Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q3 FY2021 Earnings Presentation
43 slides from Federal Bank Ltd. (india)'s earnings presentation, Jan 20, 2021
Slide 1: Cover letter to stock exchanges
Secretarial Department SD/ F24/194/2020-21 January 20, 2021 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, Da
Slide 2: Investor Information Q3 FY 2021
Investor Information ee Q3 FY 2021
Slide 3: Key Messages
Key Messages Robust Operating Performance • Operating Profit @ 963 Cr for the Quarter, Credit Growth in Chosen Areas grew 29% YoY • Total Advances grew by 6% YoY • Net Profit @ 404 Cr, impacted by significant • Retail Advances grew by 16% YoY step up in provisions to further strengthen the • Gold lo
Slide 4: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Operating Profit 29% Retail Banking 16% Other Income 18% Agri Banking 24% RoA @ 0.84 % Business Banking (BuB) 13% RoE @10.38 % Cost to Income Ratio @ 49.82% Commercial Banking (CoB) 8% GNPA @ 2.71% NNPA @ 0.60% Total Advance 6% NII 24% CASA 23% NIM @ 3.22% NRE Deposit 17
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.50 10.92 10.38 3.13 3.22 8.41 8.09 3.04 3.07 1.04 3.00 0.88 0.84 0.69 0.65 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Cost to Income Ratio NNPA (%) PCR (%) 77.10 52.40 50.22 49.
Slide 6: Key Revenue
Key Revenue ₹ in Cr Net Interest Income Other Income 1437 711 1380 1296 1216 1155 488 509 482 408 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Fee Income Net Profit 357 441 341 401 404 311 288 301 308 171 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Q4 FY20 Q1 F
Slide 7: Key Indicators
Key Indicators Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Book Value 78.39 76.38 74.85 72.86 71.33 (Per Share in ₹) Shareholder Value EPS 8.04 6.12 8.07 6.06 8.78 (annualized) CASA + Deposits <2 Cr 90% 90% 89% 87% 88% Granularity (% of Total Deposits) ROA 0.84 0.65 0.88 0.69 1.04 Profitability RoRWA 1.
Slide 8: Asset Quality including Proforma Slippages
Asset Quality including Proforma Slippages Proforma Slippages Amt in Cr Proforma Slippages Business Wise Amt in Cr Proforma Slippages of Q2 & Q3 1068 Retail 314 Of which, large infra account in standstill for Agri 153 which resolution/ payment expected during BB 180 the current quarter; provision fo
Slide 9: Asset Quality - Covid Specific Restructuring
Asset Quality - Covid Specific Restructuring Covid Specific Restructuring Details Amt in Cr Covid Specific Restructuring Amt in Cr Business Wise Restructuring done in Q2 FY21 28 Retail 859 Restructuring done in Q3 FY21 663 BB 93 Restructuring done after Q3 FY21 till 16th Jan 376 2021 CoB 88 Total so
Slide 10: Asset Quality Trends
Asset Quality Trends 4.30 4.29 4.37 Amt in Rs.Cr. Strengthened Provision 3.40 3.33 3.44 Coverage ratio to 77.10%, 3.01 2.92 2.86 2.84 an increase of 1245 bps 2.74 2.28 QoQ 3498 3537 3662 2.01 2.01 1.96 1.71 1.67 1.73 1.59 431 417 532 3139 3139 3191 31973357 1.28 1.14 2955 2958 2970 2890 2855 1.00 1.
Slide 11: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q3 FY21 Q2 FY21 Q3 Q2 Q1 Q4 Q3 TYPE Of which Of which FY21 FY21 FY21 FY20 FY20 Balance Balance Bonds Bonds Retail 0 1 1 97 101 STANDARD 1129 42 441 42 Agri 6 1 1 36 50 Net NPA 196 80 197 80 TOTAL 1325 122 638 122 BuB 16 1 0 54 66 Security Receipt
Slide 12: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q3 FY-21 Q2 FY-21 Q3 FY21 7% A & above 76% 79% 5% 6% BBB 12% 10% 5% 12% 10% < BBB 5% 5% Q2 FY21 Others 7% 6% 79% Internal Rating of ‘others’ (Externally unrated
Slide 13: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q3 FY-21 Q2 FY-21 17% Q3 FY21 19% 18% 18% FBR1 19% 18% FBR2/FBR3 17% 17% Q2 FY21 17% 17% FBR4 17% 17% 30% 30% 17% FBR5/FBR6 30% 30% 17% Staff 2% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance agai
Slide 14: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# CoB# CIB Total Advances Advances -7% 16% 24% 13% 8% 6% 36551 -> 42247 12646 -> 15661 10354 -> 11652 11998 -> 12932 49313 -> 45689 120861 -> 128180 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 302 23% 17% 13% bps 45484 -> 55740 31.46
Slide 15: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# CoB# CIB Total Advances -3% Advances 7% 5% 5% 4% 2% 39649 -> 42247 14915 -> 15661 11134 -> 11652 12416 -> 12932 47093 -> 45689 125209 -> 128180 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 80 6% 2% 2% bps 52786 -> 55740 33.68 -> 34.
