Saudi banks are expected to report positive financial results in the third quarter of 2020, Al Rajhi Capital said in a recent report.

 

The research firm added that the level of non-performing assets (NPA) will remain unknown even after the release of Q3 2020 financial results.

 

The banking sector witnessed strong growth, which is expected to support the positive performance of banks’ stock prices.

 

Al Rajhi Capital added that the sector is expected to benefit from the excess liquidity after reducing the financing cost.

 

The mortgage market and the implementation of the second phase of the housing program, which will run for five years starting from 2021, will ensure a steady income for the sector.

 

Al Rajhi Capital noted that investors could also factor in the risk that dividends might not be distributed for the whole of 2020, after no dividends were announced for H1 2020.

 

The following table illustrates Al Rajhi Capital’s forecasts for 2020 and 2021:

 

Al Rajhi Capital’s forecasts for Saudi banks’ profit (SAR mln)

Bank 

2020  

(forecast) 

Variation YoY

2021 

(forecast) 

Variation YoY

SAIB

909

+279%

329

(64%)

Albilad

1434

+15%

1632

+14%

Samba

4106

+3%

4291

+5%

Al Rajhi

9546

(6%)

11473

+20%

Riyad

4896

(13%)

4824

(1%)

NCB

9816

(15%)

10256

+4%

Alinma

1915

(24%)

1964

+3%

AlJazira

663

(33%)

930

+40%

BSF

2047

(34%)

2022

(1%)

ANB

1983

(34%)

1744

(12%)

SABB

(4164)

(248%)

2814

--
 
Al Rajhi Capital-Saudi Banks 26/10/2020

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Quotes

ALRAJHI
90.30
0.40 0.44%
ALBILAD
36.85
0.45 1.24%
ANB
20.00
(0.10) (0.50%)
BJAZ
17.90
0.38 2.17%
RIBL
27.90
(0.50) (1.76%)
SAB
32.20
0.30 0.94%
SAMBA
38.50
1.70 4.62%
BSF
32.90
(0.20) (0.60%)
SAIB
14.06
(0.20) (1.40%)
ALINMA
28.20
0.20 0.71%
SNB
32.75
(0.25) (0.76%)


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