Arab National Bank’s (ANB) net profit of SAR 684 million in Q4 2018 missed Riyad Capital and consensus estimates of SAR 814 million and SAR 777 million, respectively.
The year-on-year (YoY) improvement in profitability was due to better total operating income on the back of higher NSCI, despite the drop in non-core income and an increase in operating expenses.
Loans rose by SAR 549 million to reach SAR 121 billion, following the addition of SAR 7.4 billion in the past two quarters, harmonizing the brokerage's estimate.
The bank's managed deposit base grew by SAR 10.1 billion in Q4, while net loan rose by SAR 549 million, leading to a sharp decline in LDR to 85 percent.
ANB surpassed its record performance last quarter in terms of NSCI and reached a new high of SAR 1.36 billion, almost matching Riyad Capital's estimate of SAR 1.35 billion.
Non-core income was down 20 percent YoY to SAR 309 million, missing the brokerage's SAR 350 million estimate due to lower gains on non-trading investments and other operating income.
Riyadh Capital maintained its "neutral" rating on the stock, setting its target price at SAR 36 a share.
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