Banque Saudi Fransi · TADAWUL:1050

Banque Saudi Fransi — Q2 2021 Earnings Presentation

16 slides from Banque Saudi Fransi's earnings presentation, Aug 11, 2021

  1. Slide 1: 2Q 2021 Earnings Presentation

    3 Column Banque Saudi Fransi Slides 2Q 2021 Earnings Presentation 11 August 2021

  2. Slide 2: Highlights

    EARNINGS PRESENTATION 2Q 2021 Highlights

  3. Slide 3: Solid balance sheet growth and strong recovery in net income

    HIGHLIGHTS | 2Q 2021 FINANCIAL PERFORMANCE Solid balance sheet growth and strong recovery in net income BALANCE SHEET Loans & Advances Investments Non Interest Bearing Deposits  High quality loan growth of 9% driven by 19% YTD growth in mortgages.  Strong growth in investments (12%) and 141.8  +9

  4. Slide 4: Financial Performance

    EARNINGS PRESENTATION 2Q 2021 Financial Performance

  5. Slide 5: Solid balance sheet growth from lending and investments

    FINANCIAL PERFORMANCE | BALANCE SHEET HIGHLIGHTS Solid balance sheet growth from lending and investments Total Assets Movement (SAR Bn)  Growth in total assets of 9% YTD driven by healthy 9% loan growth and strong growth of 12% in investments.  Liabilities grew by 11% during 2021 YTD from 11% depo

  6. Slide 6: Healthy loan growth in 1H 2021

    FINANCIAL PERFORMANCE | LOANS AND ADVANCES Healthy loan growth in 1H 2021 Total Loans & Advances (SAR Bn) Commercial Loans Movement (SAR Bn) Loans & Advances Composition (SAR Mn) 141.8 116.2 141,807 Consumer +9% +8% 18.1% Commercial 130.6 134.1 141.8 1.4 1.3 81.9% 2.4 1.8 2.0 116.2 25.6 4.9 22.8 24.

  7. Slide 7: Continued growth in NIBD deposits

    FINANCIAL PERFORMANCE | CUSTOMERS’ DEPOSITS Continued growth in NIBD deposits Customers' Deposits (SAR Bn) Customers' Deposits Movement (SAR Bn)  Deposits grew 11% during 1H 2021 from higher NIBDs (+10%) and IBDs (+12%).  NIDB’s account for 67% of total deposits (stable relative 140.8 140.8 to 68%

  8. Slide 8: Net income improved 38% year-on-year due to lower provisions

    FINANCIAL PERFORMANCE | INCOME STATEMENT HIGHLIGHTS Net income improved 38% year-on-year due to lower provisions Net Operating Income Before Impairment Charge  Net income for 1H 2021 grew 38% YoY to SAR 1,549mn from 1% income growth and a (SAR Mn) 46% decline in impairments, partly offset by a 9% i

  9. Slide 9: Stable NII as improved funding costs and benefit of hedging offset lower loan yields

    FINANCIAL PERFORMANCE | NET INTEREST INCOME Stable NII as improved funding costs and benefit of hedging offset lower loan yields Net Interest Income Average Interest Earning Assets Average Funding  NII for 1H 2021 grew 1% YoY to SAR (SAR Mn) (SAR Bn) (SAR Bn) 2,618mn in 1H 2021 as a 13% decline in

  10. Slide 10: Non-interest income stable YoY as improved brokerage and trading income offset lower income

    FINANCIAL PERFORMANCE | NON-INTEREST INCOME Non-interest income stable YoY as improved brokerage and trading income was offset by lower exchange and other income Non-Interest Income (SAR Mn) Non-Interest Income Movement (SAR Mn) 423 931 -9% -0% 470 463 496 508 124 19 7 423 933 931 376 (55) (97) -17%

  11. Slide 11: Higher operating expenses due increase in VAT rate

    FINANCIAL PERFORMANCE | OPERATING EXPENSES Higher operating expenses due increase in VAT rate Operating Expenses (SAR Mn)  Operating expenses increased 9% YoY to SAR 1,219mn in 1H 2021 due to increased rate of VAT in Saudi Arabia from 5% to 15%. 627  The cost to income ratio increased modestly to

  12. Slide 12: Moderation in impairment charge and cost of risk from peak in 4Q 2020

    FINANCIAL PERFORMANCE | IMPAIRMENT CHARGE Moderation in impairment charge and cost of risk from peak in 4Q 2020, while NPL coverage improved 28.5ppts YoY Impairment Charge (SAR Mn) Impairment Charge (SAR Mn) Cost of Credit Risk (%)  The total impairment charge for 1H 2021 moderated to SAR 569mn fro

  13. Slide 13: Liquidity and capitalization remain strong

    FINANCIAL PERFORMANCE | LIQUIDITY AND CAPITALIZATION Liquidity and capitalization remain strong  LCR declined by a modest 5ppts during 1H 2021 to a LCR Average (%) NSFR (%) comfortable level of 194%.  NSFR and the SAMA LTD ratio were stable YTD at 122% and 83.4% respectively. 194% 122%  Total cap

  14. Slide 14: Trends mostly in line with guidance and outlook for 2021 is largely unchanged

    FINANCIAL PERFORMANCE | GUIDANCE Trends mostly in line with guidance and outlook for 2021 is largely unchanged 2021 Outlook as at 2Q 2Q 2021 Outcome Current 2021 Outlook Loans & Advances Unchanged  1H 2021 growth of 9% . SAR Billion 130.6 130.6 LOANS &  Continued mortgage ADVANCES, NET growth and

  15. Slide 15: Questions & Answers

    EARNINGS PRESENTATION 2Q 2021 Questions & Answers

  16. Slide 16: Disclaimer

    INVESTOR PRESENTATION 1Q 2021 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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