Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — H1 2019 Earnings Presentation
27 slides from Banque Saudi Fransi's earnings presentation, 2019
Slide 1: Banque Saudi Fransi Investor Presentation | First Half 2019
Banque Saudi Fransi Investor Presentation | First Half 2019
Slide 2: Investor Presentation | Disclaimer
INVESTOR PRESENTATION | 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 any repre
Slide 3: Contents
INTRODUCTION | OUR AGENDA Contents Our Profile Our Strategy Our Financial Results | Highlights Our Financial Results | Details Our Operating Review | By Business Line |2
Slide 4: Our Profile
Banque Saudi Fransi Our Profile
Slide 5: BSF at a Glance
OUR PROFILE | BSF AT A GLANCE We are a leading banking group in Saudi Arabia with a strong focus on domestic operations As of June 2019 SAR SAR SAR >1mn 3,700 ≈3,000 Retail Client Corporate Employees 187bn 142bn 50bn Client Assets Deposits Market Cap Subsidiaries in KSA: Headquartered in Riyadh: Sau
Slide 6: Universal banking model with diversified base of earnings
OUR PROFILE | BSF AT A GLANCE We operate a universal banking business model with a diversified base of earnings Total revenues contribution H1 2019, SAR 816mn 1,519mn 24% 44% 3,429mn GLOBAL MARKETS & ALM CORPORATE 940mn 155mn 27% 5% RETAIL INVESTMENT BANKING |BSF Investor Relations |5
Slide 7: Share profile and credit rating
OUR PROFILE | BSF SHARE PROFILE AND CREDIT RATING Our market parameters are strong with solid credit ratings Share Parameters 30-Jun-19 YTD Share Price Performance Closing Price (SAR) 41.55 52 weeks Range (SAR) 30 - 44 +32% 50 Free Float Shares 751,452,083 45 Shares issued 1,205,357,167 40 35 P/E Ra
Slide 8: Our Shareholding structure is solid and diversified
Our Shareholding structure is solid and diversified BSF Shareholder Structure, June 2019 RAM Holdings (Ripplewood) 3.00% Kingdom Holding Talal Al Maiman GOSI Others 8.98% 51.98% Credit Agricole No Representatives Al Rashed Family GOSI Mazin Al Romaih (Chairman) 9.83% Others RAM Holding Tim Collins 4
Slide 9: Our Strategy Highlights
Banque Saudi Fransi Our Strategy Highlights
Slide 10: The aspiration from our Board of Directors
OUR STRATEGY | ASPIRATION The aspiration from our Board of Directors 10% 2.3% #1 Market Share Return on asset NPS* Ranking (Assets & Liabilities) Note | *Net Promoter System (NPS) is a methodology developed by Bain to measure customer satisfaction and advocacy |9
Slide 11: Our Mission – Why we exist and the challenge we have set ourselves
OUR STRATEGY | MISSION Our Mission – Why we exist and the challenge we have set ourselves To become the most modern, innovative and experience focused bank in the region. | 10
Slide 12: How we will measure our progress and success
OUR STRATEGY | KPIs How we will measure our progress and success Shareholder Resilience Efficiency Darling Consistency in Net Cost-to-income ratio Income + Total Shareholder Dividend Return (TSR) Return of Average Equity (RoAE) Best in Best Place to Customer Work Experience Employee Net Promoter Net
Slide 13: Our Financial Results | Highlights
Banque Saudi Fransi Our Financial Results | Highlights
Slide 14: Our key messages
OUR FINANCIAL RESULTS | HIGHLIGHTS Our key messages Balance sheet contracted by (-1.8% QoQ) mainly due to a decline in Loans (SARbn) Deposits (SARbn) cash at interbank placements (SAR 8Bn QoQ) as the Bank decreased its 2.44% -1.79% excess cash balance to optimize its balance sheet. Loan portfoli
Slide 15: Decrease in CBDs to optimize the balance sheet & increase in credit demand
