Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — H1 2024 Earnings Presentation
25 slides from Banque Saudi Fransi's earnings presentation, Aug 19, 2024
Slide 1: BSF 1H 2024 Earnings Presentation
BSF 1H 2024 Earnings Presentation 19 August 2024
Slide 2: Highlights & Strategy Update
Highlights & Strategy Update
Slide 3: Strong balance sheet momentum and 6% net income growth YoY
Strong balance sheet momentum and 6% net income growth YoY Balance Sheet Loans & Investments Customers' Strong loan growth of 16% YoY, Advances Deposits driven by equal growth in 197.2 55.5 196.2 commercial and consumer loans. Investments increased 13% YoY to manage IR risk while capturing highe
Slide 4: Improved credit quality with comfortable capital and liquidity
Improved credit quality with comfortable capital and liquidity Asset Quality NPL Ratio NPL Cost of Risk Lower NPL ratio mainly from Coverage write-offs and improving 0.94% 161.9% 0.60% coverage ratio. Decreased COR in the commercial book. -148bps year-on-year +28.6ppts year-on-year -48bps
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 four key strategic programs
Good progress in the implementation of the four key strategic programs across the IT & Technology and rebranding priorities Description Key Highlights 2024 Progress & Beyond New corporate platform Phase I Backend: design, development Finalize the plan to assess the impact Technology Infrastructu
Slide 8: Financial Highlights
Se Financial @ = | Highlights
Slide 9: Balance sheet growth driven by lending, investments and due from banks
Balance sheet growth driven by lending, investments and due from banks Balance Sheet Total Assets Movement YTD (SAR Bn) Growth in total assets of 14% YTD, mainly driven by 10% loan growth, further aided by an +14% increase in due from banks and investments. The investment portfolio expanded by 1
Slide 10: Balanced 10% YTD loan growth from both commercial and consumer sectors
Balanced 10% YTD loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (SAR Bn) Total loans & advances grew 10% during 1H 2024 from both consumer and commercial +10% lending growth. Commercial loans grew 10% during 1H 2024, with notable increase in commerce sect
Slide 11: 14% YTD growth in deposits in 1H 2024 mainly from increased IBDs
14% YTD growth in deposits in 1H 2024 mainly from increased IBDs Customers’ Deposits Customers' Deposits (SAR Bn) Deposits grew 14% during 1H 2024 primarily from increased IBDs. +14% NIBD’s increased 4% YTD and IBD’s increased 23% YTD, mainly from corporate deposits. 196.2 161.2 166.4 172.2 174.
Slide 12: Net income grew 6% YoY from lower impairments, partially offset by higher costs
Net income grew 6% YoY from lower impairments, partially offset by higher costs Income Statement Net Income (SAR Mn) Net income for 1H 2024 grew 6% YoY to SAR 2,279mn from a 34% decline in the impairment +5% charge, partly offset by 10% growth in operating expenses. Total operating income was fl
Slide 13: Stable NII YoY as earning assets growth was offset by margin contraction
Stable NII YoY as earning assets growth was offset by margin contraction Net Interest Income Net Interest Income Movement YoY (SAR Mn) NII for 1H 2024 declined by 1% YoY to SAR 3,858mn, with 15% average earnings assets -1% growth offset by margin contraction. Interest income rose 28% YoY to SAR
Slide 14: YoY margin decline from shifting deposit mix towards IBDs
YoY margin decline from shifting deposit mix towards IBDs Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM declined 52bps YoY to 3.10% due to increased costs on customers’ deposits, partly 6.35% 6.41% 6.31% 6.23% offset by the higher yields on loans, investments and interbank. 5.77% 5
Slide 15: BSF has limited sensitivity to interest rate changes
BSF has limited sensitivity to interest rate changes NIM Sensitivity Balance Sheet Repricing Profile As of 31 December 2023, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2023 (SAR Bn) ±3bps; this would translate into a SAR ±67mn NII delta. 157.1 130.9 The
Slide 16: Non-interest income increased 6% YoY as higher net fee & commission income was partly offset
Non-interest income increased 6% YoY as higher net fee & commission income was partly offset by lower exchange income Non-Interest Income Non-interest Income Movement YoY (SAR Mn) Non-interest income for 1H 2024 increased 6% YoY to SAR 815mn on improved net fee & +6% commission income and investme
Slide 17: Operating expenses growth of 10% YoY mainly from higher employee-related expenses and G&A
Operating expenses growth of 10% YoY mainly from higher employee-related expenses and G&A Operating Expenses Operating Expenses (SAR Mn) Operating expenses increased 10% YoY to SAR 1,582mn in 1H 2024 mainly due to increased employee-related costs, as well as higher G&A and depreciation. 2Q 23 724
Slide 18: Cost of risk decreased by 48bps YoY to 0.60% for 1H 2024
Cost of risk decreased by 48bps YoY to 0.60% for 1H 2024 from lower commercial impairments Impairment Charge Impairment Charge (SAR Mn) The total impairment charge for 1H 2024 decreased by 34% YoY to SAR 550mn, mainly from lower commercial impairments, partly offset by higher consumer and investme
Slide 19: Credit quality remains strong with further NPL coverage improvement
Credit quality remains strong with further NPL coverage improvement NPL & NPL Coverage NPL Ratio (%) The NPL ratio improved 12bps YTD to 0.94% as NPLs declined 2% on write-offs during 1Q 2024 in the commercial book relative to 10% gross loan growth. 2.42% The NPL coverage ratio improved by 24.2p
Slide 20: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits LTD Ratios (%) Headline LTD Ratio Liquidity LTD SAMA ratio LCR moderated 9ppts to 187% during 1H 2024. NSFR was broadly stable YTD at 118% as of 30 June 2024. 105.3% 105.0% 104.2% 106.1% The SAMA regulatory LTD ratio was within
Slide 21: Strong capital ratios
Strong capital ratios Capital Total Capital Movement YTD (SAR Bn) Total capital (Tier 1 + Tier 2 regulatory capital) increased 2% YTD to SAR 44.6bn during 1H +2% 2024 as net income generation was partly offset by dividend payments. RWAs increased 11% YTD during 1H 2024 to SAR 246.7bn from lendin
Slide 22: BSF is upgrading the loan guidance and CoR, while moderating NIM, CIR, and CET1 guidance
BSF is upgrading the loan guidance and CoR, while moderating the NIM, CIR, and CET1 guidance Metric 1H 2024 Outcome 2024 Guidance Revision 2024 Guidance Drivers Raised guidance reflects robust loan growth in Loans & Advances Growth +9.9% YTD Mid-teens revised up from low double-digits 1H 2024, cou
Slide 23: Questions & Answers
Questions & Answers @ BSF
Slide 24: 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 25: 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