Summary The Saudi Investment Bank - Company Profile and SWOT Analysis, 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 The Saudi Investment Bank (SAIB) is a provider of conventional and Shariah-compliant wholesale, retail, and commercial banking solutions. The bank's primary activities encompass a broad spectr...
BJAZ reported a strong set of results with a net income of SAR244mn (+6.5% yoy, +4.7% qoq). Higher than the SNB Capital estimates of SAR201mn but in-line with the consensus estimate of SAR239mn. The total operating income of SAR was in-line with our estimate SAR821mn (-8.3% yoy) was in-line with our estimates. The deviation was due to lower operating and provisioning costs. The key positives of the result are healthy loan growth of 13.1% yoy (+4.3% qoq) to SAR70.6bn, which was higher than our...
BJAZ reported a weak set of Q3 22 earnings. Net profit increased by 13.8% yoy (-9.7% qoq) to SAR SAR233mn (up 13.8% yoy, down 9.7% qoq), it was significantly lower than the SNB Capital and consensus estimates of SAR281mn and SAR288mn, respectively. The drag on the earnings came from higher operating expense (ex-provisioning), which increased by 15.3% yoy (+6.1% qoq) to SAR503mn and was much higher than our estimate of SAR434mn. Adjusting for Tier 1 sukuk, net income stood at SAR230mn in Q3 22...
BJAZ reported a weak set of Q2 22 results. Although net income increased by 2.6% yoy (-31.2% qoq) to SAR258mn, it was lower than the SNB Capital and consensus estimates of SAR373mn and SAR350mn, respectively. The deviation was due to a decline in NSCI, which fell by 5.6% yoy (-14.9% qoq). Lower provisioning (-74.9% yoy; -57.9% qoq) provided some respite to the bottom-line. * Revenues fell by 2.6% yoy (-18.2% qoq) to SAR807mn and were much lower than our estimate of SAR1,061mn. NSCI decreased...
We remain Neutral on BJAZ with a revised PT of SAR26.3. As the bank is adequately capitalized and have comfortable liquidity position, we believe BJAZ is well positioned to capture new opportunities through its strategy to improve product offerings to better suit its target market. Optimizing its cost base should also improve profitability, in our view. We remain conservative with our estimates and expect a 2021-24f earnings CAGR of 22.7%, resulting in ROE of 13.6% by 2024f. The bank trades a...
BJAZ reported a strong set of Q1 22 results with a net income of SAR375mn, up 16.6% yoy (+63.9% qoq). This is higher than the SNB Capital and consensus estimates of SAR262mn and SAR282mn, respectively. The deviation is due to 1) higher than expected fee and other income, 2) lower provisioning expense and 3) lower effective zakat rate. Their loan book increased by 14.7% yoy (+1.3% qoq) to SAR63.3mn, but was lower than the loan growth announced by other peers. We believe this is a key concern o...
BANK ALJAZIRA SJSC (SA), a company active in the Money Center Banks industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 4 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date March 1, 2022, the closing price was SAR 26.90 and its expected value was estimated ...
BJAZ reported a mixed set of Q3 21 results, with a net income of SAR205mn (+12.6% yoy, -18.6% qoq). This compares to the SNB Capital and consensus estimates of SAR237mn and SAR256mn, respectively. Revenues came in at SAR878mn (+8.2% yoy, +6.0% qoq) and were higher than our estimates. However, higher operating costs impacted earnings, with the cost-to-income ratio increasing to 55% in Q3 21 vs 54% and 53% in Q3 20 and Q2 21, respectively. The loan book grew by 7.9% yoy to SAR58.4bn and was in ...
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....
Bank Aljazira’s (BJAZ) net income increased 51.5% yoy (-21.9% qoq) to SAR251mn in Q2 21. However, it was significantly lower than the SNB Capital and consensus estimates of SAR313mn and SAR376mn, respectively. The variance was primarily due to lower fee and other income (SAR197mn vs our estimate of SAR249mn). The key positives of the results were 1) limited provisioning expense which has been a concern for the previous two quarters and 2) lower cost of funding which compensated for the signif...
We maintain our Neutral rating on Bank Aljazira (BJAZ) with a PT of SAR20.6. The bank is amongst the main beneficiaries of the on-going mortgage growth given its retail tilt. However, credit quality may keep cost of risk elevated in the near-term which we believe is a key concern. We estimate the bank to deliver earnings CAGR of c17% during 2021-2025f, driven by better asset utilization and gradual ROE improvement from 9.8% in 2021f to 14.2% in 2025f. The stock trades at 2021f PB of 1.2x vs t...
Bank Aljazira (BJAZ) reported a strong set of results with a net income of SAR322mn, up 77.1% yoy (net loss of SAR495mn in Q4 20). This compares with the NCBC and consensus estimates of SAR153mn and SAR206mn, respectively. The variance was due to a combination of 1) better NIMs, 2) higher fee and other income and 3) lower than expected provisioning expenses. Based on the last update published in March 2020, we are Neutral on BJAZ with a PT of SAR11.2. Since then, the stock recorded a strong r...
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 AlJazira (BJAZ) reported a net income of SAR166mn, in-line with the NCBC and consensus estimates of SAR169mn and SAR170mn, respectively. The earnings are down -34.2% yoy (-8.7% qoq). The earnings decline is primarily attributed to higher provisioning, which diluted the impact of +10.5% yoy (+2.7% qoq) increase in total revenue. We estimate cost of risk to be c1.3% in Q2 20, vs our estimates of 1.2% and 0.1% in Q2 19. Loan growth of +23.3% yoy (+3.4% qoq) was the key highlight of the resu...
We upgrade Bank AlJazira (BJAZ) to Overweight with a PT of SAR16.2. BJAZ’s enhanced capitalisation is a key growth driver, which would allow the bank to improve the utilization of its existing franchise. We believe dividend growth is a key advantage of the bank, with yields increasing from 3.7% in 2018 to 5.1% in 2019f and reaching 8.4% by 2023f. The stock trades at an attractive 2020f P/B of 1.0x, lower than the peer average of 1.8x.
Bank Al-Jazira (BJAZ) reported an in-line set of results in Q3 19, with net income increasing by +3.9% yoy (+2.0% qoq) to SAR257mn. This is the highest net income since Q1 12. We believe the yoy growth in earnings is attributed to strong growth in earnings assets and fee income. Revenues grew 12.6% yoy to SAR750mn, coming in-line with our estimates. BJAZ trades at a 2019f PB of 0.9x vs peer average of 1.6x.
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.
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 AlJazira (BJAZ) with a Neutral rating and a PT of SAR17.1. BJAZ’s enhanced capitalisation is a material positive, which would allow the bank to improve the utilisation of its existing franchise. Nonetheless, we expect post zakat ROEs (12.4% by 2023f from 7.9% in 2019f) to remain below those of the peer group, given the bank’s elevated cost base. Cost of risk is also expected to remain high, due to higher Stage 2 loans. Hence, BJAZ trading at 2019f PB of 1.1x, a d...
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