Riyad Capital Tweaks Arab National Bank Price Target Post-Q3 Results

06:47 AM EDT, 10/28/2026 (MT Newswires) -- Riyad Capital revised its price target for Arab National Bank (SASE:1080) as it took note of the lender's third-quarter report. For the reporting period, the Saudi-listed bank's net income rose 2% annually to 1.35 billion Saudi riyals, missing Riyad Capital's estimate of 1.44 billion riyals, according to a Wednesday first look note. Total operating income was 2.55 billion riyals, below the 2.75 billion-riyal forecast of the research firm. "ANB remains well positioned to benefit from a higher-for-longer rate environment, supported by its relatively floating-rate balance sheet. However, elevated long-term yields continue to exert offsetting pressure through OCI. In 3Q26, total comprehensive income declined to SAR 274 mln (-83% Y/Y, -84% Q/Q), implying an OCI loss of approximately SAR 1.08 bln. Despite the sequential increase in shareholders' equity, the sizeable OCI loss moderated book-value growth and heightened capital sensitivity. Accordingly, we lower our FY26 BVPS forecast and reduce our target price from SAR 28.00 to SAR 27.00. The stock trades at 0.9x FY26 P/BV, we maintain our Buy rating," analysts wrote.