Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — FY2019 Earnings Presentation
19 slides from Banque Saudi Fransi's earnings presentation, 2019
Slide 1: Banque Saudi Fransi Results presentation 2019
Banque Saudi Fransi Results presentation | 2019
Slide 2: Results Presentation Disclaimer
RESULTS PRESENTATION | 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 repres
Slide 3: BSF at a Glance
PROFILE | BSF AT A GLANCE We are a leading banking group in Saudi Arabia with a strong focus on domestic operations SAR SAR SAR >1mn 3,700 ≈3,000 Retail Client Corporate Employees 178bn 133bn 46bn Client Assets Deposits Market Cap Subsidiaries in KSA: Headquartered in Riyadh: Saudi Fransi Capital 87
Slide 4: Universal banking model with diversified earnings base
OUR PROFILE | BSF AT A GLANCE We operate a universal banking business model with a diversified base of earnings Total revenues contribution 2019, SAR 3,060mn 1,634mn 24% 45% 6,873mn GLOBAL MARKETS & ALM CORPORATE 1,885mn 294mn 27% 4% RETAIL INVESTMENT BANKING |BSF Investor Relations |3
Slide 5: BSF Share Profile and Credit Rating
PROFILE | BSF SHARE PROFILE AND CREDIT RATING Our market parameters are strong with solid credit ratings Share Parameters Dec - 2019 2019 Share Price Performance +20.7% Closing Price (SAR) 37.90 50 45 52 weeks Range (SAR) 29 - 44 40 35 Shares issued 1,205,357,167 30 25 Market Cap (SARbn) 45.7 20 15
Slide 6: Our Shareholding structure is solid and diversified
PROFILE | SHAREHOLDERS Our Shareholding structure is solid and diversified BSF Shareholder Structure Foreign ownership Credit Agricola 4.01% Foreign, Others 20.21% GOSI 8.98% 52.0% RAM Holdings 9.00% Others 47.7% Alrashed Family 9.83% Saudi, Kingdom Holding 16.20% 79.79% |BSF Investor Relations || 4
Slide 7: Our key messages
OUR FINANCIAL RESULTS | HIGHLIGHTS Our key messages Revenues at SAR 6.9Bn up by 1.1% YoY driven by higher interest income Revenue (SARmn) Net Income (SARmn) partially offset by lower trading income. Revenue growth excluding impact of Allianz Saudi Fransi shares sale that took place in 2018 is +1.1
Slide 8: Strategy update
STRATEGY | MEASURING OUR SUCCESS Strategy update Shareholder Resilience Efficiency Darling Cost-to-income ratio ROAE* 2018 2019 2018 2019 EPS 1.17 +1.43 2.60 2018 2019 10.5% +0.8% 11.2% DPS 1.70 +0.3 2.00 33.7% -0.4% 33.3% Best in Best Place to Customer Work Experience Employee Net Promoter Net Prom
Slide 9: 2019 net income improvement driven by interest income growth and lower impairment
FINANCIAL RESULTS | INCOME STATEMENT HIGHLIGHTS 2019 net income improvement driven by interest income growth and lower impairment of financial assets. Income Statement Trends (SARmn) Highlights SRM 2019 2018 YoY Net income after zakat grew by 122% driven by higher interest income, lower provisioni
Slide 10: Overall improvement in return metrics against last year
FINANCIAL RESULTS | RETURN METRICS Overall improvement in return metrics against last year Return on Average Assets* Return on Average Equity* 17 . 0% 2.40 % 2.15% 15 . 0% 14.58% 2.20 % 1.94% 12.24% 2.00 % 1.83% 13 . 0% 11.35% 11.22% 1.75% 1.75% 1.80 % 11 . 0% 10.46% 1.60 % 9.00 % 1.40 % 7.0% 0 1.20
Slide 11: Steady operating income with good growth in retail
FINANCIAL RESULTS | OPERATING INCOME TREND Steady operating income. Good growth in retail and increased contribution in operating income, inline with BSF strategy. Operating Income by type (SARmn) Business lines Contribution to Operating Income 4.3% +1.1% 422 233 44 Corporate 6,873 23.8% 6,799 (12)
Slide 12: Improved cost to income ratio at 33.3% in 2019
FINANCIAL RESULTS | OPERATING EXPENSES TERND Improved cost to income ratio at 33.3% in 2019 mainly driven by higher revenues +1.1% Operating expenses by type (SARmn) Cost to Income % -0.2% 36.3% 2,291 82 2,287 57 33.7% (51) 33.6% 33.3% 33.3% (92) 2018 Salaries - Rent - Depreciation Others 2019 2015
Slide 13: Balance sheet highlights
FINANCIAL RESULTS | BALANCE SHEET HIGHLIGHTS Increase in retail credit demand drive the loans growth and improved deposits mix. Balance sheet trends (SARmn) Highlights SRM Q4'19 Q3'19 QoQ Q4'18 YoY Cash and balances with SAMA and Balance sheet contracted against last year by SAR 12.2b (6.4%YoY). 1
Slide 14: Decrease in excess cash balances to optimize the balance sheet
FINANCIAL RESULTS | COMPOSITION OF BSF ASSETS Decrease in excess cash balances to optimize the balance sheet and improve yields on assets 2.3% 4.5% 5.2% 2.1% 11.0% 8.4% Cash with SAMA 17.7% Due from financial institutions 2018 Investments, net 63.4% 14.9% 2019 Loans, net Other assets 70.6% |BSF Inve
Slide 15: Non-performing loans ratio improved and increase in cost of credit risk
FINANCIAL RESULTS | ASSETS QUILTY Non-performing loans ratio improved and increase in cost of credit risk Gross Loans (SARmn) Impairment Charges from credit losses (SARmn) 1,20 132,463 129,433 1,009 125,782 125,365 124,692 1,00 910 80 0 768 661 2.91% NPL% 60 0 2.73% 2.64% 0.73% 0.78% Cost of Credit
Slide 16: Capitalization remain comfortably within regulatory requirements
FINANCIAL RESULTS | CAPITALIZATION Capitalization remain comfortably within regulatory requirements. Capital Adequacy Ratio% Capitalization (SRbn) +7.0% 28 .0 0% 19.39% 19.77% 19.20% 26 .0 0% 34 35 35 34 17.78% 24 .0 0% 32 3 4 2 17.16% 4 22 .0 0% 4 17.71% 18.32% 20 .0 0% Tier | Ratio Tier | Capital
Slide 17: 2020 Guidance
FINANCIAL RESULTS | 2020 GUIDANCE 2018 2019 2020 Guidance Guidance Metric High single Loans, net SAR 121bn SAR 126bn digit growth % Cost of Risk 0.73% 0.78% 0.75% 0.90% NIMs 2.85% 3.04% +5 bps +15 bps |BSF Investor Relations | 16
Slide 18: Q&A
Q&A | 17
Slide 19: Contact us
Contact us Tel. +966 11 2891427 E-mail. IR@alfransi.com.sa