Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — FY2024 Earnings Presentation
66 slides from Banque Saudi Fransi's earnings presentation, 2025
Slide 1: BSF FY 2024 Investor Presentation
BSF FY 2024 Investor Presentation FY 2024
Slide 2: Contents
Contents 03 BSF Profile 10 Operating Environment 13 Strategy 22 ESG Update 28 Financial Performance 51 Outlook & Guidance 55 Segmental Performance 61 Performance Track Record 64 Appendix BSF Investor Presentation | FY 2024 2
Slide 3: BSF Profile
BSF Profile Investor Presentation FY 2024
Slide 4: BSF has a solid investment profile and clearly articulated strategy
BSF has a solid investment profile and clearly articulated strategy Leading banking group in Saudi Arabia with a strong focus on domestic operations 1. Domestic systemically important bank (“D-SIB”) with total assets of SAR 292.8bn and market capitalization of SAR 39.6bn Universal Bank model with fu
Slide 5: We are a leading banking group in Saudi Arabia with a strong focus on domestic operations
We are a leading banking group in Saudi Arabia with a strong focus on domestic operations BSF is the successor to Banque de Headquartered in Riyadh: Subsidiaries in KSA: l’Indochine (est. 1949) Branches 81 branches across the Kingdom BSF Capital 81 BSF was then established by Royal Domestically
Slide 6: A diversified business model and a wide range of product capabilities
A diversified business model and a wide range of product capabilities Corporate Retail Investment Banking Treasury and Brokerage One of the largest providers of A wide network of branches, A leader in investment banking, Diverse client services, market corporate banking services in ATMs, digital pla
Slide 7: Focus on consistent delivery of shareholder returns over the years
Focus on consistent delivery of shareholder returns over the years Shareholder Foreign Ownership ROAE (%) Composition* 10.6% 10.4% 2,500 9.2% 8.8% (Mn Shares) 2021 2022 2023 2024 Kingdom Foreign Holdings 11.1% 16.2% Dividends Per Share (SAR) Dividend payout ratio 59% 58% 58% 55% 0.94 0.99 0.72 0.79
Slide 8: Market parameters and share price performance
Market parameters and share price performance Share Price Performance vs. Tadawul (%) Market Capitalization BSF Share Price 10% (SAR Bn) (SAR) 5% Tadawul, 0.6% 39.6 15.8 0% Tadawul Banks, 0.5% -5% -10% -15% BSF, -17.9% -20% 4.07% of KSA banking sector 52 weeks range [14.6 - 20.7] -25% -30% 0.39% of
Slide 9: Experienced and dynamic executive management team
Experienced and dynamic executive management team Bader Alsalloom Ramzy Darwish Majed Alsadhan Chief Executive Officer Chief Strategy and Finance Officer Chief Wholesale Banking Officer • BSF: appointed Apr-21 • BSF: appointed CFO Dec-22 • BSF: appointed Head of WB Nov-22 • Saudi Investment Bank: De
Slide 10: Operating Environment
Operating Environment Investor Presentation FY 2024
Slide 11: Saudi Arabia's real GDP growth is estimated at 1.4% in 2024
Saudi Arabia’s real GDP growth is estimated at 1.4% in 2024 and is expected to accelerate to 3.3% in 2025 Economic Outlook Real GDP Growth (%) Brent Avg Oil Price / Real GDP for Saudi Arabia is estimated to grow by 1.4% in 2024, recovering from a 0.8% 7.5% Barrel (USD) contraction in 2023 driven b
Slide 12: The Saudi banking sector is well positioned for both resilience and growth
The Saudi banking sector is well positioned for both resilience and growth Bank Credit (SAR Bn) Capitalization (%) NPL Ratio (%) +13% CAGR 20.3% 19.9% 19.9% 20.1% 2.2% 19.2% 2,956 2,584 1.9% 2,349 1.8% 2,059 1,783 18.7% 18.6% 18.2% 18.4% 1.5% 17.7% 1.3% +16% +14% +10% +14% 2020 2021 2022 2023 3Q 24
Slide 13: Strategy
Strategy Investor Presentation FY 2024
Slide 14: In early 2023 we refocused and simplified our strategy to 10 vital initiatives
In early 2023 we refocused and simplified our existing strategy to 10 vital initiatives for an evolving external environment and internal structure 2024 Priority Wholesale Banking Personal Banking Personal Banking Private Banking Private Banking Technology Expand FIG & MNC Scale Up in Affluent Expan
Slide 15: Our strategy is driven by ambitious aspirations for market position, profitability and customer experience
