Source: RIBL Financial Reports & Global Research
RIBL posted an encouraging YoY asset base growth of 42.
RIBL has one of the lowest NPL ratios at 137 per cent (vs.
NCBC said, "Currently, we are Overweight on RIBL with a PT of SAR 35.
On the positive side, Bank Albilad, SHB, RIBL
and Al-Rajhi Bank topped the list in Q3, 2010, as their banking fees grew by around 23 percent, 19 percent, 12 percent and 6 percent, respectively, largely attributed to a climb in money transfers as well as higher fees on corporate account related transactions.
We choose to play SAMBA and SIBC (strong Q1 for both), ARNB (cheap valuation, potential to accelerate loan growth after a disappointing Q1), and RIBL
We choose to play SHB (reinforced by strong Q4), SAMBA (growth), and RIBL
We continue to prefer the larger banks AlRajhi, RIBL
and Samba owing to their ability to capture the retail segment and their attractive valuations.