Al Rajhi Bank’s net profit of SAR 2.6 billion achieved in the second quarter of 2018 was broadly in-line with Aljazira Capital estimate of SAR 2.4 billion.
The research firm attributed higher net income to an increase in net special commission income, fees from banking services and a decline in impairment charge.
It highlighted that the bank showed a strong performance, despite the decline in deposits and loans, adding that the high operating income posted was a result of higher lending rate environment and lower than expected impairment charges.
Aljazira Capital maintained its Overweight recommendation on Al Rajhi Bank, with a target price at SAR 96.4 per share.
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