RBL Bank Ltd. · NSE:RBLBANK
RBL Bank — Q2 FY19 Earnings Presentation
61 slides from RBL Bank's earnings presentation, Oct 23, 2018
Slide 1: Cover letter to stock exchanges
RBLBANK apno ka bank October 23, 2018 The Secretary, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange Limited, 1" Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Sandra l<urla Complex, Sandra (E) Mumbai -" 400001 Mumbai -4000
Slide 2: Limited review report
B S R & Co. LLP Charte red Accou nta nts 5th Floor, Lodha Excelus, Telephone +91 (22) 4345 5300 Apo ll o M ills Compound Fax +91 (22) 4345 5399 N. M. Joshi M arg, Mahalaxmi Mumbai • 400 011 India Limited review report on unaudited quarterly standalone financial results and standalone year-to-date re
Slide 3: Limited review report (continued)
B S R & Co. LLP Limited Review Report on the Unaudited Standalone Quarterly Financial Results and Standalone year to date Financial Results of RBL Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Slide 4: Unaudited standalone financial results Q2 and H1 FY19
b RBL BANK apno ka bank RBL Bank Limited Regist ered Office: 'Mahavee r', 179/E Ward, Shri Shahu Market Yard, Kolhapur - 416005 Corporat e Office: One India bulls Centre, Tower 2B, 6th Floor, 841, Senapati Bapat Marg, Lower Pa re l (W), Mumbai- 400013 Te l.: +91 22 4302 0600, Fa x: +91 22 4302 0520
Slide 5: Analytical ratios
b RBLBANK opno l<o bonk Quarter Quarter Quarter Half Year Half Year Year Sr. ended ended ended ended ended ended Particulars No. 30.09.2018 30.06.2018 30.09.2017 30.09.2018 30.09.2017 31.03.2018 Unaudited Unaudited Unaudited Unaudited Unaudited Audited 17 Analytical Ratios Percentage of shares held
Slide 6: Notes to financial results
b RBLBANK apno ka bank 6. The Disclosures for NPA referred to in point 17 (iv) above correspond to Non Performing Advances. 7. The Bank has fo llowed the same significant accounting po licies in the preparation of these financia l results as those followed in the annual financial stat ement for the
Slide 7: Segment reporting
b RBLBANK opno ka bon k SEGMENT REPORTING FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2018 (~ in Lacs) Sr. Particulars Quarter Quarter Quarter Half Year Half Year Year No ended ended ended ended ended ended 30.09.2018 30.06.2018 30.09.2017 30.09.2018 30.09.2017 31.03.2018 {Unaudited) {Unaudite
Slide 8: Summarised standalone statement of assets and liabilities
b RBLBANK apno ka bank SUMMARISED STANDALONE STATEMENT OF ASSETS AND LIABILITIES (~in Lacs) As at As at As at Particulars September 30, September 30, March 31, 2018 2018 2017 (Unaudited) (Unaudited) (Audited) CAPITAL AND LIABILITIES Capital 43,077 41,559 41,967 Reserves and Surplus 660,864 587,675 6
Slide 9: Press release: Financial results for Q2 FY19
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 For immediate release Financial Results for Q2 FY19 RBL Bank reports advances growth of 37% in Q2 FY19, Operating profit increase of 48% and Net Profit increase of 36% at ` 204.54 cr
Slide 10: Performance highlights Q2 FY19
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Performance highlights – Quarter ended September 30, 2018 (Q2 FY19): Net Interest Income (NII) at ` 592.97 crore as against ` 420.16 crore in Q2 FY18, an increase of 41% Other In
Slide 11: Operating review
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Operating review Asset growth and quality The Bank’s growth in advances portfolio continued to be robust at 37% on a year-on-year basis. The net advances as at September 30, 2018 wer
Slide 12: About RBL Bank
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 About RBL Bank RBL Bank is one of India’s fastest growing private sector banks with an expanding presence across the country. The Bank offers specialized services under six business
Slide 13: Investor Presentation 2nd Quarter/Half Year FY19
Investor Presentation 2nd Quarter/Half Year FY 19 October 23, 2018
Slide 14: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by RBL Bank Limited (the “Company”) for use in presentations by
