Alinma Bank’s Q1 2020 profit hit by high impairment charges: Falcom

Alinma Bank’s Q1 2020 net income slumped 41.9% year-on-year (YoY) to SAR 370.3 million due to a sharp rise in impairment charges and investment revaluation charges, Falcom Financial Services said in a new report.

However, net financing and investment income grew 14.8% YoY to SAR 1.1 billion, it added.

In April 2020, shareholders approved the board's recommendation of a capital increase to SAR 20 billion from SAR 15 billion through a 1-for-3 bonus issue. The capital top-up will be financed through the capitalization of SAR 5 billion from reserves and retained earnings, the brokerage firm said.

Falcom maintained its “neutral” rating for the share, revising the target price to SAR 16 per share.