Alinma Bank Buys Back 5M Shares Worth SAR 122.5M for Staff Plan

Alinma Bank bought back 5 million of its own shares for SAR 122.5 million under an employee share incentive program, the lender said in a filing.

The repurchase, completed after shareholder approval at the bank's general assembly, works out to an average price of SAR 24.50 per share. The shares will be allocated to employees under the ESIP, a structure Saudi-listed banks increasingly use to tie compensation to stock performance.

Alinma's buyback comes as Saudi lenders trade near multi-year highs on the back of strong lending growth and rising net interest margins. The Tadawul All Share Index's banking sub-index has gained roughly 18% over the past 12 months, outpacing the broader market.

For Alinma, the ESIP allocation locks in a portion of employee compensation at current price levels. If the stock continues to rally, the program rewards staff without diluting existing shareholders – the bank bought the shares on the open market rather than issuing new ones.

The repurchase also reduces the float by a small margin, which can provide a modest support level for the stock. At 5 million shares, the buyback represents about 0.3% of Alinma's outstanding shares.

Saudi banks have used similar programs to retain talent in a competitive hiring environment. Al Rajhi Bank and Riyad Bank have both run ESIP allocations in the past two years. The structure avoids the cash outlay of direct bonuses while giving employees a direct stake in the bank's share price performance.

Alinma did not disclose the vesting schedule or the number of employees covered by the program. The bank's shares closed at SAR 24.80 on the day of the filing, up 0.4% on the session.