Arab National Bank’s Q3 earnings miss expectations, says Riyad Capital

The net income of Arab National Bank in Q3 2019 of SAR 835 million came below analysts’ expectations and market consensus of SAR 898 million and SAR 882 million respectively, Riyad Capital said in a research note.

“NSCI components rose on an annual basis, but fell quarter-on-quarter (QoQ), impacted by the movement in interest rates,” the brokerage firm said.

“Net profit after zakat grew 14 percent on an annual basis, on the dual effect of higher operating incoming and lower Opex, however it was hindered by the quarterly rise in Opex, leading to its decline by 7 percent QoQ,” it further added.

Therefore, the brokerage firm maintained its “Neutral” recommendation towards the share without changing the target price at SAR 24 per share.