Alinma Bank’s Q1 in line with estimates, says Albilad Cap

Alinma Bank reported a net profit of SAR 421 million in Q1-2017, up 7.7 percent year-on-year (YoY) and 7.9 percent quarter on quarter (QoQ), in line with Albilad Capital’s estimates of SAR 430 million, the brokerage said in a recent note.

The rise was driven by strong growth in net special commission income, which jumped 33 percent YoY and 12 percent QoQ.

“With the recent positive changes in economy, we believe that liquidity level and consumer spending will increase after King Salman restored allowances, financial benefits, and bonuses for state employees. This would enhance the bank’s growth in the near future”, the investment arm of Bank Albilad said.

Albilad Cap maintained stock’s target price at SAR 15.38 and recommended a “Neutral” rating.