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Middle east specialized cables company saudi arabia
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Highlights
 The bank’s financial performance continues to improve. Analyst estimating the net income to reach SR720 million and record a CAGR (2010-14e) of 87.2%.
 Bank Albilad used non-operating income to show improvement in its financial performance (net profit) in the first quarter of 2012, which is considered as misleading for investors because it cannot sell lands frequently.
 Albilad returns both ROAE and ROAA are improving and analysts are expecting returns to increase in the next year 2013. Nevertheless, its returns considered as one of the lowest in its industry.
 Albilad considered as an average bank in terms of liquidity because its Loan to deposits ratio (LTD) is almost equal to its peers’ LTD.
 Albilad’s asset quality is considered as one of the worst quality among Saudi banks because its Non-performing loan (NPL) is high. Economists including Global Investment are expecting Albilad’s NPL ratio to reach 4.8% during the current year and to improve to 3.7% in 2014.
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 Bank’s Reserve for doubtful accounts is increasing. In 2009, Albilad had increased its reserve for doubtful accounts by more than 328% after AHAB and SAAD groups defaults.
 Albilad stocks are considered as liquid stocks because its bid-ask spread is small. Moreover, its stock average trading volume is high.
 The bank is well capitalized because over the past years, it recorded tier 1 capital ratio of more than 6% and it never paid dividends.
 The valuation analysis leads to a target price of SR26.9. Thus, I recommend a hold because market price is only 13% higher than the target price. The two relative valuation techniques used in evaluating the stock are Price Earnings Ratio (PE) and Price Book Value Ratio (PBV). The DCF model is used as well to calculate the intrinsic value of the stock.
 Main risks involved in the investment in this stock are market volatility risk, credit risk, and competitive risk.
Business Description
Bank Albilad is a Saudi Islamic joint stock corporation provides consumer and corporate banking, and investment services. It is established in 2004 from merger of 8 money exchange companies and listed on Saudi Stock Exchange (Tadawul) in 2005. Nowadays the bank has more than 80 branches across The Kingdom with about 2,400 employees. Bank Albilad is led by Mr. Khalid AlJassar, highly experienced banker and industrialist with more than 20 years of experience in banking; during that period he had served in many senior leadership roles.
CLICK HERE FOR MORE ON THIS PAPER………………….

Middle east specialized cables company saudi arabia

CLICK HERE FOR MORE ON THIS PAPER………………….
Highlights
 The bank’s financial performance continues to improve. Analyst estimating the net income to reach SR720 million and record a CAGR (2010-14e) of 87.2%.
 Bank Albilad used non-operating income to show improvement in its financial performance (net profit) in the first quarter of 2012, which is considered as misleading for investors because it cannot sell lands frequently.
 Albilad returns both ROAE and ROAA are improving and analysts are expecting returns to increase in the next year 2013. Nevertheless, its returns considered as one of the lowest in its industry.
 Albilad considered as an average bank in terms of liquidity because its Loan to deposits ratio (LTD) is almost equal to its peers’ LTD.
 Albilad’s asset quality is considered as one of the worst quality among Saudi banks because its Non-performing loan (NPL) is high. Economists including Global Investment are expecting Albilad’s NPL ratio to reach 4.8% during the current year and to improve to 3.7% in 2014.
CLICK HERE FOR MORE ON THIS PAPER………………….
 Bank’s Reserve for doubtful accounts is increasing. In 2009, Albilad had increased its reserve for doubtful accounts by more than 328% after AHAB and SAAD groups defaults.
 Albilad stocks are considered as liquid stocks because its bid-ask spread is small. Moreover, its stock average trading volume is high.
 The bank is well capitalized because over the past years, it recorded tier 1 capital ratio of more than 6% and it never paid dividends.
 The valuation analysis leads to a target price of SR26.9. Thus, I recommend a hold because market price is only 13% higher than the target price. The two relative valuation techniques used in evaluating the stock are Price Earnings Ratio (PE) and Price Book Value Ratio (PBV). The DCF model is used as well to calculate the intrinsic value of the stock.
 Main risks involved in the investment in this stock are market volatility risk, credit risk, and competitive risk.
Business Description
Bank Albilad is a Saudi Islamic joint stock corporation provides consumer and corporate banking, and investment services. It is established in 2004 from merger of 8 money exchange companies and listed on Saudi Stock Exchange (Tadawul) in 2005. Nowadays the bank has more than 80 branches across The Kingdom with about 2,400 employees. Bank Albilad is led by Mr. Khalid AlJassar, highly experienced banker and industrialist with more than 20 years of experience in banking; during that period he had served in many senior leadership roles.
CLICK HERE FOR MORE ON THIS PAPER………………….

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