Our strategy is driven by ambitious aspirations for market position, profitability and customer experience Strategic Goals Position Profitability Customer Experience Be among the top players in our Focus on profitability and return on Continued commitment to target segments (Top 3 Market Share) capi
Slide 16: Strategy execution progressing well across business pillars
Strategy execution progressing well across the various business pillars Wholesale Banking Personal Banking Private Banking Strategic Goals Solidify market position Leverage segmentation Reinforce market and synergies leadership Focused Initiatives GTS revamp Scale up affluent Broaden product suite E
Slide 17: Strategy execution: JB and BSF Capital
Strategy execution progressing well across the various business pillars JB BSF Capital Strategic Goals Expand in new market Seize existing segments opportunities and grow Focused Initiatives Digital acceleration Synergize wealth mgmt. Product diversification Broaden advisory Brand repositioning Attr
Slide 18: Good progress in three key strategic programs across IT & Technology
Good progress in the implementation of the three key strategic programs across the IT & Technology priorities Technology Infrastructure Upgrade Description Key Highlights 2025 Progress & Beyond Integrated New corporate platform User training: successfully Testing completion: backend and frontend
Slide 19: We launched our Digital App with more features coming in 2025
We proudly launched our Digital App with comprehensive functionality, with more features coming in 2025 Intuitive design a simple, user-friendly interface tailored for everyone Effortless access seamless login experience with advanced biometric integration 7,765.38 SAR Enhanced employee experience u
Slide 20: The Core Banking System upgrade is on track
The Core Banking System upgrade is on track, with the most complex phase, Release 2, successfully completed; the final phase, Release 3, is now in progress Release 1 Release 2.1 Release 2.2A Release 2.2B Release 3 Retail loans & Retail loans Payment Processing: Corporate and Corporate Loans
Slide 21: We have kicked off BSF 2030 Strategy exercise
We have kicked off BSF 2030 Strategy exercise to future-proof the bank’s market positioning … for both the mid-term and long-term future of the bank Prepare for the future Strengthen Prepare the core for the future Achievement of bank's future shape BSF 2030 Reposition the core Explore and capitaliz
Slide 22: ESG Update
ESG Update Investor Presentation FY 2024
Slide 23: ESG is woven into our strategic fabric
ESG is woven into our strategic fabric, driving with our business objectives while nurturing our environment, society, and governance ESG is Part of BSF DNA BSF’s Recent ESG Highlights BSF’s ESG Pillars are born from within BSF’s corporate mission and values BSF developed a set of ESG KPIs associate
Slide 24: Significance to stakeholders: materiality matrix
We have identified and prioritized 15 sustainability-related material issues that have a substantial impact on our strategic objectives and are deemed crucial by our stakeholders Such issues have been depicted in our materiality matrix, which is built upon a Materiality Matrix 1 Governance, accounta
Slide 25: Comprehensive ESG governance and policy framework with Board oversight
BSF has implemented a comprehensive ESG governance and policy framework with Board oversight Nomination & BSF Board of Executive Board Strategy Board Risk Audit Committee Renumeration Directors Committee Committee Committee Committee Abdullatif Rayan Bader ESG Board Committee: Alothman Fayez Al Issa
Slide 26: Charting the course of excellence: our ESG journey
Charting the course of excellence: our ESG journey from a strong foundations to future innovation Established the ESG Published the Published the Published the Published the Policy Framework Inaugural 2021 ESG Report 2022 ESG Report 2023 ESG Report 2020 ESG Report Implemented the ESG Governance Mode
Slide 27: BSF achieves remarkable progress in boosting ESG ratings
