NEWS BITES - MIDDLE EAST & NORTH AFRICA
Riyad Bank (TASI:1010), Saudi Arabia's 4th largest Bank by market cap, has increased 0.2% after hitting the lower Bollinger Band twice in the last ten days. This is a bullish signal. The lower Bollinger Band marks the trajectory of support on a stock price.
Riyad Bank's stock price has increased 4.0 hallalah (0.2%) from its previous trading session to close at SAR19.80. Compared with the All Share Index (TASI) which rose 46.1 points (0.5%) in the day, the relative price change was -0.3%.
There were 3,448,478 shares worth SAR68.3 million ($18.2 million) traded today. Thursday's price rise was propped up by firm volume of 1.2 times the average daily volume of 2.8 million shares.
Riyad Bank Stock Dashboard [traded in Saudi Riyal, SAR]
| Currency | USD 1 = SAR 3.75 | Market Cap | SAR59.4 billion [$15.8 billion] |
| Feb 25 close | SAR19.80 | DPS (TTM) | 55 hallalah |
| Ave Daily Volume | 2,780,919 shares | Shares Outstanding | 3,000,000,000 |
| Sector | Bank |
INDEX
SECTION 1 RECENT NEWS
SECTION 2 CORPORATE PROFILE
SECTION 3 TOP SHAREHOLDERS
SECTION 4 TODAY'S BULLISH SIGNALS
SECTION 5 ONGOING BULLISH PARAMETERS
SECTION 6 TODAY'S BEARISH SIGNALS
SECTION 7 ONGOING BEARISH PARAMETERS
SECTION 8 BANK METRICS
SECTION 9 NEWS ARCHIVES (MAR 2017 - NOV 2020)
SECTION 10 CURRENCY SYNOPSIS: SAUDI RIYAL (SAR)
SECTION 11 HISTORICAL PERSPECTIVE
SECTION 12 MACROECONOMIC INDICATORS
SECTION 13 CREDIT RATING SUMMARY
GLOSSARY
DATA & ARCHIVE DOWNLOAD CENTER
1010: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:
+ PRICE VOLUME - 5-YEAR HISTORY
+ PEER COMPARISON - STOCK IN BANK SECTOR AND STOCK IN INDICES
1010: LINKS IN HTML TO FURTHER INFORMATION:
+ NEWS ARCHIVES - 1010 PAST 3 YEARS IN HTML:
+ EUR vs SAR EXCHANGE RATE CHARTS IN HTML
SECTION 1 RECENT NEWS
1.1 Funding/Capital
February 10: Riyad Bank announces the completion of issuing SAR-denominated Tier 2 capital-eligible Sukuk offered by way of private placement in the Kingdom of Saudi Arabia.
SAR-denominated Tier 2 capital-eligible Sukuk offered by way of private placement in the Kingdom of Saudi Arabia.
Source: mubasher.info
1.2 Press Releases
January 21: Riyad Bank announces the commencement of the offer of its Tier 2 Sukuk
With reference to the announcement from Riyad Bank (the "Bank") published on the website of the Saudi Stock Exchange (Tadawul) on 19-1-2021G (corresponding to 6-6-1442H), relating to the intention of the Bank to establish a domestic SAR-denominated Sukuk issuance programme of up to SAR 10 billion and its intention to issue senior and/or subordinated Sukuk including the issuance of Tier 2 capital-eligible Sukuk, the Bank would like to announce the commencement of the offer of Tier 2 capital-eligible Sukuk.
Source: mubasher.info
January 20: Riyad Bank announces intention to issue Tier 2 Sukuk.
Riyad Bank (the "Bank") announces its intention to establish a domestic SAR-denominated Sukuk issuance programme of up to SAR 10 billion (the "Sukuk Programme") for the purpose of issuing and offering senior and/or subordinated Sukuk including the issuance of Tier 2 capital-eligible Sukuk (the "Tier 2") in one or more tranches or through one issuance or a series of issuances and its intention to issue Tier 2 Sukuk under the Sukuk Programme by way of private placement in the Kingdom of Saudi Arabia (the "Potential Offer").
