Riyadh-Mubasher: Bank AlJazira is expected to report net earnings of SAR 750 million for the fiscal year 2016, with earnings per share of nearly SAR 1.9, said Alistithmar Capital in a recent report.
The lender recorded SAR 159 million in net earnings during the fourth quarter of 2015, a fall of 20% from SAR 199 million in the same period of 2014.
The profit decline was attributable to an 18% increase in operating expenses, the research firm said.
The 9% deposit fall will likely raise the financial leverage, and thus the cost of lending would increase gradually.
The research firm recommended 'Buy' on the stock, setting the fair value at SAR 20, with upside potential of nearly 56%.
