- Bank Al-Jazira reported a significant increase in net income for the second quarter of 2025, reaching 382.1 million riyals, a 20% year-over-year increase.
- This net income figure surpassed estimates, which were set at 356.5 million riyals.
- Operating income for the quarter was 1.10 billion riyals, marking a 22% increase compared to the previous year.
- Pretax profit also surged by 22%, amounting to 436.1 million riyals.
- Impairments increased substantially to 97 million riyals, compared to 40.2 million riyals in the same quarter last year.
- Operating expenses rose by 13%, reaching 574.1 million riyals.
- The bank attributed the rise in income to an 8% increase in income from investments and financing activities.
- Higher net fees from banking services, net exchange income, and dividend income contributed positively to the results.
- However, the bank reported lower net gains on certain financial instruments, as well as on derecognition of financial assets at both amortized cost and fair value through other comprehensive income.
- Investment recommendations for the bank include 0 buy, 7 hold, and 0 sell ratings, indicating a collective holding position among analysts.
A look at Bank Al-Jazira Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Bank Al-Jazira holds a strong position in the market with an overall positive outlook based on the Smartkarma Smart Scores. The company scores well in value, indicating that it offers good value for investors. However, its dividend score is lower, which may not be as attractive for income-focused investors. In terms of growth, resilience, and momentum, Bank Al-Jazira scores moderately, suggesting steady growth potential, a resilient business model, and stable momentum in the market.
Overall, Bank Al-Jazira, a company that attracts deposits and provides various commercial banking services, shows promise for long-term investment, particularly for those seeking value and growth opportunities while considering a balanced approach to dividend yield. With its diverse range of services including lease financing, foreign exchange, and asset management, Bank Al-Jazira appears well-positioned to continue its growth trajectory amidst a competitive banking landscape.
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.
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