Saudi Hollandi Jumps to Four-Year High on Earnings: Riyadh Mover
Saudi Hollandi Bank (AAAL) gained to the highest level in more than four years after the lender posted second-quarter earnings that beat estimates, boosted by non-interest income.
The shares advanced 2.6 percent to 35.3 riyals, the highest since May 2009, at the close in Riyadh. About 471,000 shares were traded, more than triple the three-month average, according to data compiled by Bloomberg. The benchmark Tadawul All Share Index climbed 0.2 percent.
Saudi Hollandi’s quarterly net income increased 13 percent from a year earlier to 375 million riyals ($100 million), beating the 340 million-riyal average estimate of seven analysts compiled by Bloomberg. Commission and investment income advanced 19.8 percent. Loan growth in the kingdom accelerated to almost 17 percent in May, according to central bank data, as lenders benefit from government plans to invest more than $500 billion on infrastructure.
“Revenues improved strongly, driven by better net interest spreads and strong non-interest income, which led to the earnings beat,” Murad Ansari, an analyst at EFG-Hermes Holding SAE in Saudi Arabia, said by e-mail.
Seven analysts recommend investors buy the shares of Saudi Hollandi, while three have a hold rating on the stock, according to data compiled by Bloomberg. The stock has soared 30 percent this year, outperforming the Tadawul’s 13 percent increase.
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