State Bank Of India · NSE:SBIN
State Bank Of India — Q1 FY2019 Earnings Presentation
33 slides from State Bank Of India's earnings presentation, Aug 10, 2018
Slide 1: Chairman's Presentation Quarterly Results Q1FY19
Quarterly Results Q1FY19 Chairman’s Presentation 10.08.2018
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward- looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety
Slide 3: SBI: Leadership position in the Indian Banking System
SBI: Leadership position in the Indian Banking System Ranked 53rd among the top banks YONO – leading omni-channel offering globally in terms of assets Digital leadership- Share of Alternate Commercial entity with highest channel transactions – 82% Operating Profit in India (FY18) SBI Online – World’
Slide 4: Robust Liability Franchise; to Fund Credit Growth
Robust Liability Franchise; to Fund Credit Growth Rs. in Crores Key Financial Indicators Q1FY19 Q1FY18 YoY (%) Total Advances 19,90,172 18,86,666 5.49 Domestic Advances 17,23,443 16,07,583 7.21 Total Deposits 27,47,813 26,02,534 5.58 Domestic Deposits 26,53,971 25,09,018 5.78 CASA Deposits 11,96,195
Slide 5: Sustained Improvement in Operating Performance
Sustained Improvement in Operating Performance Rs. in Crores Quarter ended Growth (%) Q1FY19 Q1FY19 Q1FY18 over Q1FY18 Net Interest Income 21,798 17,606 23.81 Non Interest Income 6,679 8,006 -16.57 Add back one time impact of Switch from AFS to HTM book 2,124 1,121 Total Operating Income, adjusted f
Slide 6: Provisions and Net Result
Provisions and Net Result Rs. in Crores Quarter ended Q1FY19 Q1FY18 Operating Profit 11,973 11,874 Loan Loss provision 13,038 12,125 Of which: Movement from Std. Asset Provision -631 -1,806 Standard Assets provision -919 -2,039 Investment Depreciation 7,098 -755 Other Provisions (Incl. Tax) -2,368 5
Slide 7: We Remain Well Capitalized
We Remain Well Capitalized 12.83% 13.31% 12.60% Tier II 2.30% 2.64% 2.24% AT1 0.61% Tier I 0.73% 0.68% CET1 10.53% 10.36% 10.06% 9.80% 9.68% 10.67% June 18 Mar 18 June 17 • CRWAs on Advances to Total Advances Ratio down by 1035 bps YoY to 63.79% • TRWAs to Total Assets Ratio down by 672 bps YoY to 5
Slide 8: SBI – Long Term value drivers
SBI – Long Term value Sustainable ROE of >1.0% drivers s Retail and Digital Banking Corporate Banking & Global Markets Stressed Asset Resolution Subsidiaries 8
Slide 9: Portfolio Strategy to maximize RoRWA
Portfolio Strategy to maximize RoRWA Outstanding Advances Portfolio JUNE 17 JUNE 18 13% IB 15% 28% 26% IB 14% CAG Corporate+ SME 50% CCG 10% Agri 9% 49% 21% SME Per 14% Agri Per In Rs crores Q1FY18 Q1FY19 YoY Growth (%) IB 2,79,082 2,66,728 -4.43 CAG 2,88,160 CCG 9,28,479 4,12,970 5.14 SME 2,75,069
Slide 10: Retail and Digital Banking
Retail and Digital Banking A Robust Portfolio Total Retail Portfolio - Rs 10.22 lakh crore % of Dom. Adv. 59.32 10
Slide 11: Retail Banking - Leadership across all segments (1/2)
Retail Banking - Leadership across all segments (1/2) As on June 2018 Market leader- Retail Personal Portfolio of Rs 5.59 lakh crore % of Dom. Adv. 32.44 Home Xpress Other P Auto Loans Loans Credit segment Loans O/S, 3,20,205 66,872 78,691 93,366 In Rs cr YoY 13.01 12.42 30.93 7.90 Growth, % Mkt sha
Slide 12: Retail Banking - Leadership across all segments (2/2)
