State Bank Of India · NSE:SBIN
State Bank Of India — Q3 FY22 Earnings Presentation
53 slides from State Bank Of India's earnings presentation, Feb 5, 2022
Slide 1: Exchange submission cover letter
osBl qrrfu€e+s ,ffi-dq €e +fi STATE BANK OF INDIA The Listing Department, The Listing Department, BSE Limited, National Stock Exchange of lndia Limited, Ph iroje Jeejeebhoy Towers, Exchange Plaza, Sth Floor, 25th Floor, Dalal Street, Plot No.: C I 1, 'G' Block, Mumbai - 400001. Bandra Kurla Complex,
Slide 2: Q3FY22 Analyst Presentation
Q3FY22 Analyst Presentation 05.02.2022
Slide 3: 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 o
Slide 4: Contents
Contents 1 Macro Economic Indicators 2 Performance Highlights 3 Financial Performance 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 5: Macro-Economic Indicators
Macro-Economic Indicators CP, T-Bill,10 year Gsec Yields and High Frequency Activity Indicators India US One Year T Bill Spread Budget Day 5.00 7.1 4.6 6.9 ➢ Domestic Passenger vehicle, Two-wheeler and tractor 4.50 6.9 sales, showed sequential improvement in Jan’22, 6.7 4.00 4.0 3.9 3.9 6.5 however,
Slide 6: Performance Highlights
Performance Highlights
Slide 7: Key trends in Q3FY22
Key trends in Q3FY22 Credit growth accelerates – 8.47% YoY Led by strong growth in Retail Per advances and resurgence in SME & Corporate advances Robust growth in Foreign office Advances Improving profit metrics – Net profit up by 62.27% YoY Net interest income growth at 6.48% YoY Asset quality – im
Slide 8: Key Indicators
Key Indicators Rs. in Crores Current Account Savings Account For the Quarter 10.30% YoY 7.89% Rs. in Crores Growth Q3FY21 Q2FY22 Q3FY22 14,73,506 13,35,861 2,27,182 Net Interest Income 28,820 31,184 30,687 6.48% 2,10,563 Profit & Net Interest Margin – 3.34 3.50 3.40 6 bps Domestic (%) Loss Dec 20 De
Slide 9: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions • Strong growth in personal retail, driven by home loans, Xpress credit and other loans Dec – 2020 Dec - 2021 • Corporate & SME Credit has picked up during the quarter Retail Pers., 39.1%
Slide 10: Credit Growth: Retail Personal Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Retail Personal Banking As on Dec 2021 Leadership across all segments Personal Retail Portfolio of Rs 9.5 lakh crore 3 - year CAGR at ~16% As a % of Dom. Adv. Dec 20: 39.1 Dec 21: 42.0 Pe
Slide 11: Credit Growth: Diversified Loan Portfolio
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Diversified Loan Portfolio Rs. in Crores High quality asset book Industry mix Corporate Rating mix Outstanding as on 31st Dec 21 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastruct
Slide 12: Credit Growth: International Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions International Banking (Rs. in Crores) Gross Advances: Healthy Credit Growth Loan Portfolio across Geographies 4,00,385 9% USA 3,56,877 3% UK 3,29,943 4% 26% HongKong 4% Singapore 5% Bahra
Slide 13: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Dec 2020 Dec 2021 CA, 6.1% CA, 6.1% 65% of new savings accounts opened through YONO in 9MFY22 SA, TD, SA, TD, 39.0% 54.9% 39.6% 54.3% CASA: 45.15% CASA: 45.74% Rs. in crores Particulars D
Slide 14: Asset Quality: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Provisions Growth Growth Asset Quality Income Income Expenses Slippages and Restructuring Rs. in Crores H1FY22 slippages 19,842 Q3FY22 slippages 2,334 Restructuring 2.0 - 9MFY22 19,900 * Retail Restructuring details at end of 9MFY22 Corporate SME To
