Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q1 2023 Earnings Presentation
21 slides from Banque Saudi Fransi's earnings presentation, May 15, 2023
Slide 1: Banque Saudi Fransi 1Q 2023 Earnings Presentation
3 Column Slides Banque Saudi Fransi 1Q 2023 Earnings Presentation 15 May 2023
Slide 2: Highlights
EARNINGS PRESENTATION 1Q 2023 Highlights
Slide 3: Improved profitability from NIM expansion and balanced asset growth
HIGHLIGHTS | FINANCIAL PERFORMANCE Improved profitability from NIM expansion and balanced asset growth BALANCE SHEET Loans & Advances Investments Customers' Deposits High quality loan growth of 8% YoY driven by 8% commercial and 6% consumer lending growth. 164.8 +8% year-on-year 44.8 +4% year-
Slide 4: Refocusing and simplifying our existing strategy for an evolving external environment
STRATEGY | CONTEXT We are refocusing and simplifying our existing strategy for an evolving external environment and an optimized internal structure Rising rate environment Historic increase in levels of inflation Sudden rate declines Geopolitical tensions Covid-19 Recessionary fears In
Slide 5: Refocused strategy targets vital initiatives, including technology upgrades and rebranding in 1H 2024
STRATEGY | SUMMARY Refocused strategy targets 10 vital initiatives, including planned completion of technology infrastructure upgrades and rebranding in 1H 2024 Wholesale Banking Private Banking Technology Expand FIG Expand Infrastructure & MNC product Upgrade Coverage suite 1H 2024 Priority Saudi F
Slide 6: Strategy driven by ambitious aspirations for market position, profitability and customer experience
STRATEGY | STRATEGIC FRAMEWORK 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 target segments Focus on profitability and return on capital Continu
Slide 7: Strategic initiatives built on core business strengths and opportunities
STRATEGY | STRATEGIC PILLARS Strategic initiatives are built on our core business strengths and opportunities Wholesale Banking Personal Banking Private Banking Saudi Fransi Leasing Saudi Fransi Capital Strategic Goals Strong corporate relationships Solid positioning & strong Leading market po
Slide 8: Financial Performance
EARNINGS PRESENTATION 1Q 2023 Financial Performance
Slide 9: Balance sheet growth driven by lending and SAMA placements, funded by IBD growth
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Balance sheet growth driven by lending and SAMA placements, funded by IBD growth Growth in total assets of 4% YTD, mainly driven by healthy 4% loan growth and Total Assets Movement (SAR Bn) increased placements with SAMA. Liabilities grew by 4% du
Slide 10: Healthy and balanced 4% loan growth during 1Q 2023
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy and balanced 4% loan growth during 1Q 2023 Total Loans & Advances (SAR Bn) Commercial Loans Movement YTD (SAR Bn) Loans & Advances Composition (SAR Mn) 164.8 134.6 164,779 +8% +4% Consumer 18.3% Commercial 159.0 164.8 2.0 1.1 0.7 0.6 0.5 0.5 134.6 8
Slide 11: Healthy 6% growth in deposits YTD from increased IBDs
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Healthy 6% growth in deposits YTD from increased IBDs Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) Deposits grew 6% during 1Q 2023, mainly from IBDs. IBD increased 17% YTD from 32% growth in Corporate, partly offset by a 5% declin
Slide 12: Net income grew 23% YoY from strong NII growth
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 23% YoY from strong NII growth, partly offset by increased operating expenses and impairments Net Operating Income Before Impairment Charge Net income for 1Q 2023 grew 23% YoY to SAR 1,076mn from 27% growth in operating (SAR Mn) i
Slide 13: NII growth of 36% from margin expansion and earning assets growth
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 36% from margin expansion and earning assets growth Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities NII for 1Q 2023 grew 36% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 1,924mn from margin expansion and 7%
Slide 14: 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 2022 (SAR Bn) • At 31 December 2022, BSF estimated a 1-year NIM sensitivity of a 100bps rates rise at 10bps; this would translate into SAR 219mn higher
Slide 15: Non-interest income declined 3% YoY from lower trading and capital markets income
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income declined 3% YoY from lower trading and capital markets income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 394 394 -3% -3% 464 24 406 394 406 1 394 354 366 (35) (2) (0) -15% QoQ 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Non-in
Slide 16: Operating expenses growth of 18% from higher employee-related expenses
FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 18% from higher employee-related expenses Operating Expenses Movement (SAR Mn) Operating expenses increased 18% YoY to SAR 712mn in 1Q 2023 due to increased employee-related costs from higher utilization of FTE budgets and exc
Slide 17: Credit quality trends impacted by isolated pockets of migration in the Commercial book
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Credit quality trends impacted by isolated pockets of migration in the Commercial book Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Impairment Charge Movement (SAR Mn) The total impairment charge for 1Q 2023 increased 68% YoY to SAR 406mn, mainly
Slide 18: Liquidity, funding and capital comfortable
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity, funding and capital comfortable LCR improved by 4ppts during 1Q 2023 to 200%. LCR & NSFR (%) LTD Ratios (%) NSFR moderated 3ppts to 119% as of 31 March 2023. The SAMA regulatory LTD ratio was within required 200% 80.9% levels at 8
Slide 19: Improving profitability expected in 2023 from solid loan growth and continued NIM expansion
FINANCIAL PERFORMANCE | GUIDANCE Improving profitability expected in 2023 from solid loan growth, continued NIM expansion, positive jaws and lower cost of risk Metric 1Q 2023 Outcome 2023 Guidance Revision Drivers Financing Growth Financing Growth Balanced growth of consumer and commercial LOANS & A
Slide 20: Questions & Answers
EARNINGS PRESENTATION 1Q 2023 Questions & Answers
Slide 21: Disclaimer
EARNINGS PRESENTATION 1Q 2023 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