Alinma Bank : Q2 (english interim condensed consolidated financial statements june 2025)

Alinma Bank

(A Saudi Joint Stock Company)

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Classification: Private

FOR THE SIX MONTHS PERIOD ENDED June 30, 2025

CONTENTS OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2 / 36

AUDITORS' REVIEW 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 10

4. Investments, net 13

5. Derivative financial instruments 15

6. Financing, net 16

7. Due to SAMA, banks and other financial institutions 18

8. Customers' deposits 18

9. Commitments and contingencies 19

10. Cash and cash equivalents 20

11. Tier 1 Sukuk 20

12. Operating segments 21

13. Earnings per share 23

14. Fair values of financial assets and liabilities 23

15. Other reserves 28

16. Financial Risk Management 29

17. Related party balances and transactions 33

18. Capital and capital adequacy 35

19. Comparative figures 36

20. Events after the reporting period 36

    Classification: Private

21. Approval of the financial statements 36

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

ricewaterhouseCoopers Public Accountants rofessional Limited Liability Company)

R No. 1010371622, Share Capital SR 500,000,

ational Address: 2239 AI Urubah Road, AI Olaya District, Postal Code 12214 Secondary No. 9597, Riyadh, Kingdom of Saudi Arabia, Physical Address: Kingdom Tower 24th Floor

T: [phone], F: [phone],

https://www.pwc.com/middle-east

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 30 June 2025, and the related interim condensed consolidated statements of income and comprehensive income for the three-month and six-month periods then ended, and the related interim condensed consolidated statements of changes in equity and cash flows for the six-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 ofInterim 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.

Other matter

The consolidated financial statements for the year ended 31 December 2024 and the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2024 were jointly audited and reviewed by another joint auditor, who expressed an unmodified audit opinion and an unmodified review conclusion on 7 Sha'ban 1446 H (corresponding to 6 February 2025) and 7 Safar 1446 H (corresponding

to 11 August 2024) respectively.

KPMG P

ces Company

PricewaterhouseCoopers

Khalil Ibrahim Al Sedais

Certified Public Accountant

License number 371

(05 Safar

(30 July

1447H)

2025)

Mufaddal A. Ali

Certified Public Accountant License number 447

‌INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

‹Lwa?1l

olinmb

	Notes	June 30, 2025 (Unaudited) SAR '000	December 31, 2024 (Audited) SAR '000	June 30, 2024 (Unaudited) SAR '000
ASSETS
Cash and balances with Saudi Central Bank (SAMA)		14,547,008	13,849,670	13,875,424
Due from banks and other financial institutions, net		4,799,647	4,510,142	3,323,900
Investments held at fair value through statement of income (FVSI)	4	3,504,561	3,142,665	3,000,291
Investments held at fair value through
other comprehensive income (FVOCI)	4	14,579,971	13,750,818	13,405,079
Investments held at amortized cost, net	4	33,506,373	31,681,460	29,994,876
Investments in associate and joint ventures	4	48,591	50,267	230,339
Positive fair value of derivatives	5	412,179	505,417	301,171
Financing, net	6	218,596,197	202,308,094	189,911,986
Property, equipment and right of use assets, net		3,786,817	3,400,866	3,019,412
Other assets		3,435,098	3,628,082	3,075,963
TOTAL ASSETS		297,216,442	276,827,481"	260,138,441
LIABILITIES AND EQUITY
LIABILITIES
Due to SAMA, banks and other financial institutions	7	11,253,297	13,936,256	7,650,515
Customers' deposits	8	229,944,244	210,544,650	205,356,595
Negative fair value of derivatives	5	260,963	436,626	259,403
Amount due to Mutual Funds' unitholders		121,887	114,557	132,529
Other liabilities		10,861,499	10,353,617	6,702,087
TOTAL LIABILITIES		252,441,890	235,385,706	220,101,129
EQUITY
Share capital		25,000,000	25,000,000	25,000,OOO
Treasury shares		(180,957)	(203,958)	(205,216)
Statutory reserve		4,836,346	4,836,346	3,378,431
Other reserves	15	(72,189)	(129,404)	(94,450)
Retained earnings		4,565,402	3,188,291	3,207,047
Equity attributable to the shareholders of the Bank		34,148,602	32,691,275	31,285,812
Tier 1 Sukuk	11	10,625,950	8,750,500	8,751,500
TOTAL EQUITY		44,774,552	41,441,775	40,037,312
TOTAL LIABILITIES AND EQUITY		_ 297,216,442	276,827,481	260,138,441

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

Chief Financial Officer

Authorized Board Member

‌INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)

