SASE:1060

Stock Analysis Report

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Market Cap

ر.س64.6b

Last Updated

2021/06/21 15:08 UTC

Data Sources

Company Financials +

Executive Summary

The Saudi British Bank provides banking and financial services in the Kingdom of Saudi Arabia. More Details

Rewards

Earnings are forecast to grow 24.56% per year

Risk Analysis

No risks detected for 1060 from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Saudi British Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1060 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1060's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

1060

-1.2%

SA Banks

-0.5%

SA Market


1 Year Return

39.2%

1060

53.6%

SA Banks

16.2%

SA Market

Return vs Industry: 1060 underperformed the SA Banks industry which returned 53.4% over the past year.

Return vs Market: 1060 exceeded the SA Market which returned 15.9% over the past year.


Shareholder returns

1060IndustryMarket
7 Day0.3%-1.2%-0.5%
30 Day8.3%4.2%0.7%
90 Day24.8%14.8%3.9%
1 Year39.2%39.2%55.6%53.6%20.6%16.2%
3 Year9.3%-1.1%48.5%34.2%38.0%24.9%
5 Year85.1%53.7%165.7%120.4%94.3%64.7%

Long-Term Price Volatility Vs. Market

How volatile is Saudi British Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Saudi British Bank undervalued compared to its fair value and its price relative to the market?

1.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1060 (SAR31.45) is trading above our estimate of fair value (SAR0.08)

Significantly Below Fair Value: 1060 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1060 is unprofitable, so we can't compare its PE Ratio to the SA Banks industry average.

PE vs Market: 1060 is unprofitable, so we can't compare its PE Ratio to the SA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1060's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1060 is good value based on its PB Ratio (1.2x) compared to the SA Banks industry average (1.5x).


Future Growth

How is Saudi British Bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1060 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (8.8%).

Earnings vs Market: 1060 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1060's is expected to become profitable in the next 3 years.

Revenue vs Market: 1060's revenue (8.3% per year) is forecast to grow faster than the SA market (3.9% per year).

High Growth Revenue: 1060's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1060's Return on Equity is forecast to be low in 3 years time (10.2%).


Past Performance

How has Saudi British Bank performed over the past 5 years?

-45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1060 is currently unprofitable.

Growing Profit Margin: 1060 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1060 is unprofitable, and losses have increased over the past 5 years at a rate of 45.9% per year.

Accelerating Growth: Unable to compare 1060's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1060 is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (-9.6%).


Return on Equity

High ROE: 1060 has a negative Return on Equity (-8.01%), as it is currently unprofitable.


Financial Health

How is Saudi British Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 1060's Assets to Equity ratio (5.2x) is low.

Allowance for Bad Loans: 1060 has a sufficient allowance for bad loans (132%).

Low Risk Liabilities: 84% of 1060's liabilities are made up of primarily low risk sources of funding.

Loan Level: 1060 has an appropriate level of Loans to Assets ratio (58%).

Low Risk Deposits: 1060's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: 1060 has a high level of bad loans (3.3%).


Dividend

What is Saudi British Bank current dividend yield, its reliability and sustainability?

3.89%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1060's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1060's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1060's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1060's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1060 is not paying a notable dividend for the SA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1060's dividend in 3 years as they are not forecast to pay a notable one for the SA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Tony Cripps

0.083

Tenure

Mr. Anthony William Cripps, also known as Tony, has been Chief Executive Officer and Managing Director of The Saudi British Bank since May 23, 2021. He is a Director at HSBC Australia Holdings Pty Limited....


Leadership Team

Experienced Management: 1060's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1060's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Saudi British Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Saudi British Bank
  • Ticker: 1060
  • Exchange: SASE
  • Founded: 1978
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ر.س64.623b
  • Shares outstanding: 2.05b
  • Website: https://www.sabb.com

Number of Employees


Location

  • The Saudi British Bank
  • PO Box 9084
  • Riyadh
  • 11413
  • Saudi Arabia

Listings


Biography

The Saudi British Bank provides banking and financial services in the Kingdom of Saudi Arabia. The company operates through Retail Banking, Corporate and Institutional Banking, Treasury, and Others segment...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 15:08
End of Day Share Price2021/06/21 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.