Riyadh-Mubasher: NBK Capital decreased the fair value of Riyad Bank by 29% to SAR 13.3, with upside potential of 14%. It placed a 'Hold' recommendation on the stock.
The investment arm of National Bank of Kuwait (NBK) attributed the fair value decline to low non-interest income and high cost of risk.
The research firm expected the bank's FY15 earnings to fall by 10% to SAR 3.9 billion, compared with SAR 4.35 billion a year earlier.
The earnings will likely rise by 2.5% to SAR 4 billion in 2016 and 9% to SAR 4.38 billion in 2017, NBK Capital said.
