Net profit for H1 2014 was
Profit per share for H1 2014 was
Remains an outperformer
Operating income beat on non-interest income positive surprise. Total operating income soared 17% YoY and 7% QoQ and came 9.7% higher than our forecast.
Non-interest income expands 17% YoY and 7% QoQ and came higher than our forecast. The breakdown of non-interest income is not provided in Saudi banks' preliminary earning releases. It is likely that the strong performance was driven by continued strong fee income, which had soared 28% YoY and 17% QoQ in 1Q2014 on the back of strong volumes. Investment income could have also contributed to this outperformance; investment income had already come stronger than expected in 1Q2014.
NIM in line with our forecast. Net interest income growth reached 17% YoY, 8% QoQ, and came broadly in line with our forecast. The higher QoQ net interest income was on the back of an expanding balance sheet and a marginal pickup in the NIM.
Loan growth remained very strong. Loans increased 6% QoQ in 2Q2014, resulting in an YTD increase of 14%, higher than our view for SHB in FY2014. Deposit accumulation was even higher at 8% in 2Q2014, which dropped slightly the loans-to-deposits ratio to 85% at the end of
Another set of strong results. SHB continues to deliver stellar results, as we had expected in our last report on the bank in
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