Interim report
Page 1
Classification: Private Alinma Bank (A Saudi Joint Stock Company) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE NINE MONTHS PERIOD ENDED September 30, 2026
Page 2
2 / 39 6 6 38 / 36 Classification: Private CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AUDITORS’ REPORT ..................................................................................................................................................... INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION.......................................................1 INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) .......................................................2 INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) .........................3 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) ...................................4 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) ...............................................6 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) .............................8 1. General .............................................................................................................................................................8 2. Basis of preparation .........................................................................................................................................9 3. Summary of material accounting policies and estimates ............................................................................ 11 4. Investments, net ........................................................................................................................................... 15 5. Derivative financial instruments .................................................................................................................. 17 6. Financing, net ................................................................................................................................................ 18 7. Due to SAMA, banks and other financial institutions ................................................................................. 21 8. Customers’ deposits ...................................................................................................................................... 21 9. Commitments and contingencies ................................................................................................................. 22 10. Cash and cash equivalents .......................................................................................................................... 23 11. Sukuk, certificates of deposit issued and Tier 1 Sukuk .............................................................................. 23 12. Operating segments .................................................................................................................................... 24 13. Earnings per share ....................................................................................................................................... 26 14. Fair values of financial assets and liabilities .............................................................................................. 27 15. Other reserves ............................................................................................................................................. 31 16. Financial Risk Management ........................................................................................................................ 32 17. Related party balances and transactions ................................................................................................... 37 18. Capital and capital adequacy ...................................................................................................................... 38 19. Comparative figures .................................................................................................................................... 39 20. Events after the reporting period ............................................................................................................... 39
Page 3
KPMG Professional Services Company Roshn Front, Airport Road P.O. Box 92876 Riyadh 11663 Kingdom of Saudi Arabia Commercial Registration No. 1010425494 Headquarters in Riyadh PricewaterhouseCoopers Public Accountants (Professional Limited Liability Company) Laysen Valley Tower 12 & 13, King Khaled Road CR no. 1010371622, UN No.7000928734, Capital of 500,000 SAR National address: 2537 Mohammad Ibn Fuhayd St secondary no. 7912, West Umm Al Hamam Dist, postal code 12329 Riyadh, Kingdom of Saudi Arabia T: +966 (11) 211 0400, F: +966 (11) 211 0401 www.pwc.com KPMG Professional Services Company, a professional closed joint stock company registered in the Kingdom of Saudi Arabia with paid-up capital of SAR 110,000,000 and a non-partner member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Independent Auditors’ Review Report on the Interim Condensed Consolidated Financial Statements To the shareholders of Alinma Bank (a Saudi Joint Stock Company) Introduction We have reviewed the accompanying interim condensed consolidated statement of financial position of Alinma Bank and its subsidiaries (collectively referred to as the “Bank”) as of September 30, 2026, and the related interim condensed consolidated statements of income and comprehensive income for the three-month and nine-month periods then ended, and the related interim condensed consolidated statement of changes in equity and cash flows for the nine-month period then ended, and explanatory notes (the “interim condensed consolidated financial statements”). Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with the International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) as endorsed in the Kingdom of Saudi Arabia . Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of review We conducted our review in accordance with the International Standard on Review Engagements 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity as endorsed in the Kingdom of Saudi Arabia. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia. KPMG Professional Services Company PricewaterhouseCoopers Khalil Ibrahim Al Sedais Certified Public Accountant License number 371 Mufaddal A. Ali Certified Public Accountant License number 447 (17 Jumada Al- Awwal 1448H) (October 28, 2026)
Page 11
8 / 39 6 6 38 / 36 Classification: Private NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2026 1. General a) Introduction Alinma Bank, a Saudi Joint Stock Company, was formed and licensed pursuant to Royal Decree No. M/15 dated 28 Safar 1427H (corresponding to March 28, 2006), in accordance with the Council of Ministers’ Resolution No. 42 dated 27 Safar 1427H (corresponding to March 27, 2006). It operates under Ministerial Resolution No. 173 and Commercial Registration No. 1010250808 both dated 21 Jumada -I 1429H (corresponding to May 26, 2008) and provides banking services through 129 branches ( September 30, 2025: 124 branches) in the Kingdom of Saudi Arabia. Its head office address is as follows: Alinma Bank Head Office King Fahad Road P.O. Box 66674 Riyadh 11586 Kingdom of Saudi Arabia (KSA) The interim condensed consolidated financial statements comprise the financial statements of Alinma Bank and its following subsidiaries (collectively referred as the “Bank”) which are registered in KSA except for Alinma SPV Ltd which is registered in the Cayman Islands: Subsidiaries Bank’s Ownership Commercial Registration Date Main Activities Alinma Capital Company 100% 23 Jumada - II 1430H (corresponding to Jun 16, 2009) Asset management, custodianship, advisory, underwriting and brokerage services. Al-Tanweer Real Estate Company 100% 24 Sha’aban 1430H (corresponding to August 15, 2009) Formed principally to hold legal title of properties financed by the Bank. Saudi Fintech Company 100% 28 Dhul Hijjah 1440H (corresponding to August 29, 2019) Provide financial technology products and services to the Bank and others. Esnad Company 100% 24 Ramadan 1440H (corresponding to May 29, 2019) To provide outsourced staff to the Bank. Alinma SPV Ltd 100% 22 Jumada - II 1443H (corresponding to January 25, 2022) Engage and execute financial derivatives transactions and repurchase agreements with international banks. TechStrike Company 100% 19 Sha’aban 1446H (corresponding to February 18, 2025) Provide technology products and services to the Bank. Ersal Financial Remittance Company 100% 21 Jumada I 1436H (corresponding to March 12, 2015) Provide money transfer services
Page 12
9 / 39 6 6 38 / 36 Classification: Private In addition to above subsidiaries, the management has concluded that the Bank has effective control of the below funds and started consolidating the Funds’ financial statements from the respective dates of effective control: Funds Bank’s Ownership Establishment date Date of effective control Purpose Alinma Sukuk ETF As at September 30, 2026: 97.8% (December 31, 2025: 92.5%; September 30, 2025: 92.7%) January 1, 2020 January 22, 2020 To invest in a basket of local sovereign Sukuks issued by the Kingdom of Saudi Arabia. Alinma Digital Fund As at September 30, 2026: 100% (December 31, 2025: 100%, September 30, 2025: Nil) May 18, 2025 October 12, 2025 To provide unit holders with long- term capital gains by investing in private equity companies operating in the financial technology or payments sector, or in similar companies operating in related sectors. Alinma 8th Opportunities Real Estate Fund As at September 30, 2026: 100% (December 31, 2025: Nil, September 30, 2025: Nil) November 2, 2025 March 26, 2026 To achieve medium-term capital growth through direct investment in the real estate sector. Dhahban Real Estate Fund, a previously fully-owned Fund, established on 30 Safar 1445H (corresponding to September 15, 2023). The Bank lost control of the Fund during the year ended December 31, 2025. During the period ended September 30, 2026, the Bank lost control of its Alinma IPO fund following the disposal of a portion of its units. Prior to this transaction, the Bank held effective control and consolidated the fund. As a result of the divestment , in accordance with IFRS 10, the Bank de -consolidated the Fund's assets and liabilities from its consolidated financial statements. The remaining ownership interest has been recognized at its fair value on the date control was lost. The remaining stake is subsequently accounted for as a financial asset in accordance with IFRS 9. The objective of the Bank is to provide a full range of banking and investment services throug h products and instruments that are in accordance with Sharia’a, its By -Laws and within the provisions of laws and regulations applicable to banks in the Kingdom of Saudi Arabia. b) Shariah Committee The Bank has established a Shariah Committee in accordance with its commitment to comply with Islamic Shariah laws. Shariah Committee ascertains that all the Bank’s activities are subject to its review and approval. 2. Basis of preparation These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard -34 Interim Financial Reporting (IAS -34) as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Sau di Organisation for Chartered and Professional Accountants (“SOCPA”). These interim condensed consolidated financial statements do not include all of the information and disclosures required in the annual consolidated financial statements, and therefore, these should be read in conjunction with the annual consolidated financial statements of the Bank as of and for the financial year ended December 31, 2025. The preparation of interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
Page 13
10 / 39 6 6 38 / 36 Classification: Private a) Basis of measurement The interim condensed consolidated financial statements are prepared on a going concern basis. The interim condensed consolidated financial statements are prepared under the historical cost convention except for the measurement at fair value of derivatives, financial instruments held at fair value through statement of income (“FVSI”), investments carried at fair value through other comprehensive income (“FVOCI”) and end of service benefits which are measured using projected unit credit method under IAS -19. The interim condensed consolidated statement of financial position is stated broadly in order of liquidity. b) Functional and presentation currency These interim condensed consolidated financial statements are presented in Saudi Arabian Riyals (“SAR”) which is the Bank’s functional currency. Except as indicated, financial information presented in SAR has been rounded off to the nearest thousand. c) Basis of consolidation These interim condensed consolidated financial statements comprise the financial statements of Alinma Bank and its subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting period as that of the Bank. Subsidiaries are the entities that are controlled by the Bank. The Bank controls an entity when, it is exposed to, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over that entity. When the Bank has less than a majority of the voting or similar rights of an entity, it considers relevant facts and circumstances in assessing whether it has power over the entity, including: - The contractual arrangement with the other voters of the entity; - Rights arising from other contractual arrangements; and - Bank’s current and potential voting rights granted by instruments such as shares . The Bank re-assesses whether or not it controls an entity if facts and circumstances indicate that there are changes to one or more elements of control. Subsidiaries are consolidated from the date on which control is transferred to the Bank and cease to be consolidated from the date on which the control is transferred from the Bank. The results of subsidiaries acquired or disposed of during the period, if any, are included in the interim condensed consolidated statement of income from the effective date of acquisition or up to the effective date of disposal, as appropriate. The accounting policies adopted by the subsidiaries are consistent with that of the Bank’s accounting policies. Adjustments, if any, are made to the financial statements of the subsidi aries to align with the Bank’s interim condensed consolidated financial statements. Amounts due to Mutual Funds’ unitholders represent the portion of net assets of the mutual funds which are attributable to interests which are not owned, directly or indir ectly, by the Bank or its subsidiaries and are presented separately within liability in the interim condensed consolidated statement of financial position. Intra-group balances and any income and expenses arising from intra -group transactions, are elimina ted in preparing these interim condensed consolidated financial statements.