xLx»ilI

olinmb

For the three months

period ended

For the six months

period ended

June 30, June 30, June 30, June 30,

2025 2024 2025 2024

Notes SAR'000 SAR '000

SAR '000

SAR '000

Income from investments and financing	4,254,356	3,961,712		8,371,938 7,760,554
Return on time investments	(1,982,512)		(1,810,955)		(3,817,139)		(3,597,841)
Income from investments and financing, net	2,271,844		2,150,757		4,554,799		4,162,713
Fee from banking services - income	834,077		726,799		1,578,421		1,428,926
Fee from banking services - expense	(368,005)		(322,594)		(732,665)		(630,364)
Fees from banking services, net	466,072		404,205		845,756		798,562
Exchange income, net	97,520		102,605		189,364		179,518
Income from FVSI financial instruments, net	92,033		78,096		141,358		141,811
Gain from FVOCI sukuk investments, net	25				25		911
Dividend income on FVOCI equity investments	10,729		8,181		18,056		16,600
Other operating income	8,405		1,888		10,922		10,118
Total operating income	2,946,628		2,745,732		5,760,280		5,310,233
Salaries and employee related expenses		450,929	408,197	895,968		821,080
Rent and premises related expenses		18,627	18,584	37,234		37,068
Depreciation and amortization		103,974	87,400	204,364		174,381
Other general and administrative expenses		343,721	319,892	684,587		635,074
Operating expenses before impairment charges		917,251	834,073	1,822,153		1,667,603
Impairment charge on financing, net of recoveries	16	274,199	319,813	500,145		585,988
Impairment charge on other financial assets	16	7,064	6,787	7,436		5,046
Total operating expenses		1,198,514	1,160,673	2,329,734		2,258,637
Net operating income		1,748,114	1,585,059	3,430,546		3,051,596
Share of loss from associate and joint ventures		(615)	(S,643)	(1,676)		(6,303)
Net income for the period before zakat		1,747,499	1,579,416	3,428,870		3,045,293
Zakat for the period		(174,244)	(162,849)	(347,606)		(313,992)
Net income for the period after zakat		1,573 255	1,416 56_7	3,081,264		2 731,301
Basic and diluted earnings per share (SAR)	13	0.61	0.55	1.15		1.06

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

Chief Finan ial Officer

Managing Director and CEO Authorized Board Member

2/ 36

‌‹La:»ill

olinmb

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

For the three months For the six months period ended eeriod ended
		June 30,	June 30,	June 30,	June 30,
		2025	2024	2025	2024
Notes		SAR '000	SAR '000	SAR '000	SAR '000
Net income for the period aher zakat		1,573,255	1,416,567	3,081,264	2,731,301
Other comprehensive income / (loss):
Items that cannot be recycled back to interim condensed consolidated statement oJ income in subsequent periods
Net change in fair value of FVOCI equity investments 15		(49,343)	(41,638)	(71,823)	57,965
Share of joint venture's other comprehensive income 15			2,425		2,425
Items that can be recycled back to interim
condensed consolidated statement oJ income in
subsequent periods
Net change in fair value of FVOCI sukuk investments	15	(55,116)	(19,830)	81,801	(114,571)
Gain onsaleofFVOClsukuk investments	15	(25)		(25)	(911)
Cash flow hedge:
Effective portion of change in the fair value of cash
flow hedge	15	7,760	(10,430)	75,153	(21,386)
Net amounts transferred to interim condensed
consolidated statement of income	15	6,994	8,776	14,739	8,776
Total other comprehensive (loss) / income		(89,730)	(60,697)	99,845	(67,702)
Total comprehensive income for the period		_ 1,483,525	1,355,870_	3,181,109	2,663;599

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

Chief Financial Officer Managing Director and CEO Authorized Board Member

‌INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)

				3,081,264	3,081,264		3,081,264
			(71,823)		(71,823)		(71,823)
			81,801		81,801		81,801
			(25)		(25)		(25)
			89,892		89,892		89,892

FOR THE SIX MONTHS PERIOD ENDED JUNE 30,

xLw»i1II olinmb

2025 Notes Share	Treasury	Other Total equity Tier 1 Statutory reserves Retained attributable Sukuk Total
SAR '000 capital	shares	reserve (note 15) earnings to the (Note 11) equity
Balance at the beginning of the period 25,000,000	(203,958)	shareholders 4,836,346 (129,404) 3,188,291 32,691,275 8,750,500 41,441,775

Net income for the period after zakat Net change in fair value of FVOCI equity investments 15 Net change in fair values of FVOCI sukuk
investments	15
Gain on sale of FVOCI sukuk investments	15
Cash flow hedge	15
Total comprehensive income					99,845	3,081,264	3,181,109		3,181,109
Transfers to retained earnings on disposal of
FVOCI equity investments	15				1,435	(1,435)
Tier 1 Sukuk costs	11					(221,921)	(221,921)		(221,921)
Issuance of Tier 1 sukuk	11					(6,435)	(6,435)	1,875,450	1,869,015
Final dividends paid for 2024	18.1					(746,145)	(746,145)		(746,145)
Interim dividends paid for 2025	18.1					(746,160)	(746,160)		(746,160)
Employee share based plans and other reserve movements	15		23,001	-	(44,065)	17,943	(3,121)	-	(3,121)
Balance at the end of the period		25,000,000	(180,957)	4,836,346	(72,189)	4,565,402	34,148,602	10,625,950	44,774,552

ing Director and CEO

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

.........-... ........ ........ :.... .

Authorized Board Member

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, (Continued)

xLx›11l

olinmb

2024

SAR'000

Notes

Share

capital

Proposed Treasury Statutory Other Retained issue of shares reserve reserves earnings bonus

(note 15) shares

Total equity

attributable to the shareholders

Tier 1

Sukuk

Total

equity

Balance at the beginning of the period

20,000,000 (225,611) 3,378,431 62,359

1,118,422 5,000,000 29,333,601 5,000,000 34,333,601

Net income for the period after zakat Net change in fair value of FVOCI equity

investments

Net change in fair values of FVOCI sukuk investments

Gain on sale of FVOCI sukuk investments Cash flow hedge

Share of a joint venture's other comprehensive income

Total comprehensive income Issuance of bonus shares

Transfers to retained earnings on disposal of

FVOCI equity investments

15

				2,731,301		2,731,301		2,731,301
	-		57,965			57,965		57,965
	-	-	(114,571)			(114,571)		(114,571)
	-		(911)			(911)		(911)
-			(12,610)			(12,610)		(12,610)
-	-		2,425			2,425		2,425

