Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q1 2025 Earnings Presentation
60 slides from Banque Saudi Fransi's earnings presentation, 2025
Slide 1: BSF 1Q 2025 Investor Presentation
BSF 1Q 2025 Investor Presentation 1Q 2025
Slide 2: Contents
Contents 03 BSF Profile 10 Operating Environment 13 Strategy 20 ESG Update 23 Financial Performance 46 Outlook & Guidance 49 Segmental Performance 55 Performance Track Record 58 Appendix BSF Investor Presentation | 1Q 2025 2
Slide 3: BSF Profile
BSF Profile Investor Presentation 1Q 2025
Slide 4: BSF has a solid investment profile and clearly articulated strategy
BSF has a solid investment profile and clearly articulated strategy Leading banking group in Saudi Arabia with a strong focus on domestic operations 1. Domestic systemically important bank (“D-SIB”) with total assets of ¥ 303.0bn and market capitalization of ¥ 46.5bn Universal Bank model with full r
Slide 5: We are a leading banking group in Saudi Arabia with a strong focus on domestic operations
We are a leading banking group in Saudi Arabia with a strong focus on domestic operations BSF is the successor to Banque de Headquartered in Riyadh: Subsidiaries in KSA: l’Indochine (est. 1949) Branches 81 branches across the Kingdom BSF Capital 81 BSF was then established by Royal Domestically
Slide 6: A diversified business model and a wide range of product capabilities
A diversified business model and a wide range of product capabilities Corporate Retail Investment Banking Treasury and Brokerage One of the largest providers of A wide network of branches, A leader in investment banking, Diverse client services, market corporate banking services in ATMs, digital pla
Slide 7: Focus on consistent delivery of shareholder returns over the years
Focus on consistent delivery of shareholder returns over the years Shareholder Foreign Ownership ROAE (%) Composition* 11.3% 2,500 10.6% 10.4% 9.2% (Mn Shares) 2022 2023 2024 1Q 25 Kingdom Foreign Holdings 11.1% 16.2% Dividends Per Share (SAR) Dividend payout ratio 59% 58% 58% 55% 0.94 0.99 0.72 0.7
Slide 8: Market parameters and share price performance
Market parameters and share price performance Share Price Performance vs. Tadawul (%) Market Capitalization BSF Share Price 10% Tadawul Banks, 8.2% (¥ Bn) (¥) 5% 46.5 18.6 0% Tadawul, 0.5% -5% BSF, -3.6% -10% -15% -20% 4.43% of KSA banking sector 52 weeks range [14.6 - 20.7] -25% -30% 0.47% of KSA s
Slide 9: Experienced and dynamic executive management team
Majed Alghanemi Experienced and dynamic executive management team Bader Alsalloom Ramzy Darwish Majed Alsadhan Chief Executive Officer Chief Strategy and Finance Officer Chief Wholesale Banking Officer • BSF: appointed Apr-21 • BSF: appointed CFO Dec-22 • BSF: appointed Head of WB Nov-22 • Saudi Inv
Slide 10: Operating Environment
Operating Environment Investor Presentation 1Q 2025
Slide 11: Saudi Arabia's real GDP growth is estimated at 3.0% in 2025
Saudi Arabia’s real GDP growth is estimated at 3.0% in 2025 and is expected to accelerate to 3.7% in 2026 Economic Outlook Real GDP Growth (%) Brent Avg Oil Price / Real GDP for Saudi Arabia is estimated to grow by 3.0% in 2025, an increase of 1.7ppts Barrel (USD) from 2024. Growth is expected to
Slide 12: The Saudi banking sector is well positioned for both resilience and growth
The Saudi banking sector is well positioned for both resilience and growth Bank Credit (SAR Bn) Capitalization (%) NPL Ratio (%) +13% CAGR 20.3% 2.2% 19.9% 19.9% 20.1% 19.6% 2,956 1.9% 2,584 1.8% 2,349 2,059 1,783 1.5% 18.7% 18.6% 18.3% 18.2% 18.4% 1.2% +16% +14% +10% +14% 2020 2021 2022 2023 2024 2
Slide 13: Strategy
Strategy Investor Presentation 1Q 2025
Slide 14: In 2025, we aim to sustain strong momentum and drive progress across our core businesses
In 2025, we aim to sustain strong momentum and drive progress across our core businesses, with a focus on enhancing our offerings to deliver greater client value 2025 Priority Wholesale Banking Personal Banking Personal Banking Private Banking Private Banking Technology Expand FIG & Scale Up in Affl
Slide 15: Our strategy is driven by ambitious aspirations for market position, profitability and customer experience
