Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — H1 2025 Earnings Presentation
60 slides from Banque Saudi Fransi's earnings presentation, Jul 30, 2025
Slide 1: BSF 1H 2025 Investor Presentation
BSF 1H 2025 Investor Presentation 1H 2025
Slide 2: Contents
Contents 03 BSF Profile 10 Operating Environment 13 Strategy 20 ESG Update 23 Financial Performance 46 Outlook & Guidance 49 Segmental Performance 55 Performance Track Record 58 Appendix BSF Investor Presentation | 1H 2025 2
Slide 3: BSF Profile
BSF Profile Investor Presentation 1H 2025
Slide 4: BSF has a solid investment profile and clearly articulated strategy
BSF has a solid investment profile and clearly articulated strategy Leading banking group in Saudi Arabia with a strong focus on domestic operations 1. Domestic systemically important bank (“D-SIB”) with total assets of ¥ 301.5bn and market capitalization of ¥ 44.7bn Universal Bank model with full r
Slide 5: We are a leading banking group in Saudi Arabia with a strong focus on domestic operations
We are a leading banking group in Saudi Arabia with a strong focus on domestic operations BSF is the successor to Banque de Headquartered in Riyadh: Subsidiaries in KSA: l’Indochine (est. 1949) Branches 80 branches across the Kingdom BSF Capital 80 BSF was then established by Royal Domestically
Slide 6: A diversified business model and a wide range of product capabilities
A diversified business model and a wide range of product capabilities Corporate Retail Investment Banking Treasury and Brokerage One of the largest providers of A wide network of branches, A leader in investment banking, Diverse client services, market corporate banking services in ATMs, digital pla
Slide 7: Focus on consistent delivery of shareholder returns over the years
Focus on consistent delivery of shareholder returns over the years Shareholder Foreign Ownership ROAE (%) Composition* 11.2% 2,500 10.6% 10.4% 9.2% (Mn Shares) 2022 2023 2024 1H 25 Kingdom Foreign Holdings 11.9% 16.2% Dividends Per Share (SAR) Dividend payout ratio 59% 58% 58% 54% 0.94 0.99 Other Al
Slide 8: Market parameters and share price performance
Market parameters and share price performance Share Price Performance vs. Tadawul (%) Market Capitalization BSF Share Price 10% (¥ Bn) (¥) 5% 44.7 17.9 Tadawul Banks, 0.6% 0% -5% Tadawul, -6.7% -10% BSF, -7.4% -15% -20% 4.56% of KSA banking sector 52 weeks range [14.6 - 18.9] -25% -30% 0.49% of KSA
Slide 9: Experienced and dynamic executive management team
Majed Alghanemi Experienced and dynamic executive management team Bader Alsalloom Ramzy Darwish Majed Alsadhan Chief Executive Officer Chief Strategy and Finance Officer Chief Wholesale Banking Officer • BSF: appointed Apr-21 • BSF: appointed CFO Dec-22 • BSF: appointed Head of WB Nov-22 • Saudi Inv
Slide 10: Operating Environment
Operating Environment Investor Presentation 1H 2025
Slide 11: Saudi Arabia's real GDP growth is estimated at 3.6% in 2025
Saudi Arabia’s real GDP growth is estimated at 3.6% in 2025 and is expected to accelerate to 3.9% in 2026 Economic Outlook Real GDP Growth (%) Brent Avg Oil Price / Real GDP for Saudi Arabia is estimated to grow by 3.6% in 2025, an increase of 1.6ppts from Barrel (USD) 2024. Growth is expected to
Slide 12: The Saudi banking sector is well positioned for both resilience and growth
The Saudi banking sector is well positioned for both resilience and growth Bank Credit (¥ Bn) Capitalization (%) NPL Ratio (%) +13% CAGR 19.9% 19.9% 20.1% 19.6% 19.3% 3,186 2,956 1.9% 2,584 1.8% 2,349 2,059 1.5% 18.6% 18.2% 18.4% 18.3% 18.1% 1.2% 1.2% +14% +10% +14% +8% 2021 2022 2023 2024 2Q 25 202