Slide 15: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System INR Indian Rupee Agri Agribusiness Banking IPO Initial Public Offering ARC Asset Reconstruction Company LAF Liquidity Adjustment Facility ATM Automated Teller Machine LAP Loan Against Property BC Business Correspondent MF Mutual Funds BIL Bu
Slide 16: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 12 Financial Performance 16 Distribution Network 31 Shareholding Pattern and Ratings 33 Microbanking Update 35 Credit Cards Update 39 Annexures 42 4
Slide 17: Key Performance Highlights
Key Performance Highlights 5
Slide 18: Q2 / H1 Financial Highlights
Q2 19 / H1 19 Financial Highlights Q2 19 / H1 19 continues to track well to RBL Vision 2020 goals Total Revenue growth in H1 19 of 39% YoY ( Q2 19 growth of 40% YoY); Net Profit growth in H1 19 of 35% YoY ( Q2 19 growth of 36% YoY) NII growth of 43% YoY in H1 19 ( Q2 19 growth of 41% YoY) ; Other In
Slide 19: Q2 FY19 Highlights
Q2 FY19 Highlights YoY Growth QoQ Growth Net interest Income Rs. 593cr 41% 7% Core Fee Income Rs. 325cr 60% 13% Net Total Income Rs. 926cr 40% 5% Operating Profit Rs. 449cr 48% 4% Net Profit Rs. 205cr 36% 8% 7
Slide 20: Half Year FY19 Highlights
Half Year FY19 Highlights YoY Growth Net interest Income Rs. 1,146cr 43% Core Fee Income Rs. 614cr 59% Net Total Income Rs. 1,805cr 39% Operating Profit Rs. 881cr 43% Net Profit Rs. 395cr 35% 8
Slide 21: Half Year FY19 Highlights Contd.
Half Year FY19 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 45,873cr 37% 9% Wholesale Rs. 27,129cr 33% 9% Advances Non-Wholesale Rs. 18,744cr 43% 9% Advances Deposits Rs. 47,790cr 31% 6% CASA Rs. 11,712cr 35% 7% 9
Slide 22: Key Indicators
Key Indicators Pre-IPO Advances Deposits Net Profit RoA BVPS FY 11 1,905 2,042 12 0.5% Rs. 50 FY 16 21,229 24,349 292 1.0% Rs. 91 (84% CAGR FY 11-16) (64% CAGR FY 11-16) (88% CAGR FY 11-16) Post Listing Performance) Advances YoY NIM Net Profit RoA Q3 17 26,773 46% 3.4% 129 1.17% Q4 17 29,449 39% 3.5
Slide 23: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 13.8% 11.9% 41.0% 12.6% 27.0% 75.5% 18.1% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Current Deposits 11
Slide 24: RBL Vision 2020
RBL Vision 2020 12
Slide 25: Performance Tracking to Vision 2020 Goals
Performance Tracking to Vision 2020 Goals RBL Vision 2020 Actual Q2 19 (Post IPO/Sept 2016) Advances 30-35% CAGR 37% 0.75 - 1% increase FY 16: 18.6%; FY 17: 22.0% CASA Ratio every year FY 18: 24.3%; Q2 19: 24.5% Other Income % ~ 1/3rd of Net Total Income 36% Cost/Income ratio of FY 16: 58.6%; FY 17:
Slide 26: Key Initiatives of Vision 2020
Key Initiatives of Vision 2020 Leveraging technology to acquire, engage and service clients API banking, Abacus (Digital savings account); Fintech Partnerships (Moneytap, Zeta) ; Technology Credit card partnerships (Bajaj Finserv, Book My Show, ET Money, Paisa Bazaar) Enhancing distribution through
Slide 27: Our Fundamentals Have Resulted in Consistent Strong Performance
Our Fundamentals Have Resulted in Consistent Strong Performance Key Pillars Robust corporate governance framework and processes Broad Based Shareholder and Strong Capital Base Professional and experienced management team Eminent Board of Directors 15
Slide 28: Financial Performance
Financial Performance 16
Slide 29: Strong Profitability Momentum Continues
Strong Profitability Momentum Continues Parameter Q2 19 Q2 18 YoY Q1 19 QoQ H1 19 H1 18 Net Interest Income 593 420 41% 553 7% 1,146 799 Other Income 333 241 38% 326 2% 659 498 Net Total Income 926 661 40% 879 5% 1,805 1,297 Operating Profit 449 303 48% 432 4% 881 615 Net Profit 205 151 36% 190 8% 3
Slide 30: Strong Growth in Business; Asset Quality Remains Stable
Strong Growth in Business; Asset Quality Remains Stable Parameter September 30,2018 September 30,2017 YoY Advances 45,873 33,576 37% Deposits 47,790 36,569 31% Investment 13,749 13,296 3% Parameter September 30,2018 September 30,2017 June 30,2018 CASA 24.5% 23.7% 24.4% GNPA 1.40% 1.44% 1.40% NNPA 0.
