Bank Albilad’s Q2 profit in line with estimates, says Falcom

Bank Albilad’s net profit for Q2 2018 at SAR 276 million was in line with market estimates, Falcom Financial Services said in an earning review.

The brokerage firm maintained its “underweight” rating on the bank’s stock citing the recent increase in interest rates by the Saudi Arabian Monetary Authority (SAMA).

Falcom expects further increase in interest rates, which could have an adverse impact on Bank Albilad’s capital adequacy ratio, the report said.

The financial advisory firm lifted Albilad’s per share target price to SAR 22.8 from SAR 19.20 on strong performance in H1.

An “underweight” rating by Falcom indicates that the fair market valuation of the stock is 10 percent below its current value.