Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — 9M 2024 Earnings Presentation
25 slides from Banque Saudi Fransi's earnings presentation, Oct 31, 2024
Slide 1: BSF 9M 2024 Earnings Presentation
BSF 9M 2024 Earnings Presentation 31 October 2024
Slide 2: Highlights & Strategy Update
Highlights & Strategy Update
Slide 3: Strong balance sheet momentum and modest 1% net income growth YoY
Strong balance sheet momentum and modest 1% net income growth YoY Balance Sheet Loans & Investments Customers' Strong loan growth of 15% YoY, Advances Deposits driven by both commercial (+15%) 201.0 57.4 193.3 and consumer (+16%). Investments increased 24% YoY to manage IR risk while capturing h
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, mainly from Coverage write-offs, and improving 0.83% 193.1% 0.57% coverage ratio. Improved COR in the commercial book. -115bps year-on-year +53.6ppts year-on-year -41bps
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 Key Highlights 2024 Progress & Beyond Integrated New corporate platform Program is re-baselined and target go Conclude testing for backend a
Slide 8: Financial Highlights
Se Financial @ = | Highlights
Slide 9: Balance sheet growth driven by lending and investments
Balance sheet growth driven by lending and investments Balance Sheet Total Assets Movement YTD (SAR Bn) Growth in total assets of 14% YTD, mainly driven by 12% loan growth, further aided by an +14% increase in investments. The investment portfolio expanded by 18% YTD from high-quality liquid ass
Slide 10: Balanced 12% YTD loan growth from both commercial and consumer sectors
Balanced 12% YTD loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (SAR Bn) Total loans & advances grew 12% during 9M 2024 from both consumer and commercial +12% lending growth. Commercial loans grew 12% during 9M 2024, with notable increase in the commerce,
Slide 11: 12% YTD growth in deposits, with solid NIBD growth sequentially
12% YTD growth in deposits, with solid NIBD growth sequentially Customers’ Deposits Customers' Deposits (SAR Bn) Deposits grew by 12% during 9M 2024, driven by an increase in IBDs and further supported +12% by NIBD growth. NIBDs increased 11% YTD and IBD’s increased 13% YTD, mainly from corporat
Slide 12: Net income grew 1% YoY from lower impairments, partially offset by higher costs
Net income grew 1% YoY from lower impairments, partially offset by higher costs Income Statement Net Income (SAR Mn) Net income for 9M 2024 grew 1% YoY to SAR 3,427mn from a 30% decline in the impairment charge, partly offset by 12% growth in operating expenses and 2% decline in -8% net interest i
Slide 13: 2% decline in NII YoY as earning assets growth was offset by margin contraction
2% decline in NII YoY as earning assets growth was offset by margin contraction Net Interest Income Net Interest Income Movement YoY (SAR Mn) NII for 9M 2024 declined by 2% YoY to SAR 5,844mn, with 16% average earnings assets -2% growth offset by margin contraction. Interest income rose 26% YoY
Slide 14: YoY margin decline from shifting deposit mix towards IBDs
YoY margin decline from shifting deposit mix towards IBDs Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM declined 57bps YoY to 3.06% due to increased costs on customers’ deposits, 6.35% 6.41% 6.40% 6.31% 6.23% 6.24% 5.91% 5.95% 6.09% 6.06% partly offset by the higher yields on loans
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 December 2023, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2023 (SAR Bn) ±3bps; this would translate into a SAR ±67mn NII delta. 157.1 130.9 The
Slide 16: Non-interest income increased 7% YoY on higher net fee & commission income
Non-interest income increased 7% YoY on higher net fee & commission income and investment-related income Non-Interest Income Non-interest Income Movement YoY (SAR Mn) Non-interest income for 9M 2024 increased 7% YoY to SAR 1,242mn on improved net fee & +7% commission income and investment-related
Slide 17: Operating expenses growth of 12% YoY from higher employee-related expenses, G&A and depreciation
Operating expenses growth of 12% YoY from higher employee-related expenses, G&A and depreciation Operating Expenses Operating Expenses (SAR Mn) Operating expenses increased 12% YoY to SAR 2,439mn in 9M 2024 mainly due to increased employee-related costs, as well as higher G&A and depreciation. 3Q
Slide 18: Cost of risk decreased by 41bps YoY to 0.57% for 9M 2024
Cost of risk decreased by 41bps YoY to 0.57% for 9M 2024 from lower commercial impairments Impairment Charge Impairment Charge (SAR Mn) The total impairment charge for 9M 2024 decreased by 30% YoY to SAR 824mn, mainly from lower commercial impairments, partly offset by higher consumer and investme
Slide 19: Credit quality remains strong with further NPL ratio & coverage improvement
Credit quality remains strong with further NPL ratio & coverage improvement NPL & NPL Coverage NPL Ratio (%) The NPL ratio improved 23bps YTD to 0.83% as NPLs declined 12% on write-offs in the commercial book relative to 12% gross loan growth. 1.97% The NPL coverage ratio improved by 55.5ppts YT
Slide 20: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits LTD Ratios (%) Headline LTD Ratio Liquidity LTD SAMA ratio LCR moderated 34ppts to 162% during 9M 2024. NSFR was broadly stable YTD at 118% as of 30 September 2024. 105.0% 104.2% 106.1% 104.0% The SAMA regulatory LTD ratio was w
Slide 21: Strong capital ratios
Strong capital ratios Capital Total Capital Movement YTD (SAR Bn) Total capital (Tier 1 + Tier 2 regulatory capital) increased 11% YTD to SAR 48.5bn during 9M +11% 2024 from SAR 3bn Additional Tier 1 sukuk issuance in 3Q 2024 as well as total comprehensive income partly offset by dividend payments
Slide 22: BSF maintains the loan guidance, NIM and CoR unchanged, while refining CIR, ROE and CET1
BSF maintains the loan guidance, NIM and CoR unchanged, while moderating and refining the CIR, ROE and CET1 guidance Metric 9M 2024 Outcome 2024 Guidance 3Q 2024 Revision Guidance Drivers The guidance reflects robust loan growth in 9M 2024, Loans & Advances Growth +12.1% YTD Mid-teens unchanged an
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