Bank Albilad’s Q1 matches estimates on higher deposits: Riyad Cap

Bank Albilad reported net income of SAR 256 million (up 12 percent YoY and 13 percent QoQ), almost matching Riyad Capital’s SAR 252 million forecast but above market consensus of SAR 246 million, the research firm said in an earnings review.

“Albilad continues to improve its bottom-line as net financing and investment income increased on the back of higher gross financing income, despite the high funding cost,” the report said.

The bank continues to undergo aggressive growth both in deposits and financing as well as elevated provisioning, it added.

Bank Albilad also managed to grow its deposit base and financing portfolio despite a subdued growth in the sector overall. Net financing jumped by SAR 2.2 billion while deposits increased by SAR 3 billion.

Deposits of SAR 50.8 billion were close to Riyad Capital’s expectations of SAR 49.8 billion.

Total income came in at SAR 791 million, up 15 percent YoY and in-line with SAR 805 million forecast.

“We raise our target price from SAR 19 to SAR 23 but maintain a ‘neutral’ recommendation on the stock,” Riyad Capital said.