Slide 16: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER 86% DIGITAL MIGRATION 28% | 81% YOY GROWTH IN YOY GROWTH IN . ACTIVE USERS ON MOBILE BANKING " MOBILE BANKING VOLUME 120% | 90% YOY GROWTH ACCOUNTS IN UPI OPENED TRANSACTIONS DIGITALLY 300+ || 50+ || 170+ NUMBER OF API'S AVAILABLE FINTECH P
Slide 17: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Feddy A one of its kind omnichannel smart bot available through Web, WhatsApp, Google Assistant, Alexa & FB Messenger. Video KYC An end to end digital & paperless customer acquisition platform through Video Conferencing launched. Vmeet VMee
Slide 18: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER © BharatPe 30 Expanding the ns Merchant Network 20 Aligning with vision of deepening 15 digital payments, Bharat Pe now 10 serves more than 65 lakh customers. Federal Bank now processes the highest number of a transactions for Bharat Pe - a
Slide 19: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER REMITTANCE SOLUTION (9 APIs) Through the Remittance Fund Transfer API, fund transfer from outside of India is made easy, r3. ef ripple Cross Border remittances UPI (10 APIs) The Unified Payments interface (UPI) is an instant, real-time paym
Slide 20: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER fF FedMobile BANKING = _ INVESTMENTS cy Overview — My Investment Total investments © © 5,42,006 ee. Make an investment @ Bank vepesic > Send Money x Digital Goit > Sencl to Mobile Number i futual Funds > Send to Account Number Seene! to Sel
Slide 21: Digital Migration
YOUR PERFECT BANKING PARTNER Digital Migration FEDERAL BANK Branch vs Digital Transactions (In Lakhs) 59.81 69.36 fos Dec-19 Mar-20 jun-20 Sep-20 Dec-20 50.64 mmm Transactions through Branch( Laks) Transactions through Digital Channels(Lakhs) —e==Digital Share YoY Growth in | Users \ Mobile Banking
Slide 22: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER BYOM Digital Personal Loans : Loan book progress Debit Card Spends (In Crores) 1416 1091 1255 1354 i 832 | 66a ose 94573 L |_| LI] Mar-20 Jun-20 Sep-20 Dec-20 un-2 Sep-20 Dec-20 Balance in Crore * BYOM enables digital instant personal loans
Slide 23: Business Parameters
aheeeerataetieor Business Parameters
Slide 24: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio 33.68% 34.48% Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 31.46% 30.50% 32.02% 93241 92630 91984 89967 85751 56037 53152 49915 46774 45779 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CA & SA CASA + Demand Dep Other Retail Deposit 42059 44318 46582 38019 39195 7465 7255
Slide 25: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 9% 10% 12% 54% 36% 33% 46% Retail Agri BuB CB CIB Retail Wholesale Yield on Advances 8.90 8.73 59510 58621 61311 62695 61372 Q2 FY21 69560 59551 61458 62065 65699 Q3 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 YOA 24
Slide 26: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 10659 7801 8013 9106 7694 1492 1645 1710 60% 1294 3231 1551 3134 3195 3346 3115 7125 7009 7206 7489 6884 17% 17564 18229 18201 18497 19043 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Retail Agri BuB RETAIL BAN
Slide 27: Wholesale Banking
Wholesale Banking CoB Corporate ₹ in Cr 22% 78% 49313 50725 49542 47093 45689 11998 11970 11830 12416 12932 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 WHOLESALE BANKING Focus on New name acquisition continues to yield result with 39 NTB clients added during the quarter in CIB and 50 NTB in CoB. These
Slide 28: Fee Income: Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise (In Cr) 1000 711 700 800 488 509 9 482 408 500 600 369 0 0 0 400 7 165 141 300 96 319 82 84 123 86 200 100 223 249 50 221 255 119 0 -100 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 Retail Wholesale Treasury Others Total Fee Income Di
