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1090.SE (Reuters)
SAMBA AB (Bloomberg)
Global Investment House
SAMBA Financial Group
CMP: SR47.9
» Although Samba continues to maintain its core banking strength, it witnessed the performance pressure due to
subdued non-commission income. Samba’s FY07 dampened profitability performance has not recorded any turn
around yet. The bank as per its 9M08 results recorded (YoY) decline of 6.3%.
» The bank’s core banking strength coupled with its developed brand name offers it good potential to benefit by
pursuing various strategic initiatives. Besides the bank’s future growth plans domestically, it actively plans on
regional expansion into attractive markets.
SRmn 2005 2006 2007 2008E 2009E 2010E 2011E
Assets 108,306 124,015 154,414 191,265 214,967 233,336 251,235
Gross Loans 65,140 69,813 83,553 101,147 121,554 136,141 149,901
Deposits 85,240 94,856 115,811 127,092 145,348 163,505 183,209
Shareholders’ Equity 12,906 15,300 17,845 20,022 22,651 24,892 27,016
Net Interest Income 3,508 4,301 4,944 5,480 6,542 7,994 8,757
Net Income 4,018 5,210 4,808 4,364 4,780 6,404 7,076
Ratios
Yield on earning assets (%) 5.7% 6.7% 6.9% 5.8% 5.9% 6.3% 6.3%
Cost of funds (%) 2.1% 2.7% 2.9% 2.2% 2.4% 2.4% 2.4%
Spreads (%) 3.6% 4.0% 4.0% 3.6% 3.6% 3.9% 3.9%
Loans to Deposits ratio (%) 76.4% 73.6% 72.1% 79.6% 83.6% 83.3% 81.8%
NPLs /Gross Loans (%) 3.4% 2.2% 2.2% 2.3% 2.4% 2.4% 2.5%
NPL coverage (%) 124.4% 182.4% 159.6% 152.2% 135.3% 135.3% 131.8%
ROAA (%) 4.0% 4.5% 3.5% 2.5% 2.4% 2.9% 2.9%
ROAE (%) 39.4% 41.2% 30.5% 23.3% 22.2% 26.7% 27.1%
Cost to Income (%) 27.3% 25.7% 30.2% 35.3% 34.2% 29.4% 29.4%
Dividend yield (%) 1.5% 2.6% 1.6% 3.5% 5.0% 9.7% 11.5%
Earnings per Share (SR) 4.5 5.8 5.3 4.8 5.3 7.1 7.9
Book Value per Share (SR) 12.4 15.8 19.2 22.4 25.3 27.9 30.3
P/E (x) 29.1 16.1 22.5 9.9 9.0 6.7 6.1
P/BV (x) 10.5 5.9 6.2 2.1 1.9 1.7 1.6
Historical P / E & P / BV multiples pertain to respecitve year -end prices, while those for future years are based on closing prices on the TASI as of Dec 29, 2008
(Source: Company Reports & Global Research)
89 Saudi Arabia Economic Overview - January 2009