15

15

15

15

18.2 5,000,000

15

(67,702) 2,731,301

- (5,000,000)

(85,979) 85,979

2,663,599

2,663,599

Tier 1 Sukuk costs Issuance of Tier 1 sukuk

Interim dividends paid for 2024 EmploYee share based plans and other

reserve movements

Balance at the end of the period

11

11

18.1

15

(100,000)

(10,847)

(621,371)

20,395 - (3,128) 3,563

25,000,000 (205,216) 3,378,431 (94,450) 3,207,047

(100,000) (100,000)

(10,847) 3,751,500 3,740,653

(621,371) (621,371)

- 20,830 - 20,830

- 31,285,812 8,751,500 40,037,312

. .- .. ..

.. .... - -

Chief Financ al Officer

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

Managing Director and CEO Authorized Board Member

‌INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30,

‹Lx»ifil olinmb

OPERATING ACTIVITIES

Net income for the period before zakat

Adjustments to reconcile income for the period before zakat to net cash from

operating activities:

Notes

2025

FAR 0›

3,428,870

2024

SAR '000

3,045,293

Depreciation and amortization		204,364	174,381
(Gain) / loss on disposal of property and equipment, net		(898)	4,427
Unrealized gain from FVSI financial instruments, net		(75,897)	(50,901)
Gain from sukuk investments held at amortized cost		(1,090)
Gain from FVOCI sukuk investments, net		(25)	(911)
Fair value adjustment to derivatives		(82,425)	(7,760)
Dividend income on FVOCI equity investments		(18,056)	(16,600)
Impairment charge on financing, net of recoveries	16	500,145	585,988
mpairment charge on other financial assets	16	7,436	5,046
Recoveries of previously written-off accounts	16	113,268	41,459
Unwinding of deferred payment program modification loss		(4,375)	(7,614)
Unwinding of fair value impact of SAMA deposits			5,016
Employees share based plans reserve	15	34,539	32,279
Share of loss from associate and joint ventures		1,676	6,303
		4,107,532	3,816,406
Net (increase) / decrease in operating assets: Statutory deposit with Saudi Central Bank		(595,789)	(1,430,053)
Due from banks and other financial institutions with original maturity of more than
three months		(7,S68)	22,415
Investments held at FVSI		(285,999)	(261,544)
Financing		(17,540,928)	(16,924,916)
Other assets		182,056	(565,978)
Net increase / (decrease) in operating liabilities:
Due to SAMA, banks and other financial institutions		(2,682,959)	214,269
Customers' deposits		19,399,594	17,456,014
Other liabilities		1,439,891	153,623
Financing cost on lease liability		(9,688)	(7,300)
Net cash from operating activities before Zakat paid		4,006,142	2,472,936
Zakat Paid, net of refund		(666,208)	(556,318)
Net cash from operating activities		3,339,934	1,916,618
INVESTING ACTIVITIES
Purchases of investments held at FVOCI		(945,465)	(784,940)
Purchases of investments held at amortized cost		(1,996,083)	(5,986,494)
Purchases of investment in joint venture			(218,579)
Proceeds from sales and maturities of investments held at FVOCI		126,290	750,965
Proceeds from sales and maturities of investments held at amortized cost		173,670	3,096,887
Purchase of property and equipment		(424,665)	(268,531)
Proceeds from disposal of property and equipment		1,122	1,208
Dividends received from FVOCI equity investments		24,263	16,600
Net cash used in investing activities		(3,040,868)	(3,392,884)

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

Managing Director and CEO Authorized Board Member

" " " """ """"""*""""" """" "" " """""""

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

FOR THE SIX MONTHS PERIOD ENDED JUNE 30, (Continued)

	2025	2024
Notes
		SAR '000
	SAR '000

FINANCING ACTIVITIES
Proceeds for the issuance of Tier 1 Sukuk, net of related costs	11	1,869,015	3,740,653
Payment for Tier 1 Sukuk costs		(221,921)	(100,000)
Cash payment for principal portion of lease liability		(70,347)	(51,602)
Dividend paid		(1,492,305)	(621,371)
Net cash from financing activities		84,442	2,967,680
Net change in cash and cash equivalents		383,508	1,491,414
Cash and cash equivalents at beginning of the period		6,408,581	5,172,847
Cash and cash equivalents at end of the period	10	6,792,089	_ 6,664,261
Income received from investments and financing		7,718,865	7,371,661
Return paid on time investments		3,867,019	3,407,565
Supplemental non-cash information:
Right-of-use assets		(165,816)	(40,153)
Lease liabilities		95,527	(8,914)
Net change in fair value of FVOCI investments		(9,978	_ 56,606

The accompanying notes from 1 to 21 form an integral part of these interim condensed consolidated financial statements.

