Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q3 2018-19 Earnings Presentation

38 slides from Indian Overseas Bank's earnings presentation, Jan 26, 2019

  1. Slide 1: Performance Analysis Q3/9m 2018-19

    Indian Overseas Bank इण्डियन ओवरसीज़ बैंक PERFORMANCE ANALYSIS Q3/9m 2018-19

  2. Slide 2: Our Heritage

    OUR HERITAGE  Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri.M.Ct.M. Chidambaram Chettyar.  Objective was to specialize in foreign exchange business and take Bank across the globe.  IOB started business simultaneously – at Karaikudi, Chennai and Rangoon in Burma (presently M

  3. Slide 3: Decades of History

    DECADES OF HISTORY 81 years of Glorious History ! Good People to Growth with 2016– Migrated to Finacle 31st Dec 2018- Business mix of 2000– Initial 3709 bn and a Public Offering domestic branch 2003 network of 3284 Follow on public branches offering 1964– 2005 Inauguration of Launched debit IOB Head

  4. Slide 4: Key Strengths - Qualitative

    KEY STRENGTHS - QUALITATIVE Touch Points: 3284 Domestic Branches, 57% branches in 81 years of Banking 5 Overseas Rural and SU centres Expertise Branches & 3385 ATMs 66% RAM share to 36 Million Active Domestic Advances customers Retail Share: 19.96% Agri Share: 22.37% MSME Share: 23.47% Page 4

  5. Slide 5: Top Line Movement – Q3 2018-19

    TOP LINE MOVEMENT– Q3 2018-19 Y-o-Y Growth Q-o-Q Growth Savings Bank Rs.68,385 Crs 9.13% 1.41% Current Account Rs.13,697 Crs -1.20% 7.15% Term Deposits Rs.1,38,230 Crs -1.31% -3.30% Deposits Rs.2,20,311 Crs 1.72% -1.28% Advances Rs.1,50,590 Crs -0.62% 0.37% Page 5

  6. Slide 6: Headline Numbers – Q3 2018-19

    HEADLINE NUMBERS – Q3 2018-19 Y-o-Y Growth Q-o-Q Growth Interest Income Rs.4,542 Crs 6.76% 6.04% Non Interest Rs.1,146 Crs 41.91% 7.66% Income Interest Rs.3,159 Crs 3.05% 2.71% Expenditure Operating Rs.1,064 Crs -18.95% 9.81% Expenses Operating Profit Rs.1,466 Crs 114.11% 12.42% Net Interest Rs.1,38

  7. Slide 7: Headline Numbers – 9M 2018-19

    HEADLINE NUMBERS – 9M 2018-19 Y-o-Y Growth Interest Income Rs.13,075 Crs -0.10% Non Interest Rs.3,289 Crs 19.18% Income Interest Rs.9,275 Crs -0.84% Expenditure Operating Rs.3,187 Crs -20.22% Expenses Operating Profit Rs.3,902 Crs 56.10% Net Interest Rs.3,800 Crs 1.76% Income Page 7

  8. Slide 8: Highlights – Quantitative – Dec 18

    HIGHLIGHTS – QUANTITATIVE – DEC 18 Maintains Healthy CASA of Non Interest 37.26% with SB growth at Income for Q3 9.13% RAM portfolio grew 2018-19 by 4.70% (Y-o-Y) increased by 41.91% (Y-o-Y) Cost to Net Interest Income Ratio Income for Q3 stood at 2018-19 grew by 42.05% for Q3 16.32% on Y-o-Y 2018-1

  9. Slide 9: Highlights

    HIGHLIGHTS  IOB ESPS 2018 witnessed overwhelming response with more than 100% subscription.  Maintains healthy Global CASA Ratio of 37.26% and Domestic CASA Ratio of 37.77% as at Dec 2018 .  Global Deposits recorded a growth of 1.72% on Y-o-Y basis and ended at Rs. 2,20,311 crores.  Global Advan

  10. Slide 10: Highlights

    HIGHLIGHTS  Other Income grew by 41.91% for Q3 2018-19 over Q3 2017-18 and recorded a growth of 19.18% for 9m 2018-19 over 9m 2017-18.  Operating Profit stood at Rs. 1,466 crores for Q3 2018-19 as against Rs. 685 crores in Q3 2017-18 registering a growth of 114.11%. Operating Profit for 9m 2018-19