Retail Banking - Leadership across all segments (2/2) As on June 2018, Rs. in Crores Retail Personal Portfolio: High RoRWA with Scale Home Auto Loans Others Loans SBI 3,20,205 66,872 1,72,660 SBI Card- 2nd largest credit card company in India, with 17% market share in retail spends housed outside th
Slide 13: Agri: Focus on Recovery and Risk Mitigation
Agri : Focus on Recovery and Risk Mitigation As on June 2018, Rs. in Crores Agri Portfolio of Rs 1,88,110 crore % of Dom. Adv. 10.91 Q1FY19 Others, 33,995 Agri Gold Loan, 50,210 Risk Mitigated Products, 53,393 KCC, 1,00,723 Others, 3,183 Focus on cash In % Q1FY19 flow based Thrust on risk financing
Slide 14: SME: Focus on high ROA / ROE
SME : Focus on high ROA / ROE As on June 2018, Rs. in Crores SME Portfolio of Rs 2,75,069 crore (of which MSME is Rs. 1,62,184 Crore) % of Dom. Adv. 15.96 Q1FY19 Risk Mitigated Working Capital, Products as 28.11 Others, 71,861 1,08,095 a % of SME Advances Bills, 9,940 Supply Chain Financing, 22,233
Slide 15: Technology and Innovation
Technology and Innovation As of Jun-18 82% Share of Alternate Channels 21.4 lakh Merchant Payment Acceptance Touch Points 6,47,000 Jun-18 6,23,113 5,26,873 18% 21% 2,32,191 1,13,000 23% 20% 10% BHIM Merchants Bharat QR BHIM-Aadhaar-SBI SBI POS SBI Pay Jun-17 13% 9% Customer Touch Points 2% 5,08,74,0
Slide 16: YONO- our flagship venture- powerful engine for future growth
YONO- our flagship venture- powerful engine for future growth • Over 5x increase in daily run-rate for account opening in last 8 weeks Gaining Momentum • • Average balance of digital accounts at 40x, compared to peers Per day account opening >20k in Jul-18; peak of ~27k • Yono has already won three
Slide 17: Financial Inclusion; At Inflection Point
Financial Inclusion; At Inflection Point CASA Deposits in FI accounts (in Rs. Cr) Profitability of BC Channel 1.4% FY2016 FY2017 FY2018 FY19 56.4% -172 81.8% 23,982 24,316 -504 15,337 -585 8,437 FY2016 FY2017 FY2018 Q1FY19 FY2016 FY2017 FY2018 FY19 • Scale up in the FI channel on the liability side;
Slide 18: Corporate Banking
Corporate Banking Revamp of Corporate Banking with Risk Return Optimization Total Corporate Portfolio of Rs 7.01 lakh crore % of Dom. Adv. 40.68 18
Slide 19: Corporate Accounts Group - High growth driver, low credit risk
Corporate Accounts Group - High growth driver, low credit risk CAG Portfolio of Rs 2,88,160 crore % of Dom. Adv. 16.72 OWNERSHIP DISTRIBUTION SECTORAL DISTRIBUTION Metals, 18% Power, 18% Private Sector, 57% NBFC, 16% Public Sector, 43% Petroleum, 9% Others, 35% Chemicals, 4% (As a % of Fund based Ou
Slide 20: Commercial Clients Group - Focus on RoRWA
Commercial Clients Group - Focus on RoRWA CCG- Portfolio Size of Rs 4,12,970 crore % of Dom. Adv. 23.96 Sectoral Distribution (As a % Of Fund Based Outstanding) Power, 16% NBFC, 11% Others, 44% Metal and Metal Products, 11% Engineering, 3% Infrastructure, 9% Textile, 6% • New vertical created, with
Slide 21: International Banking: Consolidating Operations
International Banking : Consolidating Operations IBG Portfolio of Rs 2,66,728 crore % of Adv. 13.40 Advances 15.3% 17.5% 17.0% 12.8% 4.9% 23.0% 3.6% 3.5% 3.6% 35.1% 33.0% 30.1% 28.0% 33.3% 39.4% FY17 FY18 Q1FY19 ECBs Local Loans Retail Buyer's Credit Bill Discounting • Rationalization of Overseas Op
Slide 22: Global Markets- Way Forward