Our strategy is driven by ambitious aspirations for market position, profitability and customer experience Strategic Goals Position Profitability Customer Experience Be among the top players in our Focus on profitability and return on Continued commitment to target segments (Top 3 Market Share) capi
Slide 16: 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 17: 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 18: 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): Scheduled for launch in 2Q supporting trade & supply chain
Slide 19: We have kicked off BSF 2030 Strategy exercise
We have kicked off BSF 2030 Strategy exercise to future-proof the bank’s market positioning … 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 BSF 2030 Reposition the core Explore and capitaliz
Slide 20: ESG Update
ESG Update Investor Presentation 1Q 2025
Slide 21: 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 BSF developed a set of ESG KPIs associate
Slide 22: BSF achieves remarkable progress in boosting ESG ratings
BSF achieves remarkable progress in boosting ESG ratings ESG Ratings: ESG Risk Rating Score S&P Global ESG Score MSCI ESG Rating by Sustainalytics 21.2 as of May 2024 39.0 as of January 2025 BBB as of June 2024 Should change it to Jan? from 27.8 in 2023 from 30 in 2023 from BB in 2022 Leading
Slide 23: Financial Performance
Financial Performance Investor Presentation 1Q 2025
Slide 24: Strong balance sheet momentum and 16% net income growth YoY
Strong balance sheet momentum and 16% net income growth YoY Balance Sheet Loans & Investments Customers' Strong loan growth of 13% YoY, Advances Deposits driven by both commercial (+12%) 209.0 61.3 190.7 and consumer (+16%). Investments increased 15% YoY to manage IR risk while capturing higher
Slide 25: 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, supported by Coverage both consumer and 0.84% 198.5% 0.51% commercial portfolio and improving coverage ratio. Improved COR in the consumer and commercial book. -9bps year-on
Slide 26: Balance sheet growth driven by loan growth and interbank lending
Balance sheet growth driven by loan growth and interbank lending Balance Sheet Total Assets Movement YTD (¥ Bn) Growth in total assets of 3% YTD, mainly driven by 2% loan growth, further aided by an +3% increase in interbank lending. The investment portfolio expanded by 2% YTD. 4.8 1.0 (0.1) 303
Slide 27: Net income grew 16% YoY from higher interest income and non-interest income
Net income grew 16% YoY from higher interest income and non-interest income, partially offset by higher costs Income Statement Net Income Movement YoY (¥ Mn) Net income for 1Q 2025 grew 16% YoY to ¥ 1,338mn, driven by a 10% rise in net interest +16% income and a 26% increase in non-interest income
Slide 28: Balanced 13% YoY and 2% YTD loan growth
Balanced 13% YoY and 2% YTD loan growth Loans & Advances Loans & Advances (¥ Bn) Composition Total loans and advances grew 13% YoY, driven by growth in both consumer and 209.0 commercial lending. YTD growth was 2%, supported by increases in both commercial and consumer loans. Commercial Commerci
Slide 29: Well-diversified portfolio in both commercial and consumer sectors
Well-diversified portfolio in both commercial and consumer sectors Commercial Loans Movement YTD (¥ Bn) Commercial Loans Composition 169.5 +2% Other 21.2% 1.4 0.7 (0.8) (0.4) Contracting 2.3 169.5 166.5 10.2% Utilities 11.8% (¥ Bn) Manufacturing +5% +57% +23% -3% -0% Commerce 12.7% 28.8% Services 4Q
Slide 30: 2% increase in the investment portfolio in 1Q 2025
2% increase in the investment portfolio in 1Q 2025 Investments Investments Composition by Category (¥ Bn) 61.3 Investments increased modestly by 2% YTD. FVOCI - Debt FVSI - Debt/equity instruments The investment portfolio is of high quality with a significant portion being Saudi instruments 52.7
Slide 31: High-quality investment portfolio
High-quality investment portfolio Investments Composition by Type Investments Composition by Sector (¥ Bn) 61.3 Fixed-rate - 56.5 Financials 15.7% (¥ Bn) Equities 0.8% Floating-rate - 4.4 Corporate Government - 45.9 9.5% Government Floating-rate Equities - 0.5 Financials - 9.6 74.8% 7.1% Fixed-rate
Slide 32: 3% YTD growth in deposits, driven by corporate IBDs and retail NIBDs
