- Saudi Awwal Bank reported a higher than expected profit of 2.04 billion riyals in Q1, a 16% increase year on year. Analysts had estimated profits would amount to 1.9 billion riyals.
- The Bank’s operating income also exceeded estimates with a total of 3.45 billion riyals, a 7.1% increase from the previous year. The estimate was 3.42 billion riyals.
- Earnings Per Share (EPS) was 0.96 riyals, compared to an estimate of 0.92 riyals and a previous year EPS of 0.86 riyals.
- Impairments significantly decreased by 65% to 81 million riyals.
- Pretax profit increased by 17% to 2.35 billion riyals, outpacing estimates of 2.2 billion riyals.
- The bank’s assets increased by 12% to 369.61 billion riyals, significantly higher than the estimated 306.82 billion riyals.
- Investments saw a small increase of 1.1% bringing the total to 91.96 billion riyals.
- Net loans increased by 20% to 228.54 billion riyals, beating an estimate of 222.36 billion riyals.
- Total deposits grew by 11% compared to the previous year to 251.76 billion riyals.
- Gross special commission income rose by 28% primarily due to interest rate hikes and loan volume growth.
- The increase in operating income is attributed to an increase in net special commission income, net fee and commission income, and exchange income.
- There were noted increases in losses on amortised cost investments.
- The bank saw increased expenses due to higher salaries, employee-related expenses, and depreciation and amortisation.
- Analysts’ responses to the Saudi Awwal Bank‘s financial performance varied, with twelve buying, two holding, and none selling.
A look at Saudi Awwal Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
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
According to Smartkarma Smart Scores, Saudi Awwal Bank shows a promising long-term outlook based on its strong scores. The bank excels in areas such as value, growth, dividend, and momentum, showcasing robust performance across key factors. With top scores in value and growth, Saudi Awwal Bank demonstrates a solid foundation for potential profitability and expansion. Moreover, its solid dividend and momentum scores indicate consistent returns and positive market sentiment.
Saudi Awwal Bank, operating as a bank with a wide range of financial services, including wealth management, investment, and corporate banking, serves customers globally. The bank’s strong scores in key areas like value and growth reflect its potential for sustained success in the long term. Additionally, with competitive dividend and momentum scores, Saudi Awwal Bank appears well-positioned to deliver returns to its investors while maintaining positive performance in the market.
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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