Managing Director and CEO Authorized Board Member

7/36

‌NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 2025

1. ‌General

   1. 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 121 branches (June 30, 2024: 112 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 t he Cayman Islands:

      Subsidiaries Bank's

      Ownership

      Commercial Registration Date

      Main Activities

      Alinma Capital Company	100%	07 Jumada - II 1430H (corresponding to May 31, 2009)	Asset management, custodianship, advisory, underwriting and brokerage services.
      Al-Tanweer Real Estate	100%	24 Sha'aban 1430H	Formed principally to hold legal
      Company		(corresponding to August 15,	title of properties financed by the
      		2009)	Bank.
      Saudi Fintech Company	100%	28 Dhul Hijiah 1440H (corresponding to August 29,	Provide financial technology products and services to the Bank
      		2019)	and others.
      Esnad Company	100%	24 Ramadan 1440H (corresponding to May 29,	To provide outsourced staff to the Bank.
      		2019)
      Alinma SPV Ltd	100%	22 Jumada - II 1443H	Engage and execute financial
      		(corresponding to January 25, 2022)	derivatives transactions and repurchase agreements with
      			international banks.
      TechStrike Company	100%	19 Sha'aban 1446H (corresponding to Feb 18,	Provide technology products and services to the Bank.
      		2025)

      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 June 30, 2025: 92.8% (December 31, 2024: 92.9%; June 30, 2024: 92.3%)	January 22, 2020	January 22, 2020	To invest in a basket of local sovereign Sukuks issued by the Kingdom of Saudi Arabia.
      Alinma IPO Fund	As at June 30, 2025:	April 26, 2015	January 1,	To achieve capital
      	54.3% (December 31, 2024: 54.9%, June 30,		2020	appreciation over the long term by investing mainly in
      	2024: 63.6%)			Saudi joint stock companies.

      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 period ended June 30, 2025.

      The objective of the Bank is to provide a full range of banking and investment services through 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.

   2. 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 Saudi 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, 2024.

   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.

   1. 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.

   2. 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.

   3. 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 subsidiaries 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 indirectly, 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 eliminated in preparing these interim condensed consolidated financial statements.

3. ‌Summary of material accounting policies and estimates

   1. Significant accounting estimates and assumptions

      In preparing these 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, 2024.

   2. Material accounting policies

      The accounting policies 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, 2024, except for the adoption of new standards effective as of January 1, 2025, which is explained below. The Bank has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

   3. Adoption of new standards

      Below amendment to accounting standards and interpretations became applicable for annual reporting periods commencing on or after January 1, 2025 and does not have an impact on the interim condensed consolidated financial statements of the Bank:

      Standard, interpretation, amendment

      Description Effective date

      Amendment to IAS 21 -

      Lack of exchangeability

      IASB amended IAS 21 to add requirements to help in determining whether a currency is exchangeable into another currency, and the spot exchange rate to use when it is not exchangeable. Amendment set out a framework under which the spot exchange rate at the measurement date could be determined using an observable exchange rate without adjustment or another estimation technique.

      January 1, 2025

   4. Prospective changes in the International Financial Reporting Standards

In addition, below are the amendments to accounting standards and interpretations which will become applicable for annual reporting periods commencing on or after January 1, 2026:

Standard, interpretation, amendments

Amendments to IFRS 10 and IAS 28- Sale or

Description Effective date

Partial gain or loss recognition for transactions between an investor and its associate or joint venture only apply to the gain or loss resulting

Contribution of Assets between an Investor and its Associate or Joint Venture

from the sale or contribution of assets that do not constitute 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

Under the amendments, certain financial assets including those with

ESG-linked features could now meet the SPPI criterion, provided that Amendments to IFRS 9 their cash flows are not significantly different from an identical financial

Financial Instruments

and IFRS 7 Financial Instruments: Disclosures

asset without such a feature.

January 1, 2026

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.

Standard, interpretation, amendments

IFRS 18, Presentation

Description Effective date

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

and Disclosure in

Financial Statements

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, Reducing subsidiaries` 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

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.

‌4.	Investments, net
			June 30,	December 31,	June 30,
			2025 (Unaudited)	2024 (Audited)	2024 (Unaudited)
		Notes	SAR '000	SAR '000	SAR '000
	Held at FVSI	4.1	3,504,561	3,142,665	3,000,291
	Held at FVOCI	4.2	14,579,971	13,750,818	13,405,079
	Held at Amortized Cost		33,522,124	31,698,621	30,014,620
	Less: Allowance for impairment	4.3	(15,751)	(17,161)	(19,744)
	Held at Amortized Cost, net		33,506,373	31,681,460	29,994,876
	Investment in an associate	4.4	46,550	46,550	-
	Investment in joint ventures	4.5	2,041	3,717	230,339
	Investment in associate and joint ventures		48,591	50,267	230,339
	Total		51,639,496	48,625,210	46,630,585
4.1		Held at FVSI
	June 30, 2025 (Unaudited)		SAR '000 Domestic International Total
	Equities		119,590	131,671	251,261
	Sukuk		62,000	15,734	77,734
	Funds		1,399,451	1,776,115	3,175,566
	Total		1,581,041	1,923,520	3,504,561
	December 31, 2024 (Audited)		SAR '000 Domestic International Total
	Equities		117,844	108,243	226,087
	Sukuk		61,318	15,642	76,960
	Funds		1,280,723	1,558,895	2,839,618
	Total		1,459,885	1,682,780	3,142,665
	June 30, 2024 (Unaudited)		SAR '000 Domestic International Total
	Equities		108,612	122,156	230,768
	Sukuk		61,937	15,635	77,572
	Funds		1,407,103	1,284,848	2,691,951
	Total		1,577,652	1,422,639	3,000,291

1. Held at FVOCI

   June 30, 2025 (Unaudited)

   SAR '000

   Domestic International Total

   Sukuks	12,315,642	1,509,705	13,825,347
   Equities	748,327	6,297	754,624
   Total	13,063,969	1,516,002	14,579,971

   December 31, 2024 (Audited)

   SAR '000

   Domestic International Total

   Sukuks	11,497,815	1,425,607	12,923,422
   Equities	821,224	6,172	827,396
   Total	12,319,039	1,431,779	13,750,818
   SAR '000
   June 30, 2024 (Unaudited)
   	Domestic	International	Total
   Sukuks	11,260,497	1,342,222	12,602,719
   Equities	796,164	6,196	802,360
   Total	12,056,661	1,348,418	13,405,079

   The Bank holds SAR 4,372 million (December 31, 2024: SAR 3,578 million, June 30, 2024: SAR 3,475 million) in investment in Tier 1 sukuk out of the total FVOCI sukuk investments.