Source: mubasher.info
SECTION 2 CORPORATE PROFILE
2.1 Activities
Riyad Bank is a Saudi Arabia-based joint stock company operating in the banking and finance sector in compliance with Islamic Sharia. Its main activities are offered through three segments: personal banking, corporate banking and treasury and investment. Personal banking offers services, like current accounts, savings accounts, time deposits, credit cards, loans and borrowings. Its corporate segment provides business banking solutions, such as direct debit solutions, cash management, transfer solutions, online corporate banking, short and long term financing services, transfers and payroll solutions.
2.2 Contact Details
| Website | http:// www.riyadbank.com |
| Physical Address | King Abdul Aziz Road , PO Box 22622 , Riyadh 11416 , Saudi Arabia |
| Phone | 3030-401-1-966 |
| Fax | 2707-404-1-966 |
| abdullah.al-shehri@riyadbank.com |
2.3 Industry & Sector
| Classification Level | Name of Sector |
| Economic Sector | Financials |
| Business Sector | Banking & Investment Services |
| Industry Group | Banking Services |
| Industry | Banks |
SECTION 3 TOP SHAREHOLDERS
Top 11 shareholders
| Name of the Share Holder | % of Capital |
| Public Investment Fund | 21.8 |
| General Organization for Social Insurance - Saudi Arabia | 16.7 |
| Al Nahla Trading and Contracting Co | 8.7 |
| Assila Investments Co | 8.0 |
| Hassana Investment Co | 4.9 |
| Moutaz Qusai Hassan Al Azzawi | 0.04 |
| Abdullah bin Mohammed Ibrahim Al Issa | 0.04 |
| Ibrahim Hassan Abbas Sharbatly | 0.02 |
| Mohammed Abdulaziz Sulaiman Al Afaleq | 0.003 |
| Talal Ibrahim Abdulrahman Al Qudaibi | 0.002 |
| Abdulrahman Amin Hassan Jawa | 0.0001 |
% held by Top 11 shareholders 60.2%
SECTION 4 TODAY'S BULLISH SIGNALS
4.1 Rank in the top 14% by Relative Valuation in the Saudi Arabian market
| Description | Value | Rank |
| Price to Book Value | 1.5 | In Top 14% |
4.2 Undervaluation
MCap/Total Assets:
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 5% of stocks by value of Q Ratio.
4.3 Other Bullish Signals
- As per the Du Pont analysis, Return on Equity of 13.8% is better than sector average of 13.1%. This is computed as net profit margin of 52.3% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 6.6.
4.4 Oversold/Bullish Signals:
- The Relative Strength Index (RSI) of 27.2 has breached the oversold line of 30, suggesting the price decrease of 7.1% in the last 14 days is unusually high.
- The stock is oversold according to the Williams % R indicator of -94.4, suggesting the price is close to its 14-day low of SAR19.68.
- The Stochastic indicator of 3.7 has pierced the oversold line of 20; this indicates the price is close to its 14-day low and is likely to revert to an uptrend.
SECTION 5 ONGOING BULLISH PARAMETERS
5.1 Rank in the top 24% by Performance in the Saudi Arabian market
| Description | Value | Rank |
| Net Profit Margin % | 52.3 | In Top 24% |
5.2 Present Value of SAR1000 Invested in the Past 3 Years; The Best Period with PVSAR1000 > 1,601
| PVSAR1,000 | 3 yrs ago |
| 1010.TASI | SAR1,602 |
| Bank sector | SAR1,343 |
| All Share Index (TASI) | SAR1,227 |
5.3 Past 3 years: price rise of 53.2%
3-Year price change of 53.2% for Riyad Bank outperformed the change of 22.2% in the All Share index (TASI) for a relative price change of 31%.
| Price Change % | 3 Years |
| Riyad Bank | 53.2 |
| Bank sector | 33 |
| All Share index (TASI) | 22.2 |
5.4 Created Market Value [CMV] past 10 yrs of SAR18.6 billion ($5 billion)
- Market Capitalization has increased by SAR21.1 billion from SAR38.2 billion to SAR59.4 billion in the last 10 years. This increase comprises cumulative retained earnings (RETE) of SAR2.5 billion and Created Market Value of SAR18.6 billion. The Created Market Value multiple, defined by the change in MCap for every SAR1 of retained earnings is exemplary at SAR8.36.