Page 14
11 / 39 6 6 38 / 36 Classification: Private 3. Summary of material accounting policies and estimates a) Significant accounting estimates and assumptions In preparing th ese interim condensed consolidated financial statements, the significant judgments made by the management in applying the Bank’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31, 2025, except for change in the estimated useful lives of certain buildings and intangible assets. During the period, the estimated total useful lives were revised as follows: Property, equipment and right of use assets, net Estimated useful life before change Estimated useful life after change Building 33 years 40 years Software programs 5-10 years 6-15 years The revision in useful lives were based on the operational efficiency review of these assets. The revision has been accounted for as a change in accounting estimate in accordance with the requirements of International Accounting Standard IAS 8 "Accounting policies, changes in accounting estimates and errors". The net effect of the changes is a decrease in depreciation and amortization expense of SAR 50 million with a total expected impact of SAR 76.2 million for 2026. Assuming the se assets are held until the end of their estimated useful lives, depreciation and amortization expense in 2027 in relation to these assets is estimated to decrease by SAR 106 million. b) Material accounting policies The accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Bank’s annual consolidated financial statements for the year ended December 31, 2025, except for the adoption of new standards effective as of January 1, 2026, which is explained below. The Bank has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. c) Adoption of new standards Below amendment to accounting standards and interpretations became applicable for annual reporting periods commencing on or after January 1, 202 6 and does not have an impact on the interim condensed consolidated financial statements of the Bank: Standard, interpretation, amendment Description Effective date Amendments to IFRS 9 and IFRS 7, Amendments to the Classification and Measurement of Financial Instruments Under the amendments, certain financial assets including those with ESG-linked features could now meet the SPPI criterion, provided that their cash flows are not significantly different from an identical financial asset without such a feature. The IASB has amended IFRS 9 to clarify when a financial asset or a financial liability is recognized and derecognized and to provide an exception for certain financial liabilities settled using an electronic payment system. January 1, 2026 Amendments to IFRS 9 and IFRS 7 Contracts referencing Nature-dependent Electricity Contracts Referencing Nature-dependent Electricity amends IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to more faithfully reflect the effects of contracts referencing nature-dependent electricity on an entity’s financial statements. January 1, 2026
Page 15
12 / 39 6 6 38 / 36 Classification: Private Standard, interpretation, amendment Description Effective date Annual improvements to IFRS – Volume 11 Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards: IFRS 1 First -time Adoption of International Financial Reporting Standards; IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing I FRS 7; IFRS 9 Financial Instruments; IFRS 10 Consolidated Financial Statements; and IAS 7 Statement of Cash Flows. January 1, 2026 d) Prospective changes in the International Financial Reporting Standards Below are the standards, amendments and interpretations which will become applicable for annual reporting periods commencing on or after January 1, 2027: Standard, interpretation, amendments Description Effective date Amendments to IFRS 10 and IAS 28- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Partial gain or loss recognition for transactions between an investor and its associate or joint venture only apply to the gain or loss resulting from the sale or contribution of assets that do not con stitute a business as defined in IFRS 3 Business Combinations and the gain or loss resulting from the sale or contribution to an associate or a joint venture of assets that constitute a business as defined in IFRS 3 is recognized in full. Effective date deferred indefinitely IFRS 18, Presentation and Disclosure in Financial Statements IFRS 18 provides guidance on items in statement of profit or loss classified into five categories: operating; investing; financing; income taxes and discontinued operations. It defines a subset of measures related to an entity’s financial performance as ‘management -defined performance measures’ (‘MPMs’). The totals, subtotals and line items presented in the primary financial statements and items disclosed in the notes need to be described in a way that represents the characteristics of the item. It requires foreign exchange differences to be classified in the same category as the income and expenses from the items that resulted in the foreign exchange differences. January 1, 2027 IFRS 19, Subsidiaries without Public Accountability: Disclosures IFRS 19 allows eligible subsidiaries to apply IFRS Accounting Standards with the reduced disclosure requirements of IFRS 19. A subsidiary may choose to apply the new standard in its consolidated, separate or individual financial statements provided that, at the reporting date it does not have public accountability and its parent produces consolidated financial statements under IFRS Accounting Standards. January 1, 2027 Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency The amendments introduce a specific translation method where a non - hyperinflationary functional currency is translated into a hyperinflationary presentation currency, together with related disclosure requirements. The amendments also provide prospective application when hyperinflation ceases and certain exceptions for entities applying IAS 29. January 1, 2027
Page 16
13 / 39 6 6 38 / 36 Classification: Private Standard, interpretation, amendments Description Effective date IFRS 20 — Regulatory Assets and Regulatory Liabilities The new Standard establishes recognition, measurement, presentation and disclosure requirements for entities subject to specific rate regulation, including regulatory assets, liabilities, income and expenses. It is effective for annual periods beginning 1 January 2029, with early application permitted, and replaces IFRS 14 January 1, 2029 Except for IFRS 18, the management has assessed that the above amendments have no significant impact on the Bank’s interim condensed consolidated financial statements. The Bank has chosen not to early adopt the amendments and revisions to the International Financial Reporting Standards which have been published and are mandatory for compliance with effect from future dates. IFRS 18 – Presentation and Disclosure in Financial Statements IFRS 18 ‘Presentation and Disclosure in Financial Statements’, as endorsed in the Kingdom of Saudi Arabia (“IFRS 18”) will replace IAS 1 ‘Presentation of Financial Statements’, as endorsed in the Kingdom of Saudi Ara bia, for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted. The Bank has not early adopted IFRS 18 in preparing these interim condensed consolidated financial statements. The Bank has established a formal IFRS 18 implementation programme overseen by senior management, supported by a cross -functional working group comprising representatives from the Finance group and Information Technology functions. The programme includes assessments of financial statement pres entation, management reporting, data and systems requirements and reporting implications. The Bank is currently assessing the estimated impact that the initial application of IFRS 18 will have on its consolidated financial statements. Based on the assessme nt performed to date, the expected impacts pertain to the presentation, aggregation, disaggregation and disclosure of information within the consolidated financial statements. Presentation of Statement of Income IFRS 18 requires entities to classify income and expenses into specified categories within the statement of income, namely operating, investing, financing, income taxes and discontinued operations. It also introduces mandatory subtotals including Operating Profit and Profit for the year. Neither total profit for the period nor total equity is expected to change as a result of adopting IFRS 18. However, the Bank expects changes to the presentation and classification of certain income and expense items within the statement of income, including the introduction of IFRS-defined subtotals. Based on its preliminary assessment, the Bank has concluded that providing financing to customers and investing in financial assets as part of its banking activities constitut e specified main business activities for the purposes of IFRS 18. Based on this, the Bank expects the following impacts on the interim condensed consolidated financial statements: • Financing income arising from customer financing assets, investment securiti es and treasury activities supporting the Bank's specified main business activities is expected to be presented within the operating category. • Funding costs relating to customer deposits, debt securities issued and other financing liabilities that support the Bank's specified main business activities are expected to be presented within the operating category.
