Thursday February 25, 2021 25 February 2021

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]

CurrencyUSD 1 = SAR 3.75 Market CapSAR59.4 billion [$15.8 billion]
Feb 25 closeSAR19.80DPS (TTM)55 hallalah
Ave Daily Volume2,780,919 sharesShares Outstanding3,000,000,000
SectorBank

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:

+ PRICE VOLUME CHARTS 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

Websitehttp:// www.riyadbank.com
Physical AddressKing Abdul Aziz Road , PO Box 22622 , Riyadh 11416 , Saudi Arabia
Phone3030-401-1-966
Fax2707-404-1-966
Emailabdullah.al-shehri@riyadbank.com

2.3 Industry & Sector

Classification LevelName of Sector
Economic SectorFinancials
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks

SECTION 3 TOP SHAREHOLDERS

Top 11 shareholders

Name of the Share Holder% of Capital
Public Investment Fund21.8
General Organization for Social Insurance - Saudi Arabia16.7
Al Nahla Trading and Contracting Co8.7
Assila Investments Co8.0
Hassana Investment Co4.9
Moutaz Qusai Hassan Al Azzawi0.04
Abdullah bin Mohammed Ibrahim Al Issa0.04
Ibrahim Hassan Abbas Sharbatly0.02
Mohammed Abdulaziz Sulaiman Al Afaleq0.003
Talal Ibrahim Abdulrahman Al Qudaibi0.002
Abdulrahman Amin Hassan Jawa0.0001

% 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

DescriptionValueRank
Price to Book Value1.5In 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

DescriptionValueRank
Net Profit Margin %52.3In Top 24%

5.2 Present Value of SAR1000 Invested in the Past 3 Years; The Best Period with PVSAR1000 > 1,601

PVSAR1,0003 yrs ago
1010.TASISAR1,602
Bank sectorSAR1,343
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 Bank53.2
Bank sector33
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 yrs5 yrs10 yrs
1010.TASI16.816.57.2

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

YearADVT
20212.8
20202.5
20191.1
20180.8
20170.94

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)

YearHigh PriceVWAPLow Price
202122.317.7514.02
202029.7425.1720.34
201923.1816.4111.68
201813.5610.889.66
201711.2810.288.17

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)

YearAverage Daily Turnover
202134.7
202062.0
201917.5
20188.7
20179.0

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.

FebRiyad BankClose price [SAR]Price change %Relative change % *Comment
Thu 18Falls for a fifth consecutive day, a five-day fall of 4.9%20.5-3.3-2.7Steepest Fall
Sun 21Consolidates after 5 days of consecutive falls20.50-0.7Price fall on slipping relative strength
Mon 22Drops to two-month low20.26-1.2-1.4Price fall on slipping relative strength
Tue 23Continues significant downtrend; decreases 1.4%19.98-1.4-2.0Price fall on slipping relative strength
Wed 24Loses SAR660 million ($176 million) (1.1%) in MCap, steepest heavyweight fall in Bank sector19.76-1.1-0.9Week-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

DescriptionValueRank
Rel Strength 6 mo20In Bottom 19%
1-week Price Change %-3.4In Bottom 10%
Price/MAP500.95In Bottom 7%
PV1000 [1 yr] $892In Bottom 5%
1-month Price Change %-7.0In 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

PVSAR1,0003 mo ago1 yr ago
1010.TASISAR975SAR892
Bank sectorSAR1,071SAR1,086
All Share Index (TASI)SAR1,058SAR1,185

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 %QuarterYear
Riyad Bank-2.5-10.8
Bank sector7.29.2
All Share index (TASI)5.818.7

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%

1010Close (SAR)Dividends (SAR)Capital Gain / (Loss) %% YieldAnnual Return %
Feb 2519.8-(10.8)-(10.8)
1 Yr ago22.20.55(2.4)2.4-
2 Yrs ago22.750.37762.978.8
3 Yrs ago12.930.325.22.928.1
4 Yrs ago10.330.7(2.7)6.63.9

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)

DescriptionSAR B FY2019SAR B FY2018]Change
Bank Revenue10.7 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.

