State Bank Of India · NSE:SBIN
State Bank Of India — Q1 FY2018 Earnings Presentation
52 slides from State Bank Of India's earnings presentation, Aug 11, 2017
Slide 1: Quarterly Results Q1FY18 Analyst Presentation
Quarterly Results Q1FY18 Analyst Presentation 11.08.2017
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 results may differ materially from those included in these statements due to a variety of
Slide 3: Contents
Contents The Quarter That Was Financial Performance – Actual Financial Performance – Way Forward Digital Banking & Financial Inclusion Subsidiaries Balance Sheet 3
Slide 4: The Quarter That Was
The Quarter That Was 4
Slide 5: The Quarter that was – The Starting Point
The Quarter that was – The Starting Point Rs. in Crores 31st 31st 31st 31st 1st 1st March March SBI + ABs + BMB (Asset March March April SBI + ABs + BMB April 2017 2017 2017 Quality Ratios) 2017 2017 2017 (Merged) (Solo) (ABs) (Solo) (ABs) (Merged) Total Deposits 20,44,751 5,40,569 25,85,320 Gross N
Slide 6: Merger Trajectory During the Quarter (1/3)
Merger Trajectory During the Quarter (1/3) Report Level Merger Data Merger Linkage and Mapping 1st 29th April June 2nd 22nd 6th 13th 20th 27th BMB SBT SBM SBBJ SBP SBH April April May May May May Migration of loan documents to Mapping and Rationalisation of Product Mapping processing centres shiftin
Slide 7: Merger Trajectory Report Card – Offices and Branches (2/3)
Merger Trajectory Report Card – Offices and Branches (2/3) • 594 branches merged till Aug 6th - expect to achieve branch merger target by end of Sept 2017 • 122 administrative offices rationalized. • Rationalization of branch and administrative offices to result in savings in excess of Rs. 1160 cr p
Slide 8: Merger Trajectory Report Card – Human Resources (3/3)
Merger Trajectory Report Card – Human Resources (3/3) One Week CBS training for all Frontline Officers Role based programme Orientation for Officers of Training for Programme Agri, SME & e-AB officers for senior PER intensive management branches Training on usage of Loan Sanction portals Projected
Slide 9: Financial Performance – Actual
Financial Performance – Actual 9
Slide 10: Operating Performance
Operating Performance Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Interest Income 54,905 58,968 54,494 -6.89 0.76 Non Interest Income 8,006 12,222 8,761 -34.50 -8.62 Total Income 62,911 71,190 63,255 -11.63 -0.54 Interest Expenses 37,299 37,903 3
Slide 11: Provisions and Net Result
Provisions and Net Result Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Operating Profit 11,874 17,309 13,762 -31.40 -13.72 Total Provisions 9,869 20,751 13,388 -52.44 -26.29 Loan Loss 12,125 19,323 11,266 -37.25 7.62 Standard Assets -2,039 271 1,0
Slide 12: Interest Income / Expenses
Interest Income / Expenses Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Interest on Loans 36,142 37,488 39,454 -3.59 -8.40 Interest on Resources 17,543 18,042 13,929 -2.76 25.95 Other Interest income 1,220 3,439 1,110 -64.51 9.91 Total Interest In
Slide 13: Non-Interest Income
Non-Interest Income Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Fee Income 4,870 7,434 4,190 -34.49 16.21 Profit/Loss on Sale of Investments * 1,770 1,997 3,437 -11.36 -48.50 Forex Income 667 688 569 -3.15 17.17 Dividend Income 23 396 29 -20.09 M
Slide 14: Stable Fee Income
Stable Fee Income Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Fee Income 4,870 7,434 4,190 -34.49 16.21 of which : Loan Processing Charges 654 1,332 561 -50.91 16.62 Commission on Govt. Business 781 776 761 0.66 2.67 Commission on LC/BG* 407 1,04
Slide 15: Contained Operating Expenses (1/2)
Contained Operating Expenses (1/2) Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Staff Expenses 7,724 8,914 7,783 -13.34 -0.75 Overheads 6,013 7,064 5,462 -14.88 10.08 Operating Expenses 13,738 15,978 13,245 -14.02 3.72 Cost to Income ratio (%) 53.
