Banque Saudi Fransi · TADAWUL:1050
Banque Saudi Fransi — Q4 2024 Earnings Presentation
28 slides from Banque Saudi Fransi's earnings presentation, Feb 5, 2025
Slide 1: BSF 4Q 2024 Earnings Presentation
BSF 4Q 2024 Earnings Presentation 5 February 2025
Slide 2: Highlights & Strategy Update
Highlights & Strategy Update
Slide 3: Strong balance sheet momentum and 8% net income growth YoY
Strong balance sheet momentum and 8% net income growth YoY Balance Sheet Loans & Investments Customers' Strong loan growth of 14% YoY, Advances Deposits driven by both commercial (+13%) 204.2 60.3 185.1 and consumer (+16%). Investments increased 24% YoY to manage IR risk while capturing higher y
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 0.93% 181.7% 0.58% coverage ratio. Improved COR in the commercial book. -12bps year-on-year +44.0ppts year-on-year -38bps
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 2025 Progress & Beyond Integrated New corporate platform User training: successfully Testing completion: backend and frontend
Slide 8: We proudly launched our Digital App with comprehensive functionality
We proudly launched our Digital App with comprehensive functionality, with more features coming in 2025 Intuitive design a simple, user-friendly interface tailored for everyone Effortless access seamless login experience with advanced biometric integration 7,765.38 SAR Enhanced employee experience u
Slide 9: BSF 2030 Strategy exercise kicked off
We have kicked off BSF 2030 Strategy exercise to future-proof the bank’s market positioning … 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 BSF 2030 Reposition the core Explore and capitaliz
Slide 10: Financial Highlights
Se Financial @ = | Highlights
Slide 11: Balance sheet growth driven by lending and investments
Balance sheet growth driven by lending and investments Balance Sheet Total Assets Movement YoY (SAR Bn) Growth in total assets of 15% YoY, mainly driven by 14% loan growth, further aided by an +15% increase in investments. The investment portfolio expanded by 24% YoY from high-quality liquid ass
Slide 12: Balanced 14% YoY loan growth from both commercial and consumer sectors
Balanced 14% YoY loan growth from both commercial and consumer sectors Loans & Advances Loans & Advances (SAR Bn) Total loans & advances grew 14% during FY 2024 from both consumer and commercial +14% lending growth. Commercial loans grew 13% during FY 2024, with notable increase in the commerce,
Slide 13: 7% YoY growth in deposits, with contributions from both IBDs and NIBDs
7% YoY growth in deposits, with contributions from both IBDs and NIBDs Customers’ Deposits Customers' Deposits (SAR Bn) Deposits grew by 7% during FY 2024, driven by an increase in IBDs and further supported +7% by NIBD growth. NIBDs increased 6% YoY and IBD’s increased 9% YoY, mainly from corpo
Slide 14: Net income grew 8% YoY from higher non-interest income and lower impairments
Net income grew 8% YoY from higher non-interest income and lower impairments, partially offset by higher costs Income Statement Net Income (SAR Mn) Net income for FY 2024 grew 8% YoY to SAR 4,544mn from a 19% rise in non-interest +35% income and a 26% decline in the impairment charge, partly offse
Slide 15: 1% growth in NII YoY as earning assets growth was mostly offset by margin contraction
1% growth in NII YoY as earning assets growth was mostly offset by margin contraction Net Interest Income Net Interest Income Movement YoY (SAR Mn) NII for FY 2024 increased by 1% YoY to SAR 7,883mn, with 16% average earnings assets +1% growth mostly offset by margin contraction. Interest income
Slide 16: 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 48bps YoY to 3.05% mainly due to increased costs on customers’ 6.35% 6.41% 6.40% 6.34% 6.31% 6.23% 6.24% 5.95% 6.06% deposits. 5.56% On a sequential basis, the quarter
Slide 17: 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 2024, BSF estimates a 1-year NIM sensitivity of a 100bps rates change at as at 31 December 2024 (SAR Bn) ±3bps; this would translate into a SAR ±90mn NII delta. 180.0 The net op
Slide 18: Non-interest income increased 19% YoY on higher trading income
Non-interest income increased 19% YoY on higher trading income Non-Interest Income Non-interest Income Movement YoY (SAR Mn) Non-interest income for FY 2024 increased 19% YoY to SAR 1,774mn on higher trading +19% income, supported by improved net fee & commission income, investment-related and exc
Slide 19: Operating expenses growth of 13% YoY from higher G&A and employee-related expenses
Operating expenses growth of 13% YoY from higher G&A and employee-related expenses Operating Expenses Operating Expenses (SAR Mn) Operating expenses increased 13% YoY to SAR 3,409mn in FY 2024 mainly due to increased general and administrative expenses, as well as employee-related costs. 4Q 23 846
Slide 20: Cost of risk decreased by 38bps YoY to 0.58% for FY 2024
Cost of risk decreased by 38bps YoY to 0.58% for FY 2024 from lower commercial impairments Impairment Charge Impairment Charge (SAR Mn) The total impairment charge for FY 2024 decreased by 26% YoY to SAR 1,180mn, mainly from lower commercial impairments, partly offset by higher consumer and invest
Slide 21: Credit quality remains strong with YoY NPL ratio & coverage improvement
Credit quality remains strong with YoY NPL ratio & coverage improvement NPL & NPL Coverage NPL Ratio (%) The NPL ratio improved 12bps YoY to 0.93% as NPLs increased by 1% relative to 14% gross loan growth. 1.06% The NPL coverage ratio improved by 44.0ppts YoY to 181.7%, attributed to enhancement
Slide 22: 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 declined by 34ppts to 162% during FY 2024. NSFR moderated slightly YoY to 114% as of 31 December 2024. 110.3% 104.2% 106.1% 104.0% The SAMA regulatory LTD ratio was
Slide 23: Strong capital ratios
Strong capital ratios Capital Total Capital Movement YoY (SAR Bn) Total capital (Tier 1 + Tier 2 regulatory capital) increased 13% YoY to SAR 49.4bn during FY +13% 2024 from net income as well as SAR 3bn Additional Tier 1 sukuk issuance in 3Q 2024, partly offset by dividend payments. 3.0 0.3 (2.4)
Slide 24: FY 2024 performance versus 2024 guidance
FY 2024 performance reflects strong loan growth and stable asset quality, while cost pressures and margin compression impact profitability Metric FY 2024 Outcome 2024 Guidance Commentaries Loans & Advances Growth +13.8% YOY Mid-teens FY 2024 is in line with guidance, driven by selective loan portfol
Slide 25: 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 FY 2024 Outcome 2025 Guidance Guidance Drivers Loans & Advances Growth +13.8% YOY Low teens The guidance reflects expected growth in
Slide 26: Questions & Answers
Questions & Answers @ BSF
Slide 27: 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 28: 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