Q1 2026 Banque Saudi Fransi SJSC Earnings Call Transcript
Key Points
- Banque Saudi Fransi (SAU:1050) reported a solid first quarter with a 3% year-over-year increase in net income, supported by higher net interest income and lower impairments.
- The bank's balance sheet showed growth, with total assets reaching SAR325 billion, up 5% year-to-date, driven by higher lending forms and an expanded investment portfolio.
- Customer deposits rose 5% year-on-year, with a focus on non-interest-bearing deposits, improving the funding mix.
- The bank maintained a resilient net interest margin of just over 3%, with active management of interest rate risk using cash flow hedges and fixed-rate investments.
- Liquidity and capital ratios remain strong, with the CET1 ratio at 15.9% and the liquidity coverage ratio at 186%, providing ample room for growth and stability.
- Non-interest income declined by 5% year-over-year, primarily due to lower fee and commission income, reflecting reduced investor activity and ongoing campaign costs.
- Operating expenses increased by 6% year-over-year, driven by higher staff costs and depreciation, impacting the cost-to-income ratio, which came in above the target at 34.1%.
- The NPL ratio increased slightly to 101 basis points, with higher NPL balances in both consumer and commercial portfolios.
- The bank's net interest margin declined by 7 basis points year-over-year, impacted by higher funding costs on debt securities and term loans.
- Fee income growth was affected by a shift from letters of credit to open account arrangements, and the bank anticipates continued pressure on fee income due to market conditions.
This webinar is being recorded and summarized.
Good afternoon, everyone. My name is Elena Sanchez from EFG Hermes, and I would like to welcome you all to Bank Saudi Francis Q1 2026 earnings call. I would like to hand over the call now to Ms. Yasmina Abbas, Head of Group Commercial Delivery and Investor Relations. Yasmina, please go ahead.
Good afternoon, ladies and gentlemen, and welcome to the SSQ1 2026 Earnings Conum. Thank you, Elena and the EFG team for hosting us today. Speaking first is the SS CEO, David Salman, who will go over the earnings summary for the quarter, as well as a refresh, followed by CSFO. Ramsey can reach for a more detailed walkthrough of financial support to Hib Mardam, who will participate in the Q&A session. Without further ado, I'll hand over the mic to you, Mohammed.
Thank you, Yesmina. Good afternoon,
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