Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q1 2022 Earnings Presentation
17 slides from Banque Saudi Fransi's earnings presentation, May 16, 2022
Slide 1: Banque Saudi Fransi 1Q 2022 Earnings Presentation
3 Column Slides Banque Saudi Fransi 1Q 2022 Earnings Presentation 16 May 2022 Internal Use
Slide 2: Highlights
EARNINGS PRESENTATION 1Q 2022 Highlights Internal Use
Slide 3: Solid balance sheet growth and strong recovery in net income
FINANCIAL PERFORMANCE | 1Q 2022 FINANCIAL PERFORMANCE Solid balance sheet growth and strong recovery in net income BALANCE SHEET Loans & Advances Investments Customers' Deposits High quality loan growth of 14% YoY driven by 14% commercial and 15% consumer lending growth. 152.7 p +14% year-on-year
Slide 4: Financial Performance
EARNINGS PRESENTATION 1Q 2022 Financial Performance Internal Use
Slide 5: Solid balance sheet growth from lending
FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Solid balance sheet growth from lending Total Assets Movement (SAR Bn) Growth in total assets of 3% QoQ driven by healthy 3% loan growth. Liabilities grew by 4% during 1Q 2022 from 6% deposit growth. 222.2 +3% 1.3 4.9 0.5 222.2 215.8 0.6 SAR (Mn)
Slide 6: Healthy loan growth in 1Q 2022
FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy loan growth in 1Q 2022 Total Loans & Advances (SAR Bn) Commercial Loans Movement (SAR Bn) Loans & Advances Composition (SAR Mn) 152.7 124.4 152,690 +14% +3% Consumer 18.6% Commercial 147.8 152.7 1.2 0.8 0.8 0.7 0.4 0.5 124.4 81.4% 134.1 120.6 27.2 2
Slide 7: Solid 6% growth in deposits QoQ, mainly from IBDs
FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Solid 6% growth in deposits QoQ, mainly from IBDs Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn) Deposits grew 6% during 1Q 2022 from higher NIBDs and IBDs. NIBD’s grew 1% QoQ from 3% growth in Corporate 150.8 150.8 deposits. +13% +
Slide 8: Net income grew 12% year-on-year from income growth and lower provisions
FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 12% year-on-year from income growth and lower provisions Net Operating Income Before Impairment Charge Net income for 1Q 2022 grew 12% YoY to SAR 875mn from 3% income growth, a 9% (SAR Mn) decline in impairments, and a 20% drop in
Slide 9: NII growth of 4% as earning assets growth partly offset by 21bps margin contraction
FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 4% as earning assets growth partly offset by 21bps margin contraction Net Interest Income Average Interest Earning Assets Average Funding NII for 1Q 2022 grew 4% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 1,343mn on 12% growth in (simple) averag
Slide 10: 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 2021 (SAR Bn) • BSF estimates one-year NIM sensitivity of 100bps rate rise at +31bps or +SAR 577mn in net interest income. • This reflects the positive
Slide 11: Non-interest income was stable YoY
FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income was stable YoY Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 508 508 +0% +0% 508 490 508 508 26 2 15 508 423 393 (32) (11) +30% QoQ 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Non-interest income Net fee & commission Exchange Inc
Slide 12: Disciplined cost control limiting operating expenses growth to 2%
FINANCIAL PERFORMANCE | OPERATING EXPENSES Disciplined cost control limiting operating expenses growth to 2% Operating Expenses (SAR Mn) Operating expenses increased 2% YoY to SAR 604mn in 1Q 2022 as higher G&A expenses were partly offset by employee-related cost savings. 604 The cost to income
Slide 13: Moderation in impairment charge, stable cost of risk and improving NPL and coverage ratios
FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Moderation in impairment charge, stable cost of risk and improving NPL and coverage ratios Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Cost of Credit Risk (%) The total impairment charge for 1Q 2022 moderated 9% YoY to SAR 272mn, but increased Qo
Slide 14: Capital ratios modestly declined during 1Q 2022
FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Capital ratios modestly declined during 1Q 2022 from negative MTM on debt securities and cash flow hedges, and growth in RWAs NSFR and the SAMA LTD ratio were 119% and 84.9% LCR Average (%) NSFR & LTD Ratios (%) respectively as at 31 March 2022.
Slide 15: Healthy outlook for 2022 on expected solid loan growth and NIM expansion
FINANCIAL PERFORMANCE | GUIDANCE Healthy outlook for 2022 on expected solid loan growth and NIM expansion 2022 Guidance 1Q 2022 Outcome 2022 Outlook Loans & Advances Revised Up 1Q 2022 growth of SAR Billion 14% YoY. 147.8 147.8 LOANS & Balanced growth of High single- to ADVANCES, NET consumer an
Slide 16: Questions & Answers
EARNINGS PRESENTATION 1Q 2022 Questions & Answers Internal Use
Slide 17: Disclaimer
EARNINGS PRESENTATION 1Q 2022 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