Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q4 2023 Earnings Presentation
22 slides from Banque Saudi Fransi's earnings presentation, Feb 14, 2024
Slide 1: 4Q 2023 Earnings Presentation
3 Column Banque Saudi Fransi Slides 4Q 2023 Earnings Presentation 14 February 2024 Internal Use
Slide 2: Highlights
EARNINGS PRESENTATION 4Q 2023 Highlights Internal Use
Slide 3: Improved profitability in FY 2023 from NIM expansion and balanced asset growth
HIGHLIGHTS | FINANCIAL PERFORMANCE Improved profitability in FY 2023 from NIM expansion and balanced asset growth BALANCE SHEET Loans & Advances Investments Customers' Deposits ▪ Healthy loan growth of 13% YoY driven by 14% commercial and 10% consumer lending growth. 179.4 p +13% year-on-year 48.5 p
Slide 4: In 1Q 2023 we refocused and simplified our strategy to 10 vital initiatives
STRATEGY | SUMMARY In 1Q 2023 we refocused and simplified our existing strategy to 10 vital initiatives for an evolving external environment and internal structure Wholesale Banking Private Banking Technology Expand FIG Expand Infrastructure & MNC product Upgrade Coverage suite 1H 2024 Priority Saud
Slide 5: Strategy execution commenced across the various business pillars with positive momentum
STRATEGY | STRATEGIC PILLARS Strategy execution commenced across the various business pillars with positive momentum in progress Wholesale Banking Personal Banking Private Banking JB Saudi Fransi Capital Seize existing Leverage segmentation Reinforce market Expand in new Strategic Goals Solidify mar
Slide 6: Good progress in the implementation of the four key strategic programs
STRATEGY | STRATEGIC ENABLERS Good progress in the implementation of the four key strategic programs across the IT & Technology and rebranding priorities Technology Infrastructure Upgrade Rebranding Integrated Corporate Omnichannel Core Banking System Portal New corporate platform supporting New hig
Slide 7: ESG is woven into our strategic fabric
ESG | OUR STRATEGIC ESSENCE AT BSF 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 Enviro
Slide 8: Financial Performance
EARNINGS PRESENTATION 4Q 2023 Financial Performance Internal Use
Slide 9: Balance sheet growth driven by lending, funded by IBD growth
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Balance sheet growth driven by lending, funded by IBD growth ▪ Growth in total assets of 9% YoY, mainly driven by healthy 13% loan growth, further Total Assets Movement (SAR Bn) aided by a 9% increase in investments. ▪ Liabilities grew by 10% during F
Slide 10: Healthy and balanced 13% loan growth during FY 2023
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy and balanced 13% loan growth during FY 2023 Total Loans & Advances (SAR Bn) Commercial Loans Movement YoY (SAR Bn) Loans & Advances Composition (SAR Mn) 179.4 147.0 179,391 +13% +14% Consumer 18.1% Commercial 174.7 179.4 5.9 2.8 1.5 1.0 147.0 81.9%
Slide 11: 9% growth in deposits from increased IBDs partly offset by lower NIBDs
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS 9% growth in deposits from increased IBDs partly offset by lower NIBDs Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) ▪ Deposits grew 9% during FY 2023 from increased IBDs, partly offset by an expected decline in NIBDs ▪ IBD increased 4
Slide 12: Net income grew 18% YoY from strong NII growth
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 18% YoY from strong NII growth, but sequential decline of 34% from NIM impact of shifting deposit mix to IBDs Net Income (SAR Mn) ▪ Net income for FY 2023 grew 18% YoY to SAR 4,223mn from 16% growth in operating income, partly offse
Slide 13: NII growth of 22% from margin expansion and earning assets growth
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 22% from margin expansion and earning assets growth Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities ▪ NII for FY 2023 grew 22% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 7,835mn from margin expansion and 6%
Slide 14: BSF remains positively positioned for a rising rate environment
FINANCIAL PERFORMANCE | RATE SENSITIVITY BSF remains positively positioned for a rising rate environment, but the rate sensitivity has declined Balance Sheet Repricing Profile as at 31 December 2023 NIM, Rates and CFH Impact Trends (%) • At 31 December 2023, BSF estimates a 1-year NIM (SAR bn) sensi
Slide 15: Non-interest income decreased 6% YoY
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income decreased 6% YoY due to lower trading, exchange and investment income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 323 1,489 -30% -6% 464 1,591 18 406 394 372 400 5 1,489 354 366 323 (19) (88) (18) -19% QoQ 1Q 22 2
Slide 16: Operating expenses growth of 14% mainly from higher employee-related expenses
FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 14% mainly from higher employee-related expenses Operating Expenses Movement (SAR Mn) ▪ Operating expenses increased 14% YoY to SAR 3,022mn in FY 2023 due to increased employee-related costs, non-recurring transformation-related
Slide 17: Credit quality trends impacted by isolated pockets of migration
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Credit quality trends impacted by isolated pockets of migration in the Commercial book during 2022 Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Impairment Charge Movement (SAR Mn) ▪ The total impairment charge for FY 2023 increased 17% YoY to SAR 1,
Slide 18: Liquidity, funding and capital comfortable
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity, funding and capital comfortable ▪ LCR was broadly stable YoY at 196% at end-2023. LCR & NSFR (%) LTD Ratios (%) ▪ NSFR moderated 5ppts to 117% at end-2023. ▪ The SAMA regulatory LTD ratio was within required 196% 84.1% levels at 84.1% a
Slide 19: BSF is optimistic about the outlook for 2024
FINANCIAL PERFORMANCE | GUIDANCE BSF is optimistic about the outlook for 2024 Metric 2023 Guidance FY 2023 Outcome 2024 Guidance 2024 Guidance Drivers Financing Growth Financing Growth Financing Growth Continued robust corporate activity and credit appetite driven by LOANS & ADVANCES GROWTH Low doub
Slide 20: Questions & Answers
EARNINGS PRESENTATION 4Q 2023 Questions & Answers Internal Use
Slide 21: Please contact the Investor Relations team for additional information
EARNINGS PRESENTATION 4Q 2023 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: Banque Saudi Fransi BSF IR Website P.O. Box 56006, Riyadh 11554 Kingdom of Saudi Arabia [email protected] F
Slide 22: Disclaimer
EARNINGS PRESENTATION 4Q 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