Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — FY2020 Earnings Presentation
19 slides from Banque Saudi Fransi's earnings presentation, Feb 18, 2021
Slide 1: 4Q/FY 2020 Earnings Presentation
3 Column Banque Saudi Fransi Slides 4Q/FY 2020 Earnings Presentation 18 February 2021
Slide 2: Highlights
EARNINGS PRESENTATION 4Q/FY 2020 Highlights
Slide 3: Saudi Arabia and BSF have adapted well to the Covid-19 new normal
HIGHLIGHTS | COVID-19 DISRUPTION Saudi Arabia and BSF have adapted well to the Covid-19 new normal Brent Oil Price / Barrel SAIBOR: SAR 3M (avg) KSA PMI (manufacturing) Covid-19 severely disrupted Dec-20 (USD) Dec-20 (%) Dec-20 financial markets and economic activity in 1Q 2020, but moderated 50.9 1
Slide 4: While our balance sheet witnessed good growth, net income declined on higher impairments
HIGHLIGHTS | 4Q 2020 FINANCIAL PERFORMANCE While our balance sheet witnessed good growth, net income declined on higher impairments BALANCE SHEET Loans & Advances Investments Non Interest Bearing Deposits High quality loan growth of 3.8% driven by 54% growth in mortgages. 130.6 +3.8% year-on-year
Slide 5: Our strategic direction was unaffected by Covid-19
HIGHLIGHTS | STRATEGY Our strategic direction was unaffected by Covid-19 2018 2023 POSITIONED TO ‘LEAP’ Baseline Aspiration STRATEGIC PILLARS ASSET MARKET SHARE ASSET MARKET SHARE 8.3% Solidify our Scale up in 10% leadership position in Retail Banking ROAA* ROAA Corporate Banking 1.7% 2.3% NPS** NPS
Slide 6: Strategy Update
HIGHLIGHTS | STRATEGY UPDATE 26 initiatives completed in 2020, and 51 expected to be finalized from 2021 to 2023; 18 initiatives are on-hold as of December 2020, and will be reopened in 2021 Initiatives 2020 Progress 2021 Direction Completed Corporate Digital Platform implementation Corporate Co
Slide 7: Financial Performance
EARNINGS PRESENTATION 4Q/FY 2020 Financial Performance
Slide 8: Solid balance sheet growth from lending and investments
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Solid balance sheet growth from lending and investments Total Assets Movement (SAR Bn) Growth in total assets of 9% YoY driven by 4% loan growth and strong growth 20% in investments. Liabilities grew by 7% during 2020 from increased interbank fund
Slide 9: Good quality loan growth in 2020
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Good quality loan growth in 2020 Total Loans & Advances (SAR Bn) Commercial Loans Movement (SAR Bn) Loans & Advances Composition (SAR Mn) 130.6 107.8 130,565 Consumer +4% -0% 17.5% Commercial 125.7 134.4 130.6 0.9 82.5% 1.4 1.1 107.9 107.8 17.9 21.6 22.8 -0
Slide 10: Strong growth in NIBD deposits
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Strong growth in NIBD deposits Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) Deposits declined 4% during 2020 as strong growth in NIBDs (+18%) was offset by lower IBDs (-31%). 127.1 127.1 The decrease in IBDs was further aided by f
Slide 11: Net income declined 50% year-on-year due to prudent and pro-active provisioning
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income declined 50% year-on-year due to prudent and pro-active provisioning in the current environment Net Operating Income Before Impairment Charge Net income for FY 2020 declined 50% YoY to SAR 1,546mn as 3% (SAR Mn) income growth was more
Slide 12: Modest NII growth as improved funding costs and benefit of hedging mostly offset by lower loan yields
FINANCIAL PERFORMANCE | NET INTEREST INCOME Modest NII growth as improved funding costs and benefit of hedging mostly offset by lower loan yields The NIM decreased by 4bps Net Interest Income Average Interest Earning Assets Average Funding YoY and 2bps QoQ to 3.00%. (SAR Mn) (SAR Bn) (SAR Bn) Th
Slide 13: Non-interest income rose 8% from higher exchange, trading and other income
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income rose 8% from higher exchange, trading and other income, partly offset by lower fee & commission income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 496 1,804 +20% +8% 470 463 496 98 1,804 450 409 414 1,667 43 76 39
Slide 14: Higher operating expenses due to one-off accrual reversal in 2019
FINANCIAL PERFORMANCE | OPERATING EXPENSES Higher operating expenses due to one-off accrual reversal in 2019 Operating Expenses (SAR Mn) Operating expenses increased 3% YoY to SAR 2,364mn in 2020, due to one-off accrual reversal in 2019 of SAR 74mn. 672 The cost to income ratio increased modestl
Slide 15: Rising impairment charge and cost of risk from higher commercial provisions
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Rising impairment charge and cost of risk from higher commercial provisions Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Cost of Credit Risk (%) The total impairment charge for 2020 was SAR 2,670mn. 872 872 2.07% This increase was driven by reas
Slide 16: Liquidity and capitalization remain comfortable
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity and capitalization remain comfortable LCR declined 125ppts during 2020 due to a LCR Average (%) NSFR (%) decline in HQLA of 2% from balance sheet optimization, but remains comfortable at 199%. NSFR improved modestly by 4ppts during 199
Slide 17: Improved outlook for 2021
FINANCIAL PERFORMANCE | GUIDANCE Improved outlook for 2021 Previous 2020 Guidance 4Q 2020 Outcome 2021 Guidance 2020 growth of 4% YoY, Loans & Advances SAR Billion below guidance due to early 125.7 130.6 LOANS & repayments. Mid to ADVANCES, NET Continued mortgage growth High single- digit 130.6
Slide 18: Questions & Answers
EARNINGS PRESENTATION 4Q/FY 2020 Questions & Answers
Slide 19: Disclaimer
EARNINGS PRESENTATION 4Q/FY 2020 Disclaimer This presentation is being provided to you for general information purposes. The information contained in the presentation has been obtained from sources believed by Banque Saudi Fransi (“BSF") to be up to date, correct and reliable, but BSF does not make