Riyad Bank has a long history, dating back to 1957 when it was established as the National Commercial Bank. It has since undergone several name changes, with the current name being adopted in 2009.
The bank's primary focus is on providing retail banking services to individuals and businesses in Saudi Arabia. With a strong presence in the country, Riyad Bank has a large network of branches and ATMs.
As a major player in the Saudi banking sector, Riyad Bank has a significant market share and a wide range of products and services. Its financial performance is also notable, with the bank reporting a steady increase in profits over the years.
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Riyad Bank Overview
Riyad Bank has its roots dating back to 1957, making it one of the oldest banks in Saudi Arabia.
The bank's history is marked by significant milestones, including its merger with Saudi Cairo Bank in 1978.
Riyad Bank is headquartered in Riyadh, Saudi Arabia, and operates a network of branches across the country.
The bank's services include corporate banking, consumer banking, and Islamic banking, catering to a wide range of customers.
Riyad Bank has a strong presence in the Saudi market, with a significant share of the country's banking sector.
Financial Analysis
Riyad Bank's financial health is a mixed bag. The bank's total assets stand at a significant 437.4 billion, primarily comprised of net loans.
The bank's net loans account for the lion's share of its assets, totaling 305.4 billion. This is a substantial amount, indicating a strong lending business.
Riyad Bank's investments also play a crucial role in its asset base, totaling 98.8 billion. This suggests that the bank is diversifying its investments to minimize risk.
Here's a breakdown of Riyad Bank's total assets:
The bank's liabilities, on the other hand, are relatively manageable. Total deposits stand at 338.8 billion, indicating a strong customer base.
Fundamental Analysis
Intrinsic value is a key concept in fundamental analysis, and it can be calculated using various methods such as the Discounted Cash Flow (DCF) model and Relative Value analysis.
The intrinsic value of Riyad Bank SJSC stock under the Base Case scenario is 33.27 SAR, which is significantly higher than its current market price of 25.4 SAR.
Riyad Bank SJSC is undervalued by 24% compared to its intrinsic value, making it an attractive investment opportunity.
According to Wall Street analysts, the average 1-year price target for Riyad Bank SJSC is 35.05 SAR, with a low forecast of 28.79 SAR and a high forecast of 47.78 SAR.
The stock is trading at its lowest valuation over the past 5 years, indicating a potential buying opportunity for investors.
The average 1-year price target of 35.05 SAR suggests that the stock has room for growth and could potentially reach this target in the near future.
Balance Sheet Decomposition
Balance Sheet Decomposition is a crucial step in financial analysis. It helps break down a company's financial situation into its core components.
Net Loans are a significant portion of a company's assets, as seen in the case of Riyad Bank SJSC, where Net Loans amount to 305.4B.
The bank's Investments are also substantial, totaling 98.8B, which indicates a diverse portfolio.
Property, Plant, and Equipment (PP&E) are valued at 6.1B, a relatively small portion of the bank's assets.
Other Assets, including cash and accounts receivable, amount to 23.1B.
Total Deposits, which include customer deposits and other funds, are 338.8B, a significant source of funding for the bank.
Long Term Debt, which includes loans and other obligations, is 13.2B, a manageable portion of the bank's liabilities.
Other Liabilities, such as accounts payable and taxes owed, are 18.2B, a relatively small portion of the bank's liabilities.
The following table summarizes the key components of Riyad Bank SJSC's Balance Sheet:
The table highlights the major components of Riyad Bank SJSC's assets.
Partnerships
Riyad Bank has partnered with American Express Saudi Arabia to allow merchants on Riyad Bank's Point of Sale (POS) network to accept American Express Card payments.
This partnership will give American Express Cardmembers more locations to pay with their cards across Saudi Arabia, providing greater payment choice and wider acceptance.
The agreement was signed at Riyad Bank's headquarters in Riyadh, with officials from both sides in attendance.
American Express Saudi Arabia has a long history in the Kingdom, having been formed in 1999.
Frequently Asked Questions
Who owns the Riyad Bank?
Riyad Bank is majority-owned by the Saudi government, holding 51% of its shares. It is also supervised by the Saudi Central Bank.
Can foreigners open a bank account in Saudi Arabia?
Yes, foreigners can open a bank account in Saudi Arabia, with various banks offering internet and mobile banking services for convenient management. Foreigners can rely on a regulated financial environment, overseen by the Saudi Central Bank (SAMA).
Is Riyad Bank fully Islamic?
Riyad Bank's products and services are fully compliant with Islamic Sharia' principles. We cater to both retail and corporate customers, including small and medium-size enterprises.
Which country is Riyad Bank?
Riyad Bank is located in the Kingdom of Saudi Arabia. It is also a major financial institution in the Middle East.
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