Page 17
14 / 39 6 6 38 / 36 Classification: Private • Foreign exchange differences are expected to be classified in the same category as the underlying assets and liabilities giving rise to those differ ences. Based on the Bank's current assessment, the majority of foreign exchange differences arise from financing, treasury and investment activities that support the Bank's core banking operations and are therefore expected to be presented within operating performance. The Bank continues to assess whether any foreign exchange differences relate to activities that may require presentation outside the operating category under IFRS 18. • Gains and losses arising from derivatives designated in hedging relationshi ps are expected to be presented in the same category as the underlying hedged exposures. Based on the Bank's current assessment, the majority of derivatives are associated with customer financing, treasury and funding activities that support the Bank's core banking operations and are therefore expected to be presented within operating performance. The Bank continues to assess whether any derivatives relate to activities that may require presentation outside the operating category under IFRS 18. The share of profit or loss from associates and joint ventures accounted for using the equity method, if any, will be presented within the investing category and outside operating profit as required by IFRS 18. Certain expenses arising from liabilities or other oblig ations that are not directly linked to the Bank's specified main business activities, i -e. financing cost on lease liabilities and the financing cost on end of service benefit liabilities, are currently being assessed and would be presented within the financing category in accordance with IFRS 18. In addition, IFRS 18 may require changes to certain line -item descriptions, subtotals and disclosures currently presented in the statement of income. The assessment remains subject to completion of the Bank's implementation activities and any future interpretative or regulatory developments. Management-defined Performance Measures IFRS 18 introduces new disclosure requirements for Management -defined Performance Measures ("MPMs"), which are subtotals of income and expenses used in public communications to communicate management's view of an aspect of the Bank's financial performance. Such measures will be required to be disclosed within a single note to the financial statements together with explanations of their pu rpose and reconciliations to the most directly comparable IFRS-defined totals or subtotals. The Bank is assessing whether measures communicated externally, for example net operating income before impairment provision or other performance metrics that meet the definition of Management -defined Performance Measures under IFRS 18 may require enhanced disclosures and reconciliations. Principles of Aggregation and Disaggregation IFRS 18 introduces enhanced requirements relating to the aggregation and disaggrega tion of information throughout the financial statements and accompanying notes. These requirements are intended to improve transparency by ensuring that material information is presented separately and dissimilar items are not obscured through aggregation. The Bank is currently assessing whether additional disaggregation may be required for other assets, other liabilities, other operating income, other general and administrative expenses and other operating expenses. The Bank also expects certain line -item descriptions currently used within the financial statements to be refined to enhance clarity and consistency with the objectives of IFRS 18. Consequential Amendments IFRS 18 introduces consequential amendments to other IFRS, including IAS 7 ‘Statement of Cash Flows’, IAS 33 ‘Earnings per Share’ and IAS 34 ‘Interim Financial Reporting’. The Bank is currently assessing the impact of these amendments, including potential changes to the presentation of operating cash flows and the classification of interest, dividends and other cash flow items. The Bank is also evaluating requirements relating to comparative information and retrospective application upon adoption of IFRS 18. The Bank's assessment remains ongoing and further refinements to the expe cted impact may arise as implementation activities progress, industry practice evolves and additional guidance from regulators and standard setters becomes available.
Page 18
15 / 39 6 6 38 / 36 Classification: Private 4. Investments, net September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30, 2025 (Unaudited) Notes SAR ’000 SAR ’000 SAR ’000 Held at FVSI 4.1 3,785,685 3,895,782 3,663,344 Held at FVOCI 4.2 11,861,148 13,654,039 13,913,519 Held at Amortized Cost 41,020,351 38,981,651 34,555,584 Less: Allowance for impairment 4.3 (42,755) (41,141) (29,897) Held at Amortized Cost, net 40,977,596 38,940,510 34,525,687 Investment in associates 4.4 135,982 132,221 46,550 Investment in joint venture 4.5 - - 1,139 Investment in associates and joint venture 135,982 132,221 47,689 Total 56,760,411 56,622,552 52,150,239 4.1 Held at FVSI September 30, 2026 (Unaudited) SAR '000 Domestic International Total Equities 135,709 138,957 274,666 Sukuk 63,601 14,205 77,806 Funds 1,101,246 2,331,967 3,433,213 Total 1,300,556 2,485,129 3,785,685 December 31, 2025 (Audited) SAR '000 Domestic International Total Equities 113,813 154,611 268,424 Sukuk 63,278 15,145 78,423 Funds 1,448,185 2,100,750 3,548,935 Total 1,625,276 2,270,506 3,895,782 September 30, 2025 (Unaudited) SAR '000 Domestic International Total Equities 125,965 141,844 267,809 Sukuk 64,530 15,146 79,676 Funds 1,465,219 1,850,640 3,315,859 Total 1,655,714 2,007,630 3,663,344
Page 19
16 / 39 6 6 38 / 36 Classification: Private 4.2 Held at FVOCI September 30, 2026 (Unaudited) SAR '000 Domestic International Total Sukuks 10,820,166 898,918 11,719,084 Equities 132,505 9,559 142,064 Total 10,952,671 908,477 11,861,148 December 31, 2025 (Audited) SAR '000 Domestic International Total Sukuks 11,841,724 1,433,224 13,274,948 Equities 369,465 9,626 379,091 Total 12,211,189 1,442,850 13,654,039 September 30, 2025 (Unaudited) SAR '000 Domestic International Total Sukuks 11,905,491 1,429,996 13,335,487 Equities 570,926 7,106 578,032 Total 12,476,417 1,437,102 13,913,519 The Bank holds SAR 3,510 million (December 31, 2025: SAR 4,513 million, September 30, 2025: SAR 4,458 million) in investment in Tier 1 sukuk out of the total FVOCI sukuk investments. 4.3 As at September 30, 2026, December 31, 202 5 and September 30, 2025, all investments held at amortized cost are classified as Stage 1 credit exposures. 4.4 Investment in an associate s represents the Bank’s share of investment of 20.25% (December 31, 2025: 20.25%, September 30, 2025: 20.25%) in in Alinma Water Fund. During the year ended December 31, 2025, the Bank also invested SAR 90.4 million in the Alinma Jeddah Residential Fund, re presenting an ownership interest of 46.19%. 4.5 During the period ended September 30, 2026, the Bank acquired the remaining 50% shareholding in Ersal Financial Remittance Company for a total consideration of SAR 4.2 million. Prior to the acquisition, the Bank’s 50% shareholding in the entity was accounted for as a joint venture. Upon completion of the acquisition, the Bank obtained control of the entity. Accordingly, the investment was reclassified from a joint venture to a subsidiary, and the entity has been consolidated from the acquisition date.
Page 20
17 / 39 6 6 38 / 36 Classification: Private 5. Derivative financial instruments The table below summarizes the positive and negative fair values of derivative financial instruments, together with the notional amounts. The notional amounts, which provide an indication of the volumes of the transactions outstanding at the period -end, do not necessarily reflect the amounts of future cash flows involved. These notional amounts, therefore, are neither indicative of the Bank’s exposure to credit r isk, which is generally limited to the positive fair value of the derivatives, if any, nor market risk. SAR '000 September 30, 2026 (Unaudited) Positive fair value Negative fair value Total notional amount Held for trading: Profit rate swaps 1,118,580 982,856 50,091,610 Foreign exchange forward contracts 2,733 2,555 6,212,852 Foreign exchange Swaps 2,281 1,542 1,181,246 Cross Currency Swaps 3,113 2,418 2,312,500 Held as cash flow hedges: Profit rate swaps - 90,422 4,301,000 Total 1,126,707 1,079,793 64,099,208 SAR '000 December 31, 2025 (Audited) Positive fair value Negative fair value Total notional amount Held for trading: Profit rate swaps 388,257 258,460 45,110,111 Foreign exchange forward contracts 5,992 3,516 6,521,557 Foreign exchange Swaps - 985 3,097,135 Held as cash flow hedges: Profit rate swaps 48,828 3,023 5,201,000 Total 443,077 265,984 59,929,803 SAR '000 September 30, 2025 (Unaudited) Positive fair value Negative fair value Total notional amount Held for trading: Profit rate swaps 330,356 244,723 40,641,058 Foreign exchange forward contracts 4,619 2,678 4,381,271 Foreign exchange Swaps - 1,127 2,570,333 Held as cash flow hedges: Profit rate swaps 62,692 2,046 5,201,000 Total 397,667 250,574 52,793,662
Page 21
18 / 39 6 6 38 / 36 Classification: Private 6. Financing, net SAR ’000 September 30, 2026 (Unaudited) Performing Non- performing Gross Allowance for impairment (note 6.1) Financing, net Retail -Home finance 33,505,732 181,231 33,686,963 (252,699) 33,434,264 -Personal finance 29,182,773 216,057 29,398,830 (333,666) 29,065,164 -Auto finance 4,061,558 48,430 4,109,988 (65,752) 4,044,236 -Credit cards 1,394,965 33,487 1,428,452 (58,628) 1,369,824 68,145,028 479,205 68,624,233 (710,745) 67,913,488 Commercial - Corporate 173,100,206 1,621,899 174,722,105 (3,468,793) 171,253,312 - SMEs 13,588,064 280,415 13,868,479 (324,847) 13,543,632 186,688,270 1,902,314 188,590,584 (3,793,640) 184,796,944 Total 254,833,298 2,381,519 257,214,817 (4,504,385) 252,710,432 SAR ’000 December 31, 2025 (Audited) Performing Non- performing Gross Allowance for impairment (note 6.1) Financing, net Retail -Home finance 29,110,475 197,419 29,307,894 (254,434) 29,053,460 -Personal finance 24,722,292 110,698 24,832,990 (222,637) 24,610,353 -Auto finance 3,908,642 34,564 3,943,206 (55,350) 3,887,856 -Credit cards 1,139,612 24,545 1,164,157 (45,256) 1,118,901 58,881,021 367,226 59,248,247 (577,677) 58,670,570 Commercial - Corporate 160,029,383 1,655,076 161,684,459 (2,331,570) 159,352,889 - SMEs 11,910,175 112,361 12,022,536 (299,157) 11,723,379 171,939,558 1,767,437 173,706,995 (2,630,727) 171,076,268 Total 230,820,579 2,134,663 232,955,242 (3,208,404) 229,746,838 SAR ’000 September 30, 2025 (Unaudited) Performing Non- performing Gross Allowance for impairment (note 6.1) Financing, net Retail -Home finance 26,959,719 207,050 27,166,769 (246,030) 26,920,739 -Personal finance 23,420,809 113,634 23,534,443 (187,041) 23,347,402 -Auto finance 3,665,172 30,229 3,695,401 (46,412) 3,648,989 -Credit cards 1,139,602 34,292 1,173,894 (45,097) 1,128,797 55,185,302 385,205 55,570,507 (524,580) 55,045,927 Commercial - Corporate 161,374,278 2,259,759 163,634,037 (3,544,908) 160,089,129 - SMEs 10,726,843 108,775 10,835,618 (286,696) 10,548,922 172,101,121 2,368,534 174,469,655 (3,831,604) 170,638,051 Total 227,286,423 2,753,739 230,040,162 (4,356,184) 225,683,978
