Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q1 2024 Earnings Presentation
30 slides from Banque Saudi Fransi's earnings presentation, May 6, 2024
Slide 1: BSF 1Q 2024 Earnings Presentation
BSF 1Q 2024 Earnings Presentation 06 May 2024
Slide 2: Highlights & Strategy Update
Highlights & Strategy Update
Slide 3: A solid start to 2024 reflecting a return to normalcy following one-offs last quarter
A solid start to 2024 reflecting a return to normalcy following one-offs last quarter Balance Sheet Loans & Investments Customers' Strong loan growth of 13% YoY, Advances Deposits driven by 12% commercial and 185.4 52.9 174.8 13% consumer lending growth. Investment growth of 18% YoY to manage IR
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% 155.3% 0.60% coverage ratio. Decreased COR in the commercial book. -166bps year-on-year +32.4ppts year-on-year -56bps
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 Technology Infrastructure Upgrade Phase I: design and development Phase I Back End: Testing in progress New corporate platform
Slide 8: BSF has now successfully deployed 4 releases in production
BSF has now successfully deployed 4 releases in production, each more complex than the previous one Release 1 Release 2.1 Release 2.2A Release 2.2B Release 3 Retail loans & Retail loans Payment Processing: Corporate and Corporate Loans limits origination SWIFT Retail Accounts Corporate &
Slide 9: CBS is a critical program for BSF's digital transformation and ambition realization
CBS is a critical program for BSF’s digital transformation and ambition realization Enhanced offering & Customer experience The advantages already realized services Latest innovations & products Full digitalization of products & Future-proofing BSF tech landscape Anticipating client needs with s
Slide 10: We have successfully launched BSF's new Brand on the 2nd of May
We have successfully launched BSF’s new Brand on the 2nd of May Why is the Brand changing? Competitive Advantage: aiming for leadership and Strategic profitability in focused market segments Our heritage has instilled The BSF acronym signals Enablement Simplification and Digitization: consistent mas
Slide 11: ESG is woven into our strategic fabric
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 Environmental Social Governance 17.9% red
Slide 12: BSF achieves remarkable progress in boosting ESG ratings
BSF achieves remarkable progress in boosting ESG ratings Sustainalytics ESG Risk Rating Score S&P Global ESG S&P Global ESG Score by Sustainalytics Rating Leading all Saudi banks 20.9 30.0 with the ESG Risk Rating The highest score among Score of 20.9 Saudi banks in the S&P Global ESG Rating for
Slide 13: Financial Highlights
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Slide 14: Balance sheet growth driven by lending and investments
Balance sheet growth driven by lending and investments Balance Sheet Total Assets Movement YTD (SAR Bn) Growth in total assets of 6% YTD, mainly driven by 3% loan growth, further aided by an +6% increase in investments. The investment portfolio expanded by 9% YTD from high-quality liquid assets
Slide 15: Balanced 3% YTD loan growth from both commercial and consumer sectors
Balanced 3% YTD loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (SAR Bn) Total loans & advances grew 3% during 1Q 2024 from both consumer and commercial +13% lending growth. Commercial loans grew 3% during 1Q 2024, with notable increase in commerce sector.
Slide 16: 2% YTD growth in deposits in 1Q 2024 mainly from increased NIBDs
2% YTD growth in deposits in 1Q 2024 mainly from increased NIBDs Customers’ Deposits Customers' Deposits (SAR Bn) Deposits grew 2% during 1Q 2024 primarily from increased NIBDs. +4% NIBD’s increased 3% YTD and IBD’s increased 1% YTD, mainly from Corporate deposits. 167.4 166.4 172.2 174.8 161.2
Slide 17: Net income grew 7% YoY from lower impairment charge, partially offset by higher costs
Net income grew 7% YoY from lower impairment charge, partially offset by higher costs Income Statement Net Income (SAR Mn) Net income for 1Q 2024 grew 7% YoY to SAR 1,150mn from 32% decline in the impairment +7% charge, partly offset by 9% growth in operating expenses. Total operating income gre
Slide 18: Stable NII YoY from earning assets growth offset by margin decline
Stable NII YoY from earning assets growth offset by margin decline Net Interest Income Net Interest Income Movement YoY (SAR Mn) NII for 1Q 2024 remained stable YoY at SAR 1,919mn, with 13% average earnings assets -0% growth offset by the decline in margin. Interest income rose 28% YoY to SAR 3,
Slide 19: YoY margin decline with a more stable dynamic QoQ
YoY margin decline with a more stable dynamic QoQ Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM declined 47bps YoY to 3.19% due to increased costs on customers’ deposits, partly 6.35% 6.31% 6.23% 5.95% offset by the higher loan yields. 5.69% 5.77% 5.91% 5.83% 6.09% 5.49% On a seq
Slide 20: 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 21: Non-interest income increased 5% YoY on improved trading and brokerage & asset management income
Non-interest income increased 5% YoY on improved trading and brokerage & asset management income Non-Interest Income Non-interest Income Movement YoY (SAR Mn) Non-interest income for 1Q 2024 increased 5% YoY to SAR 413mn on improved trading +5% income and net fee & commission income, partly offset
Slide 22: Operating expenses growth of 9% YoY mainly from higher employee-related expenses
Operating expenses growth of 9% YoY mainly from higher employee-related expenses Operating Expenses Operating Expenses (SAR Mn) Operating expenses increased 9% YoY to SAR 773mn in 1Q 2024 mainly due to increased employee-related costs. 1Q 23 712 The YoY cost to income ratio increased by 2.5ppts
Slide 23: Cost of risk decreased by 56bps YoY to 0.60% for 1Q 2024
Cost of risk decreased by 56bps YoY to 0.60% for 1Q 2024 from lower commercial impairments Impairment Charge Impairment Charge (SAR Mn) The total impairment charge for 1Q 2024 decreased 32% YoY to SAR 276mn, mainly from lower commercial impairments, partly offset by higher consumer and investment
Slide 24: Credit quality improves with NPL coverage enhancement
Credit quality improves with NPL coverage enhancement NPL & NPL Coverage NPL Ratio (%) The NPL ratio improved 12bps YTD to 0.94% as NPLs declined 8% on write-offs in the commercial book relative to 3% gross loan growth. 2.59% 2.42% The NPL coverage ratio improved by 17.7ppts YTD to 155.3%, attri
Slide 25: 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 30ppts to 166% during 1Q 2024. NSFR was broadly stable YTD at 116% as of 31 March 2024. 105.3% 105.0% 104.2% 106.1% The SAMA regulatory LTD ratio was withi
Slide 26: 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 44.5bn during 1Q +2% 2024 mainly from net income generation. RWAs increased 5% YTD during 1Q 2024 to SAR 234.3bn from lending growth. 1.1 (0.1) (0.1) 44.5
Slide 27: BSF is optimistic about the outlook for 2024
BSF is optimistic about the outlook for 2024 Metric 1Q 2024 Outcome 2024 Guidance Revision 2024 Guidance Drivers Continued robust corporate activity and credit Loans & Advances Growth +3.4% YTD Low unchanged appetite driven by macroeconomic growth SAR Bn 185.4 double-digit supported by V2030 proje
Slide 28: Questions & Answers
Questions & Answers @BSF
Slide 29: 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 30: 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