OUR FINANCIAL RESULTS | BALANCE SHEET HIGHLIGHTS Decrease in CBDs to optimize the balance sheet & increase in credit demand driving the loan growth Balance Sheet (SARmn) Composition of BSF Assets 2016 2017 2018 Q1 2019 Q2 2019 QoQ Total Assets 203,429 192,929 190,201 189,990 186,579 -1.80% Loans and
Slide 16: Positive CAGR since 2013
OUR FINANCIAL RESULTS | BALANCE SHEET HIGHLIGHTS Positive CAGR since 2013 Total Assets (SARbn) Total Equity (SARbn) 2% CAGR 6% CAGR 203.4 29.7 31.7 30.8 32.2 32.6 192.9 190.2 26.5 27.5 188.8 190.0 186.6 23.2 183.7 -1.4% -2.7% 170.1 YoY -1.8% YoY 1.3% Q/Q Q/Q 2013 2014 2015 2016 2017 2018 Q1'19 Q2'19
Slide 17: Steady revenues, cost discipline was the key in H1 2019
OUR FINANCIAL RESULTS | INCOME STATEMENT HIGHLIGHTS Steady revenues, cost discipline was the key in H1 2019. Cost to income ratio stood at 30.5%. Income Statement Trends (SARmn) Net Interest Income (SAR Mn) 2016 2017 2018 H1'18 H1'19 YoY 1,298 Net interest income 4,256 4,700 5,017 2,508 2,570 2.5% 1
Slide 18: Our Financial Results | Details
Banque Saudi Fransi Our Financial Results | Details
Slide 19: NIM growth driven by rate expansion and cost reduction
OUR FINANCIAL RESULTS | PROFITABILITY DETAILS NIM growth driven by rate expansion and improvement in cost to income ratio driven by reduction in costs Net Interest Income (SARmn) Net Income after zakat & tax (SARmn) 5,00 4,50 4,700 5,017 4,00 4,256 3,50 3,237 3,233 11.78% 10.55% 3,00 Net Interest /
Slide 20: Cost of risk increased while NPL ratio improved
OUR FINANCIAL RESULTS | LOAN PORTFOLIO DETAILS Cost of risk increased while NPL ratio improved Net Loans, (SARmn) Impairment Charges, (SARmn) 1,400 129,458 1,203 121,940 120,632 124,233 1,200 1,000 0.73% 2.91% 2.73% 2.66% 800 747 665 NPL / Gross Loans 0.58% 176.0% 0.54% 600 120.7% 0.34% 400 0.53% 10
Slide 21: Lower CBDs resulting in favorable deposit mix
OUR FINANCIAL RESULTS | FUNDING DETAILS Lower CBDs resulting in favorable deposit mix and well positioned loan-to-deposit ratio at 87% Funding Mix, (SARmn) Customer Deposit Breakdown, (SARmn) Thousands 175 , 00 173,730 158,458 5% 161,268 159,388 150,955 148,368 4% 153,977 170 , 00 144,820 142,226 5%
Slide 22: Strong CAR at 18.6% with solid internal capital generation
OUR FINANCIAL RESULTS | CAPITAL DETAILS Strong CAR at 18.6% with solid internal capital generation capacity and Tier 1 capital Capital Adequacy Ratio, (%) 19.39% 19.77% 18.60% 17.78% 2.06% 1.87% 0.93% 2.02% Tier 1 Capital 17.52% 17.71% 17.67% 15.76% Tier 2 Capital 1.7% 2016 2017 2018 Q2'19 |BSF Inve
Slide 23: Our Operating Review | By Business Line
Banque Saudi Fransi Our Operating Review | By Business Line
Slide 24: Corporate represents 44% of Bank revenues
OUR OPERATING REVIEW | CORPORATE BANKING Corporate represents 44% of Bank revenues and impairment charges increased by 48% YoY Corporate Banking Segmental Performance, (SARmn) 2016 2017 2018 H1'18 H1'19 YoY % Total Assets 116,505 107,093 102,523 108,708 104,339 -4.0% Revenues 3,103 3,001 3,093 1,510
Slide 25: Retail continues the strong performance
OUR OPERATING REVIEW | RETAIL BANKING Retail continue the strong performance, largely driven by a surge in demand for home loans and cost control Retail Banking Segmental Performance, (SARmn) 2016 2017 2018 H1'18 H1'19 YoY % Total Assets 16,500 17,791 19,764 18,608 21,835 17.3% Revenues 1,491 1,553
Slide 26: Treasury and Investment Banking performance
OUR OPERATING REVIEW | TREASURY AND INVESTMENT BANKING Treasury had a drop in net income driven by ASF sale and investment banking net income grew by 24% Treasury Segmental Performance, (SARmn) 2016 2017 2018 H1'18 H1'19 YoY % Total Assets 69,346 66,836 66,580 60,058 59,164 -1.5% 24% of Revenue Reve
Slide 27: Contact us
Contact us Tel. +966 11 2891427 E-mail. [email protected]