Page 22
19 / 39 6 6 38 / 36 Classification: Private The comparative figures have been disaggregated to provide more granular information and to align with the current period presentation. Retail financing, previously presented as a single category, has been separated into Home Finance, Personal Finance, Aut o Finance, and Credit Cards. In addition, Commercial financing has been further disaggregated into Corporate and SMEs. Below tables show the stage-wise breakdown of gross exposure and allowance for impairment of financing: September 30, 2026 (Unaudited) Gross exposure Allowance for impairment 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Gross Exposure 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Allowance for impairment SAR ’000 Retail 66,432,423 1,712,605 479,205 68,624,233 261,278 139,597 309,870 710,745 Corporate 171,705,414 14,982,856 1,902,314 188,590,584 581,791 1,776,873 1,434,976 3,793,640 Total 238,137,837 16,695,461 2,381,519 257,214,817 843,069 1,916,470 1,744,846 4,504,385 December 31, 2025 (Audited) Gross exposure Allowance for impairment 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Gross Exposure 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Allowance for impairment SAR ’000 Retail 57,463,641 1,417,380 367,226 59,248,247 237,618 119,206 220,853 577,677 Corporate 162,344,278 9,595,280 1,767,437 173,706,995 627,244 1,250,240 753,243 2,630,727 Total 219,807,919 11,012,660 2,134,663 232,955,242 864,862 1,369,446 974,096 3,208,404 September 30, 2025 (Unaudited) Gross exposure Allowance for impairment 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Gross Exposure 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Allowance for impairment SAR ’000 Retail 53,766,208 1,419,094 385,205 55,570,507 221,406 73,873 229,301 524,580 Corporate 161,399,148 10,701,973 2,368,534 174,469,655 632,228 1,601,056 1,598,320 3,831,604 Total 215,165,356 12,121,067 2,753,739 230,040,162 853,634 1,674,929 1,827,621 4,356,184
Page 23
20 / 39 6 6 38 / 36 Classification: Private 6.1 Movement in allowance for impairment of financing September 30, 2026 (Unaudited) SAR ’000 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Opening allowance at January 1, 2026 864,862 1,369,446 974,096 3,208,404 Transfer to 12-month ECL 57,546 (36,927) (20,619) - Transfer to life time ECL, not credit impaired (60,611) 66,587 (5,976) - Transfer to life time ECL, credit impaired (6,072) (21,080) 27,152 - Net (reversal) / charge for the period (12,656) 538,444 1,012,891 1,538,679 Write-off - - (242,698) (242,698) Balance as at September 30, 2026 843,069 1,916,470 1,744,846 4,504,385 December 31, 2025 (Audited) SAR ’000 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Opening allowance at January 1, 2025 800,338 1,757,620 1,201,106 3,759,064 Transfer to 12-month ECL 64,256 (44,960) (19,296) - Transfer to life time ECL, not credit impaired (42,480) 374,999 (332,519) - Transfer to life time ECL, credit impaired (3,940) (2,074,370) 2,078,310 - Net charge for the period 46,688 1,356,157 730,854 2,133,699 Write-off - - (2,684,359) (2,684,359) Balance as at December 31, 2025 864,862 1,369,446 974,096 3,208,404 September 30, 2025 (Unaudited) SAR ’000 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total Opening allowance at January 1, 2025 800,338 1,757,620 1,201,106 3,759,064 Transfer to 12-month ECL 57,682 (42,413) (15,269) - Transfer to life time ECL, not credit impaired (40,195) 42,822 (2,627) - Transfer to life time ECL, credit impaired (2,675) (592,457) 595,132 - Net charge for the period 38,484 509,357 1,061,649 1,609,490 Write-off - - (1,012,370) (1,012,370) Balance as at September 30, 2025 853,634 1,674,929 1,827,621 4,356,184
Page 24
21 / 39 6 6 38 / 36 Classification: Private 7. Due to SAMA, banks and other financial institutions September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30, 2025 (Unaudited) SAR ’000 SAR ’000 SAR ’000 Placements from SAMA 6,466,044 5,317,974 836,168 Time investments from banks and other financial institutions 10,073,724 10,370,382 9,368,318 Current accounts 185,833 524,609 956,860 Total 16,725,601 16,212,965 11,161,346 8. Customers’ deposits September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30, 2025 (Unaudited) Note SAR ’000 SAR ’000 SAR ’000 Demand 99,721,555 94,465,228 109,871,800 Savings 17,453,927 13,463,935 12,012,127 Customers’ time investments 8.1 132,999,379 117,591,129 110,630,133 Others 1,741,157 1,853,638 2,108,910 Total 251,916,018 227,373,930 234,622,970 8.1 This represents Murabaha and Mudaraba deposits from customers.
Page 25
22 / 39 6 6 38 / 36 Classification: Private 9. Commitments and contingencies i) The Bank’s credit related commitments and contingencies are as follows: September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30,2025 (Unaudited) SAR ’000 SAR ’000 SAR ’000 Letters of credit 6,235,641 5,218,265 5,539,031 Letters of guarantee 20,942,900 20,578,534 20,719,437 Acceptance 1,020,522 1,167,413 1,167,433 Irrevocable commitments to extend credit 12,363,444 12,831,447 12,142,553 Total 40,562,507 39,795,659 39,568,454 ii) Other liabilities include provision for credit-related commitments and contingencies as follow: September 30, 2026 (Unaudited) 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total SAR ’000 Opening allowance at January 1, 2026 48,764 49,510 138,037 236,311 Transfer to life time ECL, not credit impaired (2,648) 2,648 - - Transfer to life time ECL, credit impaired (84) (15) 99 - Net charge / (reversal) for the period 9,002 (8,901) 34,731 34,832 Balance as at September 30, 2026 55,034 43,242 172,867 271,143 December 31, 2025 (Audited) 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total SAR ’000 Opening allowance at January 1, 2025 45,955 537,245 528,349 1,111,549 Transfer to 12-month ECL 33 (33) - - Transfer to life time ECL, not credit impaired (1,374) 2,501 (1,127) - Transfer to life time ECL, credit impaired (206) (237,884) 238,090 - Net charge / (reversal) for the period 4,356 (252,319) (627,275) (875,238) Balance as at December 31, 2025 48,764 49,510 138,037 236,311 September 30, 2025 (Unaudited) 12-month ECL Lifetime ECL not credit impaired Lifetime ECL credit impaired Total SAR ’000 Opening allowance at January 1, 2025 45,955 537,245 528,349 1,111,549 Transfer to 12-month ECL 33 (33) - - Transfer to life time ECL, not credit impaired (1,474) 1,474 - - Transfer to life time ECL, credit impaired (105) (5) 110 - Net reversal for the period (1,231) (245,136) (438,197) (684,564) Balance as at September 30, 2025 43,178 293,545 90,262 426,985
Page 26
23 / 39 6 6 38 / 36 Classification: Private 10. Cash and cash equivalents Cash and cash equivalents included in the interim condensed consolidated statement of cash flows comprise the following: September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30,2025 (Unaudited) SAR ’000 SAR ’000 SAR ’000 Cash in hand 2,352,087 2,239,507 2,282,405 Balances with SAMA excluding statutory deposits 1,555,299 99,511 3,816,848 Due from banks and other financial institutions maturing within ninety days from the date of acquisition 4,598,743 1,205,226 2,118,617 Total 8,506,129 3,544,244 8,217,870 11. Sukuk, certificates of deposit issued and Tier 1 Sukuk 11.1 Sukuk and certificates of deposit issued During the year ended December 31, 2025, the Bank established a USD 5 billion senior unsecured and Tier 2 Sukuk programme. On July 15, 2025, the Bank issued U.S. dollar denominated senior unsecured Su kuk, amounting to USD 500 million with 5-years maturity and a profit rate of 4.937%. The Sukuk is listed on the London Stock Exchange's International Securities Market and could be sold in light of applicable acts and regulations. On November 10, 2025, the Bank issued USD dollar Tier 2 Sukuk, amounting to USD 500 million with maturity of 10 years, callable after 5 years with a profit rate of 5.792%. The Tier 2 Sukuks are listed on the London Stock Exchange's International Securities Market and could be sold in light of applicable acts and regulations. On January 23, 2026, the Bank issued USD dollar Tier 2 Sukuk, amounting to USD 300 million with maturity of 10 years, callable after 5 years with a profit rate of 5.873%. The Tier 2 Sukuks are listed on the London Stock Exchange's International Securities Market and could be sold in light of applicable acts and regulations. During the year ended December 31, 2025, the Bank established a USD denominated Certificates of Deposit programme, out of which USD 1 billion was issued during, 2025, and a further USD 450 million was issued during the period ended September 30, 2026. These instruments are issued at fixed profit rates. 11.2 Tier 1 Sukuk During the period ended September 30, 2026, the Bank announced its intention to recall and redeem its SAR 5 billion Tier 1 Sukuk. The Sukuk were originally issued on July 1, 2021 through a Shariah compliant arrangement with a profit rate of 4% payable on quarterly basis, the Bank redeemed the Sukuk at face value on its first call date of July 1, 2026. On March 6, 2024, the Bank issued additional Tier 1 sukuk of USD 1 billion with a profit rate of 6.5% payable on semi- annual basis. On May 28, 2025, the Bank has issued its first international sustainable Tier 1 Sukuk of USD 500 million with a profit rate of 6.5% payable on semi-annual basis.
