Yes Bank Limited · NSE:YESBANK
Yes Bank — Q2 FY2020 Earnings Presentation
26 slides from Yes Bank's earnings presentation, Nov 1, 2019
Slide 1: Exchange filing cover letter
November 01, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Exchange Plaza P.J. Towers, Dalal Street Plot no. C/1, G Block, Mumbai - 400 001 Sandra - Kurla Complex BSE Scrip Code: 532648 Sandra (E), Mumbai- 400 051. NSE Symbol: YESBANK Dear Sirs, Sub.: Inves
Slide 2: Investor Presentation Q2FY20 Update (Standalone)
INVESTOR PRESENTATION Q2FY20 Update (Standalone)
Slide 3: Q2FY20 Highlights
Q2FY20 Highlights ▪ PBT at ` 1.22 Billion ▪ CET I improved to 8.7% from 8.0% last quarter ▪ Excl. one-time DTA impact, adj. PAT at ` 1.09 Billion Resilient Strengthening ▪ Raised US$ 273 mn via QIP Earnings the Capital ▪ 10% sequential growth in Retail Position ▪ Received a binding offer from a fees
Slide 4: Income Trends
Income Trends Resilient Earnings; PBT at ` 1.2 Bn for Q2FY20 ` Billion Net Interest Income Non Interest Income ✓ NII at ` 21.9 Bn in Q2FY20; sequentially lower by 4% due to • ~` 2 Bn impact due to slippages • Reduction in int. bearing assets 27 ▪ 7% sequential decline in Assets 24 25 23 ▪ impact of
Slide 5: Non Interest Income Trends
Non Interest Income Trends Sustainable fee profile Fee Income driven by robust Transactional Fee and Retail Fee Income Includes Treasury Outcomes on Corp. Banking fees a Gains of ~ ` 2.2 Bn function of Capital Optimization v/s ` 4.5 Bn QoQ 2220 ` million 6677 6,561 4722 3,859 110 610 2116 2241 2098
Slide 6: Advances: Acceleration in Granularity
Advances: Acceleration in Granularity Retail Momentum Continues Increasing Retail Share As % of Total Advances, as on 30th Sep, 2019 ` Billion 344 446 419 61.9% Corporate Banking 209 411 7.5% Medium 175 Enterprises 10.8% Small and Micro 1424 Enterprises 1214 19.8% Retail Banking 30-Sep-18 30-Sep-19
Slide 7: Liability Franchise
Liability Franchise Rising proportion of Granular Deposits Strong Growth in Retail TDs continues Sequential improvement in CASA Ratio ` Billion YoY Growth of Retail TD’s: 19% ` Billion 00 35.0% 800 40.0% 00 29.5% 33.8% 33.3% 33.1% 00 28.0% 30.0% 700 30.2% 30.8% 35.0% 00 25.7% 24.3% 600 30.0% 00 23.4
Slide 8: Asset Quality: Recognition cycle nearing an end
Asset Quality: Recognition cycle nearing an end S.No Particulars (%) Sep 30, 2019 1 Credit Cost (bps) 69 bps 7.39% ✓ Gross Slippages of ` 59.5 Bn during the quarter, 2.1 GNPA (` 1,71,344 Million) down sequentially; ` 8.7 Bn recovered/ upgraded in 4.35% 2.2 NNPA Q2FY20 (` 97,572 Million) 2.3 PCR 43.1
Slide 9: Corporate Rating Profile
Corporate Rating Profile as on Sept 2019 * Breakup of Corporate BB and Below pool ✓ ~ 69% of the Corporate book is rated A AA, 67% or Better 10.6% AAA, 18.7% ✓ Recoveries/ resolutions slower than expectations ` 314.0 Bn BB and ✓ Increase in Corp. BB & Below exposures 28% Below, 10.1% over Jun’19 pre
Slide 10: Sectoral Exposure Mix
Sectoral Exposure Mix As on 30th Sep, 2019 Well diversified portfolio with significant deployment in YES Bank focused knowledge sectors 9
Slide 11: Capital Position
Capital Position Bolstered by Management led efforts 0.22% 0.07% 0.01% 8.7% 0.59% 0.03% 0.19% 0.09% Capital Regulatory Optimization P&L Impact Benefit Change Benefit 8.0% Capital Raise Benefit CET I as on QIP PAT for One-off DTA Consumer Balance Sheet Rating Others CET I for Sep June 30, 2019 Q2FY20
Slide 12: Debt Ratings Journey
Debt Ratings Journey Rating Upgrade Rating Upgrade: Rating Upgrade: CARE Basel III Tier II ICRA & CARE ICRA & CARE & Infra Bonds: AAA; Basel III ATI Rating Downgrade: LT II:AA, Basel III Tier II: AA+, :AA+ ICRA, CARE, India UT II:AA- INFRA BONDS:AA+ Ratings & Moody’s Downgrade: Moody’s, CARE & ICRA
