Bank Albilad reported a net income of SAR540mn (+26.1% yoy, -0.2% qoq). This is in-line with the SNB Capital and consensus estimates of SAR549mn, SAR536mn, respectively. Total operating income increased by 17.7% yoy (+1.7% qoq) to SAR1.35bn and was marginally higher than our estimates. However, the impact was offset by higher than expected operating expense. Provisioning expense stood at SAR139mn (+14.3% yoy, +5.0% qoq), but was in-line with our estimates. Loan book grew by 9.9% yoy, but decl...
Bank Albilad reported an in-line set of Q3 22 results, with net income increasing by 20.2% yoy (+5.8% qoq) to SAR541mn. This is in-line with the SNB Capital and consensus estimates of SAR533mn and SAR527mn, respectively. The growth in net income was primarily due to higher NSCI, which grew by 13.2% yoy (+4.9% qoq). Loan book remained strong (+12.8% yoy, +1.2% qoq), which we believe is the key highlight of the result. * Revenues increased by 12.9% yoy (5.8% qoq) to SAR1.33bn and were in-line ...
Bank Albilad reported a strong set of Q2 22 results, with net income growing by 22.8% yoy (+4.2% qoq) to SAR511mn. This is higher than the SNB Capital and consensus estimates of SAR485mn and SAR492mn, respectively. The growth in net income was primarily due higher NSCI, which grew by 13.6% yoy (+1.3% qoq). The strong loan book growth (+15.3% yoy, +5.6% qoq) is the key highlight of the result. * Revenue grew by 10.8% yoy (-0.9% qoq) to SAR1.25bn, marginally lower than our estimate of SAR1.31...
We remain Neutral on Bank Albilad with a revised PT of SAR47.7. Strong retail franchise and asset quality are the bank’s key strengths, in our view. Moreover, the focus on the corporate segment, along with rationalization of cost base, is expected to support earnings growth going forward. We project the bank’s net income to deliver 2021-2024f CAGR of 24.0%, increasing ROE to 18.8% by 2024f (14.9% in 2021). However, we believe these positives are priced-in. The stock is trading at 2022f P/B of...
BANK ALBILAD (SA), a company active in the Money Center Banks industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 4 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Positive. As of the analysis date January 25, 2022, the closing price was SAR 56...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
LOAN BOOK SURGE DRIVES IN-LINE RESULTS Bank Albilad reported a strong set of Q2 21 results, with net income increasing by 30.8% yoy (+5.9% qoq) to SAR416mn. This is in-line with the SNB Capital and consensus estimates of SAR420mn. The growth in net income was primarily driven by lower impairment expenses (-6.8% yoy, -20.0% qoq). The strong growth in the loan book (+21.9% yoy, +4.8% qoq) in Q2 21 is a key highlight of the results. · Revenues grew 13.2% yoy (flat qoq) to SAR1.13bn, but were low...
Bank Albilad reported a strong set of Q1 21 results, with net income growing by 45.5% yoy (4.1% qoq) to SAR393mn. This is higher than NCBC estimates of SAR369mn, but in-line with consensus estimates. The variance was primarily due to lower than expected operating expense with cost to income ratio declining to 46% in Q1 21 vs our estimates of 48%. The strong growth in the loan book (20.9% yoy; 7.7% qoq) in Q1 21 is a key highlight of the results. * We highlight that the bank has reclassified ...
Bank Albilad’s reported a net income of SAR378mn for Q4 20, up +15.4% yoy (-1.3% qoq) to SAR378mn. This is lower than the NCBC and consensus estimates of SAR402mn and SAR409mn, respectively. The variance is primarily due to higher impairment expense, with the cost of risk coming in at 1.0% (vs our estimates of 0.9%). The strong growth in the loan book (+18.3% yoy and +3.5% qoq) in Q4 20 is a key highlight of the results. Based on last update in March 2020, we are Neutral on Albilad with a PT ...
Summary Alawwal Bank - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Alawwal Bank (Alawwal), formerly known as Saudi Hollandi Bank, is a provider of banking and other related financial solutions. It provides a range of retail, corporate, treasury and investment ba...
Bank Albilad (Albilad) reported a better than expected set of results in Q3 20, with a net income of SAR383mn compared to SAR327mn in Q3 19 and SAR354mn in Q2 20. This is higher than the NCBC and consensus estimates of SAR316mn and SAR286mn, respectively. We believe the variance is attributed to higher than expected NSCI. L/D ratio for Q3 20 stood at 98.4%, driven by a +20.2% yoy increase in loans. We are Neutral on Albilad with a PT of SAR21.1. Albilad trades at a 2021f PB of 1.7x, higher th...
Bank Albilad (Albilad) reported a strong set of Q2 20results, with a net income of SAR318mn. This is higher than the NCBC and consensus estimates of SAR275mn and SAR249mn, respectively. We believe the variance is attributed to 1) strong growth in NSCI and 2) lower than expected provisions. Major highlights of the results also include 1) strong loan growth of +21.1% yoy, 2) lower of cost of funds and 3) tight liquidity position. Revenues grew +4.2% yoy to SAR1.0bn, marginally lower than our es...
Negative sentiment, but positive signals overlooked. A number of negative developments erupted over the past year, triggering selling pressure, leaving most of our Saudi banks coverage close to one-year lows. These include: i) the IMF cutting 2019e GDP growth to 0.2% from 1.9%, ii) Fitch downgrading Saudi’s credit rating by one notch, iii) the strike on Aramco’s facilities in Sep-19, and iv) oil prices stabilising at relatively lower levels (
Post the first cut in rates in over a decade, the US Fed interest rate outlook has changed. Markets now expect at least another 25bps rate cut by the end of 2019. We expect rate cuts to create earnings headwinds for Saudi banks, but better than expected asset spreads should soften the impact. Nevertheless, considering the cost of risk adjustment, we lower our combined EPS estimates by 3-12% over 2019-23f.
Bank Albilad (Albilad) reported an in-line set of Q2 19 results, with net income increasing 14.7% yoy (+6.9% qoq) to SAR305mn. This is the highest net income since Q1 12 and compares with NCBC estimates of SAR305mn (pre-Zakat SAR338mn). We believe the yoy growth is attributed to a strong growth in earning assets and a rise in asset yields.
Time to rotate into UAE banks. Monetary policy will likely shift from a support to a drag for GCC banks, with the US Fed widely expected to cut rates this week. This could limit appetite for the most highly-rated markets such as Saudi and Kuwait banks (Figure 5). Potential easing of foreign ownership limits in the UAE could drive passive inflows that have been the principal price drivers in the region in recent years. UAE banks are also typically less aggressively priced than their neighbours (T...
We initiate coverage on Bank Albilad with a Neutral rating and a PT of SAR25.9. We forecast the bank to deliver a five-year earnings CAGR of 15.2% (one of the highest in our universe), driven by volume growth and a declining cost of risk. This would mitigate the impact of muted margin expansion given the bank low surplus deposits. We believe the strong earnings momentum is priced in at current levels and the stock is fairly valued at 2019f PB of 2.1x, given its higher than industry average ROE o...
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