BSF
Banque Saudi Fransi
As of: May 28, 2026
Company Profile
Banque Saudi Fransi (the Bank) is a Saudi Joint Stock Company established in 1977, taking over the branches of the Banque de l’Indochine et de Suez in Saudi Arabia. The Bank provides a full range of banking services, including Shariah-compliant Islamic products, and is regulated by the Saudi Central Bank (SAMA). BSF operates through 79 branches in Saudi Arabia. Key wholly owned subsidiaries include Saudi Fransi Capital (brokerage, asset management, and corporate finance), Saudi Fransi for Finance Leasing (Islamic lease financing), Sakan Real Estate Financing (holding title deeds), and Sur Multi Family Office Limited (wealth management). The Bank also has Cayman Islands subsidiaries BSF Markets Limited and BSF Finance Limited for derivative trading and capital raising, and an associate investment in Banque BEMO Saudi Fransi (Syria).
The Story
Banque Saudi Fransi operates as a corporate-centric financial institution in Saudi Arabia, delivering a 10.48% return on equity supported by a robust SAR 221.9 billion net loan book and a solid 21.03% capital adequacy ratio.
Source: Q1 2026 (2026-05-07)
Performance & Distributions
Market Pricing Multiples
Growth Story
Grounded in its corporate banking heritage, Banque Saudi Fransi's growth story resembles a deep-rooted oak tree, steadily expanding its core corporate trunk while selectively branching into retail segments. The bank's net loan book reached SAR 221.9 billion, driven primarily by corporate loans and advances of SAR 159.7 billion, alongside a growing retail loan portfolio of SAR 60.5 billion. This lending expansion has fueled a Net Interest Income (NII) of SAR 8.8 billion TTM. While fee income diversification remains an ongoing journey, the bank's sustainable growth rate of 14.51%—supported by an ROE of 10.48% and a retention rate of 51.36% (derived from a 48.64% payout ratio)—indicates a strong internal capital generation capacity to fund future balance sheet expansion without diluting its capital base.
Profitability Dynamics
The bank's profitability profile operates like a high-compression engine, translating its asset base into steady returns with a net interest margin (NIM) of 2.71% and a return on equity (ROE) of 10.48%. This ROE comfortably exceeds its estimated cost of equity of 9.26%, demonstrating positive economic value creation for shareholders. However, operational efficiency remains an area for optimization; the bank's cost-to-income ratio stands at 43.08%, reflecting the ongoing investments in digital infrastructure and human capital, with 3,146 employees across 79 branches. Positive operational leverage will depend on the bank's ability to contain operating expenses while capitalizing on its high loan-to-deposit ratio of 111.20% to maximize yield on its interest-earning assets.
Risk & Capital Structure
Risk Factors
Navigating a complex macroeconomic landscape, Banque Saudi Fransi maintains the defensive posture of a double-hull vessel, backed by exceptional capital adequacy and prudent risk management. The bank's capital buffers are highly robust, with a Total Capital Adequacy Ratio of 21.03% and a CET1 ratio of 15.95%, both comfortably exceeding regulatory minimums. Asset quality remains resilient, characterized by a low non-performing loan (NPL) ratio of 1.01% and a strong NPL coverage ratio of 145.61%, supported by TTM provisions of SAR 970 million and an expected credit loss (ECL) coverage of 1.81%. On the funding side, the bank faces a tight liquidity profile, as evidenced by a high loan-to-deposit ratio of 111.20%, with customer deposits at SAR 199.6 billion, of which time deposits represent SAR 111.0 billion and demand deposits stand at SAR 82.7 billion. Furthermore, the bank actively monitors geopolitical volatility in the Middle East, conducting granular stress tests on oil prices and credit exposures to safeguard its balance sheet against potential systemic shocks.
Governance Disclosures
We track 12 key governance and oversight matters for this company in our database.
Funding and Deposits from Associates
The Bank received funding from its associates, with due to banks and other financial institutions balances amounting to SAR 465,748 thousand as of March 31, 2026, compared to SAR 472,013 thousand as of December 31, 2025. The Bank incurred special commission expenses of SAR 4,540 thousand on these associate balances during the period ended March 31, 2026.
Related-Party Credit Facilities to Major Shareholders
The Bank disclosed loans and advances to major shareholders and their affiliates of SAR 689,320 thousand as of March 31, 2026, up from SAR 411,774 thousand as of December 31, 2025. The Bank also held deposits from major shareholders and their affiliates of SAR 117,602 thousand as of March 31, 2026, and earned special commission income of SAR 8,482 thousand from them during the period.
Research Report
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