Riyad Bank (1010: SAR25.70) adds SAR1 billion ($320 million) (1.6%) in MCap, top heavyweight rise in Bank sector; +40 hallalah [1.6%] 07 July 2024

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Riyad Bank's (TASI: 1010 SAR25.70) stock price lifted 40.0 hallalah (1.6%) from its previous trading session to close at SAR25.70.

Compared with the All Share Index (TASI) which rose 29.9 points (0.3%) in the day, the relative price increase was 1.4%.

Riyad Bank is Saudi Arabia's 3rd largest Bank by market cap. It posted the highest rise in MCap SAR1.2 billion ($320 million) with the most influence on the Bank sector. Its MCap is SAR77.1 billion ($20.6 billion).

There were 808,189 shares worth SAR20.8 million ($5.5 million) traded today. The volume was 0.4 times the average daily trading volume of 2.1 million shares.

RIYAD BANK (1010) Stock Dashboard [traded in Saudi Riyal, SAR] End-of-Day Sun, Jul 07

http:// www.riyadbank.com

LastSAR25.70Market CapSAR77 billion [US$21 billion]
P/E9.9Dividend Yield % (TTM)2.5
EPS (FY2023)SAR2.58DPS (past 12 months)SAR1.3 or 130 hallalah
Shares Outstanding3,000,000,000ExchangeSAUDI ARABIAN [Saudi ]
1010 in IndicesAll Share [of 167 stocks]SectorBank [of 11 stocks]
EPS Growth (Q1 2024 vs Q4 2023)6.5Today's VI*0.4
Today's Volume808,189Currency1.000 USD = 3.75 Saudi Riyal (SAR)
Ave Daily Volume2,145,184 sharesPV$1000 (1 yr)SAR792
US$792
52-Week Price Range24.20 - 34.57

A year ago the exchange rate was USD 1 = 3.75 SAR. USD1000 would have bought SAR3,750. A year ago the Riyad Bank share price was SAR33.10. SAR3,750 would have bought 113.3 Riyad Bank shares on that day. Those 113.3 shares would be worth SAR2,912 at today's share price of SAR25.70. At today's exchange rate of USD1=3.75 SAR this is equivalent to USD777. Dividends reinvested are worth SAR15 ($15). PV$1000= $792.

Price Volume Snapshot past 3 months (SAR)

Past month to HighLowVWAPVolume Index *
07 Jul 202426.7524.6225.501.5
06 Jun 202427.6524.2025.451.9
07 May 202429.7026.8027.952.0

[*Volume Index of 1.5 means volume for the month was 1.5 times its 12-month average]

[VWAP is defined as the Volume Weighted Average Price; High Low prices and VWAP are shown in Saudi Riyal]

INDEX

SECTION 1 CORPORATE PROFILE

SECTION 2 RECENT NEWS AND RESEARCH

SECTION 3 THE PAST YEAR: PRESS RELEASES

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 TAX & DIVIDEND

SECTION 10 TOP MANAGEMENT AND BOARD OF DIRECTORS

SECTION 11 TOP SHAREHOLDERS

Read more...

ANNEXURE

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

APPENDIX II STOCK IDENTIFIERS

GLOSSARY

SECTION 1 CORPORATE PROFILE

1.1 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. It is Saudi Arabia's 3rd largest Bank by market capitalisation.

1.2 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

1.3 Industry & Sector [of 55 stocks]

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

SECTION 2 RECENT NEWS AND RESEARCH

Financial News

Quarterly Report (Q1/2024):

Release Date: May 15, 2024

Quarterly Report Analysis Q1 2024: Riyad Bank reports 6% sequential rise in Quarterly Net Profit

Riyad Bank (TASI:1010), announced net profit of SAR2.1b ($553m) for the quarter-ended 31 March 2024 [Q1/2024], up 6% from the previous quarter [Q4/2023] and up 2.6% from the year-earlier period [Q1/2023]. Earnings per share (EPS) were up 6.5% sequentially from 62.0hallalah (US16.53c) in Q4/2023 to 66.0hallalah (US17.6c) in Q1/2024.

Quarterly Report (Q1 2024)

Quarter-ended31 Mar [Q1/2024]31 Dec [Q4/2023]30 Sep [Q3/2023]
EPS, hallalah666267
Sequential growth in EPS %6.5-7.54.7
Revenue, SAR billion4.13.94.0
Revenue, $ billion1.11.01.1
Sequential growth in Revenue %4.0-1.20.7
Net Profit, SAR billion2.12.02.1
Net Profit, $ million553521557
Sequential growth in Net Profit %6.0-6.55.4

Compared with the Previous Corresponding Period [PCP; Q1/2023], year-over-year [y.o.y.] EPS was up 3.1%, Revenue was up 1.3% and Net Profit was up 2.6%.