2. As at June 30, 2025, December 31, 2024 and June 30, 2024, all investments held at amortized cost are classified as Stage 1 credit exposures.

3. Investment in an associate represents the Bank's share of investment of 20.25% (December 31, 2024: 20.25%, June 30, 2024: 99.9%) in Alinma Fund for Private Equity Investments. This Fund was established on February 27, 2020 and was acquired by the Bank on December 18, 2023 by owning 99.9% of its units. The main purpose of the Fund was to hold the ordinary shares representing 50% ownership of International Water Distribution Company ("Tawzea") received by the Bank as part of a financing settlement agreement from one of its customers. At initial recognition, the Fund was treated as a subsidiary of the Bank and its ownership in Tawzea was accounted in the Bank's consolidated financial statements as an investment in joint venture. On December 31, 2024, the Bank reduced its ownership in the Fund to 20.25% which resulted to the Bank losing control and its reclassification as an investment in an associate.

4. Investment in joint ventures represent the Banks's share of ownership in the following entity:

Company name Bank's Ownership Paid-up share capital

ERSAL Financial Remittance Company

(a joint venture between the Bank and Saudi Post)

As at June 30, 2025: 50%

(December 31, 2024: 50%, June

30, 2024: 50%)

SAR 50 million

1. ‌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 risk, which is generally limited to the positive fair value of the derivatives, if any, nor market risk.

   		SAR '000
   June 30, 2025 (Unaudited)	Positive fair value	Negative fair value	Total notional amount
   Held for trading:
   Profit rate swaps	340,965	256,030	38,016,765
   Foreign exchange forward contracts	3,595	2,467	2,930,748
   Foreign exchange swaps	673	89	3,189,416
   Held as cash flow hedges:
   Profit rate swaps	66,946	2,377	5,201,000
   Total	412,179	260,963	49,337,929
   		SAR '000
   December 31, 2024 (Audited)	Positive fair	Negative fair	Total notional
   	value	value	amount
   Held for trading:
   Profit rate swaps	483,599	390,663	31,938,466
   Foreign exchange forward contracts	9,343	8,477	2,919,587
   Foreign exchange swaps	-	2,051	937,601
   Held as cash flow hedges:
   Profit rate swaps	12,475	35,435	4,551,000
   Total	505,417	436,626	40,346,654
   		SAR '000
   June 30, 2024 (Unaudited)	Positive fair value	Negative fair value	Total notional amount
   Held for trading:
   Profit rate swaps	294,356	238,154	21,141,316
   Foreign exchange forward contracts	1,991	887	540,994
   Held as cash flow hedges:
   Profit rate swaps	4,824	20,362	2,501,000
   Total	301,171	259,403	24,183,310

2. ‌Financing, net

   June 30, 2025

   (Unaudited)

   Performing Non-performing

   SAR '000

   Gross Allowance for impairment (note 6.1)

   Financing, net

   Retail	53,805,776	483,623	54,289,399	(628,471)	53,660,928
   Corporate	166,848,836	2,300,229	169,149,065	(4,213,796)	164,935,269
   Total	220,654,612	2,783,852	223,438,464	(4,842,267)	218,596,197

   December 31, 2024 (Audited)

   Performing Non-performing

   SAR '000

   Gross Allowance for impairment (note 6.1)

   Financing, net

   Retail	49,977,831	502,404	50,480,235	(648,220)	49,832,015
   Corporate	153,907,091	1,679,832	155,586,923	(3,110,844)	152,476,079
   Total	203,884,922	2,182,236	206,067,158	(3,759,064)	202,308,094

   June 30, 2024

   (Unaudited)

   Performing Non-performing

   SAR '000

   Gross Allowance for impairment (note 6.1)

   Financing, net

   Retail	44,698,564	427,226	45,125,790	(573,394)	44,552,396
   Corporate	147,341,276	1,091,254	148,432,530	(3,072,940)	145,359,590
   Total	192,039,840	1,518,480	193,558,320	(3,646,334)	189,911,986

   Below tables show the stage-wise breakdown of gross exposure and allowance for impairment of financing:

   June 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

   628,471

   339,380

   67,126

   52,467,659 1,338,117 483,623 54,289,399 221,965

   Retail

   Total 208,337,990 12,316,622 2,783,852 223,438,464 847,740 2,035,148 1,959,379 4,842,267

   Corporate 155,870,331 10,978,505 2,300,229 169,149,065 625,775 1,968,022 1,619,999 4,213,796

   December 31, 2024 (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	48,522,099	1,455,732	502,404	50,480,235	216,715	81,692	349,813	648,220
   Corporate	144,064,196	9,842,895	1,679,832	155,586,923	583,623	1,675,928	851,293	3,110,844
   Total	192,586,295	11,298,627	2,182,236	206,067,158	800,338	1,757,620	1,201,106	3,759,064

