Banque Saudi Fransi · TADAWUL:1050

Banque Saudi Fransi — Q1 2020 Earnings Presentation

17 slides from Banque Saudi Fransi's earnings presentation, May 21, 2020

  1. Slide 1: Banque Saudi Fransi 1Q 2020 Earnings Presentation

    3 Column Slides Banque Saudi Fransi 1Q 2020 Earnings Presentation 21 May 2020

  2. Slide 2: Highlights

    EARNINGS PRESENTATION 1Q 2020 Highlights

  3. Slide 3: Saudi Arabia and BSF have responded strongly to Covid-19

    HIGHLIGHTS | COVID-19 DISRUPTION Saudi Arabia and BSF have responded strongly to Covid-19 Brent Oil Price / Barrel SAIBOR: SAR 3M (spot) KSA PMI (manufacturing) Covid-19 has severely USD % disrupted financial markets and economic activity 33.3 1.23% 44.4 year-to-date year-to-date year-to-date  -50.

  4. Slide 4: Net income declined on Covid-19 impairments

    HIGHLIGHTS | 1Q 2020 FINANCIAL PERFORMANCE Net income declined on Covid-19 impairments BALANCE SHEET Loans & Advances Investments Non Interest Bearing Deposits  Strong loan growth  Strong deposit growth from flight to quality and as customers sought to 134.9 +7.3% year-to-date 33.9  +7.9% year-t

  5. Slide 5: Our strategic direction is unaffected by Covid-19

    HIGHLIGHTS | STRATEGY Our strategic direction is unaffected by Covid-19 2018 2023 POSITIONED TO ‘LEAP’ Baseline Aspiration STRATEGIC PILLARS MARKET SHARE* 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 #NA Optim

  6. Slide 6: Covid-19 implications on strategy

    HIGHLIGHTS | COVID-19 IMPLICATIONS ON STRATEGY … but strategic initiatives are continuously re-assessed, and we are taking a balanced approach to defensive and offensive action Initiatives 2020 Direction Completed  Corporate Digital Platform implementation Corporate Banking 6/14  Finalize CRM, NPS

  7. Slide 7: Financial Performance

    EARNINGS PRESENTATION 1Q 2020 Financial Performance

  8. Slide 8: Strong balance sheet growth

    FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Strong balance sheet growth Total Assets Movement (SAR Bn)  Growth in total assets of 12% QoQ driven by strong 7% loan growth during 1Q 2020.  Balance sheet growth funded by strong 10% QoQ growth in deposits, 199.2 due to liquidity enhancement by cu

  9. Slide 9: Strong loan and deposit growth in 1Q 20 as customers sought liquidity

    FINANCIAL PERFORMANCE | LOANS AND DEPOSITS Strong loan and deposit growth in 1Q 2020 as customers sought liquidity Total Loans & Advances (SAR Bn) Commercial Loans Movement (SAR Bn) Consumer Loans Movement (SAR Bn) 134.9 115.7 19.2 +11% +7% +8% 125.7 134.9 1.6 1.6 115.7 1.1 0.3 19.2 121.3 1.6 1.6 17

  10. Slide 10: Net income declined year-on-year as growth in income was offset by higher costs

    FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income declined year-on-year as growth in income was offset by higher credit and operating costs Net Income After Zakat & Tax  Net income declined 26% YoY to SAR 682mn as 2% income growth (SAR Mn) was more than offset by 14% increase in costs

  11. Slide 11: Moderate growth in NII from improved funding costs

    FINANCIAL PERFORMANCE | NET INTEREST INCOME Moderate growth in NII from improved funding costs Net Interest Income Average Interest Earning Assets Average Funding  The NIM improved 13bps YoY (SAR Mn) (SAR Bn) (SAR Bn) and declined 3bps from FY 2019 to 3.01% for 1Q 2020. 1,287 170.8 144.3  The YoY

  12. Slide 12: Fee and other income rose 4% due to higher other income

    FINANCIAL PERFORMANCE | FEE & OTHER INCOME Fee and other income rose 4% due to higher other income, partly offset by lower trading and net fee & commission income Fee & Other Income (SAR Mn) Fee & Other Income Movement (SAR Mn) 470 470 +4% +4% 70 470 450 470 450 16 409 394 414 7 +13% (21) QoQ (53) F

  13. Slide 13: Higher operating expenses from salary increments and improvements of talent pool

    FINANCIAL PERFORMANCE | OPERATING EXPENSES Higher operating expenses from salary increments and improvements of talent pool Operating Expenses (SAR Mn)  Operating expenses increased 14% YoY to SAR 559mn in 1Q 2020, due to one-off accrual reversal in 1Q 2019 of SAR 37mn. 559  Excluding one-off, exp

  14. Slide 14: Higher impairment charge and cost of risk from higher commercial provisions

    FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Higher impairment charge and cost of risk from higher commercial provisions, partly due to Covid-19 Impairment Charge (SAR Mn) Credit Losses (SAR Mn) Cost of Credit Risk (SAR Bn)  The total impairment charge for 1Q 2020 amounted to SAR 397 398 397mn, an inc

  15. Slide 15: Liquidity and capitalization remain comfortable

    FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity and capitalization remain comfortable LCR (%) NSFR (%)  LCR declined 100ppts during 1Q 2020 due to a decline in HQLA of 14% from balance sheet optimization conducted in 4Q 2019 but remains comfortable at 217%. 217.0% 118.2% 446.8%  NSF

  16. Slide 16: Covid-19 disruption has impacted our outlook and guidance for NIM and COR

    FINANCIAL PERFORMANCE | GUIDANCE Covid-19 disruption, lower oil prices and interest rates have impacted our outlook and guidance for NIM and COR Original Guidance 1Q 2020 Outcome 2020 Guidance  1Q 2020 growth of 7% YTD Loans & Advances Unchanged SAR Billion already close to original 125.7 125.7 LOA

  17. Slide 17: Disclaimer

    EARNINGS PRESENTATION 1Q 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 any

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