Alinma Bank’s Q4 2017 net profit of SAR 560 million came in line with Riyad Capital’s estimate of SAR 557 million, but topped consensus forecasts of SAR 539 million, the brokerage firm said in an earnings review.
The increase was mainly attributed to substantial growth in net financing income and fee income.
Operating expenses, however, increased significantly to SAR 739 million, on the back of higher provisions.
“Alinma continues to grow impressively, however we believe that most positives are incorporated in price,” Riyad Capital added.
The bank is forecast to report a net profit of SAR 2.1 billion this year.
The brokerage firm maintained its “neutral” recommendation on Alinma, and kept the stock’s target price unchanged at SAR 16.00, citing that the valuation premium already incorporates higher growth compared to peers.
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