Slide 29: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Y-o-Y % Loan Processing Fee 101 82 44 56 63 60% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 211 174 103 209 191 10% Income Net Profit on Forex 357 45 32 24 76 56 -20% Transactions 311 15% Fee Income 357 288 171
Slide 30: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 29 3 1 28 22 Customers 2 23 @ 8 12 Core BC led 8 Sales /Relationship 2 Distribution 1 Channel (Bank owned) 45 9 30 1 1 11 1 3 26 103 20 Direct Sales Agents /Connectors 12% 16% 23 Q3 FY21 6 12% 16% Q3 FY21 Q2 FY21 Q1 FY21 108 2 Q2 F
Slide 31: Distribution: Bank's Market Share
Distribution ₹ in Cr Network I Network II 7710 31-Dec-20 35031 -7% Corporate 5% 37640 7309 31-Dec-19 Commercial Banking 5423 7405 8% 6% 6832 (CoB) 5130 Business Banking 6079 5483 5413 12% 12% (BuB) 4894 7807 Agri 7854 16% 5882 33% 6764 15515 22780 Retail 7% 18375 24% 14541 5544 NR Business 60792 17%
Slide 32: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Dec-20 Sep-20 Risk Weighted Assets Credit Risk 93847 91404 Market Risk 3808 3980 Operational Risk 10095 10095 Total RWA 107751 105479 Tier-1 Capital Funds 14003 14066 Tier-II Capital Funds 1416 1381 Total Capital Funds 15419 15447 CRAR 14.31% 14.64% Tier-I 13%
Slide 33: Annexures
FEDERAL BANK Annexures
Slide 34: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q3 FY21 Q2 FY21 LIABILITIES Capital 399 399 Share Holding Pattern Reserves & Surplus 15246 14836 Deposits 161670 156748 Borrowings 12474 11043 34% Other Liabilities & Provisions 7058 6001 29% TOTAL 196847 189027 ASSETS 1% Cash & Balance with RBI 6410 6120
Slide 35: Financials
Financials ₹ in Cr Q3 FY21 Q2 FY21 Q-o-Q Q3 FY20 Y-o-Y Interest Income 3460 3488 -1% 3330 4% Interest Expenses 2022 2108 -4% 2175 -7% Net Interest Income 1437 1380 4% 1155 24% Other Income 482 509 -5% 408 18% Operating Expense 956 883 8% 819 17% Total Income 3941 3997 -1% 3738 5% Total Expense 2978
Slide 36: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance FOOD/AGRICULTURAL PRODUCTS 1.24% 1.32% 31.12.2020 BASIC METALS CHEMICALS 1.37% TEXTILES INCLUDING JUTE & COIR 1.43% CONTRACTORS 1.93% FOOD PRODUCTS 1.97% POWER GENERATION & TRANSMISSION 2.61% REAL ESTAT
Slide 37: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 74.00% IDBI Federal Life Insurance Company of India Limited 26.00% Equirus Capital Private Ltd 19.90% Subsidiaries & JVs IDBI Federal Life I
Slide 38: Fedbank Financial Services Ltd. (FedFina)
Fedbank Financial Services Ltd. (FedFina) ₹ in Cr Federal Bank stake in FedFina Q3 FY21 Q2 FY21 Q-o-Q Q3 FY20 Y-oY 100% 82.59% 74% 74% Net Worth 810 716 13% 603 34% AUM 4,337 Total Revenue 175 163 7% 119 46% 3,780 342 376 NII 86 84 3% 55 55% 300 592 705 PPOP 39 38 3% 16 141% 2,004 665 1,239 PBT 20 4
Slide 39: External Ratings
External Ratings Fixed Deposit A1+ (Short term) Certificate of Deposit A1+ India Ratings IND AA Tier 2 (Capital) Bonds & Research CARE AA Pvt Ltd, CARE • Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 38
Slide 40: Disclaimer
Disclaimer This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from th
Slide 41: Thank You
Thank You AE A aA og
Slide 42: Press Release: Q3 FY21 results
Marketing & Investor Relations Department __________________________________________________________________________ January 20, 2021 PRESS RELEASE Federal Bank continues its strong operating momentum with 29% growth in Operating Profit Federal Bank announced Unaudited Financial Results for the quar
Slide 43: Press Release: Margins, Asset Quality, Capital Adequacy
Margins The Bank earned Net Interest Income of Rs.1437 Cr for the quarter as against Rs. 1155 Cr for the same quarter last year. The Net Interest Margin of the Bank during quarter ended 31st December 2020 stood at 3.22%, an increase of 22 basis points from the same quarter last year. Asset Quality G