1
© All rights reservedBanking sector continues its move forward, Deposit and loan growth remains steady. Mortgage loans headlines growth.
Shariah Banks continues to outperform as deposit growth of 7.9%Y/Y outpace 7.1% growth in conventional banks.
Bank Albilad continue to show growth, whereas Alrajhi’s growth remains steady. Zakat expense weighting heavy on profitability and CAR.
Mortgage loans growth exceeds expectation, retail banks to benefit: Mortgage loans since FY16, has shown strong growth of 41%Y/Y and 65%Y/Y in FY17 and FY18. A total of value of 27bn worth of loans were signed. However since start of FY19 , loans have grown at a much higher pace, in 9M-19 total contract written have grown at 273%Y/Y, whereas total loan have grown at 174%Y/Y. Majority of these loans (80% in 9M-19) have been written for independent villas. In our view the banks that stand to benefit are those that have a heavy retail presence. Under our coverage Rajhi stands to benefit the most with it heavy concentration of retail clientele.
Zakat expense bring Capital adequacy down; Zakat expense after the announcement by GAZT is an effective 10% on operating income, bringing down earnings and the capital adequacy of the sector. Capital Adequacy of most the bank have decline along with the earnings. In 9M-19, CAR of AlRajhi, Albilad, Alinma, Aljazira went down to 19.5%, 17.8%, 20.0%, 26.0% from 21.7%,18.1%, 21.0% and 28.0% in Q3-18 respectively.
Valuation:
For FY19, we expect Alinma to post earnings of SAR 2.73bn, an improvement on FY 18 result despite of zakat expense recognition in FY19. We reiterate our “Overweight” recommendation on Alinma Bank with a TP of SAR 26.80/share. Strong TTM bottom line performance boosted TTM ROE to12.8%; while the bank is currently trading at PE of 12.3x as compared to forwards PE of 11.9x.
Funding cost for AlBilad will continue rising as the banks tries to attract higher murabaha deposit; share of murabaha deposit in FY18 stood at 46.9% as compared to 40.7% in FY17. Strong TTM net income further enhanced its ROE profile to 14.4%. AlBilad is currently trading at a PE of 16.8x, as compared to estimated forward PE of 15.3x, with an expected dividend yield of 4.1% ( SAR 0.6 DPS) for FY19. We maintain our “Neutral “ recommendation, with a revised TP of SAR 24.1/share, based on revised valuation inputs.
We believe the changes in the mortgage law, places Alrajhi in a favorable position given its retail heavy portfolio. In addition higher share of NIBs, puts the cost of funding on the low side. Discount rate cut by Fed will have a negative bearing on the topline and bottom line, however till now despite of the cut the retail heavy portfolio of the banks has protected it against any drop in its lending rate. We revise our EPS for FY19 to SAR4.3. We maintain our “Neutral” recommendation with a TP at SAR 62.8/share.
Company EPS ROE ROA P/E (x) P/B (x) Dividend
yield TP (Price/
share) Recommendation
Al-Rajhi 4.34 21.3% 2.9% 13.90 2.90 5.0% 62.8 Neutral
Alinma 1.83 13.0% 2.0% 11.90 1.69 5.0% 26.8 Overweight
AL-Bilad 1.67 17.4% 1.7% 15.33 2.62 4.1% 24.1 Neutral
Head of Research Talha Nazar +966 11 2256250
2
© All rights reservedIn Q3-19, the Saudi banking sector’s balance sheet grew 5.5% Y/Y while it grew 2.6% Q/Q at SAR 2,506bn. Total loans accounted for 60% of total assets, whereas deposits formed 67.8% of total liabilities. The banking sector’s balance sheet advanced at a 10-year CAGR of 6.4%.
The Saudi banking sector has 11 listed and other non-listed banks. In terms of the balance sheet size, National Commercial Bank (NCB) (with assets of more than SAR 478.5bn) is the largest bank in the Kingdom, accounting for 21.1% of the total market, followed by Al Rajhi Bank (asset base of SAR 368.2bn and 15.6% market share). Saudi British Bank (asset base of SAR 258.0bn) and Riyad (total assets worth SAR 251.0bn) account for 10.6% and 10.1%, of total banking assets, respectively.
