- Arab National Bank reported a second-quarter profit of 1.34 billion riyals, beating estimates of 1.26 billion riyals, reflecting an 8.5% increase year-on-year.
- Operating income was 2.59 billion riyals, surpassing the estimated 2.48 billion riyals, representing an 11% rise year-on-year.
- Impairments rose by 29% year-on-year, amounting to 216 million riyals.
- Pretax profit grew by 8.1% year-on-year to 1.56 billion riyals, exceeding the estimated 1.49 billion riyals.
- Operating expenses increased by 13% year-on-year to 831 million riyals.
- Total assets increased by 14% year-on-year to 268.98 billion riyals, far exceeding the estimated 227.29 billion riyals.
- Investments grew by 11% year-on-year, reaching 54.31 billion riyals.
- Net loans increased by 15% year-on-year, totaling 186.48 billion riyals, slightly above the estimated 184.42 billion riyals.
- Total deposits also rose by 15% year-on-year, reaching 201.74 billion riyals, slightly above the estimated 200.18 billion riyals.
- A 9.76% increase in special commission income was mainly attributed to higher net loans and advances, as well as an increase in the net investments portfolio.
- The bank reported an increase in dividend income, net fee and commission income, net exchange income, and net gains on FVSI financial instruments.
- Premises-related expenses were reported to be lower.
- Analyst ratings include 11 buys, 1 hold, and 1 sell.
A look at Arab National Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Arab National Bank is positioned favorably for the long term, with high Smart Scores across key factors. With top marks in both Value and Dividend scores, the bank demonstrates strong fundamentals and a commitment to rewarding investors. Additionally, scoring well in Growth, Resilience, and Momentum signals a balanced approach to future prospects, indicating potential for sustained growth and stability.
As a leading financial institution that attracts deposits and provides a wide range of banking services, Arab National Bank‘s high Smart Scores are reflective of its robust value proposition and strategic positioning in the market. With a focus on delivering solid returns, maintaining financial health, and capitalizing on growth opportunities, the bank appears well-equipped to navigate the evolving landscape of the banking sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