Slide 16: Contained Operating Expenses (2/2)
Contained Operating Expenses (2/2) Rs. in Crores Quarter ended Growth (%) Q1FY18 Q1FY18 Q1FY18 Q4FY17 Q1FY17 over over Q4FY17 Q1FY17 Staff Expenses 7,724 8,914 7,783 -13.34 -0.75 of which : Salary 6,806 6,139 6,491 10.88 4.85 Contribution for employees 918 2,775 1,291 -66.92 -28.89 Overheads 6,013 7
Slide 17: Key Performance Indicators: Performance Ratios
Key Performance Indicators : Performance Ratios Net Interest Margin (%) Yield & Costs (%) Merged Entity Merged Entity Yield on Advances Yield on Investments Domestic Merged Whole Bank Merged Foreign Cost of Funds Cost of Deposits 3.04 2.93 9.61 9.32 2.50 2.84 2.74 8.49 2.36 7.88 1.37 1.28 7.63 1.16
Slide 18: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. in Crores 31-03-2017 Jun 16 YoY Growth (%) Jun 17 Jun 17 Over Jun 16 (SBI+e- (SBI+e- ABs+BMB) ABs+BMB) Total Deposits 26,02,534 13.28 25,85,320 22,97,426 Foreign Offices 93,517 12.77 91,359 82,924 Domestic 25,09,018 13.30 24,93,961 22,14,501 Mark
Slide 19: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. in Crores Jun 17 Mar 17 Jun 16 YOY Gr % Domestic Advances 16,07,583 16,66,288 15,89,148 1.16 Food Credit 7,802 6,919 27,514 -71.64 Domestic Advances (Excluding Food Credit) 15,99,781 16,59,369 15,61,634 2.44 Comm. Paper (CP) 59,199 60,158 31,714 86.67 Corp. Bonds (CB)
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. in Crores YoY Growth (%) 31-03-2017 Jun 16 Jun 17 Jun 17 Over Jun 16 (SBI+e-ABs+BMB) (SBI+e-ABs+BMB) Total Advances 18,86,666 1.46 19,52,507 18,59,513 Foreign Offices 2,79,082 3.22 2,86,219 2,70,365 Domestic 16,07,583 1.16 16,66,288 15,89,148 Market Share Domestic 21.0
Slide 21: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Jun 17 Mar 17 Jun 16 Jun 17 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 2,54,219 15.81 2,54,971 15.30 2,56,778 16.16 -1.00 of which: Power 1,71,645 10.68 1,70,874 10.25 1,65,947 10.44 3.43 Telecommunic
Slide 22: Personal Segment Continues to drive Loan Growth
Personal Segment Continues to drive Loan Growth Market Share Avg. LTV Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 13.92% 20.10% 9.66% 2,83,331 1,47,190 59,484 49,527 2,48,709 1,34,219 Jun 16 Jun 17 Jun 16 Jun 17 Jun 16 Jun 17 32.18% 32.87% 31.67% 34.66% 52.88% 53.05% Total P-Segment Ju
Slide 23: We Remain Well Capitalized
We Remain Well Capitalized 14.01% Tier II 13.31% 12.85% 3.19% AT1 2.64% Tier I 2.80% 0.11% CET1 0.61% 0.64% 10.67% 10.71% 10.82% 10.06% 10.05% 9.41% Jun 17 01.04.2017 Jun 16 Major Contributor to Capital Equity raised through QIP - Rs 15,000 Crores in Q1FY18 June 16 CAR Ratios are without merger wi
Slide 24: Asset Quality: Gross NPAs - Segment wise (1/3)
Asset Quality : Gross NPAs - Segment wise (1/3) Rs. in Crores 31-03-2017 01-04-2017 30-06-2016 Jun 17 Sector Solo Merged Merged NPA Ratio % NPA Ratio % NPA Ratio % NPA Ratio % Large Corporate 48954 13.02 33070 9.67 Mid Corporate 76060 25.71 47009 19.35 Total Corporate 125014 18.61 80079 13.69 SME 30
Slide 25: Asset Quality: Movement of NPAs (2/3)
Asset Quality : Movement of NPAs (2/3) Rs. in Crores Q1FY18 FY17 Q1FY17 Opening Level of Gross NPAs 177866 121973 121973 Less :Recovery 4646 10302 2584 Less: Up gradation 2034 21981 7109 Less :Transfer to AUCA 13176 27757 5287 Add: Increase in O/s 3810 5685 2079 Add: Fresh Slippages 26249 110247 285
Slide 26: Asset Quality: Impaired Assets (3/3)
Asset Quality : Impaired Assets (3/3) Rs. in Crores Jun 17 Gross Advances 1886666 Restructured Standard 39337 Total Gross NPAs plus Restructured Std. 227406 Gross NPA + Restructured Standard to Gross Advances (%) 12.05 Net NPA + Net Standard Restructured to Net Advances (%) 8.12 Slippages from Restr
