Al Rajhi Bank Q2 earnings in line with estimates, says Aljazira Cap

Al Rajhi Bank’s net profit of SAR 2.6 billion achieved in the second quarter of 2018 was broadly in-line with Aljazira Capital estimate of SAR 2.4 billion.

The research firm attributed higher net income to an increase in net special commission income, fees from banking services and a decline in impairment charge.

It highlighted that the bank showed a strong performance, despite the decline in deposits and loans, adding that the high operating income posted was a result of higher lending rate environment and lower than expected impairment charges.

Aljazira Capital maintained its Overweight recommendation on Al Rajhi Bank, with a target price at SAR 96.4 per share.