Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q1 2025 Earnings Presentation
25 slides from Banque Saudi Fransi's earnings presentation, Apr 28, 2025
Slide 1: BSF 1Q 2025 Earnings Presentation
BSF 1Q 2025 Earnings Presentation 28 April 2025
Slide 2: Highlights & Strategy Update
Highlights & Strategy Update
Slide 3: 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 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, 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 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 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 8: Financial Highlights
Se Financial @ = | Highlights
Slide 9: 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 increase in interbank lending. +3% The investment portfolio expanded by 2% YTD. 4.8 1.0 (0.1) 303
Slide 10: Balanced 2% YTD loan growth from both commercial and consumer sectors
Balanced 2% YTD loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (¥ Bn) Total loans and advances grew 13% YoY, driven by growth in both consumer and +13% commercial lending. YTD growth was 2%, supported by increases in both commercial and consumer loans. 204.
Slide 11: 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 NIBD. +9% IBDs increased by 7% YTD, driven mainly by corporate deposits, while NIBDs decline
Slide 12: Net income grew 16% YoY from higher interest and non-interest income
Net income grew 16% YoY from higher interest and non-interest income, partially offset by higher costs Income Statement Net Income (¥ Mn) Net income for 1Q 2025 grew 16% YoY to ¥ 1,338mn, driven by a 10% rise in net interest income and a 26% increase in non-interest income, partly offset by higher
Slide 13: 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 growth, partially offset by margin contraction. +10% Int
Slide 14: YoY margin decline from shifting funding mix, yet a QoQ improvement to 3.08%
YoY margin decline from shifting funding 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% 6.11% 6.23% 6.24% partially offset by reduced costs o
Slide 15: 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 (¥ Bn) ±2bps; this would translate into a ¥ ±67mn NII delta. 180.0 The net open shor
Slide 16: 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 Movement YoY (¥ 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
Slide 17: 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 (¥ Mn) Operating expenses increased 12% YoY to ¥ 867mn in 1Q 2025 mainly due to increased general and administrative expenses. 1Q 24 773 Cost to income ratio decreased by 0.3 ppts YoY to 32
Slide 18: 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 Impairment Charge (¥ Mn) The total impairment charge for 1Q 2025 increased by a modest 1% YoY to ¥ 280mn, from lower consumer impairments, offset by higher inves
Slide 19: Credit quality remains strong with YTD NPL ratio & coverage improvement
Credit quality remains strong with YTD NPL ratio & coverage improvement NPL & NPL Coverage NPL Ratio (%) The NPL ratio improved 9bps YTD to 0.84% as NPLs decreased by 7% relative to 2% gross loan growth. The NPL coverage ratio improved by 16.8ppts YTD to 198.5%, attributed to enhancements 0.94%
Slide 20: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits Liquidity LTD Ratios (%) Headline LTD Ratio LTD SAMA ratio LCR increased by 6 ppts YTD to 168% during 1Q 2025. NSFR rose by 6 ppts YTD to 120% as of 31 March 2025. 110.3% 109.6% 106.1% 104.0% The SAMA regulatory LTD ratio improv
Slide 21: Strong capital ratios
Strong capital ratios Capital Total Capital Movement YTD (¥ Bn) Total capital (Tier 1 + Tier 2 regulatory capital) increased 4% YTD to ¥ 51.2bn during 1Q 2025 from net income and OCI. +4% RWAs increased 8% YoY and 1% YTD to ¥ 254bn. 0.6 (0.1) (0.1) 51.2 1.3 49.4 CAR was at 20.1% and the Tier 1
Slide 22: BSF anticipates a favorable year ahead with 2025 guidance
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 23: Questions & Answers
Questions & Answers @ BSF
Slide 24: 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 25: 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