Slide 13: Strategy
Strategy Investor Presentation 1H 2025
Slide 14: In 2025, we aim to sustain strong momentum and drive progress across our core businesses
In 2025, we aim to sustain strong momentum and drive progress across our core businesses, with a focus on enhancing our offerings to deliver greater client value 2025 Priority Wholesale Banking Personal Banking Personal Banking Private Banking Private Banking Technology Expand FIG & Scale Up in Affl
Slide 15: Our strategy is driven by ambitious aspirations for market position, profitability and customer experience
Our strategy is driven by ambitious aspirations for market position, profitability and customer experience Strategic Goals Position Profitability Customer Experience Be among the top players in our Focus on profitability and return on Continued commitment to target segments (Top 3 Market Share) capi
Slide 16: 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 17: Strategy execution progressing well: JB and BSF Capital
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 18: 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): On track for 3Q 2025 launch supporting trade & supply chain
Slide 19: We are advancing the BSF 2030 Strategy exercise
We are advancing the BSF 2030 Strategy exercise … for both the mid-term and long-term future of the bank Prepare for the future Strengthen Prepare the core for the future Achievement of bank's future shape Reposition the core Explore and capitalize BSF 2030 business along the on future-proof busines
Slide 20: ESG Update
ESG Update Investor Presentation 1H 2025
Slide 21: ESG is woven into our strategic fabric
ESG is woven into our strategic fabric, driving with our business objectives while nurturing our environment, society, and governance ESG is Part of BSF DNA BSF’s Recent ESG Highlights BSF’s ESG Pillars are born from within BSF’s corporate mission and values BSF developed a set of ESG KPIs associate
Slide 22: BSF achieves remarkable progress in boosting ESG ratings
BSF achieves remarkable progress in boosting ESG ratings ESG Ratings: ESG Risk Rating Score S&P Global ESG Score MSCI ESG Rating by Sustainalytics 21.2 as of May 2024 39.0 as of January 2025 BBB as of April 25 Should change it to Jan? from 27.8 in 2023 from 30 in 2023 from BB in 2022 Leading a
Slide 23: Financial Performance
Financial Performance Investor Presentation 1H 2025
Slide 24: 20% net income growth YoY supported by the robust top line growth
20% net income growth YoY supported by the robust top line growth Balance Sheet Loans & Investments Customers' Loan growth of 6% YoY, driven by Advances Deposits both commercial (+4%) and 209.9 62.8 182.7 consumer (+17%). Investments increased 13% YoY to manage IR risk while capturing higher yie
Slide 25: Improved cost of risk with comfortable capital and liquidity
Improved cost of risk with comfortable capital and liquidity Asset Quality NPL Ratio NPL Cost of Risk Marginally higher NPL ratio, due Coverage to higher NPL in commercial 0.97% 183.1% 0.50% portfolio. Coverage ratio remains robust. Improved COR in the consumer and commercial book. +3bps year-
Slide 26: Balance sheet growth driven by loan growth and investments
Balance sheet growth driven by loan growth and investments Balance Sheet Total Assets Movement YTD (¥ Bn) Growth in total assets of 3% YTD, mainly driven by 3% loan growth, further aided by an +3% increase in investments and interbank lending. The investment portfolio expanded by 4% YTD. 5.7 (1.