BSF achieves remarkable progress in boosting ESG ratings ESG Ratings: ESG Risk Rating Score S&P Global ESG Score MSCI ESG Rating by Sustainalytics 21.2 as of May 2024 39.0 for the year 2024 BBB as of June 2024 from 27.8 in 2023 from 30 in 2023 from BB in 2022 Leading all Saudi Banks in ESG Ris
Slide 28: Financial Performance
Financial Performance Investor Presentation FY 2024
Slide 29: Strong balance sheet momentum and 8% net income growth YoY
Strong balance sheet momentum and 8% net income growth YoY Balance Sheet Loans & Investments Customers' Strong loan growth of 14% YoY, Advances Deposits driven by both commercial (+13%) 204.2 60.3 185.1 and consumer (+16%). Investments increased 24% YoY to manage IR risk while capturing higher y
Slide 30: Improved credit quality with comfortable capital and liquidity
Improved credit quality with comfortable capital and liquidity Asset Quality NPL Ratio NPL Cost of Risk Lower NPL ratio, mainly from Coverage write-offs, and improving 0.93% 181.7% 0.58% coverage ratio. Improved COR in the commercial book. -12bps year-on-year +44.0ppts year-on-year -38bps
Slide 31: Balance sheet growth driven by lending and investments
Balance sheet growth driven by lending and investments Balance Sheet Total Assets Movement YoY (SAR Bn) Growth in total assets of 15% YoY, mainly driven by 14% loan growth, further aided by an +15% increase in investments. The investment portfolio expanded by 24% YoY from high-quality liquid ass
Slide 32: Net income grew 8% YoY from higher non-interest income and lower impairments
Net income grew 8% YoY from higher non-interest income and lower impairments, partially offset by higher costs Income Statement Net Income Movement YoY (SAR Mn) Net income for FY 2024 grew 8% YoY to SAR 4,544mn from a 19% rise in non-interest +8% income and a 26% decline in the impairment charge,
Slide 33: Balanced 14% YoY loan growth from commercial and consumer sectors
Balanced 14% YoY loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (SAR Bn) Composition Total loans & advances grew 14% during FY 2024 from both consumer and commercial 204.2 lending growth. Commercial Commercial loans grew 13% during FY 2024, with notable i
Slide 34: Well-diversified portfolio in commercial and consumer sectors
Well-diversified portfolio in both commercial and consumer sectors Commercial Loans Movement YoY (SAR Bn) Commercial Loans Composition 166.5 +13% Other 21.3% 7.0 166.5 Contracting 2.8 2.7 (1.8) 10.3% 8.8 147.0 Utilities 11.8% (SAR Bn) Manufacturing Commerce +23% +17% +18% -29% +10% 12.7% 27.9% Servi
Slide 35: 24% increase in the investment portfolio in FY 2024
24% Increase in the investment portfolio in FY 2024 Investments Investments Composition by Category (SAR Bn) 60.3 Investments increased 24% YTD to manage interest rate risk while capturing higher yields. FVSI - Debt/equity Amortized cost instruments 45.9% The investment portfolio is of high qual
Slide 36: High-quality investment portfolio
High-quality investment portfolio Investments Composition by Type Investments Composition by Sector (SAR Bn) 60.3 Fixed-rate - 55.2 Financials 16.6% (SAR Bn) Equities 0.7% Floating-rate - 4.7 Corporate Government - 44.6 Government Floating-rate Equities - 0.4 9.4% Financials - 10 73.9% 7.8% Fixed-ra
Slide 37: 7% YoY growth in deposits
7% YoY growth in deposits, with contributions from both IBDs and NIBDs Customers’ Deposits Customers' Deposits (SAR Bn) Deposits grew by 7% during FY 2024, driven by an increase in IBDs and further supported +7% by NIBD growth. NIBDs increased 6% YoY and IBD’s increased 9% YoY, mainly from corpo
Slide 38: Efficient and diversified funding structure to support growth
Efficient and diversified funding structure to support growth Funding Structure Successful Track Record in Accessing BSF’s funding is largely comprised of customers’ deposits which represented 75% of total Local and International Capital Markets liabilities and 63% of total liabilities and equity
Slide 39: Strong credit ratings and stable maturity profile
Strong credit ratings and stable maturity profile Credit Ratings Standard & Poor's Maturity Profile (SAR Bn) Syndicated facilities Bonds A- Sukuk Tier 1 Sukuk 8.0 Stable outlook 6.0 0.1 Moody's Fitch 3.9 3.3 8.0 3.4 0.9 A1 A- 2.1 2.1 2.6 3.4 2.6 0.2 0.2 0.4 Stable outlook Stable outlook 2025 2