Of the 11 banks, Al Rajhi Bank, Alinma Bank, Bank Albilad, and Bank AlJazira are Shariah-compliant and account for 27.9% of total banking assets. Al Rajhi Bank is the largest Shariah-compliant bank in the Kingdom, accounting for 56.0% of the total market share in Q3-19 (down from 57.1% in Q1-19).
Saudi banking Sector Balance Sheet Growth
Saudi Banking Sector Balance Sheet Growth
Market Share of Total Banking Assets – Q3-2019
Saudi Banking Sector Balance Sheet Growth – Q3-19
Saudi Banking Sector Balance Sheet Growth – Q3-19
Asset Market Share of Shariah-compliant Banks – Q3-2019
Source: SAMA
Source: Bloomberg
Saudi Banking Assets-LHS % Growth-RHS
In Bn SAR
0%
5%
10%
15%
20%
25%
30%
- 500 1,000 1,500 2,000 2,500 3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019
Cash In Vault Deposits with SAMA SAMA Bills Foreign Assets Loans to Private Sector Loan to Gov & Quasi- Gov Fixed Assets OtherAssets
1%
6% 1%
10%
60%
17%
1% 4%
Al Rajhi Albilad Arab National BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
16%
4%
7%
3%
11%
10% 11%
8%
4%
5%
21%
Saudi Banking Assets-LHS % Growth (YoY)-RHS
In Bn SAR
Q3 2018 Q3 2019
2.6%
5.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
- 500 1,000 1,500 2,000 2,500 3,000
Deposits
Foreign Liabilities
Capital accounts
Other Liabilities
68%
7%
15%
10%
Al Rajhi
Alinma
Aljazira
Albilad
12%
12%
20%
56%
3
© All rights reservedDeposits
Saudi banking deposits and money supply rose steadily at a 10-year CAGR of 8.7% and 6.6%, respectively. Total deposits rose 2.4% Y/Y to SAR 1.7tn in Q3-19 from SAR 1.65tn in Q3-18.
Demand deposits advanced 6.6% Y/Y to SAR 1,092.9bn in Q3-19 from SAR 1,025.1bn in Q3-18.
Of the total deposits, demand deposits accounted for 64.3% (up from 63.7% in Q3-19), whereas time and savings deposits made up 25.3%.
Business and Individuals held 79.0% of total deposits, while Government entities accounted for 18.8%.
Businesses and Individuals hold 90.8% of the demand deposits, while Government entities hold the remaining 9.2% (up from 8.7%
in Q3-19).
With regard to time and savings deposits, Businesses and Individuals held nearly 62.2%, while Government entities accounted for 37.8%
Deposits Growth
Deposit Growth – Q3-2019
Deposits Break Down
Deposits by Sector Demand Deposits Break Down
Times & Savings Deposit Break Down
Source: SAMA
In Bn SAR
Deposits-LHS Money Supply(M3)-LHS % Growth in deposits-RHS 0%
5%
10%
15%
20%
25%
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019
Bn SAR
Demand-LHS Time & Savings-LHS Quasi-Monetary-LHS % Growth (YoY)-RHS
2.7%
2.4%
2.3%
2.4%
2.4%
2.5%
2.5%
2.6%
2.6%
2.7%
2.7%
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Q3 2018 Q3 2019
Demand Time & Savings Quasi-Monetary 63.7%
25.8%
10.4%
Business and Individuals Government Entities Others
79.0%
18.8%
2%
Business and Individuals Government Entities
91%
9%
Business and Individuals Government Entities 62.2%
37.8%
4
© All rights reservedDeposit Growth by Bank
Deposits Market Share Comparison
Loans Growth
Loans Share According to Maturity Profile Loans Maturity- Growth
Source: SAMA
Source: Company Financials, Bloomberg
% Growth
Q3-18 Q3-19
In Bn SAR
3.5%
17.4%
0.0%
17.6%
11.6%
41.8%
-2.4% -3.3%
1.5%
11.1%
4.6%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
0 50 100 150 200 250 300 350 400
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Q3-19 Q3-18
18.0%
3.4%
8.1%
3.1%
9.9%
8.0%
10.5%
9.1%
4.0%
5.6%
20.2%
17.3%
3.7%
7.6%
3.4%
10.3%
10.6%
9.6%
8.2%
3.8%
5.8%
19.7%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Loans % Growth-RHS
In Bn SAR
Q3 2019
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 200 400 600 800 1,000 1,200 1,400 1,600
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Less than 1 Year 1 to 3 Years Over 3 Years
51.3% 46.6%
19.0%
15.3%
29.7%
38.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Q3 2018 Q3 2019
Less than 1 Year 1 to 3 Years Over 3 Years
In Bn SAR
- 200 400 600 800 1,000 1,200 1,400 1,600
Q3 2018 Q3 2019
734 699
271 229
424 573
Deposits – Breakdown by Bank
National Commercial Bank (deposit base of SAR 340bn) is the largest bank in Saudi Arabia, followed by Al Rajhi Bank (deposit base of SAR 299bn).
