Itqan Cap maintains ‘Neutral’ on Bank Albilad, sets target price at SAR 33.40

Itqan Capital maintained its “Neutral” recommendation on Bank Albilad, but raised the target price to SAR 33.40 a share.

The higher cost of funds in the coming quarters will put pressure on the net interest margin (NIM), the brokerage said, pointing to the possibility of further extensions to the deferral program for small and medium enterprises (SMEs).

The bank’s fundamentals remain strong, although the net financing income might come under pressure over the coming quarters.