Page 27
24 / 39 6 6 38 / 36 Classification: Private On September 3, 2025, the Bank has issued additional sustainable Tier 1 Sukuk of USD 500 million with a profit rate of 6.25% payable on semi-annual basis. On May 21 , 2026, the Bank issued Additional Tier 1 Sukuk of SAR 3 billion with a profit rate of 6.5% payable on quarterly basis. On June 3, 2026, the Bank has issued additional sustainable Tier 1 Sukuk of USD 500 million with a profit rate of 6.625% payable on semi-annual basis. On September 3, 2026, the Bank has issued additional Tier 1 Sukuk of SAR 2 billion with a profit rate of 6.5% payable on quarterly basis. These issuances were approved by the regulatory authorities and the Board of Directors of the Bank. These Sukuks are perpetual securities in respect of which there is no fixed redemption dates and represents an undivided ownership interest of the Sukuk -holders in the Sukuk assets, with each Sakk constituting an unsecured, conditional and subordinated obligation of the Bank classified under equity. However, the Bank shall have the exclusive right to redeem or call the Sukuks in a specific period of time, subject to the terms and conditions stipulated in the Sukuk Agreement. These securities also allow the Bank to write-down (in whole or in part) any amounts due to the holders in the event of non-viability with the approval of SAMA. The applicable profit on the Sukuks is payable in arrears on each periodic distribution date except upon the occurrence of a non-payment event or non-payment election by the Bank, whereby the Bank may at its sole discretion (subject to ce rtain terms and conditions) elect not to make any distributions. Such non-payment event or non-payment election are not considered to be events of default and the amounts not paid thereof shall not be cumulative or compound with any future distributions. 12. Operating segments Operating segments are identified on the basis of internal reports about activities of the Bank that are regularly reviewed by the key decision makers including Chief Executive Officer (“CEO”) and the Assets and Liabilities Committee (“ALCO”), in order to allocate resources to the segments and to assess their performance. The Bank’s primary business is conducted in Saudi Arabia. Transactions between the operating segments are on terms as approved by the management. The majority of the segment assets and liabilities comprise operating assets and liabilities. There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since December 31, 2025. The Bank’s reportable segments are as follows: a) Retail banking Financing, deposit and other products/services for individuals. b) Corporate banking Financing, deposit and other products and services for corporate, SME and institutional customers. c) Treasury Investments, interbank and other treasury services. d) Investment and brokerage Investment, asset management and brokerage services through dealing, managing, arranging, advising and custodial services. Profit is charged or credited to operating segments using internally developed Fund Transfer Pricing (FTP) rates, which approximate the marginal cost of funds.
Page 28
25 / 39 6 6 38 / 36 Classification: Private Following is an analysis of the Bank’s assets, liabilities, income and results by operating segments: September 30, 2026 (Unaudited) SAR '000 Retail Corporate Treasury Investment and brokerage Total Total assets 66,402,572 184,796,944 86,447,793 3,767,989 341,415,298 Total liabilities 156,639,868 41,662,948 89,958,051 687,796 288,948,663 Income from investments and financing 6,282,409 3,578,442 3,743,743 107,102 13,711,696 Return on time investments (2,300,179) (1,294,413) (2,503,050) (6,935) (6,104,577) Income from investments and financing, net 3,982,230 2,284,029 1,240,693 100,167 7,607,119 Fees from banking services 205,897 248,650 19,689 658,511 1,132,747 Other operating income 10,808 1,849 410,681 96,710 520,048 Total operating income 4,198,935 2,534,528 1,671,063 855,388 9,259,914 Depreciation and amortization 267,921 44,469 17,885 9,161 339,436 Other operating expenses 1,581,127 550,119 180,297 232,240 2,543,783 Charge for credit impairment 203,966 739,620 5,218 6,942 955,746 Total operating expenses 2,053,014 1,334,208 203,400 248,343 3,838,965 Net operating income 2,145,921 1,200,320 1,467,663 607,045 5,420,949 Income for the period before zakat 2,145,921 1,200,320 1,467,663 607,045 5,420,949 September 30, 2025 (Unaudited) SAR '000 Retail Corporate Treasury Investment and brokerage Total Total assets 53,822,774 170,638,051 78,343,463 4,409,227 307,213,515 Total liabilities 157,010,924 38,858,984 63,493,408 381,766 259,745,082 Income from investments and financing 6,209,486 3,422,698 3,138,721 99,503 12,870,408 Return on time investments (2,529,052) (1,313,227) (2,108,428) (298) (5,951,005) Income from investments and financing, net 3,680,434 2,109,471 1,030,293 99,205 6,919,403 Fees from banking services, net 359,339 256,790 22,746 614,772 1,253,647 Other operating income 12,156 30,377 387,384 121,964 551,881 Total operating income 4,051,929 2,396,638 1,440,423 835,941 8,724,931 Depreciation and amortization 250,307 41,742 15,035 6,639 313,723 Other operating expenses 1,441,195 524,478 138,950 336,188 2,440,811 Charge for credit impairment 36,157 712,205 11,448 4,105 763,915 Total operating expenses 1,727,659 1,278,425 165,433 346,932 3,518,449 Net operating income 2,324,270 1,118,213 1,274,990 489,009 5,206,482 Share of loss from associates and joint venture - - (2,578) - (2,578) Income for the period before zakat 2,324,270 1,118,213 1,272,412 489,009 5,203,904
Page 29
26 / 39 6 6 38 / 36 Classification: Private September 30, 2026 (Unaudited) SAR '000 Other information: Retail Corporate Treasury Investment and brokerage Total Revenue from: - External 802,698 7,806,884 (205,056) 855,388 9,259,914 - Inter-segment 3,396,237 (5,272,356) 1,876,119 - - Total operating income 4,198,935 2,534,528 1,671,063 855,388 9,259,914 September 30, 2025 (Unaudited) SAR '000 Other information: Retail Corporate Treasury Investment and brokerage Total Revenue from: - External 205,962 7,652,308 30,720 835,941 8,724,931 - Inter-segment 3,845,967 (5,255,670) 1,409,703 - - Total operating income 4,051,929 2,396,638 1,440,423 835,941 8,724,931 13. Earnings per share Basic and diluted earnings per share are calculated by dividing net income (after adjustment for Tier 1 Sukuk costs) by the weighted average number of ordinary shares outstanding. September 30, 2026 (Unaudited) September 30, 2025 (Unaudited) Net income for the period attributable to the Bank's shareholders 4,862,009 4,673,279 Less: Tier 1 Sukuk costs (621,620) (393,529) Net Income after Tier 1 Sukuk costs 4,240,389 4,279,750 Weighted average number of ordinary shares 2,987,356 2,984,375 Basic and diluted earnings per share in SAR 1.42 1.43 On January 27, 2026, the Board of Directors recommended to the Extraordinary General Assembly of the Bank to increase the capital by SAR 5,000 million through capitalization from the statutory reserve and retained earnings by way of granting one share for every five shares. The Shareholders, in their Extraordinary General Assembly meeting dated April 21, 2026, approved the increase of share capital by issuance of bonus shares. Accordingly, the weighted average number of shares have been retrospectively adjusted for prior periods to reflect the effect of the change in number of shares due to issuance of bonus shares.
Page 30
27 / 39 6 6 38 / 36 Classification: Private 14. Fair values of financial assets and liabilities Fair value is the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability, or - In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Bank. The Bank uses following hierarchy for determining and disclosing the fair value of financial instruments: Level 1: Quoted prices in active market for the same instrument (i.e. without modification or repacking). Level 2: Inputs other than quoted prices included in level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active or other valuation techniques in which all significant inputs are directly or indirectly observable from market data. Level 3: Inputs that are unobservable. This category include s all instruments for which the valuation technique includes inputs that are not observable and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments . Valuation technique and significant unobservable inputs for financial instruments at fair value The Bank uses various valuation techniques used in measuring level 2 and level 3 fair values at September 30, 2026, December 31, 2025 and September 30, 2025, as well as the significant unobservable inputs used. For the valuation of investments in mutual funds, the Bank utilizes fund manager reports. The fund manager deploys various techniques (such as discounted cash flow models and multiples method) for the valuation of underlying assets classified under level 2 and 3 of the respective fund’s fair value hierarchy. Significant unobservable inputs embedded in the models used by the fund manager include risk-adjusted discount rates, marketability and liquidity discounts and control premiums.