Slide 15: Net Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Net Interest Margins Yield on Investments in % 3.31 3.33 3.35 3.26 3.15 3.09 3.04 3.09 3.11 2.92 6.42 6.32 6.10 6.05 6.05 1.13 1.10 1.06 1.06 1.06 Dec-20 Mar-21 Jun 21 Sep 21 Dec-21 Dec-2
Slide 16: Non-Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses 9MFY21 9MFY22 Profit/ Loss on sale of Profit/ Loss on sale of investments, 22.3% investments, 10.6% Forex income, 6.8% Fee income, 55.2% Forex income, 5.9% Fee income, 57.7% Misc.income,
Slide 17: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Dec 20 Treasury Operations Dec 21 Others, 11.2% Others, 7.6% Corporate G-Sec and T Bill, Bonds, 21.6% Corporate Bonds, 48.9% G-Sec and T Bill, 23.5% 50.9% SDLs, 13.0% SDLs, CP, 6.9% 11.1%
Slide 18: Operating Expenses
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses 9MFY22 • Focus continues on improving income streams with control on costs Overheads, 40.0% Salary, 42.3% • Cost to assets – amongst one of the best in the Retiral benefits & other provis
Slide 19: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.49% for Q3FY22 • PCR (excl AUCA) at 71.22%, legacy book well provided • Non NPA provisions at Rs 30,089 crores, ~87% of Net NPA at end of Q3FY22 Available Buffer, In R
Slide 20: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoE (FY00 – FY15) – 15.2 ROE (in %) At variance to long term trends 18.2 18.1 18.2 18.1 17.8 15.9 14.0 16.0 15.5 16.1 14.2 15.1 11.2 9.9 14.0 12.8 7.7 11.9 10.5 7.7 0.5 -1.1 -3.8 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Slide 21: Financial Performance
Financial Performance
Slide 22: Financials – At a Glance
Financials – At a Glance Nine Months Quarter ended Growth (%) Ended Q3FY22 Q3FY22 9MFY22 Particulars, In Rs crs Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 over over over Q2FY22 Q3FY21 9MFY21 Interest Income 66,734 69,481 69,678 2,00,049 2,04,724 0.28 4.41 2.34 Interest Expenses 37,915 38,298 38,991 1,16,406
Slide 23: Total Income
Total Income Quarter ended Nine Months Ended Growth (%) Q3FY22 Q3FY22 9MFY22 Particulars, In Rs crs Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 over over over Q2FY22 Q3FY21 9MFY21 Interest on Loans 43,737 42,317 43,753 1,31,215 1,27,213 3.39 0.04 -3.05 Interest on Resources 21,120 22,306 22,781 62,383 66,492
Slide 24: Fee Income Break Up
Fee Income Break Up Nine Months Quarter ended Growth (%) Ended Q3FY22 Q3FY22 9MFY22 Particulars, In Rs crs Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 over over over Q2FY22 Q3FY21 9MFY21 Loan Processing Charges 1,142 1,049 917 3,263 2,755 -12.52 -19.66 -15.58 Commission on Govt. Business 843 933 1,043 2,646
Slide 25: Total Expenses
Total Expenses Quarter ended Nine Months Ended Growth (%) Q3FY22 Q3FY22 9MFY22 Particulars, In Rs crs Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 over over over Q2FY22 Q3FY21 9MFY21 Interest on Deposits 35,121 35,183 35,510 1,07,809 1,05,485 0.93 1.11 -2.16 Interest on Borrowings 1,119 1,675 2,058 4,270 5,48
Slide 26: Overheads
Overheads Nine Months Quarter ended Growth (%) Ended Q3FY22 Q3FY22 9MFY22 Particulars, In Rs crs Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 over over over Q2FY22 Q3FY21 9MFY21 Rent, Taxes and Lighting 1,354 1,354 1,357 3,714 3,795 0.19 0.23 2.20 Depreciation 845 811 820 2,486 2,427 1.03 -3.05 -2.38 Printing
Slide 27: Provisions & Profit
Provisions & Profit Quarter ended Nine Months Ended Growth (%) Q3FY22 Q3FY22 9MFY22 Particulars, In Rs crs Q3FY21 Q2FY22 Q3FY22 9MFY21 9MFY22 over over over Q2FY22 Q3FY21 9MFY21 Operating Profit 17,333 18,079 18,522 51,854 55,576 2.45 6.86 7.18 Loan Loss 2,290 2,699 3,096 17,330 10,825 14.70 35.18 -
Slide 28: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 29: Well-Capitalized Bank with Adequate Liquidity
