Alinma Bank’s Q3 sees boost on higher operating income: Al-Bilad Capital

Alinma Bank’s third quarter net profit of SAR 375 million fell in line with Al-Bilad Capital’s estimates of SAR 372 million on the back of mounting operations and operating income, the brokerage firm said in a first-look analysis of the result.

Net special commission income for the first nine months of 2015 surged 10.6 percent, reaching 1.708 billion; and totaling SAR 548 million in third quarter, up 3.6 percent YOY and down 10.2 percent QoQ.

“Alinma Bank has not been influenced by the enforcement of the new consumer financing regulations at the end of Q3-2014, factoring in its small market share in retail operations and the high percentage of corporate loans in its portfolio,” it said.

The brokerage expects a full year dividend per share of SAR 3.1 in 2015E, this dividend will rise in 2016E to 4.4 percent, Al-Bilad Capital added.