SNB Capital Notes Banque Saudi Fransi's 'Strong' Q2 Results

MT Newswires · 2d ago
05:54 AM EDT, 07/22/2026 (MT Newswires) -- SNB Capital Research took note of Banque Saudi Fransi's (SASE:1050) "strong" second-quarter results, saying that its "funding cost discipline drives profitability." "Net income increased by 6.0% yoy (+7.7% qoq) to SAR1.49bn, higher than the SNB capital and consensus estimates of SAR1.36bn and SAR1.37bn, respectively. Banking income increased by 6.4% yoy (+5.2% qoq) to SAR2.85bn on the back of lower than expected cost of funds and higher fee and other income," analysts said in a result analysis on Tuesday. "The surprise came from cost of funds, which declined by 17bps yoy (-10bps qoq) to 3.38% and were lower than our estimate of 3.45%. The decline in funding cost is a continuation of the last 2 quarters trend as the bank is prioritizing margins over growth." The stock has a neutral rating and a price target of 18.9 Saudi riyals at SNB Capital.