Saudi British Bank recorded highest growth (41.8% Y/Y) in deposits ,improving its market share to 10.6% in Q3-19 from 8.0% in Q3-18.
Bank Aljazira stood second, increasing the deposit base 17.6% Y/Y and market share to 3.4% in Q3-19 from 3.1% in Q3-18.
BSFR registered the biggest decline of 3.3% Y/Y in its deposit base to SAR 142bn in Q3-19 from SAR 147bn in Q3-18, consequently its market share fell to 8.2% in Q3-19 from 9.1% in Q3-18. It was followed by the Samba, which saw its deposits fall 2.4% Y/Y to SAR 165bn, causing its market share to fall to 9.6% in Q3-19 from 10.5%
in the previous corresponding period.
Al Rajhi Bank, the largest Shariah-compliant bank, recorded a 3.5%
Y/Y growth in the deposit base, while its market share fell to 17.3%
in Q3-19 from 18.0% in Q3-18.
Loans
The total loan book of Saudi Arabia’s banking sector increased 3.3%
Y/Y to SAR 1.5tn in Q3-19, registering a 10-year CAGR of 7.3%.
About 46.6% (from 51.3% in Q3-18) of the loans extended have a maturity of less than a year. Loans with a maturity of one to three years fall by 15.5% Y/Y, due to which its share plunged to 15.3% in Q3-19 from 19.0% in Q3-18.
5
© All rights reservedLoan Distribution by Sector
Retail Loans-Break down
Real Estate Loans
Market Share in Loans by Bank Mortgage loans
Source: Company Financials Source: SAMA
Manufacturing Construction Commerce Services Gov & Quasi Gov Miscellaneous 11.0%
6.6%
19.3%
5.3%
3.7%
54.2%
Home Renovation Vehicles Others Credit Cards/
Total Retail Loans
2Q-2018 2Q-2019
Credit Card Includes Retail Loans, acquired through credit cards
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
8.3% 4.9%
82.6%
7.7% 4.8% 4.2%
82.6%
4.9%
In Bn SAR
Retail Corporate
% Growth-Total
% Growth-Corporate
% Growth-Retail
-10%
0%
10%
20%
30%
40%
50%
60%
0 50 100 150 200 250 300
2010 2011 2012 2013 2014 2015 2016 2017 2018
Q3-19 Q3-18
17.3%
3.7%
8.9%
3.0%
10.7%
8.4%
8.5%
9.2%
4.4%
6.2%
19.9%
16.8%
3.9%
8.1%
3.0%
11.2%
10.6%
8.6%
8.5%
4.0%
6.2%
19.2%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
RIBL BJAZ Saib BSFR SABB Arab National SAMBA Al Rajhi Albilad Alinma NCB
- 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
- 5,000 10,000 15,000 20,000 25,000 30,000
2016 2017 2018
Contracts Total Value -50%
0%
50%
100%
150%
200%
250%
300%
350%
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19
Total Value % growth
Loan Breakdown
The commerce sector is the largest borrower among all sectors, accounting for 19.3% of total loans, followed by the manufacturing sector (11.0% of total loans) and construction sector, which ranks third (6.6% of total loans).
Retail Loans
The sector’s retail loans [excluding real estate financing, finance leasing and financing against shares (margin lending)] stood at SAR 339.2bn in Q3-19, indicating a growth of 0.4% Q/Q.
Loans for home renovation financing are the biggest constituent of retail loans, accounting for almost 7.7% in Q3-19. Loans for vehicles accounted for 4.8% of total retail loans.
Retail loans acquired through credit cards accounted for 4.9% in Q3- 19, a jump from 4.2% in Q3-18.