Quarter-ended31 Mar [Q1/2024]31 Mar [Q1/2023]
EPS, hallalah6664
PCP growth in EPS %3.125
Revenue, SAR billion4.14.0
Revenue, $ billion1.11.1
PCP growth in Revenue %1.330.1
Net Profit, SAR billion2.12.0
Net Profit, $ million553539
PCP growth in Net Profit %2.630.1

VI* Volume Index = Number of shares traded today/Average number of shares traded per day.

SECTION 3 THE PAST YEAR: PRESS RELEASES

3.1 Press Releases and Corporate Wire

Press Release article 1 of 2, 158 words

September 30 2023: Quarterly Activities Report: Riyad Bank Cash Balance decreases 38%

As per a report dated September 30, 2023 the Cash Burn of operating activities was SAR8,738,159,000 for the nine months ended September 30, 2023. This corresponds to an average Cash Burn Rate of SAR970,906,556 per month. To support this Cash Burn Rate, the cash balance of SAR25,712,332,000 as at September 30, 2023 should be adequate till December 02, 2025. The cash runway defined by the length of time to run out of money if it kept spending at its current rate of cash burn is 2 years and 4 days from today's date.
Quarter ended 30 Sep 2023SAR
Cash and cash equivalents at beginning of period41.5 billion
Net cash from / (used in) operating activities(8.7 billion)
Net cash from investing activities(7 billion)
Net cash from financing activities(61.8 million)
Cash raised (used) during quarter(15.8 billion)
Cash and cash equivalents at end of period25.7 billion

Press Release article 2 of 2, Source: WEC, 53 words

July 20 2023: Riyad Bank announces dividend

Riyad Bank today announced a cash dividend of 65.0 hallalah per share. The ex-dividend date is Sunday, July 30, 2023 and the record date is Monday, July 31, 2023 and it is payable on Monday, August 07.

SECTION 4 TODAY'S BULLISH SIGNALS

4.1 Relative Value Indicators: Undervaluation compared with sector averages

Price/Earnings:

Riyad Bank stock is trading at the fifteenth lowest P/E multiple in the All Share Index (TASI).

Price/Earnings of 9.9 < Bank sector (of 11 stocks) avg of 12.0:

- The price-to-earnings ratio of 9.9 indicates undervaluation compared with sector average of 12.0.

SectorP/EDividend Yield %
Forbes 2000Stock: 9.9; Sector: 20.9Stock: 2.5; Sector: 0.8undervalued

4.2 3-DAY: WEAK MOMENTUM UP

1010 strengthens 1.8% on thin volume 0.8 times average. Compared with the All Share Index (TASI) which rose 82.5 points (or 0.7%) in the 3-days, the relative price increase was 1.4%.

Riyad Bank (1010) outperformed the All Share index (TASI) in 2 out of 3 days. The price ranged between a high of SAR25.70 on Sunday Jul 07 and a low of SAR25.30 on Thursday Jul 04.

JulRiyad BankClose [SAR]Change %Comment
Sun 07Adds SAR1 billion ($320 million) (1.6%) in MCap, top heavyweight rise in Bank sector25.71.6Top Rise; RPC=1.4%
Thu 04Offers earnings yield of 10.2%25.30Price rise on rising relative strength
Wed 03Offers earnings yield of 10.2%25.30.2Price rise on rising relative strength

* RPC - Relative Price Change is % price change of stock less % change of the All Share Index (TASI).

4.3 Rank in the top 22% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
Cash to MCap %39.2In Top 5%
Price/Earnings9.9In Top 11%
P/E * P/NTA12.7In Top 17%
Price to Book Value1.3In Top 20%
Earnings Yield %10.1In Top 22%

4.4 Other Bullish Signals

- Return on Capital Employed of 6.8% versus sector average of 2.3%.

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 6% of stocks by value of Q Ratio.

- The company is cash rich with Cash to Market Capitalisation at 39.2%.

- As per the Du Pont analysis, Return on Equity of 13.4% is better than sector average of 12.1%. This is computed as net profit margin of 50.6% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 6.4.