Page 31
28 / 39 6 6 38 / 36 Classification: Private 14 (a) Fair values of financial assets and liabilities carried at fair value Following table shows an analysis of financial instruments carried at fair value by level of the fair value hierarchy: SAR ‘000 September 30, 2026 (Unaudited) Level 1 Level 2 Level 3 Total Financial assets measured at fair value Financial assets held as FVSI - Equities 187,677 - 86,989 274,666 - Sukuk 40,378 37,428 - 77,806 - Mutual funds 134,506 230,013 3,068,694 3,433,213 Financial assets held as FVOCI - Equities 110,234 - 31,830 142,064 - Sukuk 737,925 10,977,847 3,312 11,719,084 Positive fair value of derivatives - Held for trading - 1,126,707 - 1,126,707 Total 1,210,720 12,371,995 3,190,825 16,773,540 Financial liabilities measured at fair value Negative fair value of derivatives - Held for trading - 989,371 - 989,371 - Held for cash flow hedges - 90,422 - 90,422 Total - 1,079,793 - 1,079,793 SAR ‘000 December 31, 2025 (Audited) Level 1 Level 2 Level 3 Total Financial assets measured at fair value Financial assets held as FVSI - Equities 204,515 - 63,909 268,424 - Sukuk 63,278 15,145 - 78,423 - Mutual funds 242,602 428,272 2,878,061 3,548,935 Financial assets held as FVOCI - Equities 347,193 - 31,898 379,091 - Sukuk 491,635 12,783,313 - 13,274,948 Positive fair value of derivatives - Held for trading - 394,249 - 394,249 - Held for cash flow hedges - 48,828 - 48,828 Total 1,349,223 13,669,807 2,973,868 17,992,898 Financial liabilities measured at fair value Negative fair value of derivatives - Held for trading - 262,952 - 262,952 - Held for cash flow hedges - 3,032 - 3,032 Total - 265,984 - 265,984
Page 32
29 / 39 6 6 38 / 36 Classification: Private SAR ‘000 September 30, 2025 (Unaudited) Level 1 Level 2 Level 3 Total Financial assets measured at fair value Financial assets held as FVSI - Equities 203,900 - 63,909 267,809 - Sukuk 64,530 15,146 - 79,676 - Mutual funds 249,455 414,433 2,651,971 3,315,859 Financial assets held as FVOCI - Equities 549,146 - 28,886 578,032 - Sukuk 496,994 12,838,493 - 13,335,487 Positive fair value of derivatives - Held for trading - 334,975 - 334,975 - Held for cash flow hedges - 62,692 - 62,692 Total 1,564,025 13,665,739 2,744,766 17,974,530 Financial liabilities measured at fair value Negative fair value of derivatives - Held for trading - 248,528 - 248,528 - Held for cash flow hedges - 2,046 - 2,046 - 250,574 - 250,574 Reconciliation of Level 3 fair values The following table shows reconciliation from the opening balances to the closing b alances for Level 3 fair values: SAR ‘000 September 30, 2026 (Unaudited) Financial assets held as FVSI Financial assets held as FVOCI Balance at January 1, 2026 2,941,970 31,898 Additional / new investments 409,578 3,312 Capital return and disposals during the period (217,113) - Net change in fair value (unrealized) 21,248 (68) Balance at September 30, 2026 3,155,683 35,142 SAR ‘000 December 31, 2025 (Audited) Financial assets held as FVSI Financial assets held as FVOCI Balance at January 1, 2025 2,349,676 27,202 Additional / new investments 492,891 138 Capital return and disposals during the period (796,811) 2,175 Net change in fair value (unrealized) 896,214 2,383 Balance at December 31, 2025 2,941,970 31,898 SAR ‘000 September 30, 2025 (Unaudited) Financial assets held as FVSI Financial assets held as FVOCI Balance at January 1, 2025 2,349,676 27,202 Additional / new investments 382,532 136 Capital return and disposals during the period (103,228) (10) Net change in fair value (unrealized) 86,900 1,558 Balance at September 30, 2025 2,715,880 28,886 There were no transfers between Level 1, 2 and 3 during the period.
Page 33
30 / 39 6 6 38 / 36 Classification: Private 14 (b) Fair values of financial assets and liabilities not carried at fair value Management adopts discounted cash flow method using the current yield curve to arrive at the fair value of financial instruments which is categorized within Level 3 of the fair value hierarchy except for investments in Sukuks and Murabaha with SAMA which are categorized within Level 2. The fair values of cash and balances with SAMA are not materially different from its carrying values included in the interim condensed consolidated financial statements. Following table shows the fair value of financial instruments carried at amortized cost SAR ‘000 September 30, 2026 (Unaudited) Carrying value Fair value ASSETS Due from banks and other financial institutions 5,290,952 5,285,428 Sukuks – Amortized Cost, gross 41,020,351 40,044,286 Financing, net 252,710,432 250,767,298 LIABILITIES Due to SAMA, banks and other financial institutions 16,725,601 16,554,814 Customers’ deposits 251,916,018 251,845,169 Certificates of deposit 4,355,497 4,248,804 Senior unsecured sukuk 1,892,955 1,797,314 Tier 2 Sukuk 3,047,912 2,857,321 SAR ‘000 December 31, 2025 (Audited) Carrying value Fair value ASSETS Due from banks and other financial institutions 1,720,458 1,718,921 Investments – Murabaha with SAMA, gross 904,597 904,734 Sukuks – Amortized Cost, gross 38,077,054 38,234,670 Financing, net 229,746,838 229,679,100 LIABILITIES Due to SAMA, banks and other financial institutions 16,212,965 16,196,068 Customers’ deposits 227,373,930 227,636,258 Certificates of deposit 3,816,638 3,773,665 Senior unsecured sukuk 1,918,087 1,892,091 Tier 2 Sukuk 1,890,196 1,942,094 SAR ‘000 September 30, 2025 (Unaudited) Carrying value Fair value ASSETS Due from banks and other financial institutions 2,635,561 2,629,585 Investments – Murabaha with SAMA, gross 1,654,540 1,657,118 Sukuks – Amortized Cost, gross 32,901,044 32,451,836 Financing, net 225,683,978 225,309,122 LIABILITIES Due to SAMA, banks and other financial institutions 11,161,346 11,163,388 Customers’ deposits 234,622,970 234,928,232 Certificates of deposit 1,984,547 1,975,205 Senior unsecured sukuk 1,894,633 1,896,569
Page 34
31 / 39 6 6 38 / 36 Classification: Private 15. Other reserves September 30, 2026 (Unaudited) Fair value reserve for FVOCI investments Employees share- based plan reserve Social contribution reserve Remeasurement of End of Service Benefits Cash flow hedge reserve Total SAR ’000 Balance at January 1, 2026 (203,783) 163,550 192,978 33,260 47,948 233,953 Net change in fair value of FVOCI equity investments 11,383 - - - - 11,383 Net change in fair value of FVOCI sukuk investments (173,269) - - - - (173,269) Gain on sale of FVOCI sukuk investments (2,917) - - - - (2,917) Transfers to retained earnings on disposal of FVOCI equity investments 28,207 - - - - 28,207 Net fair value changes in cash flow hedges - - - - (138,129) (138,129) Employee share based plan reserve - 66,336 - - - 66,336 Vesting of shares - (122,553) - - - (122,553) Utilization during the period - - (19,297) - - (19,297) Balance as at September 30, 2026 (340,379) 107,333 173,681 33,260 (90,181) (116,286) September 30, 2025 (Unaudited) Fair value reserve for FVOCI investments Employees share- based plan reserve Social contribution reserve Remeasurement of End of Service Benefits Cash flow hedge reserve Total SAR ’000 Balance at January 1, 2025 (421,404) 119,794 190,582 4,584 (22,960) (129,404) Net change in fair value of FVOCI equity investments (82,907) - - - - (82,907) Net change in fair value of FVOCI sukuk investments 242,879 - - - - 242,879 Gain on sale of FVOCI sukuk investments (25) - - - - (25) Transfers to retained earnings on disposal of FVOCI equity investments 98,380 - - - - 98,380 Net fair value changes in cash flow hedges - - - - 88,102 88,102 Employee share based plan reserve - 53,576 - - - 53,576 Vesting of shares - (33,368) - - - (33,368) Utilization during the period - - (61,497) - - (61,497) Balance as at September 30, 2025 (163,077) 140,002 129,085 4,584 65,142 175,736
Page 35
32 / 39 6 6 38 / 36 Classification: Private 16. Financial Risk Management 16.1 Credit Risk Credit risk is the risk of financial loss if a counterparty fails to meet their contractual obligations. At Alinma, we view credit risk management not only as a defensive shield, but as a core capability that enables sustainable growth. The Bank accept cre dit risk where it is well -understood, clearly quantified, and appropriately priced, ensuring that our provision and capital remains resilient through all phases of the economic cycle. To systematically manage this risk of a counterparty failing to meet its obligation, the Bank implements a comprehensive and proactive credit process designed to ensure that all credits originated are consistent with the institution's risk appetite and strictly adhere to defined criteria under which credits are extended. Each credit proposal is subjected to an exhaustive due diligence process intended to assess all potential risks associated with granting the credit. This deep -dive evaluation safeguards asset quality from day one. a) Internal Credit-Rating Model To evaluate the cr editworthiness of corporate obligors, the Bank employs an internal credit -rating model that determines the Obligor Risk Rating (ORR). This rating serves as a key indicator of the obligor's creditworthiness measure by probability of default and is crucial i n the decision -making process and serves as first filter for prospective and existing obligors to avoid initiating or maintaining relationships that do not fit the Bank’s strategy and desired risk profile. In addition to internal assessments, the Bank cons iders external ratings from major credit rating agencies whenever available and disclosed by clients. This dual approach enhances the accuracy of risk assessments and ensures a well -rounded view of each obligor’s credit profile. The credit assessment for i ndividual obligors of Retail Asset products is performed through automated product specific scorecard framework. Credits are extended based on the Corporate, Financial Institutions and Retail Banking Credit Policies and Guidelines. b) Target Market and Risk Acceptance Criteria (RAC) A critical component of the credit assessment process is the identification of the Target Market. This initial filter helps the Bank to avoid initiating or continuing relationships with obligors that do not align with its strategic objectives and risk appetite. RAC is a set of variables indicating the terms under which the Bank is willing to initiate and/or maintain a credit relationship with an obligor that meets the target market. This structured approach ensures that all credit activities are consistent with the Bank's overarching risk management framework. c) Credit Approval Process The Bank's credit approval process involves a front -end marketing team responsible for originating, evaluating, and recommending credit propos als. Approval is granted in accordance with the Board -approved “Credit Approval Authority Delegation Matrix” wherever applicable by the Executive Committee or Credit Committee, which comprises key executives, including the CEO, Group Head, Senior Credit Officer, and Chief Credit Officer. This multi- tiered approval structure promotes accountability and thorough scrutiny of credit decisions. d) Role of Risk Management As a pivotal stakeholder, Risk Management actively drives the formulation and periodic update of the credit policy framework, ensuring continuous alignment with the evolving economic, market, regulatory, and legal landscapes. The unit safeguards the integrity of our risk infrastructure by regularly validating predictive models and proactivel y monitoring the credit portfolio to keep exposures strictly within defined Risk Appetite thresholds. Furthermore, Risk Management rigorously monitors capital and provisioning adequacy. This ensures that the unique risk profile of each portfolio is robustly covered in compliance with both internal policies and regulatory mandates.