  11. Slide 11: Customer Touch Points

    CUSTOMER TOUCH POINTS 4000 IOB Bank 3500 Year Branches ATM/CR Mitra 3000 Mar-15 3381 3571 2841 Mar-16 3397 3793 2894 2500 Branches Mar-17 3373 3679 2738 2000 ATM Mar-18 3332 3552 2663 Jun-18 3326 3608 2640 1500 BC Sep-18 3303 3789 2640 1000 Dec-18 3284 3385 2660 500 0 BC: IOB Bank Mitra Mar-15' Mar-

  12. Slide 12: Global Footprints – Foreign Branches

    GLOBAL FOOTPRINTS – FOREIGN BRANCHES Representative Remittance Branches Office JV Subsidiary Centres •Singapore •Dubai •Malaysia •Singapore – •Hong Kong Main Serangoon Road •Colombo •Bangkok •Sukhumvit, Bangkok Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%)

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL Rs in Crores Particulars Mar-17 Dec-17 Mar-18 Sept-18 Dec-18 YoY(%)QoQ(%) CASA Deposits 76269 76526 79678 80219 82081 7.26 2.32 Total Deposits 211343 216592 216832 223169 220311 1.72 -1.28 Advances 156776 151536 150999 150040 150590 -0.62 0.37 Business Mix 368118 368128

  14. Slide 14: Deposit Composition

    DEPOSIT COMPOSITION Rs in Crores Particulars Mar-17' Dec-17 Mar-18 Sep-18 Dec-18 YoY(%)QoQ(%) Savings 63232 62664 66742 67437 68385 9.13 1.41 Current 13037 13863 12936 12782 13697 -1.20 7.15 CASA Deposits 76269 76526 79678 80219 82081 7.26 2.32 Term Deposits 135074 140066 137154 142950 138230 -1.31

  15. Slide 15: Deposits & Cost

    DEPOSITS & COST Rs in Crores Parameters Mar-14' Mar-15' Mar-16 Mar-17 Dec-17 Mar-18 Dec-18 Savings Deposits 43744 47101 52404 63232 62664 66742 68385 Current Deposits 14023 14640 12082 13037 13863 12936 13697 Bulk Deposits 85092 89837 58917 29195 31839 27906 30594 Retail Term Deposits 77755 89197 96

  16. Slide 16: Risk Spread - Assets

    RISK SPREAD - ASSETS Rs in Crores Details Mar-16 Mar-17 Dec-17 Mar-18 Dec-18 Retail 22653 23887 26772 28183 28693 Agri 30237 29348 30288 30820 32151 MSME 31804 30564 33275 32615 33738 Others 70734 58852 49180 46898 49147 Overseas 17299 14125 12021 12483 6861 Global 172727 156776 151536 150999 150590

  17. Slide 17: RAM – The Growth Driver

    RAM – THE GROWTH DRIVER Rs in Crores 40000 35000 33275 33738 31804 32615 32151 30237 30564 30288 30820 29348 28693 30000 28183 26772 25000 23887 22653 20000 15000 10000 5000 0 Mar-16' Mar-17 Dec-17 Mar-18 Dec-18 Retail Agri MSME Particulars Mar-16 Mar-17 Dec-17 Mar-18 Dec-18 Retail 22653 23887 26772

  18. Slide 18: Retail Performance

    RETAIL PERFORMANCE Rs in Crores Share of Retail on Domestic Gross Advances 165000 20.34 22 19.96 20 145000 16.75 18 125000 14.57 16 105000 11.07 14 11.17 85000 12 10 65000 8 45000 6 25000 4 5000 2 Mar'14 Mar'15 Mar'16 Mar'17 Mar ’18 Dec-18 Gross Domestic Retail Advance % Share Year Gross Domestic Re