5.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 7.1%
| TSR % | 3 yrs | 5 yrs | 10 yrs |
| 1010.TASI | 16.8 | 16.5 | 7.2 |
5.6 Increased Volume, up 195% in 5 years
In the past five years, Average Daily Volume of Trading (ADVT) has increased 195.3% to 2.8 million shares.
Avg. Daily Volume Traded 12 months ended Feb 25, million shares
| Year | ADVT |
| 2021 | 2.8 |
| 2020 | 2.5 |
| 2019 | 1.1 |
| 2018 | 0.8 |
| 2017 | 0.94 |
5.7 Increased VWAP, up 73% in 5 years
In the past five years Volume Weighted Average Price (VWAP) has increased by 72.7% to SAR17.75. .
Past five years, 12 months ended Feb 25 (SAR)
| Year | High Price | VWAP | Low Price |
| 2021 | 22.3 | 17.75 | 14.02 |
| 2020 | 29.74 | 25.17 | 20.34 |
| 2019 | 23.18 | 16.41 | 11.68 |
| 2018 | 13.56 | 10.88 | 9.66 |
| 2017 | 11.28 | 10.28 | 8.17 |
5.8 Increased share turnover, up 287% in 5 years
In the past five years, average daily share turnover has increased 286.6% to SAR34.7 million ($9.3 million). This suggests increased liquidity.
Past five years, 12 months ended Feb 25 (SAR million)
| Year | Average Daily Turnover |
| 2021 | 34.7 |
| 2020 | 62.0 |
| 2019 | 17.5 |
| 2018 | 8.7 |
| 2017 | 9.0 |
SECTION 6 TODAY'S BEARISH SIGNALS
6.1 Momentum Down 6.8% Past Week
The price ranged between a low of SAR19.76 on Feb 24 and a high of SAR20.50 on Feb 18.
| Feb | Riyad Bank | Close price [SAR] | Price change % | Relative change % * | Comment |
| Thu 18 | Falls for a fifth consecutive day, a five-day fall of 4.9% | 20.5 | -3.3 | -2.7 | Steepest Fall |
| Sun 21 | Consolidates after 5 days of consecutive falls | 20.5 | 0 | -0.7 | Price fall on slipping relative strength |
| Mon 22 | Drops to two-month low | 20.26 | -1.2 | -1.4 | Price fall on slipping relative strength |
| Tue 23 | Continues significant downtrend; decreases 1.4% | 19.98 | -1.4 | -2.0 | Price fall on slipping relative strength |
| Wed 24 | Loses SAR660 million ($176 million) (1.1%) in MCap, steepest heavyweight fall in Bank sector | 19.76 | -1.1 | -0.9 | Week-low of 19.76 |
* Relative change is price change of stock with respect to Benchmark Index, All Share index (TASI).
6.2 Rank in the bottom 19% by Price Performance in the Saudi Arabian market
| Description | Value | Rank |
| Rel Strength 6 mo | 20 | In Bottom 19% |
| 1-week Price Change % | -3.4 | In Bottom 10% |
| Price/MAP50 | 0.95 | In Bottom 7% |
| PV1000 [1 yr] $ | 892 | In Bottom 5% |
| 1-month Price Change % | -7.0 | In Bottom 5% |
6.3 Downtrend
Negative MACD:
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 20.49 minus the 26-day EMA of 20.72 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.
Past Month:
- Falls to Rises: In the past month the number of falls outnumbered rises 13:8 or 1.6:1.
Trailing Relative Strength (6 months) at 20 percentile:
- The stock has a 6-month relative strength of 20 in the Saudi Arabian market of 174 stocks indicating it is trailing 80% of the market.
SECTION 7 ONGOING BEARISH PARAMETERS
7.1 Present Value of SAR1000 Invested in the Past [3 Mo, 1 Yr]; The Worst Periods with PVSAR1000 < 976
| PVSAR1,000 | 3 mo ago | 1 yr ago |
| 1010.TASI | SAR975 | SAR892 |
| Bank sector | SAR1,071 | SAR1,086 |
| All Share Index (TASI) | SAR1,058 | SAR1,185 |
7.2 The Worst Periods [3 Mo, 1 Yr] with Price Change % < -2.4
1-Year price change of -10.8% for Riyad Bank underperformed the change of 18.7% in the All Share index (TASI) for a relative price change of -29.5%.