Slide 31: Well Diversified Other Income Profile; Rising Core Fee Income
Well Diversified Other Income Profile; Rising Core Fee Income Other Income 659 Core Fee Income Breakup 7% 614 8% 498 333 326 325 40% 2% 22% 11% 386 289 8% 241 8% 10% 16% 203 24% 4% 40% 93% 10% 40% 3% 13% 89% 78% 3% 25% 15% 4% 98% 4% 14% 12% 24% 15% 30% 84% 23% 28% 24% 18% 12% 17% 12% 12% Q2 18 Q1 19
Slide 32: Cost Increase Driven by Business Expansion; Range Bound Credit Costs
Cost Increase Driven by Business Expansion; Range Bound Credit Costs Operating Expenses Net Credit Cost by Business (bps) 22* 25* 26* 52* 51* 923 14 26 682 12 53% 18 477 446 45% 8 8 358 13 6% 12 6 6% 6 11 52% 54% 10 8% 5 9 46% 9% 4 6% 6% 41% 3 3 3 6% 8% 8% 8% 33% 2 4 40% 34% 32% Q2 18 Q1 19 Q2 19 H1
Slide 33: Changing Advances Mix Helping NIMs
Changing Advances Mix Helping NIMs Yield September 30,2018 September 30,2017 YoY Proportion H1 19 C&IB 18,826 13,895 35% 8.63% CB 8,303 6,528 28% (9.05%) 59% Wholesale 27,129 20,423 33% Retail Assets 12,407 8,539 45% DB & FI 6,337 4,614 37% 14.10% Micro-banking 3,917 2,533 55% (13.31%) 41% IFI 1,669
Slide 34: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - Secured/Unsecured Tenor of Advances 45,873 45,873 42,198 42,198 8% 7% 8% 33,576 32% 6% 33,576 33% 21% 7% 16% 7% 29% 21% 64% 67% 68% 71% 71% 65% September 30,2017 June 30,2018 September 30,2018 September 30,2017 June 30,2018 September 30,2018 Secured
Slide 35: Stable Internal Borrowers' Rating Profile
Stable Internal Borrowers’ Rating Profile Breakup of internal rated exposures* Sep 30,2017 June 30,2018 Sep 30,2018 AAA, 8.0% 8.0% 6.0% AA+,AA AA- 6.9% 6.7% 7.5% 46.2% 48.5% 46.8% A+/A 14.0% 14.2% 14.1% A- 17.3% 19.7% 19.2% BBB+, 46.6% 45.8% 47.5% 23.4% 21.2% 23.0% BBB BBB- 23.1% 24.6% 24.5% 7.3% 5.
