Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q4 FY2020 Earnings Presentation
61 slides from Rbl Bank's earnings presentation, May 7, 2020
Slide 1: Investor Presentation 4th Quarter/ FY 20
Investor Presentation 4th Quarter/ FY 20 May 7, 2020
Slide 2: 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 3: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System INR Indian Rupee Agri Agribusiness Banking IPO Initial Public Offering API Application Programming Interface LAP Loan Against Property ARC Asset Reconstruction Company MF Mutual Funds ATM Automated Teller Machine Mn Million BC Business Corre
Slide 4: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 12 Financial Performance 15 Distribution Network 33 Shareholding Pattern and Ratings 35 Micro-banking Update 37 Loan Against Property Update 42 Credit Cards Update 44 Annexures 52 4
Slide 5: Key Performance Highlights
Key Performance Highlights 5
Slide 6: Q4/ FY20 Financial Highlights
Q4/ FY20 Financial Highlights Strong Total Revenue growth , 8% sequentially in Q4 FY20 (FY20 growth of 39% YOY) NII growth, 11% sequentially in Q4 FY20 (FY20 growth of 43% YOY); Other Income sequential growth , 3% in Q4FY20 (FY20 growth of 32% YOY) NIM at a new all time high of 4.93% in Q4 FY20 (4.5
Slide 7: Q4 FY20 Highlights
Q4 FY20 Highlights YoY Growth QoQ Growth Net interest Income Rs. 1,021cr 38% 11% Core Fee Income Rs. 470cr 21% (1%) Net Total Income Rs. 1,522cr 33% 8% Operating Profit Rs. 765cr 37% 4% Net Profit Rs. 114cr (54%) 64% 7
Slide 8: FY20 Highlights
FY20 Highlights YoY Growth Net interest Income Rs. 3,630cr 43% Core Fee Income Rs. 1,743cr 29% Net Total Income Rs. 5,540cr 39% Operating Profit Rs. 2,752cr 42% Net Profit Rs. 506cr (42%) 8
Slide 9: Q4 FY20 Highlights Contd....
Q4 FY20 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 58,019cr 7% (3%) Wholesale Rs. 25,494cr (16%) (13%) Advances Non-Wholesale Rs. 32,525cr 35% 7% Advances Deposits Rs. 57,812cr (1%) (8%) CASA Rs. 17,116cr 17% 2% 9
Slide 10: 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 FY17 26,773 46% 3.4% 129 1.17% Q4 FY17 29,449 39%
Slide 11: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 16.1% 13.0% 30.8% 16.6% 40.0% 70.4% 13.1% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Current Deposits 11
Slide 12: RBL Vision 2020
RBL Vision 2020
Slide 13: Performance to Vision 2020 Goals
Performance to Vision 2020 Goals RBL Vision 2020 Actual FY20 (Post IPO/Sept 2016) FY16 to FY19: 37% CAGR Advances 30-35% CAGR FY16 to FY20 :29% CAGR FY 16: 18.6%; FY 17: 22.0%; 0.75 - 1% increase CASA Ratio FY 18: 24.3%; FY 19: 25.0%; every year FY20: 29.6% Other Income % ~ 1/3rd of Net Total Income
Slide 14: 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, Technology Zeta) ; Credit card partnerships (Bajaj Finserv, BookMyShow, Zomato, ET Money, Paisa Bazaar, MoneyTap) Enhancing distr
Slide 15: Financial Performance
Financial Performance
Slide 16: Strong Pre-Provisioning Operating Profit Momentum Continues
Strong Pre-Provisioning Operating Profit Momentum Continues Parameter Q4 FY20 Q4 FY19 YoY Q3 FY20 QoQ FY20 FY19 Net Interest Income 1,021 739 38% 923 11% 3,630 2,539 Other Income 501 409 22% 487 3% 1,910 1,442 Net Total Income 1,522 1,148 33% 1,410 8% 5,540 3,982 Operating Profit 765 560 37% 732 4%