Slide 40: 1% growth in NII YoY
1% growth in NII YoY as earning assets growth was mostly offset by margin contraction Net Interest Income Net Interest Income Movement YoY (SAR Mn) NII for FY 2024 increased by 1% YoY to SAR 7,883mn, with 16% average earnings assets +1% growth mostly offset by margin contraction. Interest income
Slide 41: YoY margin decline from shifting deposit mix towards IBDs
YoY margin decline from shifting deposit mix towards IBDs Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM declined 48bps YoY to 3.05% mainly due to increased costs on customers’ 6.35% 6.41% 6.40% 6.34% 6.35% 6.50% 6.33% 6.15% 5.95% 6.05% deposits. On a sequential basis, the quarter
Slide 42: BSF has limited sensitivity to interest rate changes
BSF has limited sensitivity to interest rate changes NIM Sensitivity Balance Sheet Repricing Profile As of 31 December 2024, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2024 (SAR Bn) ±3bps; this would translate into a SAR ±90mn NII delta. 180.0 The net op
Slide 43: Non-interest income increased 19% YoY on higher trading income
Non-interest income increased 19% YoY on higher trading income Non-Interest Income Non-interest Income (SAR Mn) Non-interest income for FY 2024 increased 19% YoY to SAR 1,774mn on higher trading income, supported by improved net fee & commission income, investment-related and 4Q 23 323 exchange in
Slide 44: Fee & commission income increased 6% YoY
Fee & commission income increased 6% YoY, mainly from improved brokerage & asset management income and trade finance Fee & Commission Non-funded Exposure* Fee & Commission Income (SAR Mn) Income (SAR Bn) 4Q 23 237 Net fee & commission grew 6% to SAR 972mn in FY 2024 due to higher 4Q 23 70.7 1Q 24
Slide 45: Operating expenses growth of 13% YoY
Operating expenses growth of 13% YoY from higher G&A and employee-related expenses Operating Expenses Operating Expenses Cost Ratios (%) Operating expenses increased 13% YoY to SAR 3,409mn in FY 2024 mainly due to (SAR Mn) 34.4% 35.3% increased general and administrative expenses, as well as emplo
Slide 46: Cost of risk decreased by 38bps YoY to 0.58%
Cost of risk decreased by 38bps YoY to 0.58% for FY 2024 from lower commercial impairments Impairment Charge Cost of Credit Risk (%) Impairment Charge Impairment Charge The total impairment charge for FY (SAR Mn) (SAR Mn) 2024 decreased by 26% YoY to SAR -14% 0.96% 1,180mn, mainly from lower comme
Slide 47: Credit quality remains strong with YoY NPL ratio improvement
Credit quality remains strong with YoY NPL ratio improvement NPL Ratio NPL Ratio (%) Non Performing Loans Non Performing Loans The NPL ratio improved 12bps YoY & Advances (SAR Bn) & Advances (SAR Bn) to 0.93% as NPLs increased by 1% +1% relative to 14% gross loan growth. 1.06% 4Q 23 1.9 0.94% 0.94
Slide 48: NPL coverage improved 44.0ppts YTD to 181.7%
NPL coverage improved 44.0ppts YTD to 181.7% NPL Coverage NPL Coverage Ratio (%) Stage-Wise Provision Allowance for The NPL coverage ratio improved Coverage (%) Stage 3 Stage 2 Impairment (SAR Bn) by 44.0ppts YoY to 181.7%, Stage 1 +33% attributed to enhancements in 193.1% commercial coverage. 181
Slide 49: Strong capital ratios
Strong capital ratios Capital Total Capital (SAR Bn) RWA (SAR Bn) Total capital (Tier 1 + Tier 2 +13% +12% regulatory capital) increased 13% YoY to SAR 49.4bn during FY 2024 from net income as well as SAR 3bn 48.7 49.4 247.4 250.1 251.0 43.9 44.8 44.9 223.7 235.0 Additional Tier 1 sukuk issuance i
Slide 50: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits LTD Ratios (%) Headline LTD Ratio Liquidity Leverage Ratio (%) LTD SAMA ratio LCR declined by 34ppts to 162% during FY 2024. 110.3% 13.7% 106.1% NSFR moderated slightly YoY to 13.1% 104.2% 104.0% 114% as of 31 December 2024. 13.0%
Slide 51: Outlook & Guidance
Outlook & Guidance Investor Presentation FY 2024
Slide 52: Saudi Arabia's real GDP and non-oil GDP growth expected to improve
