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1030.SE (Reuters)
SIBC AB (Bloomberg)
» Although Saudi Investment Bank’s (SAIB) significant profitability decline in FY07 recorded relative improvement,
its performance remained under pressure. In 9M08 results, SAIB showed profitability decline (YoY) of 30.5%,
which was mainly due to high provisions carried out to address any decline in part of its investment portfolio
linked to the global financial distressed conditions.
» As SAIB continues to work on improving its non-commission income, the bank also needs to further boost its
efforts for posting improved core banking performance.
Global Investment House
Saudi Investment Bank
CMP: SR15.9
SRmn 2005 2006 2007 2008E 2009E 2010E 2011E
Assets 39,581 40,845 46,542 57,192 67,560 76,245 83,204
Gross Loans 20,481.8 21,468.6 23,850.8 33,948.2 40,737.9 46,848.5 51,533.4
Deposits 27,858.1 27,931.0 32,768.3 45,713.7 55,627.3 63,798.2 70,213.4
Shareholders’ Equity 5,306.7 6,001.3 6,769.5 7,107.4 7,384.2 7,701.4 8,039.8
Net Interest Income 785.7 1,030.5 1,056.0 1,058.4 1,123.9 1,401.3 1,501.0
Net Income 1,064.5 2,006.3 822.2 415.0 538.2 765.8 817.0
Ratios
Yield on earning assets (%) 5.5% 6.7% 6.4% 5.9% 5.3% 6.0% 6.0%
Cost of funds (%) 3.3% 4.4% 4.3% 4.0% 3.5% 3.8% 3.8%
Spreads (%) 2.2% 2.3% 2.1% 1.9% 1.9% 2.2% 2.2%
Loans to Deposits ratio (%) 73.5% 76.9% 72.8% 74.3% 73.2% 73.4% 73.4%
NPLs /Gross Loans (%) 0.9% 1.0% 1.2% 1.5% 1.5% 1.5% 1.5%
NPL coverage (%) 364.0% 357.7% 243.2% 230.1% 243.6% 259.8% 284.2%
ROAA (%) 3.1% 5.0% 1.9% 0.8% 0.9% 1.1% 1.0%
ROAE (%) 24.1% 35.5% 12.9% 6.0% 7.4% 10.2% 10.4%
Cost to Income (%) 24.8% 18.4% 37.1% 54.5% 50.8% 44.5% 44.9%
Dividend yield (%) 0.4% 0.0% 0.0% 0.5% 1.7% 3.0% 3.2%
Earnings per Share (SR) 2.4 4.5 1.8 0.9 1.2 1.7 1.8
Book Value per Share (SR) 11.8 13.3 15.0 15.8 16.4 17.1 17.9
P/E (x) 31.5 10.6 27.9 17.2 13.3 9.3 8.8
P/BV (x) 6.3 3.5 3.4 1.0 1.0 0.9 0.9
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)
91 Saudi Arabia Economic Overview - January 2009