Riyadh – Mubasher: Itqan Capital has maintained its “Neutral” recommendation on the stock of Bank Albilad at a target price (TP) of SAR 22.9 per share.

Itqan further expected the bank to witness a decline in credit growth and net interest margin (NIM), according to a press release on Wednesday.

In the second quarter (Q2) of 2020, the lender generated SAR 318.1 million in net profits, an increase of 4.33% from SAR 304.9 million in the same period in 2019.

In the meantime, total comprehensive income grew by 22.68% yearly in the three-month period ended 30 June 2020, reaching SAR 684.7 million, attributed to a higher operating income by 4%.

Moreover, the rating agency projected the bank to continue focusing on no-fee deposits such as commercial accounts, and reprice the interest rates of mortgage loans.