ENP Newswire - 14 January 2014 Release date- 13012014 - Banque Saudi Fransi recorded a robust growth of the balance sheet reaching SR 170bn ( US$ 45bn ) an 8% increase vs 2012 supported by a strong macroeconomic environment. The loans and advances portfolio increased by 8% to reach SR 111bn ( US$ 30bn ) compared to SR 103bn ( US$ 27bn ) in 2012. Deposits amounted to SR 132bn ( US$ 35bn ), an increase of 14% 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 SR 2.4bn ( US$ 641mn ) compared to SR 3.0bn ( US$ 804mn ) 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 SR5.1bn ( US$ 1.35bn ). Net profit from special commission income rose to SR 3.4bn ( US$ 897mn ) 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 SR 12bn ( US$ 3.2bn ) 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. The Chairman of the Board Dr. Saleh Al-Omair commented that 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. The Managing Director Mr. Patrice Couvegnes, said the strategic restructuring accomplished over the past two years is giving strong foundation and paved the way for greater development. I'm confident in our capacity to implement the new Medium Term Plan positioning BSF as the 'Banque of Excellence'.
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