  19. Slide 19: MSME Performance

    MSME PERFORMANCE. Rs in Crores 190000 45 Year Gross DomesticMSME Advance % Share 170000 150000 Mar'14 161998 28978 17.89% 130000 35 Mar'15 162838 32252 19.81% 110000 23.47% 23.55% 90000 Mar'16 155428 31804* 20.46% 19.81% 21.43% 20.46% 70000 25 50000 Mar'17 142651 30564* 21.43% 30000 Mar’18 138516 32

  20. Slide 20: Priority Sector Advances - Overview

    PRIORITY SECTOR ADVANCES - OVERVIEW Rs. In Crore 75099 Priority sector % of 70040 63635 67615 63984 Financial Year Achievement achievement 2014-15 63635 39.00% 39.00% 40.29% 40.33% 47.47% 50.57% 2015-16 67615 40.29% 2016-17 (Avg 4 qtrs) 63984 40.33% 2017-18 2014-15 2015-16 2016-17 2017-18 2018-19 as

  21. Slide 21: Agriculture Advance Performance

    AGRICULTURE ADVANCE PERFORMANCE Rs. In Crs Position of Agricultural Advances Y-o-Y Growth 32500 6.15% 32151 2000 7.00% 32000 6.00% 1500 4.69% 5.00% 31500 4.00% 30820 3.42% 31000 1000 1863 3.00% 30500 30237 1382 2.00% 500 969 30000 1.00% 29438 0.00% 29500 0 2015-16 2016-17 2017-18 Dec-18 -1.00% 29000

  22. Slide 22: Agri Advances – Priority Sector

    AGRI ADVANCES – PRIORITY SECTOR Rs. In Crore 35000 17.92% 18.02% 18.19% 20.23% 20.80% 29369 29236 30205 30236 28585 28865 29851 30651 30000 26561 26519 25000 20000 15000 10000 5000 0 2014-15 2015-16 2016-17 (Avg) 2017-18 (Avg) 2018-19 as on Target Achievement % Dec'18 Financial Year ANBC Target Achi

  23. Slide 23: Income & Expenses

    INCOME & EXPENSES Rs in Crores Q3 Q2 Q3 YoY QoQ 9m 9m Particulars 17-18 18-19 18-19 (%) (%) 2017-18 2018-19 YoY(%) Interest Income 4255 4284 4542 6.76 6.04 13088 13075 -0.10 Non Interest Income 808 1065 1146 41.91 7.66 2760 3289 19.18 Total Income 5062 5348 5689 12.37 6.36 15847 16364 3.26 Interest

  24. Slide 24: Profitability

    PROFITABILITY Rs in Crores Q3 Q2 Q3 YoY QoQ 9m 9m Particulars 17-18 18-19 18-19 (%) (%) 2017-18 2018-19 YoY(%) Operating Profit 685 1304 1466 114.11 12.42 2500 3902 56.10 Provisions 1656 1791 1812 9.43 1.16 5193 5655 8.90 of which NPA Provisions 1287 1678 1948 51.34 16.09 5197 5921 13.92 Other Provi

  25. Slide 25: Other Income

    OTHER INCOME Rs in Crores Q3 Q2 Q3 YoY QoQ 9m 9m Particulars 17-18 18-19 18-19 (%) (%) 17-18 18-19 YoY(%) Exchange & Commission 250 254 230 -7.85 -9.41 698 696 -0.42 Proft on Sale of Investments 87 10 540 524.28 5199.94 415 622 50.05 Profit on Exchange 149 137 127 -14.68 -6.79 439 383 -12.75 All oth

  26. Slide 26: Performance Ratios

    PERFORMANCE RATIOS Cost of Deposits (%) Yield on Advances (%) 5.50 5.44 5.43 7.60 7.52 5.39 5.39 5.40 5.32 7.50 5.30 7.40 7.31 5.20 7.30 5.10 7.20 7.12 7.14 5.00 7.10 4.90 7.00 6.95 4.80 6.90 4.70 6.80 4.60 6.70 4.50 6.60 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Q3 18-19 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-

  27. Slide 27: Movement of RWA & CRAR

    MOVEMENT OF RWA & CRAR Rs in Crores Particulars Dec-17 Mar-18 Sep-18 Dec-18 Y-o-Y Variance Market Risk RWA 16565.23 15189.38 14859.25 12537.89 -4027.34 Operational Risk RWA 14758.84 14758.84 15778.67 15778.67 1019.83 Credit Risk RWA 115325.24 104960.48 96903.45 96769.59 -18555.7 Total RWA (A) 146649

