Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Q3 FY2024 Earnings Presentation
38 slides from Hdfc Bank's earnings presentation, Jan 16, 2024
Slide 1: Q3FY24 Earnings Presentation
Q3FY24 Earnings Presentation January 16, 2024
Slide 2: Key performance metrics for Q3 FY24
Key performance metrics for Q3 FY24 ➢ Advances growth ₹ 1.1 tr in the quarter (↑4.9%) ➢ Deposits increased ₹ 0.4 tr in the quarter (↑1.9%) ✓ Retail deposits grew ₹ 0.5 tr in the quarter (↑2.9%) ➢ Asset quality continues to remain stable ➢ RoA of 2.0% and RoE of 15.8% in the current quarter ➢ Consoli
Slide 3: Key financial parameters for Q3 FY24
STANDALONE Key financial parameters for Q3 FY24 Gross advances at ₹ 24,693 bn, Net profit of ₹ 164 bn, EPS up by 4.9% QoQ for the quarter ₹ 21.6 Deposits at ₹ 22,140 bn, Gross NPA at 1.26% up by 1.9% QoQ ; CASA 38% Net interest margin^ of 3.4% Return on assets of 2.0% Cost-to-income ratio of 40.3% C
Slide 4: Consolidated income statement
CONSOLIDATED Consolidated income statement P&L (₹ bn) Q3 FY23 Q2 FY24 Q3 FY24 QoQ YoY Net revenue 336.2 663.2 717.7 8.2% 113.5% Operating expenses 134.4 420.4 459.3 9.3% 241.8% Provisions* 32.4 33.1 46.0 39.0% 41.9% Profit before tax 169.4 209.7 212.4 1.3% 25.4% Consolidated profit 127.0 168.1 172.6
Slide 5: Income statement
STANDALONE Income statement P&L (₹ bn) Q3 FY23 Q2 FY24 Q3 FY24 QoQ YoY Net interest income 229.9 273.8 284.7 4.0% 23.9% Non-interest income 85.0 107.1 111.4 4.0% 31.0% Net revenue 314.9 380.9 396.1 4.0% 25.8% Operating expenses 124.6 154.0 159.6 3.6% 28.1% Provisions* 28.1 29.0 42.2 45.2% 50.2% Prof
Slide 6: Abridged balance sheet
STANDALONE Abridged balance sheet Balance sheet (₹ bn) Q3FY23 Q2FY24 Q3FY24 QoQ Loans and advances 15,068 23,312 24,461 1,149 Investments 5,273 7,234 6,749 (485) Government and debt securities 5,222 7,040 6,556 (484) Equity and other securities 51 194 193 (1) Cash & equivalent 1,192 1,871 1,775 (96)
Slide 7: Growth in advances and deposits
BUSINESS GROWTH Growth in advances and deposits Gross advances Deposits h 4.9% ₹ bn ₹ bn h 1.9% 23,546 24,693 21,729 22,140 22,444 20,638 19,131 16,300 Jun'23 Jun'23 (P) Sep'23 Dec'23 Jun'23 Jun'23 (P) Sep'23 Dec'23 *(P) indicates balances on merged basis 7 HDFC Bank Presentation Q3 FY2024 HDFC Limi
Slide 8: Sustained growth across segments
LOAN BOOK Sustained growth across segments Growth across all segments Composition of retail loan book Dec’23 Loans (₹ bn) Sep'23 Dec'23 QoQ Retail 11,803 12,189 3.3% 15% 10% Retail Mortgages 7,171 7,432 3.6% Retail Non-Mortgages 4,632 4,756 2.7% 8% CRB 7,244 7,731 6.7% 1% 1% Other Wholesale 4,281 4,
Slide 9: Stable and granular deposits
HIGH QUALITY DEPOSIT FRANCHISE Stable and granular deposits Granular deposits Proportion of CASA deposits ₹ bn 42% 17% 17% 17% 16% 39% 38% 38% 83% 83% 83% 84% 5,606 5,606 5,700 5,799 2,523 2,460 2,477 2,558 Jun'23 Jun'23 (P) Sep'23 Dec'23 Jun'23 Jun'23 (P) Sep'23 Dec'23 CA SA CASA Ratio Retail Whole
Slide 10: Branch expansion and customer relationships driving growth
BUILDING FRANCHISE STRENGTH Branch expansion and customer relationships driving growth Branch network Customer base #s # mn 7,183 7,821 7,860 7,945 8,091 18% 18% 18% 18% 18% 33% 34% 34% 34% 34% 20% 20% 20% 20% 20% 93 91 85 28% 28% 28% 28% 28% 83 81 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Metro Urban Semi
Slide 11: Capital and liquidity metrics
Capital and liquidity metrics Capital adequacy LCR (Consolidated) 19.5% 19.4% 19.3% 18.9% 18.4% 17.8% 126% 121% 113% 116% 17.2% 110% 17.1% 16.9% 16.8% Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Total Capital Tier 1 Capital 11 HDFC Bank Presentation Q3 FY2024
Slide 12: Net revenues
STANDALONE Net revenues Net revenue Net revenue mix ₹ bn 27% 27% 28% 28% 28% 381 396 315 321 328 73% 73% 72% 72% 72% Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 YoY 18% 21% 27% 33% 26% Net Interest Income Non Interest Income 12 HDFC Bank Presen
Slide 13: Net interest income
STANDALONE Net interest income Net interest income Net interest margin (NIM) ₹ bn 4.3% 4.3% 4.3% 4.1% 4.1% 4.1% 3.6% 3.6% 3.4% 3.4% 274 285 230 234 236 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 YoY 25% 24% 21% 30% 24% NIM NIM (IEA) IEA: Inter
