Banque Saudi Fransi Q1 beat estimates as income rises: Riyad Capital

Banque Saudi Fransi (BSF) reported net profit of SAR 1.11 billion in Q1 2018 beating Riyad Capital and consensus estimates of SAR 1.01 billion and SAR 998 million, respectively, the financial advisory firm said in an earnings review on Thursday.

"The modest annual increase in profitability resulted from higher net special commission income (NSCI), despite lower other income and higher operating expenses," it said.

BSF added SAR 2.1 billion in investments and SAR 1.9 billion in net loans, but deposits dropped by SAR 9.0 billion leading to an expansion in LDR to 86 percent.

Deposits followed the general sector trend and dropped substantially to reach SAR 141.9 billion, trailing Riyad Capital's forecast of SAR 150.5 billion.

Net loans increased to SAR 123.9 billion, in-line with the firm's forecast of SAR 123.3 billion. Net special commission income rose 13 percent year-on-year to SAR 1.26 billion, meeting the brokerage’s estimates of SAR 1.22 billion.

Riyad Capital downgraded its rating to "neutral" but maintained the target price at SAR 35 per share.