Earnings Report /
Saudi Arabia

Albilad: Volume and NIM growth drive earnings growth; reiterate Neutral

    SNB Capital
    23 October 2019
    Published by

    Bank Albilad (Albilad) reported a net income of SAR327mn (+37.8% yoy, +7.1% qoq) in Q3 19. 

    This is in-line with our estimates of SAR331mn, but higher than the consensus estimate of SAR317mn. 

    It is also the highest net income number since Q1 12. We believe the yoy growth in earnings is attributed to both strong growth in earnings assets and improved asset yields.

    We are Neutral on Albilad with a PT of SAR26.9 as we believe resilient NIMs are priced in. The stock trades at a 2019f PB of 2.0x, higher than peer average of 1.6x.