3Q 2023 Financial Performance
FINANCIAL PERFORMANCE | RATE SENSITIVITY
BSF is positively positioned for a rising rate environment
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At 31 December 2022, BSF estimated a 1-year NIM
sensitivity of a 100bps rates rise at 10bps; this would
translate into SAR 219mn higher NII.
This reflects the net long position in variable rate assets,
reflecting lending concentration towards corporate.
There were 11 rate hikes in KSA during 2022 and 9M 2023
totaling 500bps not all of which have repriced on the
balance sheet to date.
Traditionally BSF mitigated its interest rate risk exposure
through cash-flow hedges; the size of the CFH portfolio is
driven by the development of BSF's balance sheet
structure, IRR appetite & structural market trends.
Impact of 100bps Rate Change as at 31 December 2022
(SARmn/%)
219
(219)
+0.10%
Total assets
Exposure to Interest Rate Risk as at 31 December 2022 (SAR Bn)
Total liabilities and equity -95.3
22%
70%
Interest rate sensitivity - On-BS
Interest rate sensitivity - Off-BS
Total interest rate sensitivity gap
48%
البنك
السعودي
الفرنسي
Banque
Saudi
Fransi
24%
17%
12% 210.6
29%
26%
26% 19% 115.3
-26.0
60%
100% 26.0
16% 18%
48%
17% 115.3
Within 3 months
3-12 months
1-5 years
NIM, Rates and CFH Impact Trends (%)
Over 5 years
Cash Flow Hedges Swaps (SAR Bn)
3.66%
34.7
5.83%
6.09%
5.49%
5.28%
68.3%
28.5%
22.2%
21.5%
22.2%
28.6% 30.1%
о
3.65%
2.86%
2.93%
3.16%
3.30%
3.57% 3.66%
-51%
+42%
60.0
51.8
1.36%
3.14%
2.71%
32.8
33.0 34.7
-0.10%
0.25%
0.11%
-0.01%
-0.15% -0.28% -0.36%
-0
-0.42%
1Q 22
2Q 22
3Q 22
4Q 22
1Q 23
2Q 23
3Q 23
2018
-O-SAIBOR: SAR 3M (avg)
-o-Cash flow hedging impact
-O-NIM
NII
NIM
+100bps -100bps
27.5 25.6 25.7 25.5 24.4 25.6 26.8
2019 2020 2021 2022 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23
Total Notional Amount
CFH % of IR Sensitivity Gap
Note: Exposure to interest rate risk is shown in time buckets based on the earliest of first re-pricing date and contractual maturity; this analysis includes all contractual balances (floating and fixed) and off-balance sheet positions
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