| Price Change % | Quarter | Year |
| Riyad Bank | -2.5 | -10.8 |
| Bank sector | 7.2 | 9.2 |
| All Share index (TASI) | 5.8 | 18.7 |
7.3 Moving Annual Return of -10.8% in the past year:
Moving Annual Return was -10.8% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 20%
| 1010 | Close (SAR) | Dividends (SAR) | Capital Gain / (Loss) % | % Yield | Annual Return % |
| Feb 25 | 19.8 | - | (10.8) | - | (10.8) |
| 1 Yr ago | 22.2 | 0.55 | (2.4) | 2.4 | - |
| 2 Yrs ago | 22.75 | 0.37 | 76 | 2.9 | 78.8 |
| 3 Yrs ago | 12.93 | 0.3 | 25.2 | 2.9 | 28.1 |
| 4 Yrs ago | 10.33 | 0.7 | (2.7) | 6.6 | 3.9 |
Close 5 years ago SAR10.61
7.4 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Period with TSR < -10.7%
| TSR % | 1 yr |
| 1010.TASI | -10.8 |
7.5 Satisfies 3 out of 9 criteria of Joseph Piotroski [pass mark 5]:
- Positive net income.
- Positive operating cashflow.
- Good quality of earnings [operating cashflow exceeds net income].
SECTION 8 BANK METRICS
8.1 Bank Metrics (FY2019)
| Description | SAR B FY2019 | SAR B FY2018] | Change |
| Bank Revenue | 10.7 | 9 | Up 19.5% |
Favourable Changes:
- Bank Revenue up 19.5% from SAR9b to SAR10.7b
SECTION 9 NEWS ARCHIVES (MAR 2017 - NOV 2020)
HTML PAGES ARE AVAILABLE TO EXPORT AS FOLLOWS:
http://www.buysellsignals.net/BuySellSignals/report/Saudi/Stock/Daily/Html/1010_Corporate_Wire.html
SECTION 10 CURRENCY SYNOPSIS: SAUDI RIYAL (SAR)
10.1 % Change of EUR vs Currency Basket Period-Based
In the past three years the Euro fell 1.3% against the Saudi Riyal. However, in the past year the Euro rose 12.2% against the Saudi Riyal.
| Last | Country | 1-day % | 1-week % | 1-Year % | 3-Yrs % |
| EUR1=4.55SAR | Saudi Arabia | -0.1 | 0.8 | 12.2 | -1.3 |
| EUR1=9.409HKD | Hong Kong | - | 0.8 | 11.6 | -2.2 |
| EUR1=1.604SGD | Singapore | - | 0.2 | 5.8 | -1.1 |
| EUR1=0.86GBP | United Kingdom | -0.4 | -1.1 | 2.5 | -2.4 |
| EUR1=1.213USD | United States Of America | -0.1 | 0.8 | 12.2 | -1.3 |
| EUR1=24.904MXN | Mexico | -0.8 | 2.0 | 20.2 | 9.1 |
| EUR1=7.836CNY | China | -0.2 | 0.8 | 3.0 | 0.6 |
| EUR1=128.626JPY | Japan | 0.6 | 0.9 | 6.9 | -2.0 |
| EUR1=10.264NOK | Norway | -0.9 | 0.2 | 1.3 | 6.4 |
| EUR1=1,347.526KRW | South Korea | -0.4 | 1.1 | 2.0 | 1.8 |
| EUR1=1.526CAD | Canada | -0.5 | -0.4 | 6.1 | -2.0 |
| EUR1=1.102CHF | Switzerland | 0.8 | 2.0 | 4.0 | -4.3 |
| EUR1=10.094SEK | Sweden | - | 0.5 | -4.6 | 0.5 |
| EUR1=1.0EUR | European Union | 0.0 | - | - | - |
| EUR1=1.644NZD | New Zealand | -1.0 | -2.1 | -3.9 | -2.4 |
| EUR1=1.534AUD | Australia | -0.3 | -1.4 | -6.4 | -2.3 |
10.2 % Change of SAR vs Currency Basket Period-Based
In the past three years the Saudi Riyal rose 2.9% against the South Korean Won. However, in the past year the Saudi Riyal fell 9.0% against the South Korean Won.