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 EPS growth [FY2023 vs FY2022] of 11.2%:

FYEPS (SAR)Growth %
20232.5811.2
20222.3215.4

5.2 Rule of 40

The stock scores a favorable score exceeding 40 when using the Rule of 40 (Revenue Growth plus EBITDA margin). Y.o.y revenue growth of 17%, EBITDA margin is 60.8% and the sum of the two 77.7% needs to exceed 40%.

5.3 Rank in the top 91% by Liquidity in the Saudi Arabian market

DescriptionValueRank
Ave daily turnoverSAR57 million ($15 million)In top 91%

5.4 Rank in the top 19% by Performance in the Saudi Arabian market

DescriptionValueRank
Net Profit Margin %50.6In Top 19%
EBITDA Margin %60.8In Top 19%

5.5 Created Market Value [CMV] past 20 yrs of SAR18.8 billion ($5 billion)

- Market Capitalization has increased by SAR29.6 billion from SAR47.5 billion to SAR77.1 billion in the last 20 years. This increase comprises cumulative retained earnings (RETE) of SAR10.8 billion and Created Market Value of SAR18.8 billion. The Created Market Value multiple, defined by the change in MCap for every SAR1 of retained earnings is exemplary at SAR2.74.

5.6 Sequential growth in EPS [Q1/2024 vs Q4/2023] of 6.5%:

The most recent quarter (Q1/2024) showed a rise of 6.5% in sequential growth of Quarterly EPS.
Quarterly ReportEPS ( hallalah)Growth %
Q1/202466.06.5
Q4/202362.0-7.5

5.7 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 5.4%

TSR %5 yrs10 yrs
1010.TASI5.57.7

5.8 P/E/G < 1

The price earnings ratio of 9.9 divided by trailing twelve months eps growth of 11.2% corresponds to an attractive P/E/G of 0.9 times; being less than the value benchmark of 1.0.

EPS Growth (%)11.21
P/E/G0.89
P/E9.92

5.9 Increased VWAP, up 55% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 54.8% to SAR28.34.

Past five years, 12 months ended Jul 07 (SAR)

YearHigh PriceVWAPLow Price
202434.5728.3424.2
202336.4130.9324.56
202240.5930.0823.72
202125.1619.2515.01
202025.0218.3112.09

5.10 Increased share turnover, up 23% in 5 years

In the past five years, average daily share turnover has increased 23.1% to SAR55.7 million ($14.8 million). This suggests increased liquidity.

Past five years, 12 months ended Jul 07 (SAR million)

YearAverage Daily Turnover
202455.7
202337.1
202245.6
202128.2
202045.2

5.11 Satisfies one criterion of Benjamin Graham

- The P/E of 9.9 multiplied by the P/NTA of 1.3 is 12.7. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

SECTION 6 TODAY'S BEARISH SIGNALS

6.1 Rank in the bottom 11% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
EV/EBITDA5.3In Bottom 11%

6.2 Rank in the bottom 18% by Price Performance in the Saudi Arabian market

DescriptionValueRank
PV1000 [1 yr] $792In Bottom 18%

6.3 Downtrend

Price/Moving Average Price of 0.92 and negative MACD:

- The Price/MAP 200 for Riyad Bank is 0.92. Being less than 1 is a bearish indicator. It is lower than the Price/MAP 200 for the All Share Index (TASI) of 0.99, a second bearish indicator. The stock is trading below both its MAPs and the 50-day MAP of SAR26.23 is lower than the 200-day MAP of SAR27.96, a third bearish indicator. The 200-day MAP has decreased to SAR27.96, a fourth bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 25.49 minus the 26-day EMA of 25.66 is negative, suggesting a bearish signal.

Past Quarter:

- In the last three months the stock has hit a new 52-week low four times, pointing to a downtrend.

Trailing Relative Strength (6 months) at 25 percentile:

- The stock has a 6-month relative strength of 25 in the Saudi Arabian market of 273 stocks indicating it is trailing 75% of the market.

SECTION 7 ONGOING BEARISH PARAMETERS

7.1 Rank in the bottom 16% by Growth in the Saudi Arabian market

DescriptionValueRank
EPS Growth %11.2In Bottom 16%

7.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 3.4%

TSR %1 yr3 yrs20 yrs
1010.TASI-20.83.32.6

7.3 Declining Volume, down 16% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 15.6% to 2.1 million shares.

Avg. Daily Volume Traded 12 months ended Jul 07, million shares

YearADVT
20242.1
20231.2
20221.6
20211.5
20202.5

7.4 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Return on Assets improvement [from 2% to 2.1%].

- Total shares on issue unchanged.