   June 30, 2024 (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	43,880,504	818,060	427,226	45,125,790	241,153	77,449	254,792	573,394
   Corporate	137,672,436	9,668,840	1,091,254	148,432,530	570,837	2,016,356	485,747	3,072,940
   Total	181,552,940	10,486,900	1,518,480	193,558,320	811,990	2,093,805	740,539	3,646,334

   1. Movement in allowance for impairment of financing

      June 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	62,515	(49,278)	(13,237)	-
      Transfer to life time ECL, not credit impaired	(28,640)	30,399	(1,759)	-
      Transfer to life time ECL, credit impaired	(1,213)	(21,802)	23,015	-
      Net charge for the period	14,740	318,209	924,251	1,257,200
      Write-off	-	-	(173,997)	(173,997)
      Balance as at June 30, 2025	847,740	2,035,148	1,959,379	4,842,267

      December 31, 2024 (Audited)

      SAR '000

      12-month ECL

      Lifetime ECL not credit impaired

      Lifetime ECL credit impaired

      Total

      Opening allowance at January 1, 2024	685,932	1,716,359	2,030,410	4,432,701
      Transfer to 12-month ECL	85,110	(55,287)	(29,823)	-
      Transfer to life time ECL, not credit impaired	(25,241)	34,178	(8,937)	-
      Transfer to life time ECL, credit impaired	(3,042)	(85,533)	88,575	-
      Net charge for the period	57,579	147,903	585,778	791,260
      Write-off	-	-	(1,464,897)	(1,464,897)
      Balance as at December 31, 2024	800,338	1,757,620	1,201,106	3,759,064

      June 30, 2024 (Unaudited)

      SAR '000

      12-month ECL

      Lifetime ECL not credit impaired

      Lifetime ECL credit impaired

      Total

      Opening allowance at January 1, 2024	685,932	1,716,359	2,030,410	4,432,701
      Transfer to 12-month ECL	50,582	(25,783)	(24,799)	-
      Transfer to life time ECL, not credit impaired	(11,639)	13,671	(2,032)	-
      Transfer to life time ECL, credit impaired	(1,201)	(64,656)	65,857	-
      Net charge for the period	88,316	454,214	102,058	644,588
      Write-off	-	-	(1,430,955)	(1,430,955)
      Balance as at June 30, 2024	811,990	2,093,805	740,539	3,646,334

3. ‌Due to SAMA, banks and other financial institutions

   June 30,

   2025

   December 31,

   2024

   June 30,

   2024

   (Unaudited) (Audited) (Unaudited)

   		SAR '000	SAR '000	SAR '000
   Placements by SAMA	7.1	2,659,044	7,395,877	2,751,192
   Time investments from banks and other financial institutions		8,129,079	5,810,299	4,462,448
   Current accounts		465,174	730,080	436,875
   Total		11,253,297	13,936,256	7,650,515

   1. This balance included profit free deposits received from SAMA with gross amount of SAR 509.3 million as of June 30, 2024, with varying maturities in order to support the Bank in its implementation of various regulatory relief packages given by the government in response to COVID-19. These deposits have all matured during the year ended December 31, 2024.

4. ‌Customers' deposits

   		June 30, 2025 (Unaudited)	December 31, 2024 (Audited)	June 30, 2024 (Unaudited)
   	Note	SAR '000	SAR '000	SAR '000
   Demand		102,788,153	95,253,337	91,940,335
   Savings		11,813,249	11,643,387	10,144,030
   Customers' time investments	8.1	113,424,363	101,805,095	101,503,276
   Others		1,918,479	1,842,831	1,768,954
   Total		229,944,244	210,544,650	205,356,595

   1. This represents Murabaha and Mudaraba deposits from customers.

5. ‌Commitments and contingencies

   1. The Bank's credit related commitments and contingencies are as follows:

      	June 30, 2025 (Unaudited)	December 31, 2024 (Audited)	June 30, 2024 (Unaudited)
      	SAR '000	SAR '000	SAR '000
      Letters of credit	6,010,639	3,392,930	4,302,805
      Letters of guarantee	20,219,043	21,548,974	20,938,360
      Acceptances	1,075,895	1,203,262	1,182,316
      Irrevocable commitments to extend credit	13,468,607	15,181,257	10,122,660
      Total	40,774,184	41,326,423	36,546,141

   2. Other liabilities include provision for credit-related commitments and contingencies of SAR 467.8 million as at June 30, 2025 (December 31, 2024: SAR 1,111.5 million; June 30, 2024: SAR 638.7 million).

   June 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	(1,579)	1,579	-	-
   Transfer to life time ECL, credit impaired	-	(5)	5	-
   Net reversal for the period	(2,631)	(208,406)	(432,750)	(643,787)
   Balance as at June 30, 2025	41,778	330,380	95,604	467,762

   December 31, 2024 (Audited)

   	12-month ECL	Lifetime ECL not credit impaired	Lifetime ECL credit impaired	Total
   		SAR '000
   Opening allowance at January 1, 2024	40,469	402,016	213,378	655,863
   Transfer to life time ECL, not credit impaired	(26)	26	-	-
   Transfer to life time ECL, credit impaired	(22)	(50,101)	50,123	-
   Net charge for the period	5,534	185,304	264,848	455,686
   Balance as at December 31, 2024	45,955	537,245	528,349	1,111,549

   June 30, 2024 (Unaudited)

