Banque Saudi Fransi (1050) Strategy update summary

Strategic vision and objectives

• Launched Strategy 2030 aiming for ROE above 15% and SAR 10 billion net income by 2030, focusing on becoming a better, stronger, and faster bank.

• Growth will be driven by strengthening core business banking, embracing technology, and innovative business models.

• Over 50% of incremental net income is expected from Retail, Treasury, and BSF Capital through targeted initiatives.

• Strategic priorities include expanding CASA, enhancing margins, capital optimization, and operational excellence.

• Execution is supported by a robust framework, internal alignment, and transparent progress reporting.

Business segment strategies

• Wholesale Banking targets 9% annual net income growth, leveraging deep client relationships and digital GTS platform.

• Treasury aims for double-digit revenue growth, expanding alternative investments and embedding AI for efficiency.

• BSF Capital aspires to 13% annual revenue growth, focusing on asset management, investment banking, and digital brokerage.

• Retail Banking targets 12% asset CAGR and 21% net income growth, with a focus on affluent, private, and business banking.

• J-B segment aims for 16% net income growth and top-three market share among non-bank financial institutions.

Financial roadmap and targets

• Assets projected to grow at 8% CAGR, with loans at 9% and consumer lending at 13%, shifting portfolio toward higher-margin segments.

• Operating income expected to grow 11% annually, with non-interest income rising 15% per year, driven by fee and commission growth.

• Cost-to-income ratio to improve by 7 percentage points, supported by automation, AI, and disciplined cost management.

• Capital adequacy ratio targeted above 19%, with a 50% dividend payout ratio and focus on sustainable shareholder returns.