Slide 17: Balance Sheet Parameters
Balance Sheet Parameters Parameter March 31,2020 March 31,2019 YoY Advances 58,019 54,308 7% Deposits 57,812 58,394 (1%) Investments 18,150 16,840 8% Parameter Dec 31,2019 March 31,2019 March 31,2020 CASA 26.8% 25.0% 29.6% GNPA 3.33% 1.38% 3.62% NNPA 2.07% 0.69% 2.05% Net Stressed Assets 2.14% 0.73%
Slide 18: Well Diversified Other Income Profile; Cards Driving Core Fee Income
Well Diversified Other Income Profile; Cards Driving Core Fee Income Other Income Core Fee Income Breakup 1,745 1,909 9% 1,348 9% 470 1,442 474 500 9% 487 388 9% 7% 3% 7% 6% 54% 409 40% 9% 5% 91% 56% 57% 41% 4% 3% 94% 93% 13% 97% 4% 11% 11% 3% 4% 95% 12% 12% 23% 13% 23% 11% 12% 9% 12% 10% 12% 9% Q4
Slide 19: Cost Growth Driven by Business Expansion; Credit Costs due to Increased Provisions
Cost Growth Driven by Business Expansion; Credit Costs due to Increased Provisions Operating Expenses Net Credit Cost by Business (bps) 2,788 29* 109* 99* 111 339 64 183 54 2,042 757 677 60% 40 588 112 54% 61% 60% 26 5% 24 69 57% 6% 8% 5% 9% 15 5% 6% 7% 33 8% 7% 28% 19 31% 10 13 10 28% 26% 2 2 3 3 2
Slide 20: Changing Advances Mix and Improving Yields Helping NIMs
Changing Advances Mix and Improving Yields Helping NIMs Yield March 31,2020 March 31,2019 YoY Proportion FY 20 C&IB 17,884 21,354 (16%) 8.9% CB 7,611 8,875 (14%) (8.9%) 44% Wholesale 25,494 30,229 (16%) Retail Assets 23,181 16,468 41% LAP 7,591 6,453 18% Credit Cards 10,509 5,283 99% Retail Agri 1,4
Slide 21: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - Tenor of Advances Secured/Unsecured 58,019 59,635 58,019 59,635 54,308 54,308 6% 5% 9% 9% 9% 10% 8% 8% 31% 36% 8% 25% 18% 16% 21% 59% 67% 62% 66% 61% 66% March 31, 2019 Dec 31, 2019 March 31, 2020 March 31, 2019 Dec 31, 2019 March 31, 2020 Secured Un
Slide 22: Borrowers' External Rating Profile – Based on Total Exposure
Borrowers’ External Rating Profile – Based on Total Exposure March 31, 2019 Dec 31, 2019 March 31, 2020 63,272 60,031 56,163 3.1% 8.4% 8.8% 29.6% 29.1% 31.1% 34.3% 32.2% 33.3% On Internal Facility rating 27.3% 24.0% 20.7% 17.9% 5.7% 6.1% 6.5% 3.0% External Ratings External Ratings External Ratings A
Slide 23: Additional Colour on BBB and BB Rated Exposure
Additional Colour on BBB and BB Rated Exposure • Identified COVID related sectors are airlines, real estate, gems and jewellery, auto, entertainment, construction, shipping and logistics, organised retail, textiles, hospitality and small NBFCs • Total BBB rated exposure to these sectors is 5.6% • To
Slide 24: SMA1/ SMA2 has been Consistently Low for the Bank
SMA1/ SMA2 has been Consistently Low for the Bank SMA 1 as a % of SMA 2 as a % of Quarter Ended SMA 1 SMA 2 Advances Advances Mar-18 86 39 0.21% 0.10% Jun-18 47 64 0.11% 0.15% Sep-18 478 139 1.04% 0.30% Dec-18 221 79 0.44% 0.16% Mar-19 478 20 0.88% 0.04% Jun-19 229 395 0.40% 0.70% Sep-19 264 230 0.4
Slide 25: Diversified Industry Mix
Diversified Industry Mix Top 10 Industry* Outstanding % of Outstanding FB+NFB Industry FB-NFB Split FB+NFB Exposure Exposure Construction 3,531 29:71 4.7% NBFC (ex. HFC & DFI) 3,461 99:1 4.6% Engineering 2,608 34:66 3.5% Real Estate 2,396 93:7 3.2% Professional Services 2,250 83:17 3.0% Retail/ Dist
