Riyadh – Mubasher: Alinma Bank is expected to report a 10% profit increase to SAR 2.77 billion in 2019, according to a recent report released by Aljazira Capital.

The research firm revised the target price (TP) of Alinma Bank to SAR 26.8 per share with a “neutral” recommendation.

Alinma Bank’s net profit of SAR 709 million for the first quarter in 2019 surpassed Aljazira Capital’s estimates due to the growth in operating revenues.  

The Saudi bank’s robust performance and higher operating profit were attributed to solid loans and deposit growth as well as increased lending rates.

In addition, return on equity (ROE) rose to 12.9% in Q1-19 from 10.5% in the year-ago period.

Alinma Bank’s net profits grew 21.8% year-on-year to SAR 709 million, compared to SAR 582 million in Q1-18.