Real Estate Loans
Real estate loans grew at a CAGR of 19.2% to SAR 240.2bn during FY11-18. In Q3-19, the retail and corporate sectors accounted for 63% and 37% of the total real estate loans, respectively.
Real estate loans in the corporate sector recorded a considerable increase of 10.9% Y/Y to SAR 97.8bn in Q3-19. Retail loans advanced 29.0% Y/Y to SAR 165.9bn in Q3-19.
Since the introduction of Mortgage law, Mortgage loan have shown a significant growth. New contracts in Q3-19 stood at 42.8k with a value of SAR 18.2bn a jump of 223%Y/Y.
Market Share in Loans by Bank
NCB, the sector’s biggest lender, witnessed a decline in market share to 19.2% in Q3-19 from 19.8% in Q3-18. Al Rajhi Bank, with the second largest market share, fell to 8.5% in Q3-19. Saudi British Bank was the biggest gainer in terms of market share in the loans market, whereas SAMBA and NCB declined the most.
Shariah-compliant banks’ market share fell to 29.6% in Q3-19 from 29.7% in Q3-18, led by fall in Al Rajhi’s share. Among other Shariah- compliant banks, Alinma’s market share remains rose to 6.2% in Q3-19. In addition, Bank Albilad’s market share declined to 4.0% in Q3-19 from 4.4% in Q3-18. However, Bank AlJazira’s market share increased to reach 3.9% in Q3-19 from 3.7% in Q3-18.
6
© All rights reservedLoan Distribution by Bank
Performing Loans to NPLs
ADR ratio
Source: Company Financials
Q3-18 Q3-19 % growth
In Bn SAR
4.9%
13.6%
-1.9% 10.1%
13.7%
36.0%
9.2% 0.2%
-2.8%
9.2%
4.2%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
- 50 100 150 200 250 300 350
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Performing Loans 3Q-19 Non-performing Loans- 3Q-19 % Share of NPLs-RHS NPLs-Industry Average 3Q-19 NPLs-Industry Average 3Q-18
In Bn SAR
Industry Average Q3-2019, 1.7%
NPLs-Industry Average Q3-2018, 1.5%
0.94%
1.36%
1.4%
1.30%
0.9%
2.99%
1.5%
2.72%
2.45%
1.8%
1.88%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
- 50 100 150 200 250 300 350
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Q3-18 ADR Q3-19 ADR 84.3%
91.2% 92.4%
77.0%
94.9%
86.7%
77.6%
90.0% 91.8% 93.6%
84.5%
83.1% 94.2% 94.2% 82.3% 93.2% 90.4% 69.3% 86.9% 95.8% 95.2% 84.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Of the 11 banks in the sector, nine registered Y/Y increases in gross loans.
Saudi British Bank’s loan book registered the highest increase of 36.0% Y/Y in Q3-19, further strengthening its market share. Riyad Bank, with a 13.7% Y/Y jump in gross loans, was the second best performer.
Saudi Investment Bank declined the most, with gross loans contracting 2.8% Y/Y in Q3-19, followed by ANB (down 1.9% Y/Y).
Shariah-compliant banks’ total gross loans grew 4.1% Y/Y in Q3-19.
Non-Performing Loans
The sector’s non-performing loan ratio jumped to 1.7% in Q3-19 compared with 1.5% in Q3-18. The NPL coverage ratio decreased to 155% in Q3-19 from 194% in Q3-18.
Al Rajhi and Riyad Bank have better NPL ratios within the sector at 0.94% and 0.85%, respectively. The NPL coverage of Al Rajhi and Riyad stood at 343% and 181%, respectively, in Q3-19.
Saudi British Bank had the highest NPL ratio of 2.99%, while its NPL coverage ratio stood at 100% in Q3-19. BAJZ NPL coverage improved the most to 178% in Q3-19 from 115% in Q3-18, while SABB posted the biggest drop from 229% in Q3-18 to 100% in Q3-19.
Advances-to-Deposit Ratio
The industry ADR ratio stood at 86.9% in Q3-19 from 86.4% in Q3-18;
RIBL posted the highest ADR of 95.0%, followed by Bank Alinma at 93.6% in Q3-19. Samba recorded the lowest ADR of 70.2% in Q3-19 compared with 77.6% in Q3-18.
