Banque Saudi Fransi · TADAWUL:1050

Banque Saudi Fransi — Q4 2022 Earnings Presentation

22 slides from Banque Saudi Fransi's earnings presentation, Feb 27, 2023

  1. Slide 1: 4Q 2022 Earnings Presentation

    3 Column Banque Saudi Fransi Slides 4Q 2022 Earnings Presentation 27 February 2023

  2. Slide 2: Highlights

    EARNINGS PRESENTATION 4Q 2022 Highlights

  3. Slide 3: Balanced asset and liability growth, coupled with solid income growth and improved profitability

    HIGHLIGHTS | FINANCIAL Balanced asset and liability growth, coupled with solid income growth and improved profitability BALANCE SHEET Loans & Advances Investments Customers' Deposits  High quality loan growth of 8% YoY driven by 7% commercial and 8% consumer lending growth. 159.0  +8% year-on-year

  4. Slide 4: Excellent progress made in 2022 across our four strategic pillars

    HIGHLIGHTS | STRATEGY Excellent progress made in 2022 across our four strategic pillars… Corporate Banking Retail Banking Private Banking Global Markets Group Corporate Loans Corporate Deposits Retail Loans Net Income PB Loans Net Income Investments Fee & Other Income SAR Billion SAR Billion SAR Bil

  5. Slide 5: Supported by solid improvements in key strategic enablers

    HIGHLIGHTS | STRATEGY …supported by solid improvements in key strategic enablers Technology & Digitization Customer Experience & Brand Risk People Bankwide NPS (%) NPL Ratio (%) FransiMobile Transactions ENPS # million 72% % 66% 68% 2.64% 2.78% 2.53% 2.54% 18.0 +2.3ppts 62%  +35.0% YoY 2019 2020 20

  6. Slide 6: Financial Performance

    EARNINGS PRESENTATION 4Q 2022 Financial Performance

  7. Slide 7: Balance sheet growth driven by lending, with commensurate deposit growth

    FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Balance sheet growth driven by lending, with commensurate deposit growth  Growth in total assets of 8% YoY, mainly driven by healthy 8% loan growth. Total Assets Movement (SAR Bn)  Liabilities grew by 10% during 2022 from 11% deposit growth and debt

  8. Slide 8: Healthy loan growth for 2022; 2H 2022 impacted by repayments

    FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy loan growth for 2022; 2H 2022 impacted by repayments Total Loans & Advances (SAR Bn) Commercial Loans Movement YoY (SAR Bn) Loans & Advances Composition (SAR Mn) 159.0 129.5 159,012 +8% +7% Consumer 18.6% Commercial 158.5 159.0 2.9 2.0 0.4 1.5 129.5

  9. Slide 9: Strong 11% growth in deposits YoY

    FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Strong 11% growth in deposits YoY Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn)  Deposits grew 11% during 2022, mainly from IBDs.  IBD increased 31% YoY from 34% growth in Corporate and 26% growth in Retail deposits. 157.6 157.6  NI

  10. Slide 10: Net income grew 4% year-on-year from income growth

    FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income grew 4% year-on-year from income growth Net Operating Income Before Impairment Charge  Net income for 2022 grew 4% YoY to SAR 3,575mn from 12% growth in operating (SAR Mn) income, partly offset by a 61% rise in the impairment charge. 

  11. Slide 11: NII growth of 13% from earning assets growth and margin expansion

    FINANCIAL PERFORMANCE | NET INTEREST INCOME NII growth of 13% from earning assets growth and margin expansion Net Interest Income Average Interest Earning Assets Average Interest Bearing Liabilities  NII for 2022 grew 13% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 6,427mn on 11% growth in (simple) avera

  12. Slide 12: 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

  13. Slide 13: Non-interest income grew 11% YoY from higher exchange and trading income

    FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income grew 11% YoY from higher exchange and trading income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 464 1,591 +11% +50% 139 30 1,591 464 394 405 406 366 1,429 9 322 354 309 (12) (4) +27% QoQ 1Q 21 2Q 21 3Q 21 4Q 21 1

  14. Slide 14: Operating expenses growth of 8% from higher employee-related and G&A expenses

    FINANCIAL PERFORMANCE | OPERATING EXPENSES Operating expenses growth of 8% from higher employee-related and G&A expenses Operating Expenses Movement (SAR Mn)  Operating expenses increased 8% YoY to SAR 2,654mn in 2022 due to: • higher general and administrative expenses from increased business acti

  15. Slide 15: Credit quality trends impacted by isolated pockets of migration in the Commercial book

    FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Credit quality trends impacted by isolated pockets of migration in the Commercial book, excluding which credit quality was healthy Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Impairment Charge Movement (SAR Mn)  The total impairment charge for 202

  16. Slide 16: Liquidity, funding and capital comfortable

    FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity, funding and capital comfortable | Capital ratios declined during 2022 from RWA growth, dividends and investment MTM  LCR improved by 17.5ppts during 2022 to 196%. LCR & NSFR (%) LTD Ratios (%)  NSFR strengthened 4ppts to 122% as at 31

  17. Slide 17: Improving profitability expected in 2023 from solid loan growth, continued NIM expansion

    FINANCIAL PERFORMANCE | GUIDANCE Improving profitability expected in 2023 from solid loan growth, continued NIM expansion, positive jaws and lower cost of risk Metric 2022 Guidance 2022 Outcome 2023 Guidance Drivers Financing Growth Financing Growth Financing Growth LOANS & Balanced growth of consum

  18. Slide 18: Questions & Answers

    EARNINGS PRESENTATION 4Q 2022 Questions & Answers

  19. Slide 19: Appendix

    EARNINGS PRESENTATION 4Q 2022 Appendix

  20. Slide 20: Summary of accounting restatements in 4Q 2022 (1)

    APPENDIX | RESTATEMENTS Summary of accounting restatements in 4Q 2022 (1) SAR (Mn) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Original Special commission income 1,407 1,459 1,542 1,460 5,869 1,492 1,767 2,188 2,569 8,016 Reclassified Processing fees 100 90 69 67

  21. Slide 21: Summary of accounting restatements in 4Q 2022 (2)

    APPENDIX | RESTATEMENTS Summary of accounting restatements in 4Q 2022 (2) SAR (Mn) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 Original Cost to income ratio 32.9% 35.8% 31.8% 36.0% 34.0% 32.6% 34.2% 31.8% 31.2% 32.4% Restated Cost to income ratio 33.2% 36.0% 32.0%

  22. Slide 22: Disclaimer

    EARNINGS PRESENTATION 4Q 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

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