Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q2 2023 Earnings Presentation
20 slides from Banque Saudi Fransi's earnings presentation, Aug 2, 2023
Slide 1: Banque Saudi Fransi 2Q 2023 Earnings Presentation
3 Column Slides Banque Saudi Fransi 2Q 2023 Earnings Presentation 2 August 2023
Slide 2: Highlights
EARNINGS PRESENTATION 2Q 2023 Highlights
Slide 3: Improved profitability in 1H 2023 from NIM expansion and balanced asset growth
HIGHLIGHTS | FINANCIAL PERFORMANCE Improved profitability in 1H 2023 from NIM expansion and balanced asset growth BALANCE SHEET Loans & Advances Investments Customers' Deposits High quality loan growth of 6% YoY driven by 7% commercial and 5% consumer lending growth. 169.7 +6% year-on-year 49.2
Slide 4: Refocused and simplified 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
STRATEGY | STRATEGIC PILLARS Strategy execution commenced across the various business pillars with positive momentum in progress Wholesale Banking Personal Banking Private Banking Saudi Fransi Leasing Saudi Fransi Capital Seize existing Leverage segmentation Reinforce market Expand in new Strategic
Slide 6: Good progress in the four key strategic programs
STRATEGY | STRATEGIC ENABLERS Good progress in the implementation of the four key strategic programs across the technology and rebranding priorities Technology Infrastructure Upgrade Rebranding Integrated Corporate Portal Omnichannel Core Banking System New corporate platform supporting New high per
Slide 7: Financial Performance
EARNINGS PRESENTATION 2Q 2023 Financial Performance
Slide 8: Balance sheet growth driven by lending and investments, funded by IBD growth
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Balance sheet growth driven by lending and investments, funded by IBD growth Growth in total assets of 6% YTD, mainly driven by healthy 7% loan growth and 10% Total Assets Movement (SAR Bn) investments growth. Liabilities grew by 7% during 1H 2023
Slide 9: Healthy and balanced 7% loan growth during 1H 2023
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy and balanced 7% loan growth during 1H 2023 Total Loans & Advances (SAR Bn) Commercial Loans Movement YTD (SAR Bn) Loans & Advances Composition (SAR Mn) 139.3 169,695 169.7 +8% +7% Consumer 17.9% 0.8 0.7 1.6 139.3 Commercial 164.8 169.7 3.0 3.0 1.1 1
Slide 10: 2% growth in deposits YTD from increased IBDs
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS 2% growth in deposits YTD from increased IBDs Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) Deposits grew 2% during 1H 2023 from increased IBDs. IBD increased 7% YTD from 32% growth in Corporate, partly offset by a 32% decline in R
Slide 11: Net income grew 26% YoY from strong NII growth
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 26% YoY from strong NII growth, partly offset by increased operating expenses and impairments Net Operating Income Before Impairment Charge Net income for 1H 2023 grew 26% YoY to SAR 2,150mn from 26% growth in operating (SAR Mn) i
Slide 12: NII growth of 33% from margin expansion and earning assets growth
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 33% from margin expansion and earning assets growth Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities NII for 1H 2023 grew 33% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 3,899mn from margin expansion and 6%
Slide 13: 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 14: Non-interest income increased 1% YoY
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income increased 1% YoY as higher FX income was mostly offset by lower trading income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 372 766 +5% +1% 464 3 26 4 766 406 394 760 1 354 366 372 (29) -6% QoQ 1Q 22 2Q 22 3Q 22 4Q
Slide 15: Operating expenses growth of 15% from higher employee-related expenses
FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 15% from higher employee-related expenses Operating Expenses Movement (SAR Mn) Operating expenses increased 15% YoY to SAR 1,436mn in 1H 2023 due to increased employee-related costs and excess accrual reversals in 1Q 2022. T
Slide 16: Credit quality trends impacted by isolated pockets of migration
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 1H 2023 increased 56% YoY to SAR 83
Slide 17: Liquidity, funding and capital comfortable
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity, funding and capital comfortable LCR declined by 17ppts during 1H 2023 to 180%. LCR & NSFR (%) LTD Ratios (%) NSFR moderated 6ppts to 116% as of 30 June 2023. The SAMA regulatory LTD ratio was within required 180% 82.0% levels at 8
Slide 18: Improving profitability expected in 2023
FINANCIAL PERFORMANCE | GUIDANCE Improving profitability expected in 2023 from solid loan growth, continued NIM expansion, positive jaws and lower cost of risk Metric 1H 2023 Outcome 2023 Guidance Revision Drivers Financing Growth Financing Growth Balanced growth of consumer and commercial LOANS & A
Slide 19: Questions & Answers
EARNINGS PRESENTATION 2Q 2023 Questions & Answers
Slide 20: Disclaimer
EARNINGS PRESENTATION 2Q 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