Saudi Exchange Approves SNB Capital for Market Making Activities in 10 Stocks

The Saudi Exchange has approved SNB Capital's market making activities for 10 stocks. Riyad Bank is a Saudi Arabia-based company offering a range of banking and investment services, including retail banking, investment banking and brokerage, corporate banking, and treasury and investments. The bank also provides Shariah-compliant nonconventional banking products.

The Saudi Exchange has recently approved SNB Capital's market making activities for 10 stocks, including Riyad Bank (RIBL:AB). On Tuesday, Jefferies analysts initiated coverage on Riyad Bank with a Buy rating and set a price target of SAR36.50 [1]. The analysts find the stock appealing due to its current trading price, which is over 15% below the sector’s average price-to-earnings and price-to-book ratios.

Riyad Bank, a Saudi Arabia-based company, offers a range of banking and investment services, including retail banking, investment banking, brokerage, corporate banking, and treasury and investments. The bank also provides Shariah-compliant nonconventional banking products. The analysts noted that Riyad Bank’s shares are relatively attractive at present levels.

The forthcoming IPO of Riyad Capital could bolster the bank’s capital position, enhancing investor sentiment and supporting the sustainability of the bank’s dividends, projected to yield around 6.8% from 2025 to 2027 [1]. The analysts highlighted that without this corporate action, Riyad Bank’s relatively lower Common Equity Tier 1 (CET1) ratio compared to peers might draw attention.

Riyad Bank has traditionally offered a diversified 65-35 corporate-retail business mix, ranking third in retail after Al Rajhi and SNB. However, recent quarters have seen faster corporate growth and increased competition, shifting the mix closer to 70-30. The analysts believe a key focus for Riyad Bank over the next five-year strategy period will be to reclaim its position in the retail segment, which is viewed as a stable source of liquidity [1].

The Saudi Exchange's approval of SNB Capital's market making activities for Riyad Bank's stock could signal increased liquidity and investor confidence in the bank's future prospects. As the bank continues to diversify its services and strengthen its capital position, investors may see Riyad Bank as a promising investment opportunity.

References:
[1] https://www.investing.com/news/analyst-ratings/jefferies-initiates-buy-rating-on-riyad-bank-stock-citing-ipo-catalyst-93CH-4077351