LastCountry1-day %1-week %1-Year %3-Yrs %
EUR1=4.55SARSaudi Arabia-0.10.812.2-1.3
EUR1=9.409HKDHong Kong-0.811.6-2.2
EUR1=1.604SGDSingapore-0.25.8-1.1
EUR1=0.86GBPUnited Kingdom-0.4-1.12.5-2.4
EUR1=1.213USDUnited States Of America-0.10.812.2-1.3
EUR1=24.904MXNMexico-0.82.020.29.1
EUR1=7.836CNYChina-0.20.83.00.6
EUR1=128.626JPYJapan0.60.96.9-2.0
EUR1=10.264NOKNorway-0.90.21.36.4
EUR1=1,347.526KRWSouth Korea-0.41.12.01.8
EUR1=1.526CADCanada-0.5-0.46.1-2.0
EUR1=1.102CHFSwitzerland0.82.04.0-4.3
EUR1=10.094SEKSweden-0.5-4.60.5
EUR1=1.0EUREuropean Union0.0---
EUR1=1.644NZDNew Zealand-1.0-2.1-3.9-2.4
EUR1=1.534AUDAustralia-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.

LastCountry1-day %1-week %1-Year %3-Yrs %
SAR1=295.615KRWSouth Korea-0.40.1-9.02.9
SAR1=28.213JPYJapan0.5-0.2-4.9-1.0
SAR1=5.434MXNMexico-1.70.66.69.9
SAR1=2.213SEKSweden--0.3-15.21.6
SAR1=1.72CNYChina-0.2-0.1-8.31.8
SAR1=0.335CADCanada-0.4-1.0-5.4-0.5
SAR1=0.188GBPUnited Kingdom-0.5-2.0-8.9-1.2
SAR1=0.352SGDSingapore-0.1-0.6-5.80.1
SAR1=0.267USDUnited States Of America0.0---
SAR1=0.361NZDNew Zealand-0.9-2.6-14.4-1.2
SAR1=0.337AUDAustralia-0.3-2.1-16.7-1.1
SAR1=2.251NOKNorway-0.9-0.3-10.07.5
SAR1=2.068HKDHong Kong---0.5-0.9
SAR1=0.219EUREuropean Union-0.1-0.8-11.01.2
SAR1=0.242CHFSwitzerland0.81.5-7.4-3.0

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%.

202120202019201820172016
Close4.554.064.254.613.964.13
% Change12.2-4.6-7.816.4-4.1-19
Range4.06 - 4.344.05 - 4.26

EUR1 buys SAR 4.55 today: Appreciation of EUR from 3.4 v/s SAR twenty years ago

Last5 Yrs ago10 Yrs ago15 Yrs ago20 Yrs ago
EUR/SAR4.554.134.884.463.4

Present Value of SAR1000 Invested in EUR 20 years ago is SAR1,340

PVSAR1,0005 yrs ago10 yrs ago20 yrs ago
EUR/SARSAR1,102SAR932SAR1,340

SECTION 12 MACROECONOMIC INDICATORS

INDICATOREURO AREA[EUR]SAUDI ARABIA[SAR]
GDP (Billion USD)13,336793
GDP growth yoy (%)-5.1-3.8
Interest rate (%)0.051.0
Inflation rate (%)0.95.3
Unemployment rate (%)8.38.5
Budget / (Deficit) to GDP ratio (%)(0.6)(4.5)
Current account / (Deficit) to GDP ratio (%)2.36.3
Debt to GDP ratio (%)77.622.8

SECTION 13 CREDIT RATING SUMMARY

Saudi Arabia:

Rating AgencyLong TermForeign CurrencyDescription
Moody'sAa3
S&PA-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.
FITCHAAVery high credit quality: 'AA' ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments.
DAGONGAA"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.

Created by www.buysellsignals.com