Al Rajhi Bank’s Q2 2019 results meet expectations, says NCB Cap

30/07/2019 Argaam

 

Al Rajhi Bank’s Q2 2019 net profit of SAR 2.58 billion has come in line with NCB Capital’s expectations of SAR 2.64 billion.

 

“We believe the YoY growth in earnings is largely attributed to NIM expansion, supported by a growth in earning assets,” NCB Capital said in a recent earnings note.

 

The second quarter revenue of SAR 4.86 billion also matched the brokerage firm’s estimates of SAR 4.74 billion. 

 

Revenue growth was offset by higher operating expenses and zakat.

 

Zakat expenses increased nearly threefold to SAR 287 million in Q2 2019 from SAR 94 million a year earlier, compared to the investment bank’s estimate of SAR 294 million 

 

NCB Capital added that it recommended “neutral” rating on the stock, setting its target price at SAR 73.60.

 

“We may revisit our ratings and estimates subject to the change in the interest rate,” the brokerage firm added.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.