Saudi Arabia’s real GDP and non-oil GDP growth are expected to improve, while anticipating a higher-for-longer interest rate environment Metric 2024 Outcome 2025 Outlook Trend Saudi Arabia Real GDP Growth +1.4% +3.3% 7.5% 1.4% 3.3% 4.1% #N/A -0.8% 2022 2023 2024E 2025E 2026E Saudi Arabia Non-oil G
Slide 53: FY 2024 performance versus guidance
FY 2024 performance reflects strong loan growth and stable asset quality, while cost pressures and margin compression impact profitability Metric FY 2024 Outcome 2024 Guidance Commentaries Loans & Advances Growth +13.8% YOY Mid-teens FY 2024 is in line with guidance, driven by selective loan portfol
Slide 54: BSF anticipates a favorable year ahead: 2025 guidance
BSF anticipates a favorable year ahead, with sustained loan growth, margin resilience and improvements in operational efficiency driving enhanced profitability Metric FY 2024 Outcome 2025 Guidance Guidance Drivers Loans & Advances Growth +13.8% YOY Low teens The guidance reflects expected growth in
Slide 55: Segmental Performance
Segmental Performance Investor Presentation FY 2024
Slide 56: Profitability driven by growth in Corporate, offset by lower Treasury net income
Profitability driven by growth in Corporate, offset by lower Treasury net income Operating Income Movement YoY (SAR Mn) Net Income Before Zakat Movement YoY (SAR Mn) +4% +8% 683 (882) 1,262 (938) 453 80 9,658 45 5,069 9,324 4,708 (7) +13% +16% -87% +17% -0% +67% -141% +19% FY 23 Retail Corporate Tre
Slide 57: Retail Segment
Retail Segment: Higher net interest income from loan growth, offset by higher impairments and expenses Net Income Before Zakat Movement YoY (SAR Mn) Total Operating Net Income Before Income (SAR Mn) Zakat (SAR Mn) -0% 4Q 23 942 4Q 23 412 475 (22) (172) (289) 1,926 1,919 1Q 24 1,040 1Q 24 576 2Q 24 1
Slide 58: Corporate Segment
Corporate Segment: Increased profitability from net interest income growth and lower impairments Net Income Before Zakat Movement YoY (SAR Mn) Total Operating Net Income Before Income (SAR Mn) Zakat (SAR Mn) +67% 3,138 4Q 23 1,057 4Q 23 490 711 680 3 (132) 1Q 24 1,164 1Q 24 737 1,876 2Q 24 1,295 +8%
Slide 59: Treasury Segment
Treasury Segment: Net income declined due to higher funding costs Net Income Before Zakat Movement YoY (SAR Mn) Total Operating Net Income Before Income (SAR Mn) Zakat (SAR Mn) -141% 4Q 23 54 4Q 23 (40) 665 (1,104) 1Q 24 8 1Q 24 (82) 222 (48) (8) (273) 2Q 24 (205) +465% 2Q 24 (115) +400% 3Q 24 (134)
Slide 60: Investment Banking and Brokerage Segment
Investment Banking and Brokerage Segment: Profitability improvement YoY as higher fee & other income was partly offset by higher expenses Net Income Before Zakat Movement YoY (SAR Mn) Total Operating Net Income Before Income (SAR Mn) Zakat (SAR Mn) +19% 4Q 23 137 4Q 23 70 83 (35) 286 241 (3) 1Q 24 1
Slide 61: Performance Track Record
Performance Track Record Investor Presentation FY 2024
Slide 62: Balance Sheet Metrics
Balance Sheet Metrics Loans & Advances Total Assets LCR (%) CAR (%) CAR (SAR Bn) (SAR Bn) T1 ratio 21.6% 21.1% 2020 130.6 2020 194.1 199% 196% 196% 19.9% 19.6% 19.7% 179% 20.6% 2021 147.8 2021 215.8 162% 19.9% 2022 159.0 +12% CAGR 2022 232.1 +11% CAGR 18.9% 19.0% 18.8% 2023 179.4 2023 253.7 2024 +14
Slide 63: Income Statement Metrics
Income Statement Metrics Total Operating NIM (%) Cost to Income Ratio (%) Cost of Risk (%) Income (SAR Mn) 2.07% 2020 7,045 3.53% 35.3% 34.3% 33.6% 33.1% 2021 7,128 32.4% 3.06% 3.05% 2.97% 3.02% 2022 8,017 +8% CAGR 0.96% 0.85% 0.67% 0.58% 2023 9,324 2024 +4% YoY 9,658 2020 2021 2022 2023 2024 2020 2
Slide 64: Appendix
Appendix Investor Presentation FY 2024
Slide 65: Please contact the Investor Relations team for additional information
Please contact the Investor Relations team for additional information or download BSF’s IR App For more information, please contact us at: Access our IR website: BSF BSF IR Website P.O. Box 56006, Riyadh 11554 Kingdom of Saudi Arabia Find our financial disclosures: [email protected] Financial Disclosures BS
Slide 66: Disclaimer
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 BSF to be up to date, correct and reliable, but BSF does not make any representation or warranty, express or implied, with