Slide 26: Asset Quality Impacted by Stress in Select Accounts
Asset Quality Impacted by Stress in Select Accounts Gross NPA by business segment Quarter Ended Business segment March Dec Sep March Dec Sep 30, 31,2020 31,2019 30, 2019 31,2020 31,2019 2019 Movement of Gross NPAs C&IB 1,469.7 1,375.3 842.4 Opening Balance 2,010 1,539 789 % of total advances 2.49% 2
Slide 27: Capital Adequacy - Well Capitalized
Capital Adequacy - Well Capitalized Particulars March 31, 2020 March 31, 2019 Dec 31, 2019 Tier 1 Capital Funds* 10,324 7,210 10,236 Tier 2 Capital Funds 751 814 721 Total Capital Funds 11,075 8,024 10,957 Total RWA 67,326 59,607 68,158 Tier 1 CRAR* 15.3% 12.1% 15.0% Total CRAR* 16.4% 13.5% 16.1% RW
Slide 28: CASA Continues Strong Growth Traction
CASA Continues Strong Growth Traction 17% YoY growth in CASA, 2% QoQ ; Total deposits declined 1% YoY CASA : 25.0% CASA : 26.8% CASA : 29.6% CASA : 14,587 CASA : 16,855 CASA : 17,116 62,907 58,394 57,812 10.4% 10.9% 13.0% 16.4% 14.1% 16.6% 73.2% 70.4% 75.0% March 31, 2019 Dec 31, 2019 March 31, 2020
Slide 29: Diversified Borrowing Streams
Diversified Borrowing Streams Borrowing Breakup 17,007 14,893 4% 8% 5% 11,832 2% 6% 39% 39% 49% 48% 53% 45% March 31, 2019 December 31,2019 March 31, 2020 Refinance FCY Inter-bank CBLO/ LTRO LAF Tier II 29
Slide 30: Deposits – Some Recent Trends
Deposits – Some Recent Trends Cost of Deposits 7.01% 6.90% 6.90% 6.71% 6.40% March 31, 2019 June 30, 2019 September 30, December 31, 2019 March 31, 2020 2019 • Deposits traction gaining momentum again • Total deposits have increased 4% since March 31st ,2020 to approx. Rs. 60,000 crores as of 30th A
Slide 31: Steady Investment Book
Steady Investment Book Investment Breakup 16,840 19,100 18,150 3% 2% 7% 3% 6% 9% 8% 15% 8% 81% 86% 71% March 31, 2019 December 31, 2019 March 31, 2020 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Total Investments 6.8% 7.5% 7.2% 7.3% 7.4% SL
Slide 32: NIM Improvement Helped by Higher Yields due to Changing Mix
NIM Improvement Helped by Higher Yields due to Changing Mix 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 Q2FY18 Q3FY18 Q4FY18 Q1FY1
Slide 33: Distribution Network
Distribution Network
Slide 34: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 7.32 7.82 8.49 38 6.51 6.92 GIFT 2 city 10 New Delhi branch March 31, June 30, Sep 30, Dec 31, March 31, 11 2019 2019 2019 2019 2020 11 9 Channel Breakup 2 Channels Number of transaction points 27 14 March 31, 202
Slide 35: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings
Slide 36: Diversified Shareholding & Strong Rating Profile
Diversified Shareholding & Strong Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.3 1.5 Basel III compliant Tier II ICRA AA- hyb (Stable) 6.7 bonds (Re-affirmed dated Jan 22.7 10, 2020) CARE AA- (Stable) 25.5 (Re-affirmed dated Oct 3, 2019) 14.5 Certificate of Deposits ICRA A
Slide 37: Micro-Banking Update
Micro-Banking Update
Slide 38: Micro-Banking Distribution Network
Micro-Banking Distribution Network Micro-Banking branches : 1,099 (28) BC branches opened in FY20 : 295 6 (22) 72 78 (68) (43) (45) Status of branches : (100) (2) • 853 branches (78%) already open. 69 46 92 16 (45) (43) (15) (72) • Customer connect mobile app for loan officers 30 80 - allows loan of