Slide 27: Financial Performance – Way Forward
Financial Performance – Way Forward 27
Slide 28: Outlook for Agri, SME and Retail
Outlook for Agri, SME and Retail Slippages and Recoveries Rs. in Crores Slippages Recoveries/ Upgrades Net Increase 30,432 17,886 16,790 13,532 7,503 2,988 Q1FY18 Estimate in FY18E Recoveries to pick Advances growth Improved business Synergies of the up in the remaining expected to Way metrics from
Slide 29: Corporate Watch List
Corporate Watch List Fund based Outstandings Rs. In Crores • 95% of Corporate Slippages are from the Watch List Post Merger • Remaining slippages across 19 smaller value Watch List accounts 32,427 818 3152 8,363 3,503 24,444 7,976 602 3,137 2548 2,939 2,468 11,075 10,531 10,742 5,356 Q1FY18 Beginnin
Slide 30: Way forward…(1/2)
Way forward…(1/2) From here on, we expect improved outcomes in FY18 – Credit growth • Expect credit growth of 6.0% - 8.0% for FY18: likely to be driven by retail, SME, Agri and select corporate sectors • CRM Project launched across segments; expect to improve lead conversion ratio, lower customer ac
Slide 31: Way forward…(2/2)
Way forward…(2/2) NIM • NIMs to pick up from current levels by 10-15 bps • Improved recoveries / upgrades will lead to improved Yield on Advances • Pick up in loan growth will give higher yield vis-à-vis investments (100- 120 bps) • Declining cost of deposits due to (a) Re-pricing downwards of e-ABs
Slide 32: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion 32
Slide 33: Moving away from Cash to Digital
Moving away from Cash to Digital Share of Transactions (Merged Entity) (%) Jun 17 Jun 16 Internet Banking 30 24 13 46 33 POS 6 80 77 Mobile Banking 3 3 ATM / CDM 34 43 Branch 20 24 Channel SBI Group Actuals Market Share (%) Number of ATMs (as on Mar 17) 59,263 28.44 ATMs : Value of Txns (Cr) (During
Slide 34: Debit Cards Spends Market Share YoY Comparison
Debit Cards Spends Market Share YoY Comparison FY 2016-17 (As on Jun 2016) FY 2017-18 (As on Jun 2017) All Others SBI SBI 29.37% All Others 31.12% 26.30% 34.03% Bank-4 3.91% Bank-1 Bank-4 Bank-3 15.96% 2.85% Bank-1 8.18% 12.24% Bank-2 Bank-3 16.28% 7.10% Bank-2 12.66% • Market share in Card spends i
Slide 35: Merchant Acquiring Business
Merchant Acquiring Business PoS terminals Number of Transactions Value of Transactions (in lacs) (in crs) (Rs. in cr) 10.77 6.05 24680 180% 221% 198% 3.35 2.31 3.35 8285 1.89 4851 April - June April - June April - June April - June April - June April - June Jun-15 Jun-16 Jun-17 15 16 17 15 16 17 • O
Slide 36: Digital & e-Commerce
Digital & e-Commerce Buddy Users Vol. of Buddy Value of Buddy (Nos. in lacs) Transactions Transactions (Rs. in Crs.) (Nos. in Crs.) 107.28 0.64 170 • 1 Crore plus users 121 • 75-80K Txns. daily • 10-15K 32.6 0.21 registrations daily June'16 June'17 Apr-June'16 Apr-June'17 Apr-June'16 Apr-June'17 Mob
Slide 37: Digital & e-Commerce
Digital & e-Commerce INB Users Vol. of INB Transactions Value of INB (Nos. in lacs) (Nos. in Crs.) Transactions (Rs. in Crs) • 5th most 402.33 21,32,285 popular online 320.17 35.71 37.07 17,07,190 global 268.57 30.06 13,49,678 financial site. • 4 Crore Users • 140 Crore txns. during Apr-June'15 Apr-
Slide 38: Unlocking the Digital Potential
Unlocking the Digital Subsidiaries Potential (3/3) : Others 8,16,981 merchant payments acceptance touch points 38
Slide 39: Social Media Leadership
Social Media Leadership SBI Continues to be the leading player in Social Media Banking Platform Status Rank Comments Highest number of followers across all banks 127 Lakhs 1 in the world 680 lakh views. Ranked number 1 Globally 63 K Subscribers 1 among Banks 4.77 Lakhs 1 Highest number of followers