Well-Capitalized Bank with Adequate Liquidity Capital Ratios (%) 14.50% 13.74% 13.35% 14.17% 13.23% 2.77 12.1 2.32 2.30 2.33 2.32 1.46 1.42 1.53 1.26 1.53 8.6 11.73 11.44 11.85 11.02 10.91 10.27 10.02 9.76 9.38 10.32 Dec-20 Mar-21 Sep-21 Dec-21 Dec-21 (Proforma-including profits of 9MFY22) CET-1 AT-
Slide 30: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, in Rs crs Net NPA, in Rs crs 1,49,092 1,33,705 1,34,259 1,26,389 1,23,942 1,20,029 16,461 51,871 42,797 43,153 36,810 37,119 34,540 13,765 1,17,244 29,032 Mar 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 20 Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Reported NPA Proforma NPA Cumu
Slide 31: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Opening Level of Gross NPAs 1,25,863 1,17,244 1,49,092 1,26,389 1,34,259 1,23,942 Total Reductions 8,906 12,905 52,035 8,428 14,609 6,493 of which : Recovery + Upgradation 5,657 4,329 17,632 4,969 7,407 2,306
Slide 32: Movement of NPAs and AUCA (3/4)
Movement of NPAs and AUCA (3/4) Rs. In Crores Movement of NPAs (incl. Advances under Collection) Mar 19 Mar 20 Mar 21 Dec 21 Opening Level of GNPA + AUCA 3,27,653 3,09,755 3,16,684 3,00,496 Gross Addition (Increase in O/s + Slippages) 39,740 54,510 29,332 23,170 Total GNPA + AUCA + Additions 3,67,39
Slide 33: Asset Quality (4/4)
Asset Quality (4/4) As on Dec 21 Rs. in Crores Slippages SMA 1 & SMA 2 Accounts with exposure above Rs. 5 cr: CRILC data 23,091 22,176 17,946 15,666 11,519 11,303 12,546 3,326 6,843 6,690 2,351 4,167 4,176 7,977 1,599 2,334 5,400 4,676 4,339 2,568 9MFY21 9MFY22 Q1FY22 Q2FY22 Q3FY22 Dec-20 Mar-21 Jun
Slide 34: Digital Journey
Digital Journey
Slide 35: Accelerating digital agenda (1/4)
Accelerating digital agenda (1/4) YONO – Key objectives Deliver world class customer Productivity gains through digital experience – Through end-to-end redesign of processes distinctive, omni-channel and seamless customer journeys 1 2 3 4 Orchestrate the digital ecosystem Achieve growth through digi
Slide 36: Accelerating digital agenda (2/4)
Accelerating digital agenda (2/4) YONO – Our flagship digital offering 1.03 Cr. Average Daily logins by Customers 1 2 3 4 (Q3FY22) Digital bank Financial superstore Online marketplace Journey digitization “Create seamless omni- “Enable higher cross-sell “Deepen relationships with “Improve productivi
Slide 37: Accelerating digital agenda (3/4)
Accelerating digital agenda (3/4) YONO Business has re-imagined key customer journeys to provide a superior user experience Corporate Internet 1. Unified URL https://yonobusiness.sbi to access 5 Banking application viz CINB, eTrade, eForex, SCF and CMP 2. Single-sign-on across business banking appli
Slide 38: Accelerating digital agenda (4/4)
Accelerating digital agenda (4/4) Digital Leadership across channels Leadership across channels - Market share (As per latest available data) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 27.73% 14.46% 30.21% 24.72% 23.16% Presence across mu
Slide 39: Analytics – Towards a Digital Bank (1/3)
Analytics – Towards a Digital Bank (1/3) Asset Business Booked Through Business Booked Through E2E Analytics (₹ in Cr.) Digital Loan PAPL (₹ in Cr.) 38,657 39,395 21,216 14,154 9,846 4,507 22,023 FY19 FY20 FY21 9MFY22 18,802 6,283 5,116 5,446 5,301 FY22 QoQ FY22 FY21 FY22 15% FY21 Growth FY20 FY21 9
Slide 40: Analytics – Pioneering Analytics at SBI (2/3)
Analytics – Pioneering Analytics at SBI (2/3) 1 Offering customers a Digital Loan / Credit Card 2 Identifying ideal loan limit / top-up Business Solutions 3 Maximizing customer savings through lower charges / better interest rates Delivered by AI 4 Recommending products that best fit a customer’s ne
