Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — H1 2025 Earnings Presentation
26 slides from Banque Saudi Fransi's earnings presentation, Jul 30, 2025
Slide 1: BSF 1H 2025 Earnings Presentation
BSF 1H 2025 Earnings Presentation 30 July 2025
Slide 2: Highlights & Strategy Update
Highlights & Strategy Update
Slide 3: 20% net income growth YoY supported by the robust top-line growth
20% net income growth YoY supported by the robust top-line growth Balance Sheet Loans & Investments Customers' Loan growth of 6% YoY, driven by Advances Deposits both commercial (+4%) and 209.9 62.8 182.7 consumer (+17%). Investments increased 13% YoY to manage IR risk while capturing higher yie
Slide 4: Improved cost of risk with comfortable capital and liquidity
Improved cost of risk with comfortable capital and liquidity Asset Quality NPL Ratio NPL Cost of Risk Marginally higher NPL ratio, due Coverage to higher NPL in commercial 0.97% 183.1% 0.50% portfolio. Coverage ratio remains robust. Improved COR in the consumer and commercial book. +3bps year-
Slide 5: Strategy execution progressing well across the various 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 6: Strategy execution progressing well across the various business pillars
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 7: Good progress in the implementation of the three key strategic programs
Good progress in the implementation of the three key strategic programs across the IT & Technology priorities Technology Infrastructure Upgrade Description 2025 Progress & Beyond Integrated New corporate platform Phase 1 (Trade Services): On track for 3Q 2025 launch supporting trade & supply chain
Slide 8: We are advancing the BSF 2030 Strategy exercise
We are advancing the BSF 2030 Strategy exercise … 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 Reposition the core Explore and capitalize BSF 2030 business along the on future-proof busines
Slide 9: Financial Highlights
Se Financial @ = | Highlights
Slide 10: Balance sheet growth driven by loan growth and investments
Balance sheet growth driven by loan growth and investments Balance Sheet Total Assets Movement YTD (¥ Bn) Growth in total assets of 3% YTD, mainly driven by 3% loan growth, further aided by an increase in investments and interbank lending. +3% The investment portfolio expanded by 4% YTD. 5.7 (1.
Slide 11: 3% YTD loan growth from both commercial and consumer sectors
3% YTD loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (¥ Bn) Total loans and advances grew 6% YoY, driven by growth in both consumer and commercial lending. YTD growth was 3%, supported by increases in both commercial and +3% consumer loans. 204.2 209.0 209
Slide 12: 1% YTD fall in deposits, driven by decline in corporate
1% YTD fall in deposits, driven by decline in corporate, partially offset by the inflow of retail deposits Customers’ Deposits Customers' Deposits (¥ Bn) Deposits fell by 1% YTD, driven by a decrease in IBDs. -1% IBDs decreased by 2% YTD, due to lower corporate deposits, and NIBDs declined margi
Slide 13: Net income grew 20% YoY from higher operating income, lower cost of risk
Net income grew 20% YoY from higher operating income, lower cost of risk and positive jaws Income Statement Net Income (¥ Mn) Net income for 1H 2025 grew 20% YoY to ¥ 2,741mn from higher operating income, lower +24% cost of risk and positive jaws. Total operating income increased driven by a 12%
Slide 14: 12% YoY growth in NII driven by earning assets growth and modest margin expansion
12% YoY growth in NII driven by earning assets growth and modest margin expansion Net Interest Income Net Interest Income Movement YoY (¥ Mn) NII for 1H 2025 increased by 12% YoY to ¥ 4,314mn, driven by 11% average earnings assets +12% growth and modest margin expansion. 179 157 (98) (42) (188)
Slide 15: YoY and sequential margin improvement
YoY and sequential margin improvement Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM increased 3bps YoY to 3.11%, driven by a lower cost of funding, offset by lower 6.37% 6.36% 6.29% 6.24% 6.11% 6.14% 6.05% interest yield following rate cuts, with the impact of hedging providing add
Slide 16: BSF has limited sensitivity to interest rate changes
BSF has limited sensitivity to interest rate changes NIM Sensitivity Balance Sheet Repricing Profile As of 30 June 2025, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2024 (¥ Bn) ±5bps; this would translate into a ¥ ±156mn NII delta. 180.0 The net open shor
Slide 17: Non-interest income increased 23% YoY on higher investment and exchange income
Non-interest income increased 23% YoY on higher investment and exchange income Non-Interest Income Non-interest Income Movement YoY (¥ Mn) Non-interest income for 1H 2025 increased 23% YoY to ¥ 1,002mn on higher investment- related income, exchange and other income, as well as improved net fee & c
Slide 18: Operating expenses rose 10% YoY on higher G&A and remained broadly stable QoQ
Operating expenses rose 10% YoY on higher G&A and remained broadly stable QoQ Operating Expenses Operating Expenses (¥ Mn) Operating expenses increased 10% YoY to ¥ 1,740mn in 1H 2025 mainly due to increased general and administrative expenses. 2Q 24 809 Cost to income ratio decreased by 1.1 ppt
Slide 19: Cost of risk decreased by 10bps YoY to 0.50% for 1H 2025
Cost of risk decreased by 10bps YoY to 0.50% for 1H 2025, driven by lower commercial charges and overall portfolio growth Impairment Charge Impairment Charge (¥ Mn) The total impairment charge for 1H 2025 decreased by 6% YoY to ¥ 515mn, from lower commercial impairments, partly offset by minor inc
Slide 20: Credit quality remains strong with modest increase in NPL ratio
Credit quality remains strong with modest increase in NPL ratio with robust coverage NPL & NPL Coverage NPL Ratio (%) The NPL ratio increased 3bps YTD to 0.97% as NPLs increased by 7% relative to 3% gross loan growth. 0.97% The NPL coverage ratio improved by 1.4ppts YTD to 183.1%, attributed to
Slide 21: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits Liquidity LTD Ratios (%) Headline LTD Ratio LTD SAMA ratio LCR increased by 5.8 ppts YTD to 168% during 1H 2025. NSFR rose by 2 ppts YTD to 116% as of 30 June 2025. 114.9% 110.3% 109.6% The SAMA regulatory LTD ratio decreased 1.
Slide 22: Strong capital ratios
Strong capital ratios Capital Total Capital Movement YTD (¥ Bn) Total capital (Tier 1 + Tier 2 regulatory capital) increased 9% YTD to ¥ 53.7bn during 1H 2025 from AT1 issuance of USD 650mn, net income and OCI, partially offset by the dividends +9% paid. 2.4 (0.2) (1.2) RWAs increased by 2% YTD
Slide 23: Loan growth outlook revised; margin and efficiency drivers support profitability
Loan growth outlook was revised in line with pipeline, while margin and efficiency drivers continue to support profitability Metric 1H 2025 Outcome 2025 Guidance Guidance Drivers The guidance was revised to reflect a conservative view after modest Loans & Advances Growth +2.8% YTD High single first-
Slide 24: Questions & Answers
Questions & Answers @ BSF
Slide 25: 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 26: 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