Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q2 FY2022 Earnings Presentation
42 slides from Federal Bank Ltd. (india)'s earnings presentation, Oct 22, 2021
Slide 1: Secretarial Department cover letter to exchanges
Secretarial Department SD/ F24/142/2021-22 October 22, 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 Q2 FY 2022
Investor Information ee Q2 FY 2022
Slide 3: 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 4: Key Messages
Key Messages • Strong traction in NIM @ 3.20% and pick up Credit Growth in Chosen Areas in NII @ 1479 Cr, Sequential growth of 4%, • Total Advances grew by 10% YoY on the back of credit growth in select • Retail Advances grew by 12% YoY Gaining Momentum • Agri Business grew by 20% YoY segments in Bu
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.20 10.73 10.38 9.03 3.15 3.20 3.13 3.22 3.23 1.02 0.92 8.09 0.84 0.76 0.65 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Cost to Income Ratio NNPA (%) PCR (%) 55.05 53.90 53.06 77.
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1479 650 1437 1420 1418 1380 552 509 482 476 465 449 436 444 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY21 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Reported Adjusted Fee Income Net Profit 373 478 357 363 460 404 288 367 255 308 Q2 FY21 Q3 FY21
Slide 7: Key Indicators
Key Indicators Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Book Value 83.57 82.60 80.77 78.39 76.38 (Per Share in ₹) Shareholder Value EPS 8.79 7.38 9.71 8.04 6.12 (annualized) CASA + Deposits <2 Cr 92% 91% 88% 90% 90% Granularity (% of Total Deposits) ROA 0.92 0.76 1.02 0.84 0.65 Profitability RoRWA 1.
Slide 8: Asset Quality Trends
Asset Quality Trends Amt in Rs.Cr. 3.33 3.44 Covid Specific Restructuring 3.01 2.74 2.92 2.86 2.84 2.62 as on Q2 FY22 at 2.49% of 2.28 2.01 2.01 1.96 2.24 Gross Advance 1.71 1.67 1.73 1.59 1.76 5194 1.28 1.14 1.00 1.08 139 4328 161 1502 3139 3191 31973357 3347 2958 3139 2970 2890 2855 2771 160 1593
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q2 FY22 Q1 FY22 Q2 Q1 Q4 Q3* Q2 TYPE Of which Of which FY22 FY22 FY21 FY21 FY21 Balance Balance Bonds Bonds Retail 85 127 301 314 1 STANDARD 3553 17 2574 17 Agri 98 157 89 159 1 Net NPA 382 117 341 115 TOTAL 3935 134 2915 132 BuB 49 169 73 196 1
Slide 10: Covid Specific Restructuring
Covid Specific Restructuring Balance Outstanding of Covid Specific Restructuring Amt in Cr Retail 2072 Agri 155 CV/CE 69 BuB 530 CoB 455 CIB 142 Total Restructuring 3423 80% of the restructured book has >75% security coverage. 73% of this has >100% security cover Balance Outstanding of Covid Specifi
Slide 11: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q2 FY22 Q1 FY22 Q2 FY22 8% A & above 77% 77% 3% 8% BBB 12% 12% 3% 12% 12% < BBB 3% 3% Q1 FY22 Others 8% 8% 77% Internal Rating of ‘others’ (Externally unrated C
Slide 12: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q2 FY22 Q1 FY22 17% Q2 FY22 20% 17% 20% FBR1 20% 20% FBR2/FBR3 18% 18% Q1 FY22 18% 18% FBR4 16% 16% 29% 29% 16% FBR5/FBR6 29% 29% 16% Staff 2% 2% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance agains
Slide 13: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances 12% 20% 10% 12% 4% 10% 39605 -> 44264 14880 -> 17890 11275 -> 12457 12331 -> 13851 47117 -> 48851 125209 -> 137313 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 248 11% 18% 6% bps 52786 -> 62191 33.
Slide 14: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances 2% 6% 8% 7% 2% 3% 43599 -> 44264 16837 -> 17890 11576 -> 12457 12963 -> 13851 47812 -> 48851 132787 -> 137313 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 135 -1% 5% 3% bps 58959 -> 62191 34.81 ->
Slide 15: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER SHARE OF DIGITAL TRANSACTION Digital Migration 87.5%) %10.8 CR WORTH MONTHLY MOBILE BANKING TRANSACTIONS 149% YOY GROWTH IN UPI TRANSACTIONS 200+ Digital Transformation 81% PARTNERS ACCOUNTS RPA PROCESSES OPENED RUNNING DIGITALLY ee” | g 5
Slide 16: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Branch vs Digital Transactions (In Lakhs) 100 89.00% 88.42% " ee sos 80 87.50% 88.00% eo 87.50% 60 86.07% 87.00% 86.50% 40 85.52% 4 us 85.36% | se76 79.98 86.00% 50.81 69.36 «pe: 64.12 85.00% 20 10.12 11.22 13.16 8.39 11.42 24.50% 84.00% =
Slide 17: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 31 Pine Labs eof. rz egy duper AT as sro cross border remittances Cross Border remittances %p Lulu (GROUP INTERNATIONAL, EMI on P& Checkout EMI on PG Checkout Full stack for Neo Banks No tension instant EMI on Checkout Cross border inward r
Slide 18: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 17
Slide 19: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 18
Slide 20: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 19
Slide 21: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 20
Slide 22: Business Parameters
aheeeerataetieor Business Parameters 21
Slide 23: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio 34.81% 36.16% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 33.68% 34.48% 33.81% 98598 97719 97265 93241 92630 62562 59336 58713 56037 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 53152 CA & SA CASA + Demand Dep Other Retail Deposit 46582 47686 49996 51381 44318 Remittance
Slide 24: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 9% 10% 54% 13% 36% 32% 46% Retail Wholesale Retail Agri BuB CoB CIB Yield on Advances 8.15 61939 62702 8.11 59448 58559 60775 Q1 FY22 65760 69621 72938 72012 74611 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 YOA 23
Slide 25: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 11582 10343 9892 10615 9062 61% 1645 1710 1809 1766 1736 3840 3603 3583 3195 3346 7852 7783 7973 7206 7489 16% 18497 19043 20020 20124 20824 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 RETAIL BANKING Retail Ag
Slide 26: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio No of outstanding Accounts (in Lakhs) 15816 15764 15976 14692 11.62 11.20 11.32 12691 10.46 9.78 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Tonnage 49.51 48.41 48.73 46.48 42.25 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY2
Slide 27: Wholesale Banking
Wholesale Banking CoB ₹ in Cr Corporate(CIB) 22% 48851 78% 47117 45713 48748 47812 12331 12846 13190 12963 13851 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 WHOLESALE BANKING ➢ Onboarded 62 new clients in CIB and 79 new clients in CoB, across business groups, geographies and sectors during the quarter.