Slide 27: Net income grew 20% YoY from higher operating income, lower cost of risk and positive jaws
Net income grew 20% YoY from higher operating income, lower cost of risk and positive jaws Income Statement Net Income Movement YoY (¥ Mn) Net income for 1H 2025 grew 20% YoY to ¥ 2,741mn, from higher operating income lower +20% cost of risk and positive jaws Total operating income increased dri
Slide 28: 3% YTD loan growth from both commercial and consumer sectors
3% YTD loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (¥ Bn) Composition Total loans and advances grew 6% YoY, driven by growth in both consumer and commercial lending. YTD growth was 3%, supported by increases in both commercial and consumer loans. 209.9
Slide 29: Well-diversified portfolio in both commercial and consumer sectors
Well-diversified portfolio in both commercial and consumer sectors Commercial Loans Movement YTD (¥ Bn) Commercial Loans Composition 168.7 +1% Other 22.6% 1.9 1.3 0.6 (2.3) 0.7 168.7 Contracting 166.5 10.5% Utilities 12.4% (¥ Bn) Manufacturing Commerce +79% +7% +21% -9% +1% 12.4% 27.6% Services 4Q 2
Slide 30: 4% increase in the investment portfolio in 1H 2025
4% increase in the investment portfolio in 1H 2025 Investments Investments Composition by Category (¥ Bn) 62.8 Investments increased by 4% YTD. FVOCI - Debt FVSI - Debt/equity instruments instruments The investment portfolio is of high quality with a significant portion being Saudi 54.2% 0.3% Go
Slide 31: High-quality investment portfolio
High-quality investment portfolio Investments Composition by Type Investments Composition by Sector (¥ Bn) 62.8 Fixed-rate - 57.9 Financials 16.3% (¥ Bn) Equities 1.0% Floating-rate - 4.3 Corporate Government - 47 8.8% Government Floating-rate Equities - 0.6 74.9% Financials - 10.2 6.8% Fixed-rate C
Slide 32: 1% YTD fall in deposits, driven by decline in corporate
1% YTD fall in deposits, driven by decline in corporate, partially offset by the inflow of retail deposits Customers’ Deposits Customers' Deposits (¥ Bn) Deposits fell by 1% YTD, driven by decrease in IBDs. -1% IBDs decreased by 2% YTD, due to lower corporate deposits, and NIBDs declined margina
Slide 33: Efficient and diversified funding structure to support growth
Efficient and diversified funding structure to support growth Funding Structure Successful Track Record in Accessing BSF’s funding is largely comprised of customers’ deposits which represented 73% of total Local and International Capital Markets liabilities and 61% of total liabilities and equity
Slide 34: Strong credit ratings and stable maturity profile
Strong credit ratings and stable maturity profile Credit Ratings Standard & Poor's Maturity Profile (¥ Bn) Certificate of Deposit Syndicated facilities A- Bonds Sukuk Tier 1 Sukuk 10.4 9.3 0.1 Stable outlook 3.8 Moody's Fitch 5.2 4.9 10.4 3.9 A1 A- 1.5 3.2 0.9 5.4 2.6 3.4 2.1 0.5 0.3 0.4 Stable
Slide 35: 12% growth in NII driven by earning assets growth and modest margin expansion
12% growth in NII driven by earning assets growth and modest margin expansion Net Interest Income Net Interest Income Movement YoY (¥ Mn) NII for 1H 2025 increased by 12% YoY to ¥ 4,314mn, driven by 11% average earnings assets +12% growth and modest margin expansion. 179 157 (98) (230) Interest
Slide 36: YoY and sequential margin improvement
YoY and sequential margin improvement Net Interest Margin YTD NIM Trend Quarterly NIM Trend The NIM expanded 3bps YoY to 3.11%, driven by a lower cost of funding, offset by lower 6.37% 6.36% 6.29% 6.45% 6.29% 6.11% 6.14% 6.10% 6.11% 6.15% interest yields following rate cuts, with the impact of hed