3% YTD growth in deposits, driven by corporate IBDs and retail NIBDs Customers’ Deposits Customers' Deposits (¥ Bn) Deposits grew by 3% YTD, driven by an increase in IBDs, partially offset by decrease in +9% NIBD. IBDs increased by 7% YTD, driven mainly by corporate deposits, while NIBDs decline
Slide 33: Efficient and diversified funding structure to support growth
Efficient and diversified funding structure to support growth Funding Structure Successful Track Record in Accessing BSF’s funding is largely comprised of customers’ deposits which represented 75% of total Local and International Capital Markets liabilities and 63% of total liabilities and equity
Slide 34: Strong credit ratings and stable maturity profile
Strong credit ratings and stable maturity profile Credit Ratings Standard & Poor's Maturity Profile (¥ Bn) Syndicated facilities Bonds A- Sukuk Tier 1 Sukuk 10.7 1.6 Stable outlook 8.0 3.7 Moody's Fitch 3.9 A1 A- 3.4 8.0 0.9 2.1 5.4 2.6 3.4 2.1 0.2 0.4 Stable outlook Stable outlook 2025 2026 2
Slide 35: 10% growth in NII driven by earning assets growth, partly offset by margin contraction
10% growth in NII driven by earning assets growth, partly offset by margin contraction YoY Net Interest Income Net Interest Income Movement YoY (¥ Mn) NII for 1Q 2025 increased by 10% YoY to ¥ 2,118mn, driven by 16% average earnings assets +10% growth, partially offset by margin contraction. Int
Slide 36: YoY margin decline from shifting deposit mix, yet a QoQ improvement to 3.08%
YoY margin decline from shifting deposit mix, yet a QoQ improvement to 3.08% Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM declined 12bps YoY to 3.08%, mainly due to lower loan yields following rate cuts, 6.38% 6.44% 6.43% 6.36% 6.38% 6.53% 6.36% 6.17% 6.11% 6.11% partially offset
Slide 37: 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 March 2025, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2024 (SAR Bn) ±2bps; this would translate into a ¥ ±67mn NII delta. 180.0 The net open sh
Slide 38: Non-interest income increased 26% YoY on higher exchange and investment income
Non-interest income increased 26% YoY on higher exchange and investment income Non-Interest Income Non-interest Income (¥ Mn) Non-interest income for 1Q 2025 increased 26% YoY to ¥ 520mn on higher trading income, supported by improved investment-related income, exchange income and net fee & 1Q 24
Slide 39: Fee & commission income increased 6% YoY
Fee & commission income increased 6% YoY, mainly from improved brokerage & asset management income and trade finance Fee & Commission Non-funded Exposure* Fee & Commission Income (¥ Mn) Income (¥ Bn) 1Q 24 247 Net fee & commission grew 6% to ¥ 262mn in 1Q 2025 due to higher 1Q 24 74.3 2Q 24 264 br
Slide 40: Operating expenses rose 12% YoY on higher G&A, but decreased 11% QoQ
Operating expenses rose 12% YoY on higher G&A, but decreased 11% QoQ Operating Expenses Operating Expenses (¥ Cost Ratios (%) Operating expenses increased 12% YoY to ¥ 867mn in 1Q 2025 mainly due to increased Mn) 35.3% general and administrative expenses. 33.2% 33.9% 34.4% 32.8% 1Q 24 773 Cost t
Slide 41: Cost of risk decreased by 9bps YoY to 0.51% for 1Q 2025
Cost of risk decreased by 9bps YoY to 0.51% for 1Q 2025, driven by lower consumer charges and overall portfolio growth Impairment Charge Cost of Credit Risk (%) Impairment Charge (¥ Impairment Charge The total impairment charge for 1Q 2025 Mn) (¥ Mn) increased by a modest 1% YoY to ¥ +1% 280mn, fr
Slide 42: Credit quality remains strong with YTD NPL ratio improvement
Credit quality remains strong with YTD NPL ratio improvement NPL Ratio NPL Ratio (%) Non Performing Loans Non Performing Loans The NPL ratio improved 9bps YTD to & Advances (¥ Bn) & Advances (¥ Bn) 0.84% as NPLs decreased by 7% +2% relative to 2% gross loan growth. 0.94% 0.94% 0.93% 1Q 24 1.8 1.9
Slide 43: NPL coverage improved 16.8ppts YTD to 198.5%
NPL coverage improved 16.8ppts YTD to 198.5% NPL Coverage NPL Coverage Ratio (%) Stage-Wise Provision Allowance for The NPL coverage ratio improved Coverage (%) Stage 3 Stage 2 Impairment (¥ Bn) by 16.8ppts YTD to 198.5%, 198.5% Stage 1 +30% attributed to enhancements in 193.1% 68.9% 68.2% 65.1% 6
