Saudi Awwal Bank’s First Quarter of 2024 Exhibits Notable Gains
- Revenue: SAR 3.45 billion (a 15% increase from Q1 2023).
- Net income: SAR 2.04 billion (a 16% rise from Q1 2023).
- Profit margin: Stands at 59%, consistent with Q1 2023.
- EPS: SAR 0.96, an improvement from SAR 0.86 in Q1 2023.
All data represented in the chart pertains to the trailing 12-month period.
Financial Performance Surpasses Market Expectations
Revenue has outperformed analyst projections by 3.0%. Earnings per share (EPS) also exceeded expectations, surpassing analyst estimates by 5.3%.
Future revenue is anticipated to experience an average annual growth of 7.8% over the next three years, which, while substantial, trails behind the 10% growth forecast for the banking sector in Saudi Arabia.
For a comparison, review the performance of the Saudi Banks industry.
Currently, the company’s stock has seen a slight decline of 2.4% from the previous week.
Evaluating Investment Risks
Investment risk remains an omnipresent consideration. One warning sign has been identified with Saudi Awwal Bank, which should be acknowledged as part of an investor’s due diligence process.
Deciphering Valuation Complexities
Our comprehensive analysis is designed to simplify the valuation process, offering insights into fair value estimates, potential risks, dividend prospects, insider transactions, and the overall financial well-being of the bank.
Important Notice:
This financial commentary is based solely on historical data and analyst forecasts, utilizing an objective approach. It is not intended as investment advice. The analysis does not include recommendations to buy or sell any securities and does not consider individual financial circumstances or goals. Our analysis is long-term in nature, driven by fundamental data, and may not account for recent company announcements or qualitative material. Simply Wall St holds no positions in any stocks mentioned.