Slide 37: BSF has limited sensitivity to interest rate changes
BSF has limited sensitivity to interest rate changes NIM Sensitivity Balance Sheet Repricing Profile As of 30 June 2025, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2024 (SAR Bn) ±5bps; this would translate into a ¥ ±156mn NII delta. 180.0 The net open sh
Slide 38: Non-interest income increased 23% YoY on higher investment and exchange income
Non-interest income increased 23% YoY on higher investment and exchange income Non-Interest Income Non-interest Income (¥ Mn) Non-interest income for 1H 2025 increased 23% YoY to ¥ 1,002mn on higher investment- related income, exchange and other income, as well as improved net fee & commission 2Q
Slide 39: Fee & commission income increased 6% YoY
Fee & commission income increased 6% YoY, mainly from improved trade finance and brokerage & asset management income Fee & Commission Non-funded Exposure* Fee & Commission Income (¥ Mn) Income (¥ Bn) 2Q 24 264 Net fee & commission income grew 6% YoY to ¥ 543mn in 1H 2025 due 2Q 24 75.9 3Q 24 223 t
Slide 40: Operating expenses rose 10% YoY on higher G&A
Operating expenses rose 10% YoY on higher G&A and remained broadly stable QoQ Operating Expenses Operating Expenses Cost Ratios (%) Operating expenses increased 10% YoY to ¥ 1,740mn in 1H 2025 mainly due to increased (¥ Mn) general and administrative expenses. 33.9% 34.4% 35.3% 32.8% 32.7% 2Q 24 8
Slide 41: Cost of risk decreased by 10bps YoY to 0.50% for 1H 2025
Cost of risk decreased by 10bps YoY to 0.50% for 1H 2025, driven by lower commercial charges and overall portfolio growth Impairment Charge Cost of Credit Risk (%) Impairment Charge Impairment Charge The total impairment charge for 1H 2025 (¥ Mn) (¥ Mn) decreased by 6% YoY to ¥ 515mn, from -14% lo
Slide 42: Credit quality remains strong with modest increase in NPL ratio
Credit quality remains strong with modest increase in NPL ratio with robust coverage NPL Ratio NPL Ratio (%) Non Performing Loans Non Performing Loans The NPL ratio increased 3bps YTD & Advances (¥ Bn) & Advances (¥ Bn) to 0.97% as NPLs increased by 7% +7% relative to 3% gross loan growth. 0.97% 0
Slide 43: NPL coverage improved 1.4ppts YTD to 183.1%
NPL coverage improved 1.4ppts YTD to 183.1% NPL Coverage NPL Coverage Ratio (%) Stage-Wise Provision Allowance for Coverage (%) Stage 3 Impairment (¥ Bn) The NPL coverage ratio improved Stage 2 by 1.4ppts YTD to 183.1%, attributed 198.5% Stage 1 +7% to enhancements mainly in 193.1% 183.1% 68.2% 65
Slide 44: Strong capital ratios
Strong capital ratios Total capital (Tier 1 + Tier 2 regulatory capital) increased 9% Total Capital (¥ Bn) RWA (¥ Bn) YTD to ¥ 53.7bn during 1H 2025 from AT1 issuance of USD 650m, net +9% +2% income and OCI, partially offset by the dividends paid. 51.2 53.7 48.7 49.4 247.4 250.1 251.0 254.0 256.7
Slide 45: Liquidity remains strong and comfortably within regulatory limits
Liquidity remains strong and comfortably within regulatory limits Liquidity Leverage Ratio (%) LTD Ratios (%) Headline LTD Ratio LTD SAMA ratio LCR increased by 5.8 ppts YTD to 168% during 1H 2025. 114.9% 13.7% 110.3% NSFR rose by 2ppts YTD to 116% as 109.6% 13.1% of 30 June 2025. 12.8% 13.0% 10
Slide 46: Outlook & Guidance
Outlook & Guidance Investor Presentation 1H 2025
Slide 47: Saudi Arabia's real GDP is expected to improve, alongside gradual decline in interest rates
