National Development Bank PLC · CSELK:NDB.N0000
National Development Bank — Q3 2023 Earnings Presentation
23 slides from National Development Bank's earnings presentation, Nov 29, 2023
Slide 1: Investor Update – Q3 2023
Investor Update – Q3 2023 National Development Bank PLC NDB.N0000 National Long-term Rating: A- (lka) / Stable Outlook, Fitch Ratings Lanka Limited 29 Nov 2023 1.30 pm (GMT +0:530) Hosted from Colombo, Sri Lanka
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document has been prepared by National Development Bank PLC [“NDB”, “Bank” or the “Group”] solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos
Slide 3: Corporate Participants
Corporate Participants PRESENTED BY Dimantha Seneviratne Director/ Chief Executive Officer Panelists K V Vinoj - Deputy Chief Executive Officer Sanjaya Perera - Senior Vice President - Personal Banking & Customer Experience Suvendrini Muthukumarana - Vice President/ Chief Financial Officer Niran Mah
Slide 4: Agenda
AGENDA PART I OPERATING ENVIRONMENT PART II FINANCIAL PERFORMANCE – Q3 2023 PART III WAY FORWARD PART IV Q&A ANNEXURE NDB PROFILE ANALYST SUPPORT
Slide 5: Part I - Operating Environment
PART I - OPERATING ENVIRONMENT
Slide 6: Operating Environment
OPERATING ENVIRONMENT • Modest recovery in economic activity as denoted by leading economic data • Supported by import restrictions relaxation and low inflation • Second tranche of IMF relief package expected later this year Inflation Headline Oct Sep Jun Mar Dec Sep Mar • Significant deceleration i
Slide 7: Policy rates and market rates
Policy rates Market rates • Monetary policy further relaxed - Latest Market rates continue to decline with reduction in policy rates policy rate reduction on 23 Nov 2023 by 100 bps Market rates End Oct End Jun End Mar FY 2022 Q1 2022 2023 2023 2023 Policy rates – As of date (29 Nov 2023) SDFR 9.00 3
Slide 8: Part II - Financial Performance Review
PART II - FINANCIAL PERFORMANCE REVIEW A Transformative Journey
Slide 9: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW Bank Group PBT PBT Gross income Rs. 9.5 Bn, Rs. 102.9 Bn YoY 1,109% Rs. 10 Bn, Income/ YoY 763% YoY 38% PAT Profitability Rs. 5.2 Bn, PAT YoY 829% Rs. 5.4 Bn, YoY 686% Loans & Rec Total assets Rs. 473 Bn YTD (13%) Balance Sheet Rs. 789 Bn Deposits YTD (5%) Rs. 628 Bn Y
Slide 10: Financial Performance - Income
FINANCIAL PERFORMANCE - INCOME LKR Mn Fund based income Q3 2023 Q3 2022 Variance % Gross Income 102,875 74,503 28,372 38 Interest Income 93,659 65,172 28,487 44 Interest Expenses 69,255 42,985 26,270 61 Net Interest Income 24,404 22,187 2,217 10 Non-fund based income Q3 2023 Q3 2022 Variance % Net F
Slide 11: Financial Performance – Impairment Charges
FINANCIAL PERFORMANCE – IMPAIRMENT CHARGES LKR Mn Q3 2023 Q3 2022 Variance % Impairment Charges 13,926 22,225 (8,299) (37) The overall reduction in impairment charges over the comparative period is due to significant impairment provisions built for investments during the comparative period. However,
Slide 12: Financial Performance – Operating Expenses
FINANCIAL PERFORMANCE – OPERATING EXPENSES LKR Mn Q3 2023 Q3 2022 % Personnel expenses 5,071 4,335 17 Depreciation & amortization 736 624 18 Other expenses 4,336 3,528 23 Total operating expenses 10,143 8,487 20 Composition of Operating Expenses • Total operating expenses increase of 20% due to gene
Slide 13: Financial Performance – Profitability and Taxes
FINANCIAL PERFORMANCE – PROFITABILITY AND TAXES LKR Mn - Bank Q3 2023 Q3 2022 % Operating Profit Before Tax on Financial Services 9,547 790 1,109 Taxes on Financial services 2,405 763 215 Profit Before Taxation 7,142 27 26,570 Income tax expenses 1,929 (534) 461 Profit for the period 5,213 561 829 T
Slide 14: Financial Performance – Balance Sheet
FINANCIAL PERFORMANCE – BALANCE SHEET Variance LKR Bn Q3 2023 FY 2022 LKR % Total assets 789 833 (44) (5) • Balance sheet movement largely in line with industry-wide trends Investments 221 199 22 11 • Total assets reduction – due to deflation of the Gross loans 514 580 (66) (11) foreign currency den
Slide 15: Financial Performance – Investor Ratios
FINANCIAL PERFORMANCE – INVESTOR RATIOS Bank Group Q3 2023 FY 2022 Q3 2023 FY 2022 Closing Price per Share [LKR] 68.70 32.00 N/A N/A EPS [LKR] 16.52 7.65 17.22 7.92 ROE [%] 9.75 4.75 9.58 4.62 ROA [%] [Pre-tax] 1.49 0.26 1.64 0.34 Book Value per Share [LKR] 179.95 167.16 190.44 177.60 P/E [times] 4.
Slide 16: Financial Performance – Capital & Liquidity Position
FINANCIAL PERFORMANCE – CAPITAL & LIQUIDITY POSITION Bank Group Ratio Q3 2023 FY 2022 Q3 2023 FY 2022 Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7% ] 11.06 9.34 11.54 9.87 Tier 1 Capital Ratio % [Minimum Requirement – 8.5%] 11.06 9.34 11.54 9.87 Total Capital Ratio % [Minimum Require
Slide 17: Part III - Way Forward
PART III - WAY FORWARD Responsive and Agile
Slide 18: Way Forward
WAY FORWARD • Our strategic priorities • Managing NIM in a declining low interest rate environment • Maximizing fee based income and enhancing revenue mix • Preserving asset quality and continuous improvement to Stage III position • Cautious loan book growth with risk efficient lending • Driving cos
Slide 19: Part IV - Q & A
PART IV - Q & A
Slide 20: Q&A
Q&A Please use the Chat Option to pose your questions to the CEO and Panel Dimantha Seneviratne Director/ Chief Executive Officer Panelists K V Vinoj - Deputy Chief Executive Officer Sanjaya Perera - Senior Vice President - Personal Banking & Customer Experience Suvendrini Muthukumarana - Vice Presi
Slide 21: Annex - Part I - Corporate Profile
ANNEX PART I - CORPORATE PROFILE 21
Slide 22: Corporate Profile
CORPORATE PROFILE Our Legacy Our Team Over 40 years of Over 2,700 NDBers across the Our Values service to the nation NDB Group Integrity Our Vision Creativity Our Presence 113 branches, 170 CRM cum The driving force for a Excellence ATMs , Global access through financially empowered Sincerity NDB NE
Slide 23: Analysts Support
ANALYSTS SUPPORT Clearly defined Quarterly Results Calendar released at the end of each quarter NDB Investor Webinar transcriptsRelations hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for any queries
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