Slide 14: Yield on assets and cost of funds
STANDALONE Yield on assets and cost of funds Yield on assets and cost of funds Mix Particulars Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 8.2% 8.3% 7.9% 8.1% 7.7% Advances mix Retail 38% 37% 38% 48% 48% Mortgage 11% 11% 11% 29% 29% 4.8% 4.9% Ex Mortgage 27% 26% 27% 19% 19% 4.0% 3.7% CRB 37% 39% 39% 30% 31%
Slide 15: Other income
STANDALONE Other income Other income Fee income mix ₹ bn 111 107 7% 6% 7% 8% 6% 92 15 18% 16% 17% 15 20% 18% 85 87 11 10 15 11 11 6 3 12 12 33% 10 13 34% 33% 35% 11 34% 19% 20% 21% 20% 66 63 69 69 20% 61 22% 27% 21% 22% 19% -0 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q3 Dec'22 Q4 Mar'23 Q1
Slide 16: Operating expenses
STANDALONE Operating expenses Operating expenses Cost efficiency ₹ bn 42.0% 42.8% 160 39.6% 40.4% 40.3% 154 141 135 125 102 106 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 93 91 Cost to income ratio 84 2.3% 2.4% 2.4% 48 52 54 1.9% 1.9% 41 44 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q3
Slide 17: Resilient asset quality
RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment 1.9% 1.7% 1.6% 1.6% 1.3% 1.2% 1.3% 1.2% 1.1% 1.1% 1.1% 0.9% 0.8% 0.3% 0.3% 0.3% 0.3% 0.3% Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Sep'23 Dec'23 GNPA NNPA Retail CRB CRB (ex-Agri) Wholesale Stable asset quality across segments 1
Slide 18: Movement of NPAs
RISK MANAGEMENT Movement of NPAs 26 bps 20 bps ₹ bn 134 bps 45 14 bps 70 126 bps 31 316 310 GNPA as on Sep'23 Slippages Upgrades & Recoveries Write offs GNPA as on Dec'23 22 bps 32 bps 17 bps ₹ bn 78 45 134 bps 24 bps 32 117 bps 125 316 191 GNPA as on Jun'23 On merger Slippages Upgrades & Write offs
Slide 19: Provisions
RISK MANAGEMENT Provisions Credit cost Stock of provisions ₹ bn 74 bps 70 bps 492 492 * 67 bps 101 105 52 bps 51 bps 15 15 49 bps 49 bps 326 44 bps 312 318 71 142 139 35 bps 66 70 34 bps 15 15 15 94 97 97 235 233 137 137 143 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23
Slide 20: Profitability
Profitability Standalone profit after tax Earnings per share* ₹ bn ₹ 22.0 21.6 21.4 21.1 21.6 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 EPS Standalone 160 164 123 120 120 ₹ 22.8 22.6 22.2 22.2 22.7 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 D
Slide 21: Stake held in key subsidiary entities – December 31, 2023
GROUP COMPANIES Stake held in key subsidiary entities – December 31, 2023 Investment No. of shares % Stake PAT of the Book value EPS (FTQ) Entity Amount outstanding held by company per share (₹) (₹ bn) by entity (mn) HDFC Bank (FTQ) (₹ bn) (₹) HDB Financial Services 35 792.3 94.74% 6.4 164.7 8.0 HDF
Slide 22: Subsidiaries – Q3FY24 update – HDB Financial Services
GROUP COMPANIES Subsidiaries – Q3FY24 update – HDB Financial Services • 94.74% stake held by the Bank as of December 31, 2023 • 14.6 million customers serviced through a network of 1,618 branches across 1,125 cities/towns ‒ 1 million customers and 16 branches added during Q3 FY24 • Healthy momentum
Slide 23: Subsidiaries – Q3FY24 update – HDFC Life Insurance
GROUP COMPANIES Subsidiaries – Q3FY24 update – HDFC Life Insurance • 50.37% stake held by the Bank as of December 31, 2023 • 288k individual policies sold during the quarter up 8% from prior year; overall 16 mn lives insured during the quarter • Individual weighted received premium market share of 1
Slide 24: Subsidiaries – Q3FY24 update – HDFC AMC
GROUP COMPANIES Subsidiaries – Q3FY24 update – HDFC AMC • 52.55% stake held by the Bank as of December 31, 2023 • Quarterly average AUM of ₹ 5.5 trillion; 11.2% market share • 61% of quarterly average AUM is equity oriented with 57% in actively managed equities • 8.7 million unique investors; 20.6%
Slide 25: Subsidiaries – Q3FY24 update – HDFC ERGO General Insurance
GROUP COMPANIES Subsidiaries – Q3FY24 update – HDFC ERGO General Insurance • 50.48% stake held by the Bank as of December 31, 2023 • Q3FY24 Gross direct premium market share of 6.7% in overall industry and 10.2% amongst private sector insurers • Retail mix in business 69% for the quarter ended Decem