Slide 13: Commitment from Leading Global Financial Institutions
Commitment from Leading Global Financial Institutions USD 415 Mn for 12 yrs USD 50 Mn for 7 yrs To increase lending to MSME and Women Green infra Bonds- FMO’s 1st investment in a owned business Green Bond by a bank in India USD 325 Mn for 9 yrs (avg) USD 200 Mn for 7 yrs Upper Tier II, Long Term Sen
Slide 14: Sustainable & Responsible Banking Leadership
Sustainable & Responsible Banking Leadership VISION: Be the Benchmark Financial Institution for Inclusivity and Sustainability Environmental Social Governance Committed to mobilizing USD 5 billion Launched India’s 1st Green Retail First & only Indian Bank to be listed on DJSI towards climate action
Slide 15: Progress Widely Recognized By Leading Agencies
Progress Widely Recognized By Leading Agencies The Asset The Banker's Tech Global Finance Triple A Country Projects Awards Global SME Forbes Magazine Awards 2019 Finance Awards Global 2000 Best Bank in • The Innovators in • Best Deal South Asia Global Winner, Product Innovation of Ranked #1,013 Glob
Slide 16: Digital Leadership
DIGITAL LEADERSHIP 15
Slide 17: Digital Transformation
Digital Transformation Leadership in New Age Payments IMPS ➢Consistently ranked 1st as Remitter Bank, by NPCI in the AEPS AePSVolumes Volumes peer group and successfully processed ~60 Mn transaction 140.0 In Mns 17.0% 18.0% in Q2FY20 increasing 80% Y-o-Y 120.0 15.3% 102.9 16.0% AePS 14.0% 100.0 11.0
Slide 18: Digital Transformation – Empowering Digital India
Digital Transformation –Empowering Digital India ➢ Smart City & Smart Campus Initiatives and digital wallet ecosystem ➢ Bankers to 22 smart cities of which digital banking solutions have been provided to over 15 cities ➢ Nashik, Coimbatore, Aurangabad, Rajkot, Puducherry, Warangal, Ajmer, Silvassa,
Slide 19: Digital Transformation – Serving customers from India to Bharat
Digital Transformation – Serving customers from India to Bharat Y-o-Y growth of 55.4% in registered user base; YES Mobile app achieved overall 4+ user ratings on Google playstore YES Mobile First & one of the largest domestic remittance platform First chatbot enabled wallet BHIM YES Over 490,000+ BC
Slide 20: Leadership Team
LEADERSHIP TEAM 19
Slide 21: Distinguished Board
Distinguished Board Mr. Brahm Dutt Dr. Pratima Sheorey Mr. Subhash Chander Kalia Independent Director & Part- Independent Director Non – Executive Time Chairman Non- Independent Director Director of Symbiosis Centre Former executive director of Former Secretary, Ministry of for Management and Human
Slide 22: Human Capital Management
Human Capital Management Making YES BANK a Great Place to Work Flat Organization Structure (5 levels) ✓ First and only Bank to partner with “Kaizala Full Digital ONLY – Average Age Customer & Colleagues self-service channel”, powered by Microsoft. 69 49 Top Senior 196 44 University & Schools Relatio
Slide 23: Annexures
ANNEXURES 22
Slide 24: Diversified Shareholding Base
3 Diversified Shareholding Base ✓ Well Diversified holding with Shareholding Pattern as on Sep 30, 2019 healthy mix of Marquee FIIs & DIIs such as ▪ LIC ▪ Ward Ferry 12.2% 26.5% ▪ Govt. Pension Fund ▪ Jwalamukhi (Westbridge) ▪ Kotak MF ▪ Vanguard 29.9% ▪ HDFC MF ▪ Templeton MF 13.1% ▪ SBI MF ✓ Const
Slide 25: Key Financial Parameters
Key Financial Parameters Profit & Loss Growth % Growth % ` Million Q2FY20 Q2FY19 Q1FY19 (y-o-y) (q-o-q) Net Interest Income 21,859 24,176 -9.6% 22,808 -4.2% Non Interest Income 9,459 14,735 -35.8% 12,727 -25.7% Total Net Income 31,318 38,910 -19.5% 35,535 -11.9% Operating Expense 16,734 15,246 9.8%
Slide 26: Thank you
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statement