  28. Slide 28: Capital Optimisation

    CAPITAL OPTIMISATION Rs in Crores RWA to Advance Ratio 100.00% 95.00% 96.78% 90.00% 85.00% 89.34% 80.00% 85.00% 83.06% 75.00% 70.00% 65.00% 60.00% Dec-17 Mar-18 Sep-18 Dec-18 Credit RWA to Advance Ratio 78.00% 76.00% 76.10% 74.00% 72.00% 69.51% 70.00% 68.00% 66.00% 64.26% 64.58% 64.00% 62.00% 60.00%

  29. Slide 29: Branch Profitability

    BRANCH PROFITABILITY Details Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Dec-18 Branches 3265 3381 3397 3373 3332 3326 3303 3284 % of Loss Incurring Branches 23.64 21.95 21.14 15.89 11.13 11.67 7.69 5.60 3450 23.64 25.00 21.95 339721.14 3400 3381 20.00 3373 3350 15.89 3332 3326 15.00 3303 3300

  30. Slide 30: NPA Management

    NPA MANAGEMENT Rs in Crores Q3 FY Q1 Q2 Q3 Details 2017-18 2017-18 2018-19 2018-19 2018-19 i) Opening Gross NPAs 34709 35098 38180 38146 37110 a. Cash Recoveries 181 1105 565 1723 750 b. Upgradation 801 2330 467 342 197 c. Write-Offs 945 7018 1262 1425 2294 d. Sale to ARCs 735 3254 268 289 150 e. Ot

  31. Slide 31: Investments

    INVESTMENTS Rs in Crores Global Investments 82000 79740 79626 80000 78000 76573 76000 74000 72248 71640 71495 72000 70263 70000 68006 68000 66000 64000 62000 Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Dec-18 Parameters Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Dec-18 Domestic Investments 76155 68627

  32. Slide 32: Strategic Investments – Joint Venture

    STRATEGIC INVESTMENTS – JOINT VENTURE IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 18% along with the other Banks and Institutions Shareholding % Name of Entity Shareholding %Investment 8.07% 10.74% 18.06% Ind

  33. Slide 33: Valuations

    VALUATIONS Particulars (Rs. Crs) Q3 18-19 Q3 17-18 FY 17-18 Earning per Share (`) (-1.16) (-3.40) (-23.25) Book Value per Share (`) 8.11 22.96 11.13 Adjusted Book Value per Share (`) [(Net Worth - - ve -ve - ve Net NPA)/No of Shares] Price/Book Value (`) 1.84 0.96 1.57 Price/Adjusted Book Value (`)

  34. Slide 34: Awards & Accolades

    AWARDS & ACCOLADES “ Vani” Bank’s Quarterly Hindi Central Adjudged as Magazine was Vigilance 2nd “Best Bank awarded Commission among Bronze Prize in Bank adjudged commercial the “Indian our Bank for Banks in Language Vigilance Financial Publication” Innovation Literacy for category by Awards under 2

  35. Slide 35: Digital Initiatives

    DIGITAL INITIATIVES •IOB Nanban •UPI Merchant QR •IOB mPassbook •RuPay Enabled PG •Mobile Banking •IOB Pay Registration •BBPS through ATM •IOB Sahayak Payment Mobility Initiatives Initiatives ATM Value Customer Additions Experience •Customer Feedback •Green PIN •IOB Rewardz •Missed Call Balance Enqu

  36. Slide 36: Customer Experience Initiatives

    CUSTOMER EXPERIENCE INITIATIVES Customer can call to the specified number for to provide a feedback about our service If you are unhappy with our service please call 8828846220  If you are happy with our service please call 8828846225 Customer can give missed call to 9210622122 to know your acco

  37. Slide 37: Disclaimer

    DISCLAIMER  Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “fut

  38. Slide 38: Thank You

    © THANK YOU

Indian Overseas Bank — Q3 2018-19 Earnings Presentation on 6ix