Bank Albilad posts in-line results in Q2 2019, says NCBC

Bank Albilad reported an in-line set of Q2 2019 results, with net income increasing 14.7 percent year-on-year (YoY) to SAR 305 million, NCB Capital said in a report. 

This is the highest net income since Q1 2012 and compared to NCBC’s estimates of SAR 305 million.

NCBC attributed the YoY growth to a strong growth in earning assets and a rise in asset yields.

Revenues grew 13.8 percent YoY to SAR 959 million, coming broadly in line with estimates.

Loans and advances also grew 13.3 percent YoY to SAR 54 billion, while deposits grew 13.7 percent YoY to SAR 59 billion, both in-line with estimates.

“The outperformance is driven by a strong growth in the mortgage segment given the bank’s retail exposure,” the brokerage noted.

NCBC maintained a ‘Neutral’ recommendation on the stock, but may revisit estimates and ratings subject to the change in interest rates.