Mubasher: The financial statements of Alrajhi Bank came slightly below Albilad Capital’s expectation by 4.4% after the bank reported a net profit of SAR 2 billion in the third quarter of 2016, up 16.7% year-on-year, yet falling 2.1% quarter-on-quarter.
During the nine-month period of 2016, the bank reported net profit of SAR 6.07 billion, a 17.3% increase compared with the same period last year, according to a recent statement issued by Albilad Capital.
The increase in profits was mainly backed by higher operating income by 21.4% YoY as a result of an increase in the net special commission income, in line with a growth in fees income from banking services and other operating income.
“We estimate FY16 operating income at SAR 15,407 million with a bottom line of SAR 8,099 million. Thus, our fair value is SAR 56.00 per share and assigning a “neutral” recommendation,” the statement added.
The bank’s total operating income rose 21.4% YoY, recording SAR 3.87 billion, while increasing 13% for the 9M of 2016.
In the first 9M of 2016, loans increased by 7.6% YoY, reaching SAR 225.8 billion versus SAR 209.9 billion.
“Total assets rose 1.6% YoY reaching SAR 330.5 billion. Moreover, customer deposits increased slightly 0.39% YoY to reach SAR 272.6 billion versus SAR 271.5 billion in the comparable period of last year. Loans increased at a faster pace than deposits growth, as a result loans-to-deposits ratio increased to 83% in Q3 2016 from 77% in Q3 2015.”