Page 36
33 / 39 6 6 38 / 36 Classification: Private e) Portfolio Diversification The Bank actively manages various credit portfolios to achieve diversification and reduce concentration risks. This involves careful consideration of economic activity, geography, collateral types, and underlying products. The Bank seeks to diversify its credit exposure by acquiring customers from a broad spectrum of industries and economic activities. By targeting large, medium, and small corporate clients as well as individual clients, the Bank enhances its risk profile. Continuous monitoring of obligor and sector concentrations allows the Bank to assess financing risks proactively. The Bank also conducts regular stress tests on its credit portfolios t o evaluate the potential impact of adverse economic factors on asset quality, risk ratings, profitability, and capital allocations. 16.2 Credit Risk Evaluation and Expected Credit Loss (ECL) To systematically evaluate credit risk, the Bank employs a sophisticated evaluation framework anchored in a well - defined Target Market and Risk Acceptance Criteria (RAC). This structure is reinforced by extensive due diligence procedures, stringent credit administration controls, and continuous limit monitoring fu nctions. This integrated approach ensures that credit risk is proactively managed, accurately measured, and effectively controlled throughout the entire credit lifecycle. a) Internal Risk Rating Grades The Bank utilizes Moody’s CreditLens, a sophisticated cre dit rating system recognized globally, to generate internal risk ratings for corporate obligors. This system enables the Bank to assign a risk rating reflecting a 12 -month probability of default (PD). The risk ratings are conveyed through a 10 -point scale, with 1 representing the highest credit quality and 10 indicating the lowest. For a more granular assessment, the ratings include sub-grades (e.g., 5+, 5, 5-) to capture slight variations in creditworthiness. According to the Bank’s policy, only obligors rated 6- or better are considered for new financing facilities. The Moody’s CreditLens rating system is regularly reviewed and validated by independent internal or external consultants to ensure its predictive power, and reliability. Credit assessment in the retail portfolio is estimated based on individual credit -worthiness scores, derived from an automated credit scoring platform and is not subject to the Moody’s rating system. This tailored approach ensures that the unique characteristics of retail borrowers are adequately assessed. b) Ongoing Monitoring and Review All credit exposures under corporate business segment are subject to continuous monitoring and annual reviews, which may lead to adjustments in risk ratings based on qualitative and quantitative factors. These factors can include changes in the obligor’s audited financial statements, compliance with covenants, management changes, and shifts in the broader economic environment. This ongoing vigilance helps the Bank to respond swiftly to emerging risk s. c) Point-in-Time PD and Economic Scenarios The Bank has developed a structured approach to estimate the Term Structure of PD, which describes the relationship between PD and time-to-maturity. By formulating three forward-looking economic scenarios, the Bank generates estimates of PD that account for expected migrations based on various stages of the economic cycle. For example, in a down-swing economic environment, obligors already classified under Stage 2 may experience further deterioration. Conversely, in an up-swing, the likelihood of default may decrease for similar obligors. The Long-Term Survival Probability Adjusted PD model indicates that the longer a stressed obligor survives, the lower its probability of default becomes.
Page 37
34 / 39 6 6 38 / 36 Classification: Private d) Significant Increase in Credit Risk (SICR) Criteria The SICR criteria play a crucial role in the Bank's Credit Risk Management framework and are integral to the calculation of ECL under IFRS9. The SICR threshold determines when a financial asset transition s from Stage 1 (performing) to Stage 2 (underperforming) of the ECL model, triggering the recognition of lifetime expected credit losses. A SICR signifies a deterioration in the credit quality of an obligor, even if the obligor is not yet in default category. As outlined in the regulations, the SICR backstop and rebuttal criteria are applied consistently across all types of exposures without modifications. Any exceptions to these criteria are thoroughly documented, including detailed justifications and the rationale for SICR overrides. The Bank employs a forward-looking approach to assess whether there has been a SICR since the initial recognition of a financial asset. The determination of SICR is based on both quantitative and qualitative factors. e) Stage Categorization under IFRS9 The Bank's impairment framework is designed to ensure the accurate recognition of credit losses and the appropriate provision of allowances in accordance with IFRS9. The framework is integral to maintaining the financial health of t he Bank, ensuring that all financial assets including investment and credit exposures are assessed for impairment and that sufficient provisions are made to absorb potential losses. The Bank recognizes impairments on financial assets through an ECL model, which applies a forward -looking approach to estimate potential credit losses. This model incorporates both historical data and forward -looking information to assess the credit quality of assets and to determine an appropriate impairment allowance. The ECL model is based on three stages of credit deterioration: • Stage 1 - Performing Assets: Financial assets that have not experienced significant credit deterioration since initial recognition. A 12-month ECL is recognized in this stage. • Stage 2 - Underperforming Assets: Financial assets that have shown significant credit deterioration since initial recognition but are not yet considered impaired. A lifetime ECL is recognized in this stage. • Stage 3 - Credit-Impaired Assets (Non -performing Assets): Financial asset s that are considered credit - impaired. A lifetime ECL is recognized, and profit income is calculated on the net carrying amount (i.e., after adjusting for the impairment allowance). The Bank’s Credit Risk Management function is responsible for monitoring credit exposures, identifying deteriorating assets based on pre-set SICR criteria, and ensuring the accuracy of impairment provisions. Regular periodic reviews of the credit portfolio are conducted to assess changes in credit risk and to update impairment p rovisions as necessary. The Bank also employs a range of models, including internal credit ratings, macroeconomic variables, and industry-specific factors, to estimate the expected credit loss and assess the adequacy of provisions. 16.3 Definition of ‘Default’ As defined in the Basel regulation, a default is considered to have occurred when any of the following conditions are met for an obligor with the Bank: • The obligor is over 90 days past due on any of their material obligations with the Bank. • Any of the obligor’s obligations with the Bank have been charged-off in part or in full. • Profit has stopped accruing profit on any of the obligor’s obligations with the Bank within a specified segment. • The obligor has filed for bankruptcy protection. • The obligor’s debt has been restructured in a manner that results in an economic loss to the Bank. • The obligor has been classified as non-performing by the Bank, in accordance with internal policies and regulatory guidelines.
