Bank Albilad’s Q4 profit in line with estimates: Riyadh Cap

Bank Albilad’s net profit for Q4 2018 at SAR 291 million was in line with Riyad Capital's estimates of SAR 300 million, but exceeded consensus estimates of SAR 276 million.

"The bank achieved this result despite lower non-core income and higher opex, as it grew its net financing and investment income," it said in an earning review.

Deposits rose by SAR 2.6 billion quarter-on-quarter to SAR 57.2 billion, meeting the brokerage's expectations.

Overall, deposits in the sector have increased by SAR 24.6 billion. Due to the larger increase in deposits, loan-deposit ratio edged down from 88 percent last quarter to 85 percent, the note said.

However, Bank Albilad managed to break above the SAR 1 billion net income level for the first time since inception, registering SAR 1.11 billion for 2018. The strong performance came on the back of higher SAIBOR rates and the continuous growth in the bank’s financing and deposits.

Riyad Capital recommended a "neutral" rating on the stock, setting the target price at SAR 26 a share.