Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q3 2022 Earnings Presentation
17 slides from Banque Saudi Fransi's earnings presentation, Nov 9, 2022
Slide 1: 3Q 2022 Earnings Presentation
3 Column Banque Saudi Fransi Slides 3Q 2022 Earnings Presentation 9 November 2022 Internal Use
Slide 2: Highlights
EARNINGS PRESENTATION 3Q 2022 Highlights Internal Use
Slide 3: Balanced asset and liability growth, coupled with improved profitability
HIGHLIGHTS Balanced asset and liability growth, coupled with improved profitability BALANCE SHEET Loans & Advances Investments Customers' Deposits ▪ High quality loan growth of 10% YoY driven by 10% commercial and 9% consumer lending growth. 158.5 p +10% year-on-year 43.3 u -1% year-on-year 157.8 p
Slide 4: Financial Performance
EARNINGS PRESENTATION 3Q 2022 Financial Performance Internal Use
Slide 5: Balance sheet growth driven by lending, with commensurate deposit growth
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Balance sheet growth driven by lending, with commensurate deposit growth Total Assets Movement (SAR Bn) ▪ Growth in total assets of 7% YTD, mainly driven by healthy 7% loan growth. ▪ Liabilities grew by 10% during 9M 2022 from 11% deposit growth. 231.
Slide 6: Healthy loan growth for 9M 2022; 3Q 2022 impacted by repayments
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy loan growth for 9M 2022; 3Q 2022 impacted by repayments Total Loans & Advances (SAR Bn) Commercial Loans Movement YTD (SAR Bn) Loans & Advances Composition (SAR Mn) 158.5 129.0 158,481 +7% +7% Consumer 18.6% Commercial 147.8 159.6 158.5 2.2 2.2 1.3
Slide 7: Strong 11% growth in deposits YTD
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Strong 11% growth in deposits YTD Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) ▪ Deposits grew 11% during 9M 2022, from growth in both IBD and NIBD. ▪ IBD increased 18% YTD from 34% growth in high- 157.8 157.8 quality Corporate deposi
Slide 8: Net income grew 10% year-on-year from income growth
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 10% year-on-year from income growth Net Operating Income Before Impairment Charge ▪ Net income for 9M 2022 grew 9% YoY to SAR 2,672mn from 8% growth in operating (SAR Mn) income. ▪ Pre-impairment operating income for 3Q 2022 increas
Slide 9: NII growth of 10% as earning assets growth partly offset by margin contraction
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 10% as earning assets growth partly offset by modest margin contraction Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities ▪ NII for 9M 2022 grew 10% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 4,437mn on 12% g
Slide 10: BSF is positively positioned for a rising rate environment
FINANCIAL PERFORMANCE | RATE SENSITIVITY BSF is positively positioned for a rising rate environment Exposure to Interest Rate Risk as at 31 December 2021 (SAR Bn) • At the start of the year, BSF estimated a 1-year NIM sensitivity of a 100bps rates rise at 31bps; at a stable balance sheet structure t
Slide 11: Non-interest income grew 2% YoY from higher exchange and other income
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income grew 2% YoY from higher exchange and other income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 489 1,445 -0% +2% 508 490 508 489 1,422 91 63 1,445 423 447 393 (65) (56) (9) +9% QoQ 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q
Slide 12: Operating expenses growth of 6% from higher employee-related and G&A expenses
FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 6% from higher employee-related and G&A expenses Operating Expenses Movement (SAR Mn) ▪ Operating expenses increased 6% YoY to SAR 1,930mn in 9M 2022 due to: • higher general and administrative expenses from increased business a
Slide 13: Credit quality trends impacted by isolated pockets of migration in Commercial book
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Credit quality trends impacted by isolated pockets of migration in the Commercial book, excluding which credit quality was healthy Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Impairment Charge Movement (SAR Mn) ▪ The total impairment charge for 9M
Slide 14: Liquidity comfortable | Capital ratios declined during 9M 2022
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity comfortable | Capital ratios declined during 9M 2022 from RWA growth, dividends and negative MTM ▪ LCR improved by 6.3ppts during 9M 2022 to 185%. LCR & NSFR (%) LTD Ratios (%) ▪ NSFR was 113% as at 30 September 2022. ▪ The SAMA regulato
Slide 15: Healthy outlook for 2022 on expected solid loan growth and NIM expansion
FINANCIAL PERFORMANCE | GUIDANCE Healthy outlook for 2022 on expected solid loan growth and NIM expansion Previous 2022 Guidance 9M 2022 Outcome Revised 2022 Guidance Loans & Advances ▪ 3Q 2022 growth of SAR Billion 10% YoY. 147.8 147.8 LOANS & ADVANCES, NET ▪ Balanced growth of consumer and Low- to
Slide 16: Questions & Answers
EARNINGS PRESENTATION 3Q 2022 Questions & Answers Internal Use
Slide 17: Disclaimer
EARNINGS PRESENTATION 3Q 2022 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