National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — FY2022 Earnings Presentation
21 slides from National Development Bank's earnings presentation, Mar 16, 2023
Slide 1: Investor Update – FY 2022
Investor Update – FY 2022 National Development Bank PLC NDB.N0000 National Long-term Rating: A- (lka), Fitch Ratings Lanka Limited 16 March 2023 11.30 am (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 Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Vice President/ Chief Financial Officer Niran
Slide 4: Agenda
AGENDA PART I CORPORATE PROFILE PART II OPERATING ENVIRONMENT PART III FINANCIAL PERFORMANCE – FY 2022 PART IV WAY FORWARD PART V Q&A
Slide 5: Part I - Corporate Profile
PART I - CORPORATE PROFILE PART I - CORPORATE PROFILE 5
Slide 6: Corporate Profile
CORPORATE PROFILE Our Legacy Our Team Over 40 years of Over 3,000 NDBers across the Our Values service to the nation NDB Group Integrity Our Vision Creativity Our Presence 113 branches, 150+ CRM cum The driving force for a Excellence ATMs , Global access through financially empowered Sincerity NDB N
Slide 7: Part II - Operating Environment: Navigating Turbulences
PART II - OPERATING ENVIRONMENT Navigating Turbulences
Slide 8: Operating Environment
OPERATING ENVIRONMENT Context to Operating Landscape in 2022 • Severe inflationary pressures continued over the year, Takes a downward turn in October 2022 Dec 2022 CCPI YoY – 57.2% (Dec 2021 – 12.1%) Dec 2022 NCPI YoY – 59.2% (Dec 2021- 14.0%) • Acute foreign currency liquidity deficit • Over 80% R
Slide 9: Part III - Financial Performance Review: A Transformative Journey
PART III - FINANCIAL PERFORMANCE REVIEW A Transformative Journey
Slide 10: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW Income/ Profitability Balance Sheet Gross income – LKR 109.9 Bn - YoY 77% Total assets - LKR 832.7Bn - YoY 18% Total operating income LKR 42.7 Bn - YoY 38% Gross loans and receivables – LKR 579.6Bn - YoY 10% Impairment charges LKR 29.3 Bn - YoY 185% Total deposits – LK
Slide 11: Financial Performance - Income
FINANCIAL PERFORMANCE - INCOME LKR Mn FY 2022 FY 2021 Variance % Gross Income 109,902 62,111 47,792 77% 97,918 52,693 45,225 Interest Income 86% 67,174 36,104 Interest Expense 31,070 116% 30,744 21,623 9,121 Net Interest Income 42% LKR Mn FY 2022 FY 2021 Variance % Net Fee & Commission Income 6,258
Slide 12: Financial Performance – Impairment Charges
FINANCIAL PERFORMANCE – IMPAIRMENT CHARGES LKR Mn FY 2022 FY 2021 Variance % Impairment Charges 29,292 10,265 19,027 185% • Impairment charges inclusive of provisions made on Investment Book for foreign currency denominated Government Securities and Loans to customers: former comprising the greater
Slide 13: Financial Performance – Operating Expenses
FINANCIAL PERFORMANCE – OPERATING EXPENSES Cost Composition % LKR Mn FY 2022 FY 2021 % FY 2022 FY 2021 Personnel expenses 5,737 5,672 1% 50% 54% Depreciation & amortization 847 832 2% 8% 8% Other expenses 4,800 3,931 22% 42% 38% Total operating expenses 11,384 10,435 9% 100% 100% • Controllable cost
Slide 14: Financial Performance – Balance Sheet
FINANCIAL PERFORMANCE – BALANCE SHEET Variance LKR Bn FY 2022 FY 2021 LKR % Total assets 833 705 128 18% Investments 199 146 53 36% Gross loans 580 526 54 10% Total deposits 672 552 120 22% Borrowings 81 79 2 3% Total equity 64 59 5 8% • Balance sheet growth primarily driven by inflationary pressure
Slide 15: Financial Performance – Investor Ratios
FINANCIAL PERFORMANCE – INVESTOR RATIOS Bank Group FY 2022 FY 2021 FY 2022 FY 2021 Closing Price per Share [LKR] 32.00 68.90 N/A N/A EPS [LKR] 7.65 19.24 7.92 20.88 ROE [%] 4.75 12.27 4.62 12.47 ROA [%] [Pre-tax] 0.26 1.55 0.34 1.67 Book Value per Share [LKR] 167.16 165.02 177.60 175.65 P/E [times]
Slide 16: Financial Performance – Capital & Liquidity Position
FINANCIAL PERFORMANCE – CAPITAL & LIQUIDITY POSITION Bank Group Ratio FY 2022 FY 2021 FY 2022 FY 2021 Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7% - 2021- 9.34 10.01 9.87 10.53 6.5% ] Tier 1 Capital Ratio % [Minimum Requirement – 2022-8.5% - 2021-8.0%] 9.34 10.01 9.87 10.53 Total Ca
Slide 17: Part IV - Way Forward: Responsive and Agile
PART IV - WAY FORWARD Responsive and Agile
Slide 18: Way Forward
WAY FORWARD • IMF Relief Package expected to be finalized in near future • Greater clarity on policy reforms expected following same • Priorities will remain to be • maximizing fee based income and enhancing revenue mix • driving cost rationalizations to preserve profitability and enhance shareholde
Slide 19: Part V - Q & A
PARTV- Q&A __ oe ot,
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 Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Vice P
Slide 21: NDB Investor Relations
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
National Development Bank — FY2022 Earnings Presentation on 6ix