Slide 41: Analytics – Bolstering Customer Trust Through Data (3/3)
Analytics – Bolstering Customer Trust Through Data (3/3) AI/ML based EWS for SME/CAG/CCG Intelligent Risk-based Sampling of using internal and external data Branch Transactions for Verification AI/ML model to detect ATM Fraud AI based Personal Segment EWS to optimize collections NPA Transact
Slide 42: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 43: Financial Inclusion
Financial Inclusion As on Dec 2021 No. of BC outlets Transactions in BC Channel Deposits in FI Channel 44.79 2,885 2,40,000 40.58 45 57,000 2,622 3,000 36.93 40 35 47,000 2,202 2,500 1,80,000 30 37,000 2,000 25 1,20,000 27,000 1,500 71,207 2,08,758 20 47,744 69,500 42,510 1,67,109 1,79,373 15 60,000
Slide 44: Contributing to Society through Pan India Presence
Contributing to Society through Pan India Presence COVID-19 Relief Initiatives SBI Gram Seva Program Multiple Initiatives undertaken across the country SBI has implemented Gram Seva program in partnership with grassroots NGOs in a 5-village cluster model across 1,100 ICU / COVID-19 Care beds to supp
Slide 45: Connect with Society
Connect with Society • Ten projects for Rs.18.75 Cr to support various ● >30K “Nucleic-Acid Amplification Testing (NAT)” at educational projects to provide children access to Tata Memorial Hospital in Mumbai to improve blood transfusion safety for cancer patients. quality education like Prathamik Bh
Slide 46: SBI's ESG Snapshot
SBI’s ESG Snapshot ✓ Responsible finance at the core. Lines of credits availed from World Bank, KfW Leadership in : ESG – an etc. being used to fund projects with positive environmental & social impacts. ▪ ▪ Access to Finance Privacy & Data Security A integral ✓ ESG further integrated in our lending
Slide 47: SBI's Sustainability Framework
SBI’s Sustainability Framework Financial Inclusion Responsible Digital Agenda People Practices & Carbon Neutrality Journey Investment Community Building Customer Service Points Internal Commitment Green Bonds & Loan YONO Fighting the Pandemic ~ 70 K Customer Service To achieve carbon neutral status
Slide 48: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 49: SBI and its Subsidiaries - Leveraging Synergies (1/2)
SBI and its Subsidiaries - Leveraging Synergies (1/2) As on Dec 2021 9MFY21 9MFY22 9MFY21# 9MFY22# PAT (in Rs. cr) 923 834 PAT (in Rs. cr) 809 1,035 ROE (in %) 13.1 10.3 ROE (in %) 18.5 20.0 Business Performance Improving Market Share* • Total New Business Premium (NBP) increased by 30% YoY. • Cards
Slide 50: SBI and its Subsidiaries - Leveraging Synergies (2/2)
SBI and its Subsidiaries - Leveraging Synergies (2/2) As on Dec 2021 9MFY21 9MFY22 9MFY21# 9MFY22# PAT (in Rs. cr) 403 101 PAT (in Rs. cr) 613 788 ROE (in %) 22.9 4.8 ROE (in %) 33.0 30.7 Performance Highlights: • Ranked at 8th position amongst private insurers • Market share amongst private players
Slide 51: SBI Group Financials – 9MFY22
SBI Group Financials – 9MFY22 Rs. In crores Growth Rs. In crores Nine Months Ended Nine Months Ended (%) 9MFY21 9MFY22 YoY 9MFY21 9MFY22 Interest Earned 2,10,083 2,15,365 2.51 ROA (%) 0.49 0.69 Non-Interest Income 71,824 83,573 16.36 Total Income 2,81,907 2,98,938 6.04 Interest Expended 1,17,621 1,1
Slide 52: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Dec 20 Dec 21 Dec 20 Dec 21 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,50,351 2,75,890 10.20 2,72,383 3,00,973 10.50 Minority Interest 9,424 10,818 14.79 Deposits 35,35,753 38,47,794 8.83 35,70,534
Slide 53: Thank You
Thank You