Article Hero

Bank Albilad Stock (Tadawul:1140)

11 minutes
Bank Albilad Stock (Tadawul:1140)
Cristian Cochintu
Cristian Cochintu
15 October 2023

Despite a grim 2022, Bank Albilad stock remains very popular among Saudia investors and top-performing international funds. While you can buy Bank Albilad shares directly, sometimes it is worth considering an ETF with Tadawul: 1140 representation. 

Bank Albilad (Tadawul: 1140) has attracted considerable interest among investors owing to its robust financial performance, wide range of banking services, and strategic collaborations with prominent local and international entities. 

Bank Albilad shares have garnered inclusion in several renowned indices and exchange-traded funds (ETFs) that monitor the performance of the banking industry. Notably, the bank's shares are featured in the iShares MSCI Saudi Arabia ETF (KSA), among other ETFs focused on the Saudi Arabian financial market. 

The bank's consistent growth, effective risk management practices, and commitment to customer satisfaction have contributed to its appeal among investors seeking exposure to the banking sector. Bank Albilad's dedication to innovation and digital transformation further enhances its competitiveness in the market, ensuring its position as a prominent player within the financial industry. 

With a strong track record and a focus on delivering value to shareholders, Bank Albilad continues May present investment option for those looking to capitalize on the dynamic and thriving Saudi Arabian banking sector. 

Bank Albilad Shares – Research and Ratings  

  • Is Bank Albilad stock undervalued compared to its fair value, analyst forecasts and its price relative to the market?  
  • What is the analyst's 12-month Bank Albilad share price forecast? 
  • What is Bank Albilad’s future growth expectations? 
  • How has Bank Albilad stock performed over the past 5 years? 
  • Should you buy Albilad shares or invest in ETFs with "1140" representation?

    

Understanding Bank Albilad shares: A brief history 

Bank Albilad was founded in 2004 and is headquartered in Riyadh, the Kingdom of Saudi Arabia. Bank Albilad is a leading financial institution in Saudi Arabia, known for its strong presence and commitment to customer satisfaction. With strategic partnerships, innovative services, and a focus on digital transformation, it offers a trusted and convenient banking experience for individuals and businesses alike. 

Bank Albilad serves a diverse range of market segments in Saudi Arabia, catering to the financial needs of various customer groups. The bank's market segments are divided into five segments: 

  • Retail Banking: Bank Albilad offers a comprehensive range of retail banking services tailored to individual customers. This includes personal accounts, savings and investment products, loans, credit cards, and digital banking solutions, providing convenient and secure banking experiences. 
  • Corporate Banking: Bank Albilad serves the corporate sector, providing tailored financial solutions to businesses of all sizes. This includes corporate accounts, cash management services, trade finance, project financing, and treasury services, supporting the growth and development of businesses across various industries. 
  • SME Banking: Bank Albilad recognizes the importance of small and medium-sized enterprises (SMEs) in the Saudi Arabian economy. The bank offers dedicated banking services to meet the unique needs of SMEs, including specialized accounts, financing options, cash management solutions, and advisory services to support their growth and success. 
  • Investment Banking: Bank Albilad provides investment banking services, catering to the needs of institutional clients and high-net-worth individuals. These services include capital market solutions, advisory services, asset management, and investment products, enabling clients to access a wide range of investment and expert guidance. 
  • Islamic Banking: Bank Albilad is a leader in Islamic banking, offering Sharia-compliant financial products and services. The bank's Islamic banking segment covers retail, corporate, and investment banking, providing customers with ethical and transparent banking solutions in accordance with Islamic principles. 

Bank Albilad's diverse market segments allow it to cater to the unique requirements of individuals, businesses, and institutions, showcasing its commitment to delivering tailored financial solutions and excellent customer service. 

Bank Albilad shares are distributed among 4 categories: 

  • General Public: 48.4% 
  • Private Companies: 30.5% 
  • Individual Insiders: 16.0% 
  • Institutions: 5.1% 

The top 25 shareholders own 51.21% of the company, while the top 5 shareholders are: 

  • Mohammad I. Al Subaei & Sons Co - 19.35% 
  • Abdullah I. Al Subaei Investment Co. - 11.14% 
  • Khalid bin Abdulrahman Al-Rajhi - 8.91% 
  • Abdurrahman Al Rajhi - 6.67% 
  • The Vanguard Group, Inc. - 1.94% 

Bank Albilad shares - Fundamental Analysis and Financial Ratings 

See the latest Bank Albilad stock price analysis, including valuation, future growth, past performance and more to help you make more informed investment decisions. 

Valuation 

Is Albilad stock undervalued compared to its fair value, analyst forecasts and its price relative to the market? 

  • Price-To-Earnings vs Peers: Bank Albilad stocks are expensive based on its Price-To-Earnings Ratio (18.3x) compared to the peer average (12.1x). 
  • Price-To-Earnings vs Industry: Bank Albilad stocks is expensive based on its Price-To-Earnings Ratio (18.3x) compared to the Asian Banks industry average (8.7x) 
  • Price-To-Earnings vs Fair Ratio: Bank Albilad stocks are expensive based on its Price-To-Earnings Ratio (18.3x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x). 
  • Below Fair Value: Bank Albilad stocks (SAR40.65) is trading above analysts's estimate of fair value (SAR21.16) 

Future Growth 

Bank Albilad is forecast to grow earnings and revenue by 15.3% and 15.3% per annum respectively. EPS is expected to grow by 15.1% per annum. Return on equity is forecast to be 17.9% in 3 years.

