Banque Saudi Fransi recorded a robust growth of the balance sheet reaching SR170 billion ($45 billion) an 8 percent increase from 2012, supported by a strong macroeconomic environment.

The loans and advances portfolio increased by 8 percent to reach SR111bn ($30 billion) compared to SR103 billion ($27 billion) in 2012.

Deposits amounted to SR132 billion ($35 billion), an increase of 14 percent compared to 2012 fueled largely by demand deposits which are up by double digit percentage for the year, allowing to maintain a strong loan to deposit ratio.

Net income for the year 2013 outlined solid revenues generation negatively impacted by provisions. BSF’s net profit was SR2.4 billion ($641 million) compared to SR3.0 billion ($804 million) in 2012.

This decrease was driven by higher provisioning. Specific provisions allow cleaning-up the books in line with BSF’s conservative risk approach.

Simultaneously, BSF increased general provisions to build-up reserves and maintain strong coverage ratio. Such provisioning effort closes two years of strategic restructuring exercise (2012-2013) laying ground for new Medium Term Plan set for the upcoming three years (2014-2016).

Revenues generation has remained solid, total operating income reached SR5.1 billion ($1.35 billion). Net profit from special commission income rose to SR3.4 billion ($897 million) supported by a stabilization of net interest margin.

The bank announced a stock dividend distribution (1 new share for every 3 existing shares) allowing to increase Share Capital above SR12 billion ($3.2 billion) reinforcing the capital position of BSF in line with its ambition for the coming years subject to approval from shareholders’ general assembly and relevant authorities.

Board Chairman Saleh Al-Omair said the distribution of stock dividend shows BSF’s commitment to its stakeholders while the increase in the level of share capital will reinforce the overall capital position of the Bank thus allowing the bank to become more competitive.

Managing Director Patrice Couvegnes said the strategic restructuring accomplished over the past two years is giving strong foundation and paved the way for greater development.

He voiced confidence in the bank’s capacity to implement the new Medium Term Plan positioning BSF as the ‘Banque of Excellence’.