Slide 44: Strong capital ratios
Strong capital ratios Total capital (Tier 1 + Tier 2 regulatory capital) increased 4% Total Capital (¥ Bn) RWA (¥ Bn) YTD to ¥ 51.2bn during 1Q 2025 from net income and OCI. +14% +8% RWAs increased 8% YoY and 1% YTD to ¥ 254bn. 48.7 49.4 51.2 247.4 250.1 251.0 254.0 44.8 44.9 235.0 2.0 2.2 2.3 1
Slide 45: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits LTD Ratios (%) Headline LTD Ratio Liquidity Leverage Ratio (%) LTD SAMA ratio LCR increased by 6 ppts YTD to 168% during 1Q 2025. NSFR rose by 6 ppts YTD to 120% as 110.3% 109.6% 13.1% of 31 March 2025. 13.0% 12.8% 13.0% 106.1% 10
Slide 46: Outlook & Guidance
Outlook & Guidance Investor Presentation 1Q 2025
Slide 47: Saudi Arabia's real GDP and non-oil GDP growth are expected to improve
Saudi Arabia’s real GDP and non-oil GDP growth are expected to improve, alongside expectations of a gradual decline in interest rates Metric 2024 Outcome 2025 Outlook Trend Saudi Arabia Real GDP Growth +1.3% +3.0% 1.3% 3.0% 3.7% 3.6% #N/A -0.8% 2023 2024 2025E 2026E 2027E Saudi Arabia Non-oil GDP
Slide 48: BSF anticipates a favorable year ahead
BSF anticipates a favorable year ahead, with sustained loan growth, margin resilience and improvements in operational efficiency driving enhanced profitability Metric 1Q 2025 Outcome 2025 Guidance Guidance Drivers Loans & Advances Growth +2.4% YTD Low teens The guidance reflects expected growth in c
Slide 49: Segmental Performance
Segmental Performance Investor Presentation 1Q 2025
Slide 50: Profitability driven by growth in Treasury and Corporate offset by lower Retail net income
Profitability driven by growth in Treasury and Corporate offset by lower Retail net income Operating Income Movement YoY (¥ Mn) Net Income Before Zakat Movement YoY (¥ Mn) +13% +16% Discuss formatting issues 355 45 2,638 345 40 1,492 2,331 (300) 207 1,282 (363) 187 -29% +18% +4,641% +37% -63% +25% -
Slide 51: Retail Segment: Lower net income YoY
Retail Segment: Lower net income YoY driven by decrease in operating income and rise in expenses Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) -63% 1Q 24 1,040 1Q 24 576 576 (259) 2Q 24 1,016 2Q 24 478 (41) (86) 23 213 3Q 24 964 -29% 3Q 24 4
Slide 52: Corporate Segment: Increased profitability from net interest income growth
Corporate Segment: Increased profitability from net interest income growth Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) +25% 1Q 24 1,164 1Q 24 737 173 34 7 (27) 924 737 2Q 24 1,295 2Q 24 907 3Q 24 1,346 +18% 3Q 24 890 +25% +17% +26% -3% +13
Slide 53: Treasury Segment: Net income increased due to higher interest and fee income
Treasury Segment: Net income increased due to higher interest and fee income Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) +423% 1Q 24 8 1Q 24 (82) 83 (10) 0 263 271 (82) 2Q 24 (115) 2Q 24 (205) 3Q 24 (37) +4,641% 3Q 24 (134) +423% +198% +58
Slide 54: Investment Banking and Brokerage Segment: Profitability improvement YoY
Investment Banking and Brokerage Segment: Profitability improvement YoY driven by higher fee & other income and interest income Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) +78% 1Q 24 119 1Q 24 51 31 (5) 91 2Q 24 146 2Q 24 78 14 51 3Q 24 13
Slide 55: Performance Track Record
Performance Track Record Investor Presentation 1Q 2025
Slide 56: Balance Sheet Metrics
Balance Sheet Metrics Loans & Advances Total Assets LCR (%) CAR (%) CAR (SAR Bn) (SAR Bn) T1 ratio 21.6% 21.1% 2020 130.6 2020 194.1 199% 196% 196% 19.9% 19.6% 19.7% 179% 20.6% 2021 147.8 2021 215.8 162% 19.9% 2022 159.0 +12% CAGR 2022 232.1 +11% CAGR 18.9% 19.0% 18.8% 2023 179.4 2023 253.7 2024 +14
Slide 57: Income Statement Metrics
Income Statement Metrics Total Operating NIM (%) Cost to Income Ratio (%) Cost of Risk (%) Income (SAR Mn) 2.07% 2020 7,045 3.54% 35.3% 34.3% 33.6% 33.1% 2021 7,128 32.4% 3.08% 3.06% 2.99% 3.04% 2022 8,017 +8% CAGR 0.96% 0.85% 0.67% 0.58% 2023 9,324 2024 +4% YoY 9,658 2020 2021 2022 2023 2024 2020 2
Slide 58: Appendix
Appendix Investor Presentation 1Q 2025
Slide 59: 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: IR@bsf.sa Financial Disclosures BS
Slide 60: 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