- Improvement in asset turnover [growth in revenue of 17.3% exceeded growth in assets of 7.6%].

But does not meet the following 5 criteria of Joseph Piotroski:

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in long-term debt to total assets.

- Improvement in current ratio.

- Improvement in gross margin.

SECTION 8 BANK METRICS

8.1 Bank Metrics (FY2023)

DescriptionFY2023FY2022Change
Total Non Interest Expense6.9 B5.7 BUp 22%
Bank Other Revenue74.7 M64.2 MUp 16.4%

Favourable Changes:

- Bank Other Revenue up 16.4% from SAR64.2m to SAR74.7m

Unfavourable Changes:

- Total Non Interest Expense up 22% from SAR5.7b to SAR6.9b

8.2 Bank Metrics (Q1/2024)

All values are in SAR billion

DescriptionQ1/2024Q1/2023Change
Total Non Interest Expense1.8 1.8 Down 0.2%

Favourable Changes:

- Total Non Interest Expense down 0.2% from SAR1.8b to SAR1.8b

SECTION 9 TAX & DIVIDEND

9.1 Average Income Tax Paid (Past 3 Years)

Description202320222021
As % of profit before tax10.310.310.3
As % of operating cash flow9.69.79.6

9.2 Dividend History

In the past 5 years annual dividends have decreased by 5.0 hallalah from 70.0 hallalah to 65.0 hallalah. Based on a start date of 5 years ago, there has been two increases in dividends over the last 5 years.

DateValue ( hallalah)Type
30 Jul 202365Cash
Tr 12 Months65
2022 - 2023115
2021 - 202254
2020 - 2021100
2019 - 202070

SECTION 10 TOP MANAGEMENT AND BOARD OF DIRECTORS

10.1 Top Management

Top Management [Three top executives with tenure > 5 yrs]

NameDesignationSince Appointment
Tareq A. Al SadhanChief Executive Officer5 Yrs, 3 Mos
Abdullah Ali Al-OrainiChief Financial Officer5 Yrs, 6 Mos
Mohammed Abdullah Al YahyaChief Operating Officer6 Yrs, 6 Mos

Top Management [One top executive with tenure < 5 yrs]

NameDesignationSince Appointment
Abdullah Mohammed Al-IssaNon-Executive Chairman4 Yrs, 9 Mos

10.2 Board Of Directors

Board Of Directors [Ten directors with tenure > 7 yrs]

NameDesignationSince Appointment
Jamal Abdul Karim Abdul Karim Al RammahDirector7 Yrs, 8 Mos
Ibrahim Hassan SharbatlyDirector8 Yrs, 6 Mos
Talal Ibrahim Al-QudaibiIndependent Director8 Yrs, 6 Mos
Mutaz Kusai Al-AzzawiDirector-
Nader Ibrahim Al-WehibiDirector-
Mohammed Abdulaziz Al-AfaleqDirector-
Ibrahim Hassan Abbas SharbatlyDirector-
Abdul-Rahman Amin JawaIndependent Director-
Mohammed Omair Ayed Al-OtaibiIndependent Director-
Mohammed Talal Al-NahasIndependent Director-

SECTION 11 TOP SHAREHOLDERS

Top 5 shareholders

Name of the Share HolderNumber Of Shares% of Capital
Public Investment Fund65260800021.8
General Organization for Social Insurance - Saudi Arabia31170000010.4
Al Nahla Trading and Contracting Co2621490008.7
Assila Investments Co2400000008.0
Hassana Investment Co1470000004.9

% held by Top 5 shareholders 53.8%

APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER

1010: EXPORT DATA TO EXCEL:

+ PRICE VOLUME - 5-YEAR HISTORY

+ PEER COMPARISON

1010: OTHER INFORMATION:

+ NEWS ARCHIVES - 1010 PAST 4 YEARS:

+ PRICE VOLUME CHARTS

+ EUR vs SAR EXCHANGE RATE CHARTS IN HTML

+ BOARD OF DIRECTORS

APPENDIX II STOCK IDENTIFIERS

ISIN: SA0007879048

PermID: 4295887338

RIC: 1010.SE

LEI: 54930037RJ782ISGGM71

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 (%)

Cash Burn: Net Operating Cashflow used in the past quarter. Shown for companies reporting losses

Cash Runway: Cash at end of Qtr/Cash Burn. Shown in months for companies reporting losses

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabilities (times)

Dividend Yield: Dividend Per Share/Share Price (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PCP: Previous Corresponding Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

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 Assets: Net Profit/Total Assets (%)

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 Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

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