Al Rajhi Bank reported a net income of SAR 2.57 billion, up 14 percent year-on-year (YoY), but flat quarter-on-quarter (QoQ) in Q3 2018, in-line with Riyad Capital's forecasts of SAR 2.63 billion and consensus of SAR 2.61 billion, the brokerage said in its earnings review.
Al Rajhi's strong profitability was driven by improved total income on the back of higher net financing as well as investments income and better non-core income YoY.
"The stock offers a 5.8 percent expected dividend yield, which is attractive to income investors. We maintain a target price of SAR 91.00 and a Neutral rating," the brokerage said.
Al Rajhi managed to reverse the downward trend in net financing, raising it by SAR 5.5 billion to SAR 234 billion, close to Riyad Capital's forecast.
Deposits added SAR 8.4 billion, as opposed to last quarter’s decline of SAR 3.6 billion, to reach SAR 289 billion.
Comments
{{DisplayName}}
{{ElapsedTime}}