said that the value-added tax (VAT) would have no direct impact on the products and financial services offered by the local banking sector.

Countries worldwide either impose a zero tax on the banking sector, or exempts financial services from VAT, the path chosen by Saudi Arabia.

Meanwhile, Al-Fares said Islamic banking is promising going forward. The industry recorded average annual growth between 18 percent and 20 percent over the last five years.

Though the estimated size of Islamic banking reaches nearly $2.3 billion, it is still modest, accounting for just 3 percent of total global assets, he added.