Riyadh-Mubasher: The expected increase in interest rate by the Federal Reserve is positive for Samba Financial Group, NBK Capital said in a recent report.
The research firm forecasted the Federal Reserve to raise interest rate by 25 basis points this month.
NBK Capital set the stock's price target at SAR 27, with upside potential of 24.4% over the current market price of SAR 21.7.
Samba dominates 10% of the total loans and deposits recorded by the local banking sector.
The group will likely show weak performance next year, and then will record strong earnings in 2017, NBK Capital said.
It also expected Samba's profits to rise at a compound annual growth rate (CAGR) of 8.5% from 2014-2019 amid the market's tough conditions.