Slide 40: Financial Inclusion ….(1/2)
Financial Inclusion ….(1/2) Financial Inclusion Accounts (No. in Crs) Average Balance (Rs.) PMJDY Others 28% 13.84 1345 10.82 10.22 949 6.42 4.40 3.62 Jun 16 Jun 17 Out of PMJDY A/cs: Jun 16 Jun 17 Aadhar seeded A/cs Jun 16: 3.06 crs Jun 17: 6.72 crs Rupay Cards issued Jun 16: 5.10 crs Jun 17: 6.99
Slide 41: Financial Inclusion ….(2/2)
Financial Inclusion ….(2/2) Transactions Amount (Rs. in Crores) Social Security Schemes 29,963 (Enrolment up to 30.06.2017) 59% (in Lakhs) 18,794 Pradhan Mantri Suraksha 167.60 Bima Yojana Q1FY17 Q1FY18 Financial Literacy Rural Self Employment Training Institute Cumulative RSETIs (Total Numbers: 151
Slide 42: Subsidiaries
Subsidiaries 42
Slide 43: SBI Group Financials: Net Profit Q1FY18
SBI Group Financials : Net Profit Q1FY18 Rs. In crores Quarter Ended Major Non Banking Subsidiaries Q1FY18 Q1FY17 SBI Capital Markets Ltd (Consolidated) 86.93 2.48 SBI Funds Management Pvt Ltd 70.29 40.79 SBI Cards & Payment Services Pvt Ltd 131.84 88.47 SBI DFHI Ltd 22.48 34.33 SBI General Insuranc
Slide 44: Subsidiaries: Others (1/2)
Subsidiaries (2/3)(1/2) Subsidiaries : Others SBI CARDS • Robust business performance - PAT 49% YOY, YoY ROE at 36.50% Q1FY18 Q1FY17 (in %) • 2nd Highest base in terms of cards & spends - CIF market share, % 15.58% 14.83% 75 bps market share steadily rising • Spends 88% YOY, Assets 45% YOY Spe
Slide 45: Subsidiaries: Others (2/2)
Subsidiaries (3/3)(2/2) Subsidiaries : Others • Ranked 1st by number of equity issuances (16) and 2nd by SBI Capital Markets Limited issue amount raised (~INR 19,924 crores) for FY 2017 as per Prime Database. YoY Q1FY18 Q1FY17 (in %) • Ranked 1st in Asia Pacific Project Finance Financial Adviser by
Slide 46: Balance Sheet
Balance Sheet 46
Slide 47: Balance Sheet: SBI
Balance Sheet : SBI Rs. in Crores Liabilities YOY Jun 17 Jun 16 Growth (%) Capital 863 790 9.28 Reserves and Surpluses 2,28,162 2,08,616 9.37 Deposits 26,02,534 22,97,426 13.28 Borrowings 2,36,101 2,45,777 -3.94 Other Liabilities & Provisions 1,25,897 1,15,300 9.19 Total Liabilities 31,93,556 28,67,
Slide 48: Balance Sheet: SBI Consolidated
Balance Sheet : SBI Consolidated Rs. in Crores Liabilities YOY Growth Jun 17 Jun 16 (%) Capital 863 776 11.20 Reserves and Surplus 2,38,539 2,13,277 11.85 Minority Interest 3,767 6,176 -39.01 Deposits 26,18,464 23,11,338 13.29 Borrowings 2,42,688 2,52,746 -3.98 Other Liabilities & Provisions 2,30,39
Slide 49: SBI Group Financials – Q1FY18
SBI Group Financials – Q1FY18 Rs. In crores Year Ended Growth (%) Rs. In crores Q1FY18 Q1FY17 YoY Interest Earned 56,819 56,040 1.39 Non-Interest Income 13,958 13,375 4.36 Total Income 70,777 69,415 1.96 Interest Expended 37,495 36,367 3.10 Operating Expenses(i+ii) 19,864 18,499 7.38 (i) Employee Co
Slide 50: SBI Solo and Group Financials – Q1FY18
SBI Solo and Group Financials – Q1FY18 SBI Merged SBI Standalone SBI Consolidated June 17 Mar 17 June 16 Mar 17 June 16 June 17 Mar 17 June 16 ROA (%) 0.25 -0.06 0.05 0.41 0.44 0.36 0.01 0.14 ROE (%) 4.75 -1.07 0.90 7.25 7.36 7.11 0.14 2.49 Earning Per Share 9.79 -2.23 1.90 13.43 13.03 14.80 0.31 5.
Slide 51: Awards & Accolades During Q1FY18
Awards & Accolades During Q1FY18 “India’s Best Public Sector Bank” Award by Dalal Street Investment Journal “Best Trade Finance Bank In South Asia” by Global Trade Review Magazine Chairman, SBI awarded “Best Banker of the Year” by Business World “Banking & Finance Leadership 2017 Award for Financial
Slide 52: Thank You
Thank You
State Bank of India — Q1 FY2018 Earnings Presentation on 6ix