  • Earnings vs Savings Rate: Bank Albilad's forecast earnings growth (14.1% per year) is above the savings rate (9.1%). 
  • Earnings vs Market: Bank Albilad's earnings (14.1% per year) are forecast to grow faster than the Saudi market (2.8% per year). 
  • High Growth Earnings: Bank Albilad's earnings are forecast to grow, but not significantly. 
  • Revenue vs Market: Bank Albilad's revenue (13.4% per year) is forecast to grow faster than the Saudi market (1.9% per year). 
  • High Growth Revenue: Bank Albilad's revenue (13.4% per year) is forecast to grow slower than 20% per year. 

Past Performance 

How have Bank Albilad shares performed over the past 5 years? 

  • Quality Earnings: Bank Albilad Shares has quality earnings. 
  • Growing Profit Margin: Bank Albilad Shares's current net profit margins (46.1%) are higher than last year (43.8%). 
  • Earnings Trend: Bank Albilad Shares's earnings have grown significantly by 22.2% per year over the past 5 years. 
  • Accelerating Growth: Bank Albilad Shares's earnings growth over the past year (18.5%) is below its 5-year average (22.2% per year). 
  • Earnings vs Industry: Bank Albilad Shares earnings growth over the past year (18.5%) did not outperform the Banks industry 20.4%. 

Financial Health 

What is Albilad's financial position? 

  • Asset Level: Bank Albilad's Assets to Equity ratio (9.6x) is low. 
  • Allowance for Bad Loans: Bank Albilad has a sufficient allowance for bad loans (191%). 
  • Low Risk Liabilities: 92% of Bank Albilad's liabilities are made up of primarily low risk sources of funding. 
  • Loan Level: Bank Albilad has an appropriate level of Loans to Assets ratio (73%). 
  • Low Risk Deposits: Bank Albilad's Loans to Deposits ratio (89%) is appropriate. 
  • Level of Bad Loans: Bank Albilad has an appropriate level of bad loans (1.5%). 

Dividend 

Bank Albilad is a dividend paying company with a current yield of 1.23% that is well covered by earnings. 

  • Stable Dividend: Bank Albilad has been paying a dividend for less than 10 years and during this time payments have been volatile. 
  • Growing Dividend: Bank Albilad's dividend payments have increased, but the company has only paid a dividend for 9 years. 
  • Notable Dividend: Bank Albilad's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the Saudi market (1.76%). 
  • High Dividend: Bank Albilad's dividend (1.23%) is low compared to the top 25% of dividend payers in the Saudi market (4.64%). 
  • Earnings Coverage: With its low payout ratio (122.4%), Bank Albilad's dividend payments are well covered by earnings. 

Albilad's Shares Price Forecast 

What is the analyst's 12-month Albilad shares price forecast, and do we have any statistical confidence in the consensus price target from analysts?

Albilad's Shares Price Forecast

Source: simplywall.st 

According to Simplywall.st, the Bank Albilad stock 12-month target price is lower than the current share price. 

Wallet investor site suggests that the price of Bank Albilad stock will growth in 2023 compared to the current price, ending the year at an average price of 47.310 SAR. And it reaches 73.262 SAR in 2028. 

Important: When considering Bank Albilad's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose. You should know also the Past performance and forecasts are not reliable indicators of future results. 

Bank Albilad Shares - Technical Analysis 

Bank Albilad shares have been consistently on the rise since March 2022, as depicted in the weekly chart below.

Bank Albilad Shares - Technical Analysis

Nevertheless, there are indications of a potential trend reversal. It appears that Bank Al Bilad's stock price has initiated a corrective phase. With the breach of the 0.38% Fibonacci retracement level, the bears have received a confirmation signal of the ongoing correction. The convergence of the 50-day and 20-day moving averages further supports this, potentially opening the path for breaking through the support level at 37.05 Saudi riyals. The target in this scenario is the 0.61% Fibonacci retracement level. This scenario holds as long as the resistance level at 42.45 Saudi riyals remains intact.

How to Invest in Bank Albilad Shares 

Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started. 

For most people, stock market investing means choosing among these two investment types: 

Individual Bank Albilad shares 

If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.  

If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.  

Traditional online stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs and other assets.  

ETFs with Bank Albilad holdings 

Bank Albilad stock (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.  

If you want an ETF with Bank Albilad representation, you might consider iShares MSCI Saudi Arabia ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.

iShares MSCI Saudi Arabia ETF

The fund can be suitable for Arab and foreign investors who want liquid and diversified exposure to the top 10 companies listed on the Saudi Stock Exchange:

Al Rajhi BankAlAhli Bank
Aramco - Saudi Arabian OilSaudi Arabian Mining
SABICSaudi Telecom
Riyad BankAlinma Bank
Saudi ElectricityBank Albilad

Why invest in Bank Albilad Shares via KSA? 

The iShares MSCI Saudi Arabia ETF seeks to track the investment results of a broad-based index composed of Saudi Arabian equities. With net assets of almost $1B, The iShares MSCI Saudi Arabia ETF (KSA) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.

  1. Access to the Saudi Arabian stock market, which has historically been closed to foreign investors. 
  2. Targeted exposure to a country with growth potential. with One click accesses to a virtually untapped investment portfolio, including Saudi Stock Exchange and TASI index exposure. 
  3. Use to seek long-term growth and diversification. 

How to Get Started with CAPEX.com 

Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com: 

  • Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account. 
  • Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity. 
  • Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies. 
  • Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as " iShares MSCI Saudi Arabia ETF”. 

    

When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.  

However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset. 

With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership. 

Free trading tools and resources 

Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader. 

Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.  

Sources: 

FAQs about Bank Albilad Shares

disclaimers_academy

course_share_title

article_rating_title

awful
ok
great
awesome

read_more

Cristian Cochintu
Cristian Cochintu
financial_writer

Cristian Cochintu writes about trading and investing for CAPEX.com. Cristian has more than 15 years of brokerage, freelance, and in-house experience writing for financial institutions and coaching financial writers.