Alinma Bank’s Q4 2018 net profit of SAR 661 million came in line with Riyad Capital and consensus estimates of SAR 682 million, the brokerage firm said in an earnings review.
The profit increase came mainly on the back of lower opex, since total operating income was flat year-on-year (YoY), it noted.
However, the modest quarterly growth in profitability was salvaged by non-core income, in-spite of lower net financing and investment income and higher opex.
Alinma added SAR 714 million to net financing during the quarter to reach SAR 84 billion. Deposits rose by a mere SAR 260 million to remain at SAR 90 billion.
Non-core income rose 43 percent quarter-on-quarter to SAR 320 million, but was down three percent YoY.
Riyad Capital recommended a "neutral" rating on the stock, raising its target price to SAR 24 a share.
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