Slide 39: Micro-Banking - Portfolio Concentration reducing in top 3 / 5 states
Micro-Banking - Portfolio Concentration reducing in top 3 / 5 states RBL Portfolio - Top three & top five state concentration reducing % of Portfolio % of Portfolio State Name Mar’20 Mar’19 Bihar 14.7% 14.4% 58% Tamil Nadu 13.4% 14.6% 56% 41% 39% Maharashtra 10.7% 12.0% Karnataka 8.8% 9.7% Top-3-Mar
Slide 40: Portfolio Growth Driven by New Customers, Ticket Size Growth Moderates
Portfolio Growth Driven by New Customers, Ticket Size Growth Moderates 3 Mn active loan accounts In Rs. crores Micro-banking Portfolio Growth 28% Quarter on Quarter Disbursement 21% 41% 32% 2,132 6,445 1759 1,518 5,028 1,273 1249 1150 974 3,560 992 929 887 800 621 2,161 Q1 Q2 Q3 Q4 Mar 31,2017 Mar 3
Slide 41: Micro-Banking - Through the Door Mix
Micro-Banking - Through the Door Mix Borrowing Cycle with RBL Bank 74% of loans disbursed are to new customers in their first cycle 23% 26% 31% 29% 26% • Led by new branches in different geographies 77% 74% 69% 71% 74% • Keeps exposure per customer in check thereby providing more granularity in Q4 F
Slide 42: Loan Against Property Update
Loan Against Property Update
Slide 43: Loan Against Property (LAP) – Moderate Growth in FY20 Due to Macro Environment
Loan Against Property (LAP) – Moderate Growth in FY20 Due to Macro Environment Advances Growth Portfolio characteristics 7,459 7,591 7,323 6,968 6,453 Average Ticket Size : INR 1.4 crores 5,821 4,345 4,651 Average LTV : 63% 4,166 Entity mix : Mfg Service Trading 21% 39% 40% Mar'18 Jun'18 Sep'18 Dec'
Slide 44: Credit Card Update
Credit Card Update
Slide 45: Credit card addition– slight moderation in last three Qtrs
Credit card addition– slight moderation in last three Qtrs Cards in Force ( In Mn) 2.75 Card Additions ( In Mn) 2.51 2.29 0.39 0.38 2.02 0.34 0.33 0.34 0.31 1.71 0.26 1.43 1.19 0.20 0.21 0.97 0.80 Mar Jun Sep Dec Mar Jun Sep Dec Mar Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 31,2018 30,20
Slide 46: Credit Cards - Sticky Customer Spends
Credit Cards - Sticky Customer Spends Total Spends (In Rs Crore) Consumer Loans 22.59 25.29 20.79 20.09 20.79 18.6 19.0 19.39 19.19 2,334 8,287 8,327 2,085 7,035 1,760 5,936 1,435 4,712 4,403 1,186 4,208 1,024 926 925 3,234 850 790 755 2,378 636 544 512 412 382 285 214 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
Slide 47: Credit Cards – increasing Yields Through Low Risk Term Balances
Credit Cards – increasing Yields Through Low Risk Term Balances Revolve rate stable and maintained between 45%- 48% - balance between 45.70% 45.80% 47.18% 45.45% 47.85% 45.90% revenue and risk. At a customer level, 28% revolve while the balance pay in full. Note : Revolve rate is measured as total b
Slide 48: Credit Cards – Delinquency Trends Better Than Industry
Credit Cards – Delinquency Trends Better Than Industry 6 MOB $30+ rate – RBL vs Industry New Cards issued – delinquencies : 6.0% 5.0% 4.6% 30+ dpd rate vs industry @ 6 MOB 4.0% 3.3% 3.0% Consistently maintained below industry. 2.0% 1.0% “Steering wheel” approach - quarterly 0.0% adjustments to the r
Slide 49: Credit Cards Mix – Majority Customers Carded - Lower Risk
