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....
The general evaluation of SAMBA FINANCIAL GROUP (SA), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date March 9, 2021, the closing pr...
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...
2020 global GDP is likely to decline by 3.0%,according to IMF, and the UN estimates 81% of the world’s workers are facing workplace restrictions. In this environment, banks’ loan books face a material deterioration. With the on-the-ground situation evolving rapidly, we employ sensitivity analyses and stress-testing to identify the best-positioned banks. Asset quality deterioration is likely to be broad-based. In the initial stages of the coronavirus outbreak we thought certain sectors (such ...
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.
Samba reported a weak set of Q2 19 results, with net profit declining -24.7% yoy to SAR935mn. This compares to NCBC’s estimates of SAR1.29bn. Despite revenues being in-line with our expectations, we believe higher operating expense (including provisioning) led to the disappointment. We are Neutral on Samba, as lower interest rates pose a key risk to our valuations. We will revisit our estimates once full financials are released.
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...
The implementation date for the third tranche of the inclusion of the Saudi market into the FTSE index series is 24 June 2019, (with a closing price date of 20 June 2019). To recap, the Saudi market is projected to have a weight of 3.0% in the FTSE Emerging All Cap index and 0.30% in the FTSE Global Equity index. Saudi’s addition to the FTSE Emerging All Cap index is expected to result in total inflows of cSAR22.2bn (cUS$5.9bn) mainly from passive funds. The third tranche represents 25% (i.e. ...
2019: an inflection year for Samba. Changes to the bank’s BoD in Jan-19 triggered a management reshuffle and shift to a more aggressive lending strategy. This should reflect positively on the bank’s operations, allowing the stock to rerate, with further support from improved transparency, as management finally opened up to the investment community. Trading multiples are attractive, with 2019e P/B of 1.8x, on sustainable RoE of 15% vs. 1.9x and 14.2%, respectively, for Saudi peers. Higher appeti...
We initiate coverage on Saudi Banks with a positive view as we believe the sector’s turnaround is well underway. The sector is likely to benefit from macro-economic recovery and increasing NIMs. Supply side remains strong with high capitalisation and stable low-cost deposits. The sector is also a play on 1) Saudi’s Vision 2030 transformation and 2) Tadawul’s inclusion in emerging market indices. We prefer banks that will structurally benefit from higher interest rates and relatively health...
FINANCIAL INSTITUTIONS ISSUER PROFILE 30 October 2017 TABLE OF CONTENTS Company overview 1 Financial highlights 2 Business description 3 Distribution channels 4 Ownership structure 5 Subsidiaries 5 Company management 6 Company history 6 Peer group
FINANCIAL INSTITUTIONS CREDIT OPINION 22 September 2017 Update RATINGS Samba Financial Group Domicile Saudi Arabia Long Term Debt Not Assigned Long Term Deposit A1 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the ratings section  at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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