Banque Saudi Fransi (1050.SE): Key Takeaways from 3Q26 Results Call

Citi summarized the 3Q26 earnings call of Banque Saudi Fransi (1050.SE), maintaining Buy with a SAR25.15 target price, implying a 37.9% expected total return (including a 5.9% dividend yield) versus the SAR19.05 share price. Management reaffirmed FY26 guidance, including a ~3.0% NIM, but funding costs remain the key earnings headwind: tighter system liquidity, intense deposit competition and CASA migration drove a 13bp QoQ decline in 3Q26 NIM to 2.94%. A further 25bp rate hike is assumed in 4Q, with loan repricing through 4Q26-1Q27 partly offsetting pressure. Non-interest income improved, retail consumer loans rose 13% YTD, LDR is ~113%, credit costs are well controlled, and FY26 guidance includes high single-digit loan growth, cost of risk of 45-50bp, cost-to-income below 33%, ROE of 12-13% and CET1 above 15%; dividend sustainability was reaffirmed.