Credit Cards Mix – Majority Customers Carded - Lower Risk 82% of customers have a card with another bank Only RBL Card Vs Multiple Card • Balance 18% are credit tested predominantly having a relationship with Bajaj Finance Ltd. 18% 95% of these customers have a card with one of the top 4 issuers in
Slide 50: Credit Cards – Customer Segment Insights
Credit Cards – Customer Segment Insights Salaried : Self Employed (SE) mix Customer mix – Existing vs New relationship 30% 30% 70% 70% Salaried Self employed Existing customers (RBL + BFL) New to Bank Customers 70% of customers are salaried. Card distribution by age (SE delinquencies are higher by o
Slide 51: Customer Spend Analysis – FY21 likely to see a 12% dip
Customer Spend Analysis – FY21 likely to see a 12% dip Spends before Spends during Spends post Spend Category Forecast lockdown lockdown lockdown Grocery/ Stores 30.7% 47.5% 32.1% Will remain enhanced Fuel/ Cab 13.4% 7.4% 13.5% Revert to normal levels Lifestyle/ Apparels 11.7% 3.7% 10.5% Likely to s
Slide 52: Annexures
Annexures
Slide 53: Board of Directors
Board of Directors Mr. Vishwavir Ahuja Mr. Prakash Chandra Managing Director and CEO Non – Executive Part Time Chairman Previously, Managing Director & Country Executive Officer of Bank of America for Indian Sub-continent Previously, Chairman of Central Board of Direct Taxes (CBDT) Mr. Sivanandhan D
Slide 54: 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 55: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Deepak Kumar Mr. Pankaj Sharma Chief Risk Officer Chief Operations Officer Previously, associated with State Bank of India and member of RBI Previously, Head Retail Operations, Axis Bank committees (20) (37) Mr. Bhavtaran Singh (Sunny) Uberai
Slide 56: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Income Interest Earned 2,208 1,834 2,157 8,514 6,301 Interest Expended 1,187 1,095 1,235 4,885 3,761 Net Interest Income 1,021 739 923 3,630 2,539 Other Income 501 409 487 1,910 1,442 Total Income 1,522 1,148 1,410 5,540 3,982 Exp
Slide 57: Balance Sheet Statement
Balance Sheet Statement Particulars March 31, 2020 Dec 31, 2019 March 31, 2019 Liabilities Capital 509 508 427 Reserves and Surplus 10,074 10,039 7,121 Deposits 57,812 62,907 58,394 Borrowings 17,007 14,893 11,832 Other Liabilities 3,576 3,110 2,585 Total 88,978 91,458 80,359 Assets Cash & Balances
Slide 58: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Income Interest Earned 2,281 1,834 2,224 8,779 6,302 Interest Expended 1,187 1,095 1,235 4,885 3,761 Net Interest Income 1,094 739 989 3,894 2,541 Other Income 502 409 490 1,918 1,441 Total Income 1,596 1,148 1,479 5,
Slide 59: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars March 31, 2020 Dec 31, 2019 March 31, 2019 Liabilities Capital 509 508 427 Reserves and Surplus 10,056 10,021 7,108 Deposits 57,812 62,907 58,358 Borrowings 17,007 14,893 11,832 Other Liabilities 3,600 3,122 2,673 Total 88,983 91,451 80,398 Assets Goo
Slide 60: Our Recent History
Our Recent History FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 Particulars Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,290 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 57,812 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 40,2
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/ 61