Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q2 2022 Earnings Presentation
17 slides from Banque Saudi Fransi's earnings presentation, Aug 8, 2022
Slide 1: Banque Saudi Fransi 2Q 2022 Earnings Presentation
3 Column Slides Banque Saudi Fransi 2Q 2022 Earnings Presentation 8 August 2022 Internal Use
Slide 2: Highlights
EARNINGS PRESENTATION 2Q 2022 Highlights Internal Use
Slide 3: Solid balance sheet and net income growth
HIGHLIGHTS Solid balance sheet and net income growth BALANCE SHEET Loans & Advances Investments Customers' Deposits ▪ High quality loan growth of 13% YoY driven by 12% commercial and 13% consumer lending growth. 159.6 p +13% year-on-year 43.5 p +3% year-on-year 157.9 p +12% year-on-year SAR Billion
Slide 4: Financial Performance
EARNINGS PRESENTATION 2Q 2022 Financial Performance Internal Use
Slide 5: Solid balance sheet growth from lending
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Solid balance sheet growth from lending Total Assets Movement (SAR Bn) ▪ Growth in total assets of 7% YTD, mainly driven by healthy 8% loan growth. ▪ Liabilities grew by 10% during 1H 2022 from 11% deposit growth. 231.3 ▪ Total equity declined 5% YTD
Slide 6: Healthy loan growth in 1H 2022
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy loan growth in 1H 2022 Total Loans & Advances (SAR Bn) Commercial Loans Movement (SAR Bn) Loans & Advances Composition (SAR Mn) 159.6 130.6 159,625 +8% +8% Consumer 18.2% Commercial 152.7 159.6 1.5 1.2 1.0 0.7 130.6 81.8% 147.8 4.3 1.8 120.6 18% 19%
Slide 7: Strong 11% growth in deposits YTD, improving headline LTD to 101%
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Strong 11% growth in deposits YTD, improving headline LTD to 101% Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) ▪ Deposits grew 11% during 1H 2022, mainly from higher IBDs. ▪ IBD’s increased 30% YTD from 61% growth in high- 157.9 157.9
Slide 8: Net income grew 10% year-on-year from income growth
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 10% year-on-year from income growth Net Operating Income Before Impairment Charge ▪ Net income for 1H 2022 grew 10% YoY to SAR 1,712mn from 6% growth in operating (SAR Mn) income. ▪ Net income for 2Q 2022 grew by 9% YoY to SAR 837mn
Slide 9: NII growth of 7% as earning assets growth partly offset by 13bps margin contraction
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 7% as earning assets growth partly offset by 13bps margin contraction Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities ▪ NII for 1H 2022 grew 7% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 2,792mn on 12% grow
Slide 10: 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 2021 (SAR Bn) • At the start of the year, BSF estimated a 1-year NIM sensitivity of a 100bps rates rise at 31bps; at a stable balance sheet structure t
Slide 11: Non-interest income grew 3% YoY from higher exchange and other income
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income grew 3% YoY from higher exchange and other income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 447 956 +6% +3% 508 490 508 931 41 8 27 956 423 447 393 (48) (5) -12% QoQ 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Non-inter
Slide 12: Disciplined cost control limiting operating expenses growth to 3%
FINANCIAL PERFORMANCE | OPERATING EXPENSES Disciplined cost control limiting operating expenses growth to 3% Operating Expenses Movement (SAR Mn) ▪ Operating expenses increased 3% YoY to SAR 1,253mn in 1H 2022 from higher G&A expenses. ▪ The YTD cost to income ratio improved by 0.9ppts YoY to 33.4%
Slide 13: Stable credit quality during 1H 2022
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Stable credit quality during 1H 2022 Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Cost of Credit Risk (%) ▪ The total impairment charge for 1H 2022 increased 4% YoY to SAR 591mn from higher Consumer impairments. 319 319 0.75% ▪ The NPL ratio decline
Slide 14: Liquidity comfortable | Capital ratios declined during 1H 2022
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity comfortable | Capital ratios declined during 1H 2022 from RWA growth and MTM on debt securities and cash flow hedges ▪ LCR improved by 22.0ppts during 1H 2022 to 201%. LCR and NSFR Liquidity Ratios (%) LTD Ratios (%) ▪ NSFR was 116% as a
Slide 15: Healthy outlook for 2022 on expected solid loan growth and NIM expansion
FINANCIAL PERFORMANCE | GUIDANCE Healthy outlook for 2022 on expected solid loan growth and NIM expansion Previous 2022 Guidance 1H 2022 Outcome Revised 2022 Guidance Loans & Advances Unhanged ▪ 2Q 2022 growth of SAR Billion 13% YoY. 147.8 147.8 LOANS & ADVANCES, NET ▪ Balanced growth of consumer an
Slide 16: Questions & Answers
EARNINGS PRESENTATION 2Q 2022 Questions & Answers Internal Use
Slide 17: Disclaimer
EARNINGS PRESENTATION 2Q 2022 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