Al Rajhi Bank’s third-quarter net profit of SAR 2.26 billion, topped Albilad Capital’s estimate of SAR 2.21 billion and consensus forecasts of SAR 2.20 billion.
Operating income gained driven by a rise in net special income, loan growth, a benign interest climate, along with a growth of 2.2 percent in fees and commission income, Albilad Capital said in an earnings review Tuesday.
Total operating expenses dropped by 8.4 percent year-on-year.
“Looking ahead to the December quarter, we expect that Al Rajhi Bank's positive performance will continue, driven by growth in the retail banking sector,” the brokerage firm added.
Albilad Capital added that Al Rajhi’s recent concentration on real estate sector and the interest-rate hikes should help loan growth, as well as lift net interest income further to a new level.
The brokerage firm maintained its “neutral” rating for the stock with a price target of SAR 67.25.
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