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1040.SE (Reuters)
AAAL AB (Bloomberg)
Saudi Hollandi Bank
CMP: SR40.1
» Saudi Hollandi Bank’s (SHB) continued efforts to recover from its 2007 dismal performance started showing
results in 2008 as the bank posted a third consecutive double digit growth for its quarterly results, recording 9M08
(YoY) increase of 67.8%.
» The bank’s improved core banking performance has been supported by its non-commission income. However, the
turnaround in results needs yet need to show the sustainable level of performance.
SRmn 2005 2006 2007 2008E 2009E 2010E 2011E
Assets 39,958 46,740 50,411 62,828 72,759 82,749 93,610
Gross Loans 24,253 27,259 28,741 42,517 49,177 56,444 64,910
Deposits 28,565 32,414 34,605 45,949 55,077 64,388 75,295
Shareholders’ Equity 39,958 46,740 50,411 62,828 72,759 82,749 93,610
Net Interest Income 1,014 1,180 1,200 1,413 1,710 1,999 2,285
Net Income 1,052 953 438 1,023 1,051 1,184 1,291
Ratios
Yield on earning assets (%) 5.3% 6.5% 6.4% 5.7% 5.8% 5.9% 6.1%
Cost of funds (%) 2.6% 3.9% 4.0% 3.3% 3.3% 3.3% 3.5%
Spreads (%) 2.7% 2.6% 2.4% 2.4% 2.5% 2.6% 2.6%
Loans to Deposits ratio (%) 84.9% 84.1% 83.1% 92.5% 89.3% 87.7% 86.2%
NPLs /Gross Loans (%) 1.2% 2.5% 3.8% 3.4% 3.1% 2.9% 2.9%
NPL coverage (%) 158.4% 113.6% 110.0% 100.0% 109.7% 123.6% 133.9%
ROAA (%) 2.9% 2.2% 0.9% 1.8% 1.6% 1.5% 1.5%
ROAE (%) 33.1% 24.7% 10.0% 21.7% 20.8% 21.9% 22.5%
Cost to Income (%) 35.0% 40.4% 65.8% 46.1% 48.1% 47.5% 47.5%
Dividend yield (%) 1.5% 1.2% 1.3% 6.3% 6.9% 7.8% 9.1%
Earnings per Share (SR) 4.0 3.6 1.7 3.9 4.0 4.5 4.9
Book Value per Share (SR) 13.1 16.1 17.2 18.5 19.7 21.1 22.3
P/E (x) 24.9 17.5 37.7 10.4 10.1 9.0 8.2
P/BV (x) 7.6 3.9 3.6 2.2 2.0 1.9 1.8
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)
Global Investment House 90 Saudi Arabia Economic Overview - January 2009