Page 38
35 / 39 6 6 38 / 36 Classification: Private a) Loss allowance The following table shows reconciliations from the opening to the closing balance of the allowance for impairment for due from banks and other financial institutions, investments, financing and credit related contingencies and commitments: September 30, 2026 (Unaudited) 12 month ECL Life time ECL not credit impaired Lifetime ECL credit impaired Total SAR ‘000 Balance at January 1, 2026 953,440 1,424,924 1,112,133 3,490,497 Transfer to 12 month ECL 57,546 (36,927) (20,619) - Transfer to life time ECL, not credit impaired (63,259) 69,235 (5,976) - Transfer to life time ECL, credit impaired (6,156) (21,095) 27,251 - Net (reversal) / charge for the period (193) 529,770 1,049,150 1,578,727 Write off - - (242,698) (242,698) Balance as at September 30, 2026 941,378 1,965,907 1,919,241 4,826,526 September 30, 2025 (Unaudited) 12 month ECL Life time ECL not credit impaired Lifetime ECL credit impaired Total SAR ‘000 Balance at January 1, 2025 868,237 2,294,864 1,729,455 4,892,556 Transfer to 12 month ECL 57,715 (42,446) (15,269) - Transfer to life time ECL, not credit impaired (41,669) 44,296 (2,627) - Transfer to life time ECL, credit impaired (2,780) (592,462) 595,242 - Net charge for the period 44,685 268,234 623,452 936,371 Write off - - (1,012,370) (1,012,370) Balance as at September 30, 2025 926,188 1,972,486 1,917,883 4,816,557 b) Reconciliation of ‘Impairment charge of financing and other financial assets’ September 30, 2026 (Unaudited) September 30, 2025 (Unaudited) SAR ’000 SAR ’000 Impairment charge on financing (note 6.1) 1,538,679 1,609,490 Impairment charge / (reversal) of non-funded financing and credit related commitments (note 9) 34,832 (684,564) Impairment charge on other financial exposures 5,216 11,445 Total charge for the period before recoveries from written off bad debts 1,578,727 936,371 Impairment charge of other financial assets 7,290 5,471 Recoveries from written off bad debts (630,271) (177,927) Total impairment charge for period, net of recoveries 955,746 763,915
Page 39
36 / 39 6 6 38 / 36 Classification: Private 16.4 Impact of geopolitical situation The geopolitical situation in the Middle East has deteriorated significantly since February 28, 2026 and remained elevated during the third quarter of 2026, with continued uncertainty surrounding the Strait of Hormuz and disruptions to regional maritime tr ade and energy transportation. During September 2026, further security incidents affecting commercial shipping were reported. These developments indicate that geopolitical and supply -chain risks remained relevant throughout the third quarter, requiring continued assessment of their potential impact on the Bank. The Bank continues to evaluate and closely monitor the current situation to assess any impact the geopolitical situation may have had on its business and financial performance, through activating bu siness continuity plans to mitigate any possible business disruption; and conducting rigorous risk reviews of the financing portfolio. In determining ECL estimates as of September 30, 2026, the Bank assessed the latest macroeconomic forecasts, which indicated moderated near-term GDP expectations against an improved medium -term outlook, along with elevated inflation and volatile, albeit stronger, oil prices relative to December 31, 2025. The prevailing geopolitical situation has brought about additional unce rtainties in the economic environment which require the Bank to revise certain inputs and assumptions used for the determination of ECL. To cater for the additional uncertainty, management adjusted the weightings of its forward -looking scenarios. The Downt urn weighting was increased to 30% (from 20%), while the Upturn weighting was reduced to 20% (from 30%). The Base Case remained unchanged, underpinned by Saudi Arabia’s robust medium -term growth prospects. In isolation, these adjustments resulted in a modest increase in ECL. Subsequent to the period ended 30 September 2026, the volatility of the ongoing geopolitical situation in Kingdom of Saudi Arabia has escalated significantly and creates a heightened level of credit risk, liquidity risk and operational risk. However, the potential financial impact of such situation is uncertain as the situation is still evolving, and therefore the Bank will continue to reassess its position and the related impact on a regular basis as more reliable data becomes available, and accordingly determine if any further adjustments in the ECL are required in subsequent reporting periods.
Page 40
37 / 39 6 6 38 / 36 Classification: Private 17. Related party balances and transactions In the ordinary course of its activities, the Bank transacts business with related parties. Related party transactions are governed by limits set by the Banking Control Law and regulations issued by SAMA. Major shareholder represents shareholding of more than 5% of the Bank’s issued share capital. Related parties are the persons or close members of those persons' families and their entities where the Bank have control, joint control or significant influence over these entities. The balances as at September 30, 2026, December 31, 2025 and September 30, 2025, resulting from such transactions included in the interim condensed consolidated financial statements are as follows: September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30, 2025 (Unaudited) SAR ’000 SAR ’000 SAR ’000 Balances with related parties except Bank’s mutual funds Financing to directors and key management personnel 189,170 176,432 174,307 Allowance for impairment on financing to directors, key management personnel 434 350 381 Customers’ deposits from major shareholder 2,551,181 3,533,339 5,104,629 Customers’ deposits from directors and key management personnel 116,599 111,669 120,116 Customer’s deposits from associates and joint venture 3,573 34,428 54,781 Investments in associates and joint venture 135,982 132,221 54,781 Investments in major shareholder held at FVOCI 163,629 170,322 161,148 Bank’s mutual funds Investments in mutual funds 403,782 465,819 498,427 Deposits from mutual funds 24 201 185 Financing and customer deposits with related parties are transacted at market rate and in the normal course of business.
Page 41
38 / 39 6 6 38 / 36 Classification: Private (i) Income and expenses pertaining to transactions with related parties included in the interim condensed consolidated statement of income are as follows: September 30, 2026 (Unaudited) September 30, 2025 (Unaudited) SAR ’000 SAR ’000 Income from investment and financing 9,261 10,021 Return on time investments 42,134 184,437 Fee from banking services, net 1,338 3,191 Board of directors and shariah committee remunerations 9,515 10,187 The advances and expenses related to executives are in line with the normal employment terms. (ii) The total amount of compensation paid to key management personnel during the period is as follows: September 30, 2026 (Unaudited) September 30, 2025 (Unaudited) SAR ’000 SAR ’000 Short-term employees’ benefits 104,384 104,282 End of service benefit 4,889 3,808 18. Capital and capital adequacy The Bank’s objectives when managing capital are, to comply with the capital requirements set by SAMA; to safeguard the Bank’s ability to continue as a going concern; and to maintain a strong capital base. Capital adequacy and the use of regulatory capital are monitored by the Bank’s management. SAMA requires holding a minimum level of regulatory capital and maintaining a ratio of total regulatory capita l to risk (“RWA”) at or above 10.5% including a capital conservation buffer of 2.5%. The Bank actively manages its capital base to cover the risks inherent in its business. The Bank monitors the adequacy of its capital using ratios established by SAMA. These ratios measure capital adequacy by comparing the Bank’s eligible capital with its statement of financial position assets, commitments and notional amounts of derivatives at a weighted amount to reflect their relative risk.
Page 42
39 / 39 6 6 38 / 36 Classification: Private September 30, 2026 (Unaudited) December 31, 2025 (Audited) September 30, 2025 (Unaudited) SAR ’000 SAR ’000 SAR ’000 Credit risk weighted assets 267,242,263 251,334,745 246,740,491 Operational risk weighted assets 10,543,845 8,724,584 8,724,584 Market risk weighted assets 2,173,483 3,617,574 4,100,156 Total Pillar-I Risk Weighted Assets 279,959,591 263,676,903 259,565,231 Tier I capital 52,556,816 48,193,174 47,403,290 Tier II capital 5,907,285 4,252,593 2,559,284 Total Tier I & II Capital 58,464,101 52,445,767 49,962,574 Capital Adequacy Ratio % Common Equity Tier I 14% 14% 13% Tier I ratio 19% 18% 18% Tier I + Tier II ratio 21% 20% 19% Tier 1 capital is comprised of share capital, statutory reserve, other reserves, retained earnings and Tier 1 Sukuk less treasury shares and other prescribed deductions. Tier 2 capital comprises of Tier 2 sukuk and the prescribed amounts of eligible portfolio collective provisions. 18.1 Treasury Shares The Extraordinary General Assembly Meeting on April 21, 2026 , approved the Employee Stock Incentive Program for which 5 million shares were to be purchased as treasury shares for allocating them to the E mployee Stock Plan. The Bank has completed the purchase of these shares during the period ended September 30, 2026. 18.2 Dividends The Board of Directors approved on July 20, 2026 an interim dividend of SAR 74 6.3 million for the second quarter of 2026 (2025: SAR 746.2 million). This resulted to a net payment of SAR 0. 5 per share to the shareholders of the Bank (2025: SAR 0.60 per share). This has brought the total dividends paid for the period ended September 30, 2026 to SAR 1,493.8 million (2025: 1,492.3 million). The Board of Directors in their meeting held on January 29, 2025 proposed a final 2024 dividend of SAR 746.1 million which was approved in the ordinary general assembly meeting held on April 24, 2025. This resulted to a net payment of SAR 0.30 per share to the shareholders of the Bank. 19. Comparative figures Certain comparative figures have been rearranged or reclassified, wherever necessary, for the purpose of better presentation. 20. Events after the reporting period There have been no events subsequent to the reporting date that would significantly affect the amounts reported in the interim condensed consolidated financial statements as at and for the nine months period ended September 30, 2026. 21. Approval of the financial statements These interim condensed consolidated financial statements were approved by the Board of Directors of the Bank on 9 Jumada Al-Awwal 1448H (corresponding to October 20, 2026).