Slide 26: Subsidiaries – Q3FY24 update – HDFC Securities
GROUP COMPANIES Subsidiaries – Q3FY24 update – HDFC Securities • 95.39% stake held by the Bank as of December 31, 2023 • 5.0 million customers serviced through a network of 193 branches across 143 cities • Around 94% of the active clients utilized the services offered through company’s digital platf
Slide 27: ESG at HDFC Bank
ESG INITIATIVES ESG at HDFC Bank Environmental Social Governance Ratings • Target to be carbon neutral • Leading responsibly • Commitment to principles of by FY32 • Taking banking to the unbanked; independence, • Supporting businesses; accountability, responsibility, • Commitment to have all new tra
Slide 28: Balance sheet and capital productivity
COMPOUNDING VALUE Balance sheet and capital productivity Consistent growth in assets and RoA ₹ bn 40,000 2.1 1.9 2.0 2.0 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.1 2.0 2.0 30,000 20,000 10,000 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Q2FY24 Q3FY24 Assets RoA % Capital positioned for grow
Slide 29: Consistent performance
COMPOUNDING VALUE Consistent performance Standalone book value per share h 16% ₹ h 16% 534 556 502 525 456 480 433 451 395 414 Q2 Sep'21 Q3 Dec'21 Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Consolidated book value per share h 16% ₹ h 16% 553 576 519 543 471 495 4
Slide 30: Appendix
APPENDIX 30 HDFC Bank Presentation Q3 FY2024 HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.
Slide 31: Consolidated income statement year to date Dec’23 (9M FY24)
CONSOLIDATED Consolidated income statement year to date Dec’23 (9M FY24) P&L (₹ bn) 9M FY23 9M FY24 YoY Net revenue 923.3 1,731.6 87.5% Operating expenses 369.4 1,031.4 179.2% Provisions* 106.7 112.1 5.0% Profit before tax 447.2 588.1 31.5% Consolidated profit 334.0 464.4 39.0% Consolidated EPS (₹)
Slide 32: Income statement year to date Dec’23 (9M FY24)
STANDALONE Income statement year to date Dec’23 (9M FY24) P&L (₹ bn) 9M FY23 9M FY24 YoY Net interest income 634.9 794.6 25.1% Non-interest income 224.8 310.7 38.2% Net revenue 859.7 1,105.3 28.6% Operating expenses 341.9 454.2 32.8% Provisions* 92.3 99.8 8.1% Profit before tax 425.5 551.3 29.6% Pro
Slide 33: Industry-wise distribution
CONSOLIDATED Industry-wise distribution Total Total Industry (₹ bn) Outstanding As a (%) Industry (₹ bn) Outstanding As a (%) (FB + NFB) (FB + NFB) Consumer Loans 9,784 33.0% Telecom 394 1.3% NBFC 1,743 5.9% Coal & Petroleum Products 365 1.2% Real Estate & Property Services 1,282 4.3% Financial Inte
Slide 34: Top borrower exposure as a % of total exposure
Top 20 borrower exposure as a % of total exposure 14.2% 14.3% 13.5% 11.0% 11.0% Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 34 HDFC Bank Presentation Q3 FY2024 HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.
Slide 35: Risk weighted assets
Risk weighted assets RWA to Total Assets Risk Weight Density* 68% 67% 67% 64% 64% 65% 62% 63% 60% 60% Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 35 HDFC Bank Presentation Q3 FY2024 * Risk Weight Density = RWA / (FB + NFB (post CCF)) HDFC Limited merged with HDFC Bank effec
Slide 36: Corporate rating mix
Corporate rating mix Rating mix % of externally rated wholesale book (corporate & mid corporate) Sep’23 Dec’23 74.7% 75.7% 5.1% 4.7% 7.1% 6.9% 13.1% 12.7% AA and above A BBB BB and below AA and above A BBB BB and below 36 HDFC Bank Presentation Q3 FY2024 HDFC Limited merged with HDFC Bank effective
Slide 37: Shareholding Pattern
HDFC BANK Shareholding Pattern Dec’23 Other FIs, 2.0% Others, 2.6% Insurance cos, 7.8% Number of shares outstanding : 7,592 mn Individuals, Number of individual shareholders : 2.97 mn 11.7% FIIs/FPIs, 45.6% Foreign limit utilized : 59.4% Foreign headroom : 14.6% Mutual Funds, 16.8% ADR, 13.5% 37 HDF
Slide 38: Safe harbour statement
Safe harbour statement Certain statements are included in this release accounting standards, our ability to pay dividends, attacks by the United States, a United States-led which contain words or phrases, such as ‘will’, the impact of changes in banking regulations and coalition or any other country