Banque Saudi Fransi’s Q2 profit misses forecast: Alistithmar Cap

Banque Saudi Fransi’s (BSF) second quarter net profit of SAR 1.048 billion was below estimates set by Alistithmar Capital, the brokerage firm said in a report.

The bank’s loans-to-deposit ratio which recently grew to 93 percent from 88 percent is not expected to remain at this high level due to a drop in deposits, the firm added.

The bank’s loans portfolio is also expected to decline as it mainly consists of short-term loans.

Alistithmar maintained its ‘accumulate’ rating on BSF stock but cut the per share’s target price to SAR 29 from SAR 32.

Banque Saudi Fransi reported a net profit of SAR 2.13 billion for the first half of 2016, a 3 percent year-on-year (YoY) increase that was attributed to a rise in total operating income, driven by higher net special commission income.