Slide 36: Diversified Industry Mix
Diversified Industry Mix Top 10 Industry * Outstanding Industry FB-NFB Split % of Total Loan Exposure Retail / Distribution 3,686 78:22 6.0% Construction 3,519 38:62 5.7% Engineering 2,773 56:44 4.5% NBFC (ex. HFC) 2,607 90:10 4.3% Real Estate 2,287 93:7 3.7% Professional Services 2,178 88:12 3.6% P
Slide 37: Asset Quality Continues to Remain Strong
Asset Quality Continues to Remain Strong Gross NPA by business segment Quarter Ended Business segment September June September September June September 30,2018 30,2018 30,2017 30,2018 30,2018 30,2017 C&IB 92.1 92.3 102.8 Movement of Gross NPAs % of total advances 0.20% 0.22% 0.30% Opening Balance 59
Slide 38: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars September 30,2018 September 30,2017 June 30,2018 Tier 1 Capital Funds* 6,969 6,242 6,728 Tier 2 Capital Funds 712 900 731 Total Capital Funds 7,681 7,142 7,459 Total RWA 55,867 43,137 51,219 Tier 1 CRAR* 12.5% 14.5% 13.1% Total CRAR*
Slide 39: Sustained Growth in Deposits, Led by CASA
Sustained Growth in Deposits, Led by CASA 35% yoy growth in CASA, while total deposits grew by 31% yoy CASA : 23.7% CASA : 24.4% CASA : 24.5% CASA : 8,655 CASA : 10,975 CASA : 11,712 47,790 44,950 14.9% 11.9% 36,569 11.5% 12.6% 12.9% 8.8% 14.9% 75.6% 75.5% 76.3% September 30,2017 June 30,2018 Septem
Slide 40: Diversified Borrowing Streams
Diversified Borrowing Streams Borrowing Breakup 9,610 8,564 8% 1% 7,392 9% 6% 10% 17% 53% 1% 51% 42% 38% 34% 30% September 30,2017 June 30,2018 September 30,2018 Refinance FCY Inter-bank CBLO/LAF Tier II Average contractual maturity of 3+ years 28
Slide 41: Steady Investment Book
Steady Investment Book Investment Breakup 13,296 14,240 13,749 3% 3% 3% 9% 14% 9% 11% 12% 12% 72% 76% 76% September 30,2017 June 30,2018 September 30,2018 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q2 19 Q2 18 Q1 19 H1 19 H1 18 Total Investments 7.4% 7.4% 7.3% 7.3% 7.6% SL
Slide 42: NIM Improvement Helped by Increasing Yields
NIM Improvement Helped by Increasing Yields Pre-IPO FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Yield on Advances 10.9% 12.6% 13.1% 12.9% 12.3% 11.7% Cost of Funds 5.8% 8.3% 9.6% 9.4% 8.4% 7.6% Cost of Deposits 5.8% 8.1% 8.9% 8.8% 8.3% 7.7% Post Listing Performance Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19
Slide 43: Distribution Network
Distribution Network car
Slide 44: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 2 5.33 4.50 4.91 3.54 3.98 GIFT 15 city 8 New Delhi branch September December March June 30,2018 September 7 30,2017 31,2017 31,2018 30,2018 9 5 Channel Breakup Channels Number of transaction points 24 15 September
Slide 45: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings 33
Slide 46: Diversified Shareholding & Strong/Improving Rating Profile
Diversified Shareholding & Strong/Improving Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.8 0.3 Basel III compliant Tier II bonds ICRA AA- hyb (Stable) 7.8 CARE AA- (Stable) 31.4 14.2 Certificate of Deposits ICRA A1+ 20.7 23.8 Medium term fixed deposit ICRA MAA (Stable) pro
Slide 47: Microbanking Update
Microbanking Update 35
Slide 48: Microbanking Distribution Network
Microbanking Distribution Network State Name % of Portfolio Bihar 15% Tamil Nadu 15% Maharashtra 13% Karnataka 10% (20) Odisha 8% 6 (14) Rajasthan 6% Madhya Pradesh 5% 41 48 (27) (14) Gujarat 5% (69) West Bengal 5% 61 29 56 14 Jharkhand 4% (40) (14) (38) 20 Punjab 3% 72 Haryana 2% 101 (21) Micro Ban
Slide 49: Microbanking - Portfolio Growth
Microbanking - Portfolio Growth Portfolio Mix September 30,2018 In Rs. crores Pre-Jan 2017 2.3% Post Jan 2017 97.7% 3,940 3,574 Loan Tenor 0.5% 2,169 1,483 839 43.5% 324 56.0% March March March March March September 31,2014 31,2015 31,2016 31,2017 31,2018 30,2018 • Post Jan 2017 – 90+DPD : 0.33 • 2.
