Riyad Capital Maintains Buy Rating on Saudi Investment Bank After Q2 Results

05:24 AM EDT, 07/30/2026 (MT Newswires) -- Riyad Capital reiterated its rating on Saudi Investment Bank (SASE:1030) after the lender's second-quarter financial results were "largely in line" with expectations. Thanks to higher non-funded income and lower-than-expected impairment charges, the bank logged a 4% year-over-year increase in its net income to 531 million Saudi riyals, which aligned with Riyad Capital's 533 million-riyal estimate, according to a Wednesday note. Total operating income increased 3% annually to 1.11 billion riyals, also in line with the research firm's forecast of 1.09 billion riyals. "Saudi Investment Bank currently trades on FY26 P/BV of 1.0x (representing a 31% discount to peers). While 2Q26 results were largely in line with our expectations, we continue to see scope for gradual improvement in profitability, supported by steady loan growth, resilient non-funded income and disciplined balance sheet management. Our justified P/BV of 1.1x implies a target price of SAR 16.00. We therefore maintain our Buy rating and target," analysts said.