7
© All rights reservedNIM
Absolute Return on Savings and Time Deposits
Lending rates
Source: Company Financials, Bloomberg
Q3-18 Q3-19
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Q3-18 Q3-19 % Change
IN Mn SAR
3.5%
17.4%
0.0%
17.6%
11.6%
41.8%
-2.4% -3.3%
1.5%
11.1%
4.6%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
0 50 100 150 200 250 300 350 400
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Q3-18 Q3-19
1.59% 1.37% 1.44% 1.68% 3.17% 1.46% 1.66% 1.40% 1.56% 1.51% 1.70%
1.70%
1.50% 1.58% 1.75%
2.92%
1.57% 1.64%
1.46% 1.64% 1.57% 1.71%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
NIMs
Riyadh Bank registered the highest quarterly NIMs of 2.19% in Q3- 19, a drop from 2.57% in Q3-18. Overall, the sector’s quarterly return on savings and time deposits grow by 21.6%Y/Y in Q3-19.
NCB reported the highest cost of SAR 1,248mn on savings deposits in 2Q-19 compared with SAR 1,060mn in 3Q-18, a 17.5% Y/Y increase.
NCB recorded the highest return on time and savings deposits expense at 1.46%, followed by SAIB at 1.1%.
Albilad’s return on time and saving deposits of 0.55% was the lowest in the sector.
Cost of Risk
Albilad posted the highest cost of risk of 0.24% in Q3-19, a drop from 0.29% in Q3-18, followed by NCB with quarterly cost of risk of 0.23% for Q3-19.
Amongst Shariah banks Al rajhi had the highest cost of risk of 0.13%
a drop from 0.18%.
Operating Income Breakdown
The sector’s operating income jumped 12.2% Y/Y to SAR 24.9bn in Q3-19 from SAR 22.2bn in Q3-18.
Retail accounted for 47.8% of the total operating income in Q3-19 compared with 46.8% in Q3-18. Retail income increased 14.7% Y/Y.
The Corporate sector’s contribution stood at 29.3% in Q3-19 from 29.0% in Q3-18. Earnings from the corporate sector stood at SAR 7.3bn (up 13.6% Y/Y).
Treasury income improved 11.6% Y/Y to SAR 4.5bn, whereas Investment income showed -0.5% Y/Y fall to SAR 789mn.
NCB, with an operating income of SAR 5.0bn, contributed 20.1% to total sector earnings in Q3-19, followed by Al Rajhi’s contribution of 20.0% with earnings of SAR 4.98bn.
Cost of risk (Q3-19)
Q3-19 Q3-18
0.000%
0.050%
0.100%
0.150%
0.200%
0.250%
0.300%
0.350%
Albilad NCB BSFR ANB SABB Al Rajhi Alinma RIBL SAIB BJAZ SAMBA
Operating Income by Company (Q3-19)
Retail Corporate Treasury Investment Services and Brokerage Others
In MN SAR
(1,000) - 1,000 2,000 3,000 4,000 5,000 6,000
Al Rajhi Albilad ANB BJAZ RIBL SABB SAMBA BSFR SAIB Alinma NCB
Source: Company Financials
Source: Company Financials
Asset Management
|
Brokerage|
Corporate Finance|
Custody|
AdvisoryHead Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068
Al-Jazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37
RESEARRESEARCH DIVISIONRATING TERMINOLOGYBROKERAGE AND INVESTMENT CENTERS DIVISION
Disclaimer
AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business.
1. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target.
Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months.
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Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months.
3. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months.
4. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.
The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Al-Jazira Capital from sources believed to be reliable, but Al-Jazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Al-Jazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Al-Jazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Al-Jazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Al-Jazira Capital. Funds managed by Al-Jazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Al-Jazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Al-Jazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Al-Jazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Al-Jazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.
General Manager – Brokerage Services &
sales Alaa Al-Yousef +966 11 2256060
AGM-Head of international and institutional brokerage
Luay Jawad Al-Motawa +966 11 2256277
AGM-Head of Qassim & Eastern Province
Abdullah Al-Rahit +966 16 3617547
AGM-Head of Sales And Investment Centers Central Region, & acting head Western and Southern Region Investment Centers Sultan Ibrahim AL-Mutawa +966 11 2256364
