Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q3 2021 Earnings Presentation
16 slides from Banque Saudi Fransi's earnings presentation, Nov 11, 2021
Slide 1: Banque Saudi Fransi 3Q 2021 Earnings Presentation
3 Column Slides Banque Saudi Fransi 3Q 2021 Earnings Presentation 11 November 2021
Slide 2: Highlights
EARNINGS PRESENTATION 3Q 2021 Highlights
Slide 3: Solid balance sheet growth and strong recovery in net income
HIGHLIGHTS | 3Q 2021 FINANCIAL PERFORMANCE Solid balance sheet growth and strong recovery in net income BALANCE SHEET Loans & Advances Investments Non Interest Bearing Deposits High quality loan growth of 11% driven by 9% commercial loan growth and 26% growth in mortgages YTD. 144.4 +11% year-to
Slide 4: Financial Performance
EARNINGS PRESENTATION 3Q 2021 Financial Performance
Slide 5: 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 10% YTD driven by healthy 11% loan growth and strong growth of 16% in investments. Liabilities grew by 12% during 2021 YTD from 13% de
Slide 6: Healthy loan growth in 9M 2021
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy loan growth in 9M 2021 Total Loans & Advances (SAR Bn) Commercial Loans Movement (SAR Bn) Loans & Advances Composition (SAR Mn) 144.4 144,393 117.4 Consumer +11% 18.7% +9% Commercial 141.8 144.4 81.3% 130.6 0.6 2.5 117.4 2.5 1.8 25.6 27.0 3.4 22.8 1
Slide 7: Growth in NIBD deposits YTD with temporary moderation in 3Q 2021
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Growth in NIBD deposits YTD with temporary moderation in 3Q 2021 Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) Deposits grew 13% during 9M 2021 from higher NIBDs and IBDs. NIBD’s grew 5% YTD but declined 4% QoQ from a 143.3 143.3 t
Slide 8: Net income improved 69% year-on-year due to lower provisions
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income improved 69% year-on-year due to lower provisions Net Operating Income Before Impairment Charge Net income for 9M 2021 grew 69% YoY to SAR 2,457mn from 4% income growth and a (SAR Mn) 52% decline in impairments, partly offset by an 8%
Slide 9: Moderate 2% NII growth as earning asset growth partly offset by margin contraction
FINANCIAL PERFORMANCE | NET INTEREST INCOME Moderate 2% NII growth as earning asset growth partly offset by moderate margin contraction Net Interest Income Average Interest Earning Assets Average Funding NII for 9M 2021 grew 2% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 4,041mn as 8% growth in average
Slide 10: Non-interest income grew 9% from improved brokerage, lending and trading income
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income grew 9% from improved brokerage, lending and trading income, partly offset by lower exchange and other income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 490 1,422 +31% +9% 470 463 496 508 490 169 77 15 1,422 423
Slide 11: Higher operating expenses due increase in VAT rate
FINANCIAL PERFORMANCE | OPERATING EXPENSES Higher operating expenses due increase in VAT rate Operating Expenses (SAR Mn) Operating expenses increased 8% YoY to SAR 1,827mn in 9M 2021 due to increased rate of VAT in Saudi Arabia from 5% to 15%. 608 The cost to income ratio increased modestly to
Slide 12: Moderation in impairment charge and cost of risk from peak in 4Q 2020
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Moderation in impairment charge and cost of risk from peak in 4Q 2020, NPL coverage improved 32.6ppts YoY Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Cost of Credit Risk (%) The total impairment charge for 9M 2021 moderated to SAR 858mn from SAR
Slide 13: Liquidity and capitalization remain strong
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity and capitalization remain strong NSFR and the SAMA LTD ratio were stable YTD at LCR Average (%) NSFR (%) 120% and 83.6% respectively. LCR declined by 23ppts during 9M 2021 due to more efficient utilization of excess liquidity but rem
Slide 14: Loan growth guidance raised and cost of risk outlook more certain
FINANCIAL PERFORMANCE | GUIDANCE Loan growth guidance raised and cost of risk outlook more certain 2021 Outlook as at 2Q 3Q 2021 Outcome Current 2021 Outlook Loans & Advances 9M 2021 growth of SAR Billion 11%. 130.6 130.6 LOANS & ADVANCES, NET Continued mortgage and corporate growth Mid to high
Slide 15: Questions & Answers
EARNINGS PRESENTATION 3Q 2021 Questions & Answers
Slide 16: Disclaimer
INVESTOR PRESENTATION 1Q 2021 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