Itqan Capital initiates Bank Aljazira’s coverage with “Neutral” recommendation

16/09/2019 Argaam

 

Itqan Capital has commenced the coverage of Bank Aljazira with a “Neutral” recommendation and a target price of SAR 14.80 per share.

 

The brokerage firm said despite the improvement of the bank revenues and net income, it expects a slowdown in the bank’s performance due to lower interest rate and higher Zakat deduction from net income.

 

“Key growth catalysts for Bank Aljazira include an increase in investment in government sukuk; covering non-performing loans; electronic channels development; and insurance on clients’ portfolios,” the brokerage firm said.

 

“Meanwhile, key risk factors include a decrease in the Repo & Reverse Repo Rates, lack of credit opportunities, and obligation to record Zakat quarterly,” it further added.

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