Slide 28: Fee Income: Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise* (In Cr) 1000 700 800 552 477 436 449 444 600 1 27 500 3 1 400 162 162 88 281 97 62 74 72 300 200 71 62 216 252 272 182 276 100 0 -1 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 -200 -100 Retail Wholesale Treasury Others Total Fee Inc
Slide 29: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Loan Processing Fee 96 53 97 101 82 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 227 161 226 211 174 Income 373 Net Profit on Forex 50 41 40 45 32 Transactions 29% 288 Fee Income 373 255 363 357 288 Profit on sa
Slide 30: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 29 3 1 22 27 Customers @ 23 8 12 Core BC led 2 Sales /Relationship 8 2 Channel Distribution 1 (Bank owned) 44 9 31 11 1 2 3 25 101 20 Direct Sales Agents /Connectors 12% 16% Q2 FY22 6 12% 16% 24 Q2 FY22 Q1 FY22 Q4 FY21 104 2 Q1 FY2
Slide 31: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Sep-21 Jun-21 Risk Weighted Assets Credit Risk 98648 94757 Market Risk 3605 3885 Operational Risk 11695 11695 Total RWA 113948 110337 Tier-1 Capital Funds 16057 15305 Tier-II Capital Funds 998 851 Total Capital Funds 17055 16156 CRAR 14.97% 14.64% Tier-I 14.09
Slide 32: Annexures
FEDERAL BANK Annexures 31
Slide 33: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q2 FY22 Q1 FY22 LIABILITIES Capital 420 399 Share Holding Pattern Reserves & Surplus 17307 16089 Deposits 171995 169393 Borrowings 10784 9350 31% Other Liabilities & Provisions 6368 4807 32% TOTAL 206874 200038 2% ASSETS Cash & Balance with RBI 8486 8284
Slide 34: Financials
Financials ₹ in Cr Q2 FY22 Q1 FY22 Q-o-Q Q2 FY21 Y-o-Y Interest Income 3379 3356 0.7% 3488 -3% Interest Expenses 1900 1937 -1.9% 2108 -9.9% Net Interest Income 1479 1418 4.3% 1380 7.2% Other Income* 444 552 -19.6% 449 -1.1% Operating Expense 1059 933 13.5% 883 20% Total Income* 3824 3908 -2.1% 3937
Slide 35: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance TRANSPORT VEHICLES & PARTS 1.29% 30.09.2021 CHEMICALS 1.33% BANKS 1.34% TEXTILES INCLUDING JUTE & COIR 1.34% CONTRACTORS 1.69% FOOD PRODUCTS 2.22% REAL ESTATE BUSINESS 2.85% POWER GENERATION & TRANSMISS
Slide 36: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 74.00% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.89% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 37: FedBank Financial Services Ltd. (FEDFINA)
FedBank Financial Services Ltd. (FEDFINA) Federal Bank Stake in Fedfina 463 Branches 15 States & UTs 82.6% 74% 74% 74% 7 PUNJAB 1 CHANDIGARH 5,197 4,752 6 HARYANA 29 DELHI AUM ( ₹ Cr ) 16 RAJASTHAN 5 UTTAR PRADESH 3,780 2,046 1,846 1,015 73 GUJARAT 2 MADHYA PRADESH 169 281 593 592 80 MAHARASHTRA 2,0
Slide 38: 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. 37
Slide 39: Thank You
Thank You AE A aA og
Slide 40: Press Release: Federal Bank net profit grows by 50%
Marketing Department _______________________________________________________________________________ October 22, 2021 PRESS RELEASE Federal Bank net profit grows by 50% to reach Rs. 460.26 Cr Federal Bank announced Unaudited Financial Results for the quarter ended 30th September 2021. Highlights of
Slide 41: Press Release: Balance Sheet and Operating Profit
Net Interest Income 1479.42 1379.85 7.22% Net Total Income 1923.78 1829.21 5.17% Balance Sheet Total Business of the Bank reached Rs.306399.38 Cr registering a growth of 9.56% as on 30th September 2021. Total Advances grew from Rs. 125208.57 Cr to Rs. 137313.37 Cr. Total Deposits increased from Rs
Slide 42: Press Release: Major Financial Indicators
• Total Deposits increased by 9.73% from Rs. 156747.39 Cr to Rs.171994.75 Cr • Investments stood at Rs. 36976.73 Cr • Book Value per share increased from Rs. 76.38 to Rs. 83.57 MAJOR FINANCIAL INDICATORS (Standalone nos.) (Rs. in Crore) Business Figures As on 30.9.2021 As on 30.9.2020 Growth (%) Tot