Equity Analysis /
Saudi Arabia

BJAZ: Mortgage to drive growth, CoR is a key concern

  • BJAZ net income grew by 77.1% yoy to SAR322mn in Q1 21 while NIMs improved from 2.6% in Q1 20 to 3.0%

  • Despite a provision of SAR1.57bn in 2020 (CoR 3.0%), NPL ratio remains high (2.2% in 2020 and 2.5% in Q1 21)

  • We maintain our Neutral rating on BJAZ with a PT of SAR20.6

SNB Capital
9 June 2021
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