Alinma Bank’s net profit beats estimates, says NCBC

Alinma Bank’s net profit of SAR 713 million for Q3 2019, its highest ever quarterly earnings, has beaten NCBC and consensus estimates of SAR 675 million and SAR 680 million, respectively, the research firm said in an earnings review.

“We believe the variance is attributed to higher than expected asset yields which increased c8bps year-on-year (YoY),” the report said.

Revenues stood at SAR1.441 billion in Q3, hitting a record high since Q1 2012.

Loans grew 9.4 percent YoY to SAR 91 billion and deposits rose 11.1 percent YoY to SAR 100 billion, both surpassing the forecast.

NCBC recommended a “Neutral” rating on the stock with a target price of SAR 24.1 per share.

“We believe strong volume growth is the key driver for the stock,” it added.