Slide 50: Microbanking - Through The Door Mix
Microbanking - Through The Door Mix Bureau Rejection Rate Borrowing Cycle with RBL Bank 23% 22% 22% 20% 21% 30% 27% 77% 78% 78% 80% 79% 27% 26% Q2 18 Q3 18 Q4 18 Q1 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 First Cycle Repeat Cycle Hit Rate • Growth in volumes through new customers from newer geographies (ea
Slide 51: Credit Cards Update
Credit Cards Update 39
Slide 52: Credit Card Base Increasing Steadily
Credit Card Base Increasing Steadily Cards in Force ( In Mn) Card Additions ( In Mn) 1.19 0.26 0.97 0.20 0.21 0.80 0.18 0.62 0.12 0.46 September December March June 30,2018 September Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 30,2017 31,2017 31,2018 30,2018 Advances Breakup Customer Metrics 3,646 Key Metrics Sep
Slide 53: Credit Cards - Sticky Customer Spends
Credit Cards - Sticky Customer Spends Total Spends (In Rs crore) Consumer Loans 219 199 199 199 179 790 544 412 382 4,208 325 285 3,234 206 214 2,378 170 1,889 120 1,460 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 No.of Loans ('000) Loans Booked (Rs. Crore) Average Ticket Size (Rs. ‘
Slide 54: Annexures
Annexures 42
Slide 55: Board of Directors
Board of Directors Ms. Rama Bijapurkar Mr. Vishwavir Ahuja Independent Director Managing Director and CEO Wide Experience in Market Research, Market Strategy and Previously, Managing Director & Country Executive Officer of Bank Management Consulting of America for Indian Sub-continent Mr. Sivanandha
Slide 56: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. Vishwavir Ahuja Mr. Rajeev Ahuja Managing Director and CEO Executive Director Managing Director & Country Executive Officer of Bank of America Previously, associated with Citibank India, Bank of America, India for Indian Sub-continent from 2007-2009 a
Slide 57: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Shrinath Bolloju Mr. Ramnath Krishnan Chief Operations Officer Chief Risk Officer Previously, Global Head Securities Transformation – Deutsche Bank Previously, Country Chief Risk Officer , HSBC Malaysia Berhad Singapore (31) (25) Mr. Ujual Ge
Slide 58: Profit & Loss Statement
Profit & Loss Statement Particulars Q2 19 Q2 18 Q1 19 H1 19 H1 18 Income Interest Earned 1,463 1,091 1,364 2,828 2,134 Interest Expended 870 671 812 1,682 1,336 593 420 553 1,146 799 Net Interest Income 333 241 326 659 498 Other Income 926 661 879 1,805 1,297 Total Income Expenditure Operating Expen
Slide 59: Balance Sheet Statement
Balance Sheet Statement Particulars September June 30,2018 September 30,2018 30,2017 Liabilities Capital 431 421 416 Reserves and Surplus 6,609 6,469 5,877 Deposits 47,790 44,950 36,569 Borrowings 9,610 8,564 7,392 Other Liabilities 2,716 2,159 1,872 Total 67,156 62,563 52,125 Assets Cash & Balances
Slide 60: Our Recent History
Our Recent History Particulars FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 H1 19 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,546 6,848 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 47,790 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 40,268 45,873 Investme
Slide 61: Thank you
Thank you Contact us at: ir@rblbank.com +91-22-4302 0600 Please email us your contact details at the above id to get added to our investor relations mailing list Please visit our Investor Relations website – https://ir.rblbank.com/ 49