Global Markets- Way Forward Rs. in Crores AFS Book MAR-18 JUN-18 Others, 27,977 Others, 29,849 Corporate Corporate Bonds, Bonds, 69,391 70,586 SDLs, 69,706 SDLs, 70,785 CP, 59,199 G-Sec and T Bill, G-Sec and T Bill, 2,76,896 3,35,525 CP, 55,302 Modified Duration of AFS book • Invest in short dated G
Slide 23: Stressed Asset Resolution
Stressed Asset Resolution NPA Cycle Ending, NCLT Resolutions & AUCA Recovery to give an Upside 23
Slide 24: Asset Quality Snapshot
Asset Quality Snapshot In % Q1FY19 Q4FY18 Q1FY18 Gross NPA 10.69 10.91 9.97 Net NPA 5.29 5.73 5.97 Slippage ratio 1.95 6.90 5.38 Credit Cost 2.55 4.93 2.48 PCR with AUCA 69.25 66.17 60.79 PCR without AUCA 53.38 50.38 42.70 24
Slide 25: Asset Quality- 91% of Corporate slippages from Watchlist
Asset Quality- 91% of Corporate slippages from Watchlist Rs. in Crores 1.42% % of Advances 1.24% Corporate Slippages Total Corporate Watchlist and SMA 1 & 2 outside Watchlist Break-up Slippages Sectorwise Break-up 28,989 3,704 3,704 318 3,187 24,633 SMA 1 & 2 880 25,802 outside watchlist 2,344 4,721
Slide 26: Status of NCLT accounts
Status of NCLT accounts Q1FY19, Rs. in Crores List 1 Fund Based o/s* PCR on NCLT accounts Rs. 34,603 79% 71% List 2 Fund Based o/s* 65% Rs. 28,435 NCLT 1 NCLT 2 Total Total Rs. 63,038 * Including amount transferred to AUCA • Two accounts resolved from NCLT 1, with recovery of 73.5% and 53.7% respect
Slide 27: Power Sector – Way Forward
Power Sector – Way Forward Q1FY19, Rs. in Crores Ownership Distribution 32,289 10,081 ~Rs 84,000 Cr 63% Private 1,76,760 Public 1,34,390 37% ~ Rs 50,000 Cr Rating Distribution of Private Total Fund based GNPAs Watchlist Std. Fund based Sector of ~ Rs 50,000 Cr outstanding O/S outside watchlist 69% A
Slide 28: SARG: Focus on Recovery and Resolutions
SARG : Focus on Recovery and Resolutions SARG Portfolio of Rs 1,45,748 crore % of Total Adv. 7.32 Reorganisation of SARG from Geography based structure to Industry Specific Specialization • Maximising intrinsic value of stressed unit. • Generation of continuous income flow through resolution based a
Slide 29: Credit Costs to come off significantly
Credit Costs to come off significantly June 2018 Particulars As % of total PCR without Credit costs expected to be below 2% in FY19E GNPA AUCA (%) • 35% of provisions for fresh slippages • Corporate slippages to be largely from Total Corporate 74.5 56.85 watchlist NCLT 1 15.6 63.12 • 65% of provisio
Slide 30: Subsidiaries: Creating Value
Subsidiaries Creating Value 30
Slide 31: SBI Subsidiaries- Significant Value Creation
SBI Subsidiaries- Significant Value Creation • Market capitalization of Rs 70,000 cr Q1FY19 Q1FY18 • #2 private life insurer in terms of Individual New Business Premium PAT (in Rs. cr) 354 313 • Strong financial performance: VNB Margin : 17% ROE (in %) 21.2 21.9 • 2nd largest credit card company in
Slide 32: SBI and its Subsidiaries - Leveraging Synergies
SBI and its Subsidiaries - Leveraging Synergies As on June-2018 SBI Total Customers (In lakhs) 58 63 SBI Life 37 33 SBI Funds SBI customers 4,255 holding products of subsidiaries 454 45 General Insurance 24 37 SBI Card Number of SBI Customers with subsidiary products (in lakhs) Sales through Banca c
Slide 33: Thank You
Thank You
State Bank of India — Q1 FY2019 Earnings Presentation on 6ix