| Last | Country | 1-day % | 1-week % | 1-Year % | 3-Yrs % |
| SAR1=295.615KRW | South Korea | -0.4 | 0.1 | -9.0 | 2.9 |
| SAR1=28.213JPY | Japan | 0.5 | -0.2 | -4.9 | -1.0 |
| SAR1=5.434MXN | Mexico | -1.7 | 0.6 | 6.6 | 9.9 |
| SAR1=2.213SEK | Sweden | - | -0.3 | -15.2 | 1.6 |
| SAR1=1.72CNY | China | -0.2 | -0.1 | -8.3 | 1.8 |
| SAR1=0.335CAD | Canada | -0.4 | -1.0 | -5.4 | -0.5 |
| SAR1=0.188GBP | United Kingdom | -0.5 | -2.0 | -8.9 | -1.2 |
| SAR1=0.352SGD | Singapore | -0.1 | -0.6 | -5.8 | 0.1 |
| SAR1=0.267USD | United States Of America | 0.0 | - | - | - |
| SAR1=0.361NZD | New Zealand | -0.9 | -2.6 | -14.4 | -1.2 |
| SAR1=0.337AUD | Australia | -0.3 | -2.1 | -16.7 | -1.1 |
| SAR1=2.251NOK | Norway | -0.9 | -0.3 | -10.0 | 7.5 |
| SAR1=2.068HKD | Hong Kong | - | - | -0.5 | -0.9 |
| SAR1=0.219EUR | European Union | -0.1 | -0.8 | -11.0 | 1.2 |
| SAR1=0.242CHF | Switzerland | 0.8 | 1.5 | -7.4 | -3.0 |
SECTION 11 HISTORICAL PERSPECTIVE
Year-on-Year Comparison EUR/SAR (Trailing year - ended 24 Feb)
In the past 5 years, the EUR/SAR has jumped 10.2% from 4.13 to 4.55, an average compound annual appreciation of the EUR by 2%.
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Close | 4.55 | 4.06 | 4.25 | 4.61 | 3.96 | 4.13 |
| % Change | 12.2 | -4.6 | -7.8 | 16.4 | -4.1 | -19 |
| Range | 4.06 - 4.34 | 4.05 - 4.26 |
EUR1 buys SAR 4.55 today: Appreciation of EUR from 3.4 v/s SAR twenty years ago
| Last | 5 Yrs ago | 10 Yrs ago | 15 Yrs ago | 20 Yrs ago | |
| EUR/SAR | 4.55 | 4.13 | 4.88 | 4.46 | 3.4 |
Present Value of SAR1000 Invested in EUR 20 years ago is SAR1,340
| PVSAR1,000 | 5 yrs ago | 10 yrs ago | 20 yrs ago |
| EUR/SAR | SAR1,102 | SAR932 | SAR1,340 |
SECTION 12 MACROECONOMIC INDICATORS
| INDICATOR | EURO AREA[EUR] | SAUDI ARABIA[SAR] |
| GDP (Billion USD) | 13,336 | 793 |
| GDP growth yoy (%) | -5.1 | -3.8 |
| Interest rate (%) | 0.05 | 1.0 |
| Inflation rate (%) | 0.9 | 5.3 |
| Unemployment rate (%) | 8.3 | 8.5 |
| Budget / (Deficit) to GDP ratio (%) | (0.6) | (4.5) |
| Current account / (Deficit) to GDP ratio (%) | 2.3 | 6.3 |
| Debt to GDP ratio (%) | 77.6 | 22.8 |
SECTION 13 CREDIT RATING SUMMARY
Saudi Arabia:
| Rating Agency | Long Term | Foreign Currency | Description |
| Moody's | Aa3 | ||
| S&P | A- | Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances. The minus (-) sign shows relative standing within the major rating category. | |
| FITCH | AA | Very high credit quality: 'AA' ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. | |
| DAGONG | AA | "AA" ratings denote expectations of very low default risk. It indicates that the issuer has a very strong capacity for payment of financial commitments. Although due to its relatively higher long-term risk, this capacity is not significantly vulnerable to any foreseeable event. |
GLOSSARY
ADVT: Average Daily Volume of shares Traded
Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price: Latest Price/Moving Average Price
Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)
TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend
TTM: Trailing 12 Months
Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.
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