Arab National Bank stock edges up after earnings beat

Published 05/02/2025, 12:50
© Reuters.

Investing.com -- Shares of Arab National Bank (TADAWUL:1080) inched up 0.5% following the announcement of their latest financial results, which displayed a net income surpassing expectations. The bank’s performance was bolstered by a significant increase in non-interest income and a modest growth in loans and deposits.

Arab National Bank’s pre-provision operating profit (PPOP) aligned with consensus, driven by nearly consistent net interest income (NII) and a notable 25% surge in non-interest income. This was slightly tempered by a 9% rise in operating expenses.

The net income for the period exceeded consensus estimates by 14%, largely due to approximately SAR 145 million in income from associates, despite provisions being 3% above the consensus.

The bank’s net interest margin (NIM) declined by 17 basis points quarter-over-quarter. This followed a 16 basis point increase in the third quarter of 2024.

Loan growth was reported at 2% quarter-over-quarter, translating to an 11% increase year-over-year (YoY), although this was below the mid-teens growth guidance set for the year. Deposit growth stood at 0.7% quarter-over-quarter, or 10% YoY.

Morgan Stanley (NYSE:MS) commented on the results, stating, "Given an in line PPOP print, we expect a neutral reaction to results."

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