Saudi Arabia’s real GDP is expected to improve, alongside expectations of a gradual decline in interest rates Metric 2024 Outcome 2025 Outlook Trend Saudi Arabia Real GDP Growth +2.0% +3.6% 0.5% 2.0% 3.6% 3.9% 3.6% #N/A 2023 2024 2025E 2026E 2027E Saudi Arabia Non-oil GDP Growth +3.9% +3.1% 5.3% 3
Slide 48: Loan growth outlook revised; margin and efficiency drivers support profitability
Loan growth outlook was revised in line with pipeline, while margin and efficiency drivers continue to support profitability Metric 1H 2025 Outcome 2025 Guidance Guidance Drivers The guidance was revised to reflect a conservative view after modest Loans & Advances Growth +2.8% YTD High single first-
Slide 49: Segmental Performance
Segmental Performance Investor Presentation 1H 2025
Slide 50: Profitability driven by growth in Treasury and Corporate partly offset by lower Retail
Profitability driven by growth in Treasury and Corporate partly offset by lower Retail net income Operating Income Movement YoY (¥ Mn) Net Income Before Zakat Movement YoY (¥ Mn) +14% +20% Discuss formatting issues 802 65 5,317 769 53 3,061 4,674 (530) 306 2,542 (606) 303 -26% +12% NM +25% -57% +18%
Slide 51: Retail Segment: Lower net income YoY
Retail Segment: Lower net income YoY driven mainly by reduced net interest income Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) -57% 2Q 24 1,016 2Q 24 478 1,054 (514) 3Q 24 964 3Q 24 444 (16) (72) 449 (4) 1,012 -23% 4Q 24 4Q 24 420 -51% -26%
Slide 52: Corporate Segment: Increased profitability from net interest income growth
Corporate Segment: Increased profitability from net interest income growth Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) +18% 1,947 2Q 24 1,295 2Q 24 907 276 30 (39) 36 1,644 3Q 24 1,346 3Q 24 890 4Q 24 1,145 +8% 4Q 24 603 +13% +13% +10% +9%
Slide 53: Treasury Segment: Net income growth led by turnaround in NII
Treasury Segment: Net income growth led by turnaround in NII and increased fee & other income Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) +269% 2Q 24 (115) 2Q 24 (205) 144 (35) 3 483 658 3Q 24 (37) 3Q 24 (134) (286) 4Q 24 147 +207% 4Q 24 2
Slide 54: Investment Banking and Brokerage Segment: YoY profitability improved
Investment Banking and Brokerage Segment: YoY profitability improved supported by higher interest income and fee & other income Net Income Before Zakat Movement YoY (¥ Mn) Total Operating Net Income Before Income (¥ Mn) Zakat (¥ Mn) +41% 2Q 24 146 2Q 24 78 29 (12) 182 36 3Q 24 138 3Q 24 80 129 4Q 24
Slide 55: Performance Track Record
Performance Track Record Investor Presentation 1H 2025
Slide 56: Balance Sheet Metrics
Balance Sheet Metrics Loans & Advances Total Assets LCR (%) CAR (%) CAR (SAR Bn) (SAR Bn) T1 ratio 21.6% 21.1% 2020 130.6 2020 194.1 199% 196% 196% 19.9% 19.6% 19.7% 179% 20.6% 2021 147.8 2021 215.8 162% 19.9% 2022 159.0 +12% CAGR 2022 232.1 +11% CAGR 18.9% 19.0% 18.8% 2023 179.4 2023 253.7 2024 +14
Slide 57: Income Statement Metrics
Income Statement Metrics Total Operating NIM (%) Cost to Income Ratio (%) Cost of Risk (%) Income (SAR Mn) 2.07% 2020 7,045 3.54% 35.3% 34.3% 33.6% 33.1% 2021 7,128 32.4% 3.08% 3.03% 2.99% 3.04% 2022 8,017 +8% CAGR 0.96% 0.85% 0.67% 0.58% 2023 9,324 2024 +4% YoY 9,658 2020 2021 2022 2023 2024 2020 2
Slide 58: Appendix
Appendix Investor Presentation 1H 2025
Slide 59: 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 60: 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