   	12-month ECL	Lifetime ECL not credit impaired	Lifetime ECL credit impaired	Total
   		SAR '000
   Opening allowance at January 1, 2024	40,469	402,016	213,378	655,863
   Transfer to 12-month ECL	20	(20)	-	-
   Transfer to life time ECL, not credit impaired	(50)	50	-	-
   Transfer to life time ECL, credit impaired	-	(3,850)	3,850	-
   Net (reversal) / charge for the period	(5,188)	14,910	(26,863)	(17,141)
   Balance as at June 30, 2024	35,251	413,106	190,365	638,722

6. ‌Cash and cash equivalents

   Cash and cash equivalents included in the interim condensed consolidated statement of cash flows comprise the following:

   June 30,

   2025

   December 31,

   2024

   June 30,

   2024

   (Unaudited) (Audited) (Unaudited)

   	SAR '000	SAR '000	SAR '000
   Cash in hand	2,175,340	1,947,985	2,213,139
   Balances with SAMA excluding statutory deposits	338,379	464,185	1,242,937
   Due from banks and other financial institutions maturing within ninety days from the date of acquisition	4,278,370	3,996,411	3,208,185
   Total	6,792,089	6,408,581	6,664,261

7. ‌Tier 1 Sukuk

   On July 1, 2021, the Bank through a Shariah compliant arrangement issued Tier 1 Sukuk of SAR 5 billion with a profit rate of 4% payable on quarterly basis.

   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.

   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 certain 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.

8. ‌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 31 December 2024.

   The Bank's reportable segments are as follows:

   1. Retail banking

      Financing, deposit and other products/services for individuals.

   2. Corporate banking

      Financing, deposit and other products and services for corporate, SME and institutional customers.

   3. Treasury

      Investments, interbank and other treasury services.

   4. 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.

   Following is an analysis of the Bank's assets, liabilities, income and results by operating segments:

   June 30, 2025 (Unaudited)

   Investment

   SAR '000	Retail	Corporate	Treasury	and brokerage	Total
   Total assets	52,466,228	164,935,269	75,802,838	4,012,107	297,216,442
   Total liabilities	147,970,214	41,219,633	62,921,186	330,857	252,441,890
   Income from investments and
   financing	4,007,735	2,208,307	2,092,343	63,553	8,371,938
   Return on time investments	(1,597,166)	(831,606)	(1,387,769)	(598)	(3,817,139)
   Income from investments and
   financing, net	2,410,569	1,376,701	704,574	62,955	4,554,799
   Fees from banking services and
   other operating income	249,684	177,102	278,244	500,451	1,205,481
   Total operating income	2,660,253	1,553,803	982,818	563,406	5,760,280
   Depreciation and amortization	163,918	26,180	9,954	4,312	204,364
   Other operating expenses	967,658	338,721	91,619	219,791	1,617,789
   Charge for credit impairment	14,001	486,760	2,715	4,105	507,581
   Total operating expenses	1,145,577	851,661	104,288	228,208	2,329,734
   Net operating income	1,514,676	702,142	878,530	335,198	3,430,546
   Share of loss from associate and
   joint ventures	-	-	(1,676)	-	(1,676)
   Net income for the period before zakat	1,514,676	702,142	876,854	335,198	3,428,870

   June 30, 2024 (Unaudited)

   Investment

   SAR '000	Retail	Corporate	Treasury	and brokerage	Total
   Total assets	43,430,343	145,359,590	67,890,726	3,457,782	260,138,441
   Total liabilities	129,436,216	36,791,360	53,727,622	145,931	220,101,129
   Income from investments and financing	3,722,999	2,237,347	1,742,870	57,338	7,760,554
   Return on time investments	(1,416,487)	(808,789)	(1,372,565)	-	(3,597,841)
   Income from investments and
   financing, net	2,306,512	1,428,558	370,305	57,338	4,162,713
   Fees from banking services and other operating income	217,907	180,197	273,511	475,905	1,147,520
   Total operating income	2,524,419	1,608,755	643,816	533,243	5,310,233
   Depreciation and amortization	140,674	17,889	12,741	3,077	174,381
   Other operating expenses	791,830	331,792	183,491	186,109	1,493,222
   Charge for credit impairment	77,442	509,343	3,929	320	591,034
   Total operating expenses	1,009,946	859,024	200,161	189,506	2,258,637
   Net operating income	1,514,473	749,731	443,655	343,737	3,051,596
   Share of loss from an associate and joint venture	-	-	(6,303)	-	(6,303)
   Net income for the period before
   zakat	1,514,473	749,731	437,352	343,737	3,045,293

   June 30, 2025 (Unaudited)

   SAR '000 Other information:	Retail	Corporate	Treasury	Investment and brokerage	Total
   Revenue from:
   - External	184,968	4,999,716	12,190	563,406	5,760,280
   - Inter-segment	2,475,285	(3,445,913)	970,628	-	-
   Total operating income	2,660,253	1,553,803	982,818	563,406	5,760,280

   SAR '000

   June 30, 2024 (Unaudited)

   Investment

   Other information: Retail Corporate Treasury

   and

   brokerage

   Total

   Revenue from:
   - External	112,621	4,850,210	(185,841)	533,243	5,310,233
   - Inter-segment	2,411,798	(3,241,455)	829,657	-	-
   Total operating income	2,524,419	1,608,755	643,816	533,243	5,310,233

9. ‌Earnings per share

   Basic and diluted earnings per share are calculated by dividing the net income adjusted for Tier 1 Sukuk costs by the weighted average number of outstanding shares which were 2,487 million shares at June 30, 2025 (June 30, 2024: 2,485 million shares). The diluted earnings per share is the same as the basic earnings per share.

