Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q3 2023 Earnings Presentation
22 slides from Banque Saudi Fransi's earnings presentation, Oct 31, 2023
Slide 1: 3Q 2023 Earnings Presentation
3 Column Banque Saudi Fransi Slides 3Q 2023 Earnings Presentation 31 October 2023
Slide 2: Highlights
EARNINGS PRESENTATION 3Q 2023 Highlights
Slide 3: Improved profitability in 9M 2023 from NIM expansion and balanced asset growth
HIGHLIGHTS | FINANCIAL PERFORMANCE Improved profitability in 9M 2023 from NIM expansion and balanced asset growth BALANCE SHEET Loans & Advances Investments Customers' Deposits High quality loan growth of 10% YoY driven by 11% commercial and 7% consumer lending growth. 174.7 +10% year-on-year 46
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: In Q3 2023 we successfully realized two pivotal strategic milestones
STRATEGY | KEY MILESTONES In Q3 2023 we successfully realized two pivotal strategic milestones JB, formerly known as SFL, has strategically pivoted to diversify its offerings, targeting distinct market JB New segments. Brand This strategic realignment was underpinned by a robust marketing campaign i
Slide 7: 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 8: Financial Performance
EARNINGS PRESENTATION 3Q 2023 Financial Performance
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 8% YTD, mainly driven by healthy 10% loan growth. Total Assets Movement (SAR Bn) Liabilities grew by 9% during 9M 2023 from 6% deposit growth, a 22% increase in
Slide 10: Healthy and balanced 10% loan growth during 9M 2023
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy and balanced 10% loan growth during 9M 2023 Total Loans & Advances (SAR Bn) Commercial Loans Movement YTD (SAR Bn) Loans & Advances Composition (SAR Mn) 174.7 143.1 174,681 +10% +11% Consumer 18.1% Commercial 169.7 174.7 3.8 1.7 0.7 0.5 143.1 81.9%
Slide 11: 6% growth in deposits YTD from increased IBDs
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS 6% growth in deposits YTD from increased IBDs Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) Deposits grew 6% during 9M 2023 from increased IBDs. IBD increased 20% YTD from 50% growth in Corporate, partly offset by a 28% decline in
Slide 12: Net income grew 27% YoY from strong NII growth, partly offset by increased expenses
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 27% YoY from strong NII growth, partly offset by increased operating expenses and impairments Net Operating Income Before Impairment Charge Net income for 9M 2023 grew 27% YoY to SAR 3,395mn from 24% growth in operating (SAR Mn) i
Slide 13: NII growth of 28% from margin expansion and earning assets growth
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 28% from margin expansion and earning assets growth Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities NII for 9M 2023 grew 28% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 5,967mn from margin expansion and 6%
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 increased 3% YoY
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income increased 3% YoY as higher trading and fee & commission income was partly offset by lower investment income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 400 1,166 +9% +3% 464 27 3 24 4 1,166 406 394 400 1,126 354 3
Slide 16: Operating expenses growth of 13% from higher employee-related expenses
FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 13% from higher employee-related expenses Operating Expenses Movement (SAR Mn) Operating expenses increased 13% YoY to SAR 2,176mn in 9M 2023 due to increased employee-related costs and excess accrual reversals in 1Q 2022. T
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 during 2022 Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Impairment Charge Movement (SAR Mn) The total impairment charge for 9M 2023 increased 34% YoY to SAR 1,
Slide 18: Liquidity, funding and capital comfortable
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity, funding and capital comfortable LCR declined by 25ppts during 9M 2023 to 171%. LCR & NSFR (%) LTD Ratios (%) NSFR moderated 6ppts to 116% as of 30 Sept. 2023. The SAMA regulatory LTD ratio was within required 171% 84.0% levels at
Slide 19: Improving profitability expected in 2023 from solid loan growth, 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 9M 2023 Outcome 2023 Guidance Revision Drivers Financing Growth Financing Growth REVISED UP Balanced growth of consumer and commercia
Slide 20: Questions & Answers
EARNINGS PRESENTATION 3Q 2023 Questions & Answers
Slide 21: Please contact the Investor Relations team for additional information
EARNINGS PRESENTATION 3Q 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 3Q 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