Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q3 FY2023 Earnings Presentation
35 slides from Equitas Small Finance Bank's earnings presentation, February 2023
Slide 1: Investor Presentation Q3FY23
Investor Presentation Q3FY23 BEYOND BANKING When you bank with us, you contribute towards a better society
Slide 2: Disclaimer
Disclaimer Disclaimer: The information in this document, including facts and figures, is being provided by Equitas Small Finance Bank Limited (the “Bank”) for informational purposes only and could be subject to change without notice. The information has also not been independently verified. No repre
Slide 3: Table of Contents
Table of Contents 1. Key Highlights 2. Financial Performance 3. Advances Liabilities & 4. Branch Banking 5. Digital Banking 6. Financials 3
Slide 4: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 5: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q3FY23: 18 States and UTs Rs. 24,915 Cr [Rs. 19,687 Cr] Rs. 23,393 Cr [Rs. 17,884 Cr] Rs. 170 Cr [Rs. 108 Cr] SBL- 37%, VF - 25%, CASA – 46%, TD – 54 % MFI- 18%, HF-10% MSE – 5%, NBFC – 4% Disbu
Slide 6: Key Highlights
Key Highlights Key Messages • Q3FY23 was a strong quarter across key performance indicators delivering sustainable loan and deposit growth, stable margins, improving asset quality • Loan Growth – 27% YoY | Deposit Growth – 31% YoY • 93bps improvement in GNPA YoY • Highest ever PAT at Rs. 170 Crs • I
Slide 7: Business Highlights
Business Highlights Asset Updates Equitas Shakthi Small Business Loans • New sub product line - Merchant Overdraft continues to scale up; gross advances crossed Rs. 150 Crs. New limits set up for the quarter at Rs. 100 Crs Vehicle Finance • A revamped proprietary Loan origination system was launched
Slide 8: Shifting gears for sustainable asset growth
Shifting gears for sustainable asset growth Strengthening new geographies and new products • Manpower strengthened across emerging states like AP & Telangana , Kerala • Disbursement in New Products at 12% for the quarter (Affordable Housing, Used Car loans and Merchant OD) Digitization in bottom of
Slide 9: Business Highlights
Business Highlights Liabilities Updates Insurtech Platform “ENVI” Premium Liabilities Branches • Savings & Term Deposits from “Elite” the mass affluent customer segment crossed Rs. 11,500 Crs. The program now services about 68,000+ Families • Savings account balances from individuals continue to rem
Slide 10: Potential of SBL in informal economy
Potential of SBL in informal economy Estimated number of Estimated share of self- households in India employed (non-agri) 271 Million 56 million Estimated number of self- Estimated self-employed with employed households with self Pucca house occupied residential property 44 million 46 million Addres
Slide 11: Building moats around small business lending space
Building moats around small business lending space Equitas Vintage Benefits of a Bank addressing this segment Proven business model since 2013 in SBL Unique advantage of Equitas: Ability to lend like an NBFC; capability to address end to end needs unlike an NBFC. Equitas as a sole banker Gross Advan
Slide 12: Merger Updates
Merger Updates Impact of Merger Merger Timeline Particulars Particulars Dates ESFB Networth (Rs. Crs) 4,640 Record Date 03-02-2023 EHL Networth (Rs. Crs) 325* ESFB Board Meeting for allotment 08-02-2023 ESFB Networth Post Merger (Rs. Crs) 4,965 Filing of PAS-3 form with MCA# 09-02-2023 Listing appro
Slide 13: Journey of building a stable, scalable & sustainable Bank
Journey of building a stable, scalable & sustainable Bank 13
Slide 14: Bank Performance Over the Cycles
Bank Performance Over the Cycles Loan CAGR (FY18-22) 26% 56% of the book 100% of the book Qtr. Avg PPoP 3.19% impacted, 0.30% RoA impacted, 1.10% RoA 30,0 00 3.0 0% 2.65% 2.60% During demonetization, 53% of our 25,0 00 2.5 0% advances representing Micro 2.26% Finance was impacted while the rest 2.13
Slide 15: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 15
Slide 16: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 6.47% 9.12% 6.41% 9.10% 6.45% 6.63% 6.42% 2.21% 9.05% 5.73% 5.97% 6.25% 1.70% 1.83% 1.40% 1.60% 6.20% 6.20% 9.00% 9.01% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3
Slide 17: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP/ Assets (%) 4.35% 610 647 3.87% 541 552 581 3.62% 3.52% 3.33% 95 104 100 115 127 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 NII Other Income (Net) Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 2.0 0% Other Income [Net] Contribution (%) Liability Fee Income (%) 14 15