10. ‌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 all instruments for which the valuation technique include 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 June 30, 2025, December 31, 2024 and June 30, 2024, 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.

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

June 30, 2025 (Unaudited)	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value
Financial assets held as FVSI
- Equities	187,352	-	63,909	251,261
- Sukuk	62,000	15,734	-	77,734
- Mutual funds	647,643	1,808,236	719,687	3,175,566
Financial assets held as FVOCI
- Equities	727,297	-	27,327	754,624
- Sukuk	5,530,144	8,295,203	-	13,825,347
Positive fair value of derivatives
- Held for trading	-	345,233	-	345,233
- Held for cash flow hedges	-	66,946	-	66,946
Total	7,154,436	10,531,352	810,923	18,496,711
Financial liabilities measured at fair value
Negative fair value of derivatives
- Held for trading	-	258,586	-	258,586
- Held for cash flow hedges	-	2,377	-	2,377
Total	-	260,963	-	260,963

		SAR '000
December 31, 2024 (Audited)	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value
Financial assets held as FVSI
- Equities	168,270	-	57,817	226,087
- Sukuk	61,318	15,642	-	76,960
- Mutual funds	563,311	1,591,304	685,003	2,839,618
Financial assets held as FVOCI
- Equities	800,194	-	27,202	827,396
- Sukuk	4,715,304	8,208,118	-	12,923,422
Positive fair value of derivatives
- Held for trading	-	492,942	-	492,942
- Held for cash flow hedges	-	12,475	-	12,475
Total	6,308,397	10,320,481	770,022	17,398,900
Financial liabilities measured at fair value
Negative fair value of derivatives
- Held for trading	-	401,191	-	401,191
- Held for cash flow hedges	-	35,435	-	35,435
Total	-	436,626	-	436,626
		SAR '000
June 30, 2024 (Unaudited)	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value
Financial assets held as FVSI
- Equities	187,951	-	42,817	230,768
- Sukuk	61,937	15,635	-	77,572
- Mutual funds	431,959	1,619,223	640,769	2,691,951
Financial assets held as FVOCI
- Equities	775,134	-	27,226	802,360
- Sukuk	4,193,504	8,409,215	-	12,602,719
Positive fair value of derivatives
- Held for trading	-	296,347	-	296,347
- Held for cash flow hedges	-	4,824	-	4,824
Total	5,650,485	10,345,244	710,812	16,706,541
Financial liabilities measured at fair value
Negative fair value of derivatives
- Held for trading	-	239,041	-	239,041
- Held for cash flow hedges	-	20,362	-	20,362
	-	259,403	-	259,403

Reconciliation of Level 3 fair values

The following table shows reconciliation from the opening balances to the closing balances for Level 3 fair values:

SAR '000

June 30, 2025 (Unaudited) Financial assets

held as FVSI

Financial assets held as FVOCI

Balance at January 1, 2025	742,820	27,202
Additional / new investments	80,732	135
Capital return and disposals during the period	(78,913)	(10)
Net change in fair value (unrealized)	38,957	-
Balance at June 30, 2025	783,596	27,327

SAR '000

December 31, 2024 (Audited) Financial assets

held as FVSI

Financial assets held as FVOCI

Balance at January 1, 2024	663,892	24,839
Additional / new investments	149,817	2,455
Capital return and disposals during the period	(25,437)	(92)
Net change in fair value (unrealized)	(45,452)	-
Balance at December 31, 2024	742,820	27,202

SAR '000

June 30, 2024 (Unaudited) Financial assets

held as FVSI

Financial assets held as FVOCI

Balance at January 1, 2024	663,892	24,839
Additional / new investments	7,677	2,407
Capital return and disposals during the period	(3,305)	(20)
Net change in fair value (unrealized)	15,322	-
Balance at June 30, 2024	683,586	27,226

There were no transfers between Level 1, 2 and 3 during the period.

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
June 30, 2025 (Unaudited)	Carrying value	Fair value
ASSETS
Due from banks and other financial institutions	4,799,647	4,798,639
Investments - Murabaha with SAMA, gross	1,793,494	1,797,587
Sukuks - Amortized Cost, gross	31,728,630	31,124,377
Financing, net	218,596,197	218,678,395
LIABILITIES
Due to SAMA, banks and other financial institutions	11,253,297	11,255,180
Customers' deposits	229,944,244	230,070,415
SAR '000
December 31, 2024 (Audited)	Carrying value	Fair value
ASSETS
Due from banks and other financial institutions	4,510,142	4,518,324
Investments - Murabaha with SAMA, gross	1,771,552	1,775,870
Sukuks - Amortized Cost, gross	29,927,069	29,090,466
Financing, net	202,308,094	202,392,193
LIABILITIES
Due to SAMA, banks and other financial institutions	13,936,256	13,960,074
Customers' deposits	210,544,650	210,665,693
SAR '000
June 30, 2024 (Unaudited)	Carrying value	Fair value
ASSETS
Due from banks and other financial institutions	3,323,900	3,325,696
Investments - Murabaha with SAMA, gross	2,146,353	2,154,935
Sukuks - Amortized Cost, gross	27,868,267	27,623,085
Financing, net	189,911,986	190,045,611
LIABILITIES
Due to SAMA, banks and other financial institutions	7,650,515	7,661,842
Customers' deposits	205,356,595	205,382,424