Slide 18: Opex evolution
Opex evolution Rs. Cr Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Employee expenses 240 209* 225# 275 292 Other expenses (net of digital expenses) 152 148 169 187 182 Depreciation 19 17 18 21 21 Total Operating expenses 411 374 412 483 495 No. of employees 17,509 17,607 17,936 18,962 20,005 Cost to Income(%)
Slide 19: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 20: Advances evolution
Advances evolution Rs Cr Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 YoY % Contribution % Micro Finance 3,695 3,907 4,007 4,144 4,600 24% 18% Small Business Loans (SBL) 7,609 7,881 8,234 8,725 9,312 22% 37% Housing Finance 1,310 1,641 1,821 2,121 2,463 88% 10% Vehicle Finance 4,845 5,047 5,279 5,641 6,203 28
Slide 21: Disbursements evolution
Disbursements evolution Rs Cr Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 YoY % Micro Finance 1,010 972 939 971 1,340 33% Small Business Loans (SBL) 728 940 978 1,096 1,260 73% Housing Finance 177 267 266 388 427 141% Vehicle Finance 778 940 889 1,098 1,334 72% Used CV 425 514 474 589 699 65% New CV 266 323
Slide 22: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 19,30,803 0.43 0.24 4.15% 56.88% Small Business Loans (SBL) 2,37,811 6.45 3.92 3.97% 42.00% Housing Finance 27,842 11.95 8.85 1.13% 32.30% Vehicle Finance 1,87,760 5
Slide 23: Asset Quality Trend
Asset Quality Trend 950 .00 4.39% 3.95% 5.0 0% 850 .00 4.06% 3.82% 4.0 0% 750 .00 3.46% 650 .00 2.38% 2.37% 2.07% 3.0 0% 550 .00 1.93% 1.73% 2.0 0% 450 .00 350 .00 479.47 1.0 0% 250 .00 0.0 0% 150 .00 863.82 459.42 837.18 856.00 441.22 870.26 430.88 861.36 423.44 50.0 0 -1.00% Q3FY22 Q4FY22 Q1FY23 Q
Slide 24: Liabilities & Branch Banking
Liabilities & Branch Banking 24
Slide 25: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 Dec 2022 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 796 10,021 10,817 12,576 23,393 as a % of total borrowings (Rs. 27,333 Cr) 3% 37% 40% 46% 86% as a % of total deposits (Rs. 23,393 Cr) 3
Slide 26: Customer Deposit Profile
Customer Deposit Profile Elite Book (Rs. Cr) Savings Slab Wise (%) Deposit Category 2% 6% 6% OTHERS 8% 11,623 Upto 1 Lac 10,122 8,119 8,988 1 Lac to 1 Cr 6,120 23% 1 Cr to 10 Cr TRUSTS 3% 10 Cr to 100 Cr 64% 100 Cr + GOVT./LOCAL Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 BODIES 5% Retail & Bulk TD Mix Term
Slide 27: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr Dec 2021 Sept 2022 Dec 2022 4% 1% TD 8,799 11,270 12,576 9% CASA Refinance 2,635 2,023 2,410 TD 40% CASA 9,085 10,456 10,817 Refinance Sub Debt 150 - - IBPC 46% RBI Borrowing IBPC 968 500 1200 RBI Borrowing - 316 330 Total Borrowings 21,637 24,565 27,333
Slide 28: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 6,181 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 6,160 Non SLR 21 Total 6,181 Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from CRISIL and India Rat
Slide 29: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 30: Digital Banking – Key Highlights
Digital Banking – Key Highlights Neo Banking Digital Products overview for Q3 WhatsApp Banking Total Deposits Equitas Selfe FAQ Bot + Live agent chat during Banking hours for assistance Own digital platform Rs. 592 Crs Total Deposits • 2.1 Lacs Cards issued Prepaid Cards • 58 Lacs+ Transactions • 44
Slide 31: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society.
Slide 32: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Dec-22 Dec-21 YoY % Sept-22 QoQ% Capital & Liabilities Capital 1,254 1,148 9% 1,254 - Reserves & Surplus 3,386 2,435 39% 3,213 5% Networth 4,640 3,583 30% 4,467 4% Deposits 23,393 17,884 31% 21,726 8% Borrowings 2,740 2,785 -2% 2,339 17% Other Liabilities & Provi
Slide 33: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% Interest Income from Loans 959 819 17% 904 6% 2,718 2,328 17% Income on Investments 81 64 26% 73 11% 215 180 19% Interest on balances with Reserve Bank 23 18 30% 25 -8% 73 56 30% of India and other inter b
Slide 34: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% Net Income 774 636 22% 725 7% 2,180 1,746 25% Employee Cost 292 240 21% 275 6% 793 670 15% Opex* 203 171 19% 208 -2% 597 468 28% Total Operating Expenditure 495 411 20% 483 2% 1,390 1,158 20% PBT before pr
Slide 35: Investor Relations
Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu
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