National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — 9M 2024 Earnings Presentation
27 slides from National Development Bank's earnings presentation, Nov 19, 2024
Slide 1: Financial Results for the nine months ended 30 September 2024
National Development Bank PLC Financial Results for the nine months ended 30 September 2024 Presentation to Investors and Analysts 19 November 2024, 11:00 (+05:30 UTC) Colombo, Sri Lanka
Slide 2: Corporate Participants
Corporate Participants PRESENTED BY Kelum Edirisinghe, Director/ Chief Executive Officer Q&A Panelists Kelum Edirisinghe, Director/ Chief Executive Officer K V Vinoj - Deputy Chief Executive Officer Sanjaya Perera - Senior Vice President - Personal Banking and Customer Experience Hasitha Athapattu -
Slide 3: Summary
3Q2024 Results Appendix Summary 1 4.21% NIM 25 bps increase over 3.96% in FY23 2 6.45% Impaired loans (Stage 3) ratio improvement from 8.58% in FY 2023 3 Rs. 9.4 Bn in PBT a marginal decline of 2% 4 8.02% ROE versus 8.03% in FY23 5 Rs. 13.69 EPS up from Rs. 12.92 in FY 2023 Casting differences throu
Slide 4: Financial performance
3Q2024 Results Appendix Financial performance Rs. Mn – 9 months ended 30 September 2024 2023 ∆ Rs. ∆% • 9% increase in net operating income bolstered by reduction in impairment Gross income 74,179 102,875 (28,696) (28) charges • Decline seen in key income categories NII 24,389 24,404 (15) (0.1) • Ba
Slide 5: NII & NIM
3Q2024 Results Appendix NII & NIM Rs. Mn – 9 months ended 30 September 2024 2023 ∆ Rs. ∆% YoY NII movement in Rs. Mn Interest income 66,027 93,659 (27,632) (30) Interest expenses 41,638 69,255 (27,617) (40) NII 24,389 24,404 (15) (0.1) • NII broadly static compared to the prior year • Decline in bot
Slide 6: Non-fund based income (NFBI)
3Q2024 Results Appendix Non-fund based income (NFBI) Rs. Mn – 9 months ended 30 NFBI performance in Rs. Mn 2024 2023 ∆ Rs. ∆% September Net fee and commission income 5,069 5,427 (358) (7) 20,000 (NFCI) Net gain from trading (NGT) 786 2,527 (1,741) (69) 15,000 Net gain from financial assets at 524 1,
Slide 7: Credit quality and impairment
3Q2024 Results Appendix Credit quality and impairment Credit quality movement Rs. Mn – 9 months ended 30 September 2024 2023 ∆ Rs. ∆% Total impairment – Rs. Mn 11,050 13,926 (2,876) (21) 10. 00 9.47 9.43 60.0 0 9.08 8.75 Credit portfolio quality – As at 3Q24 FY23 ∆bps 9.18 8.01 8.58 Total impairment
Slide 8: Operating expenses
3Q2024 Results Appendix Operating expenses Rs. Mn – 9 months ended 30 September 2024 2023 ∆ Rs. ∆% YoY movement in Rs. Mn Personnel expenses 6,595 5,071 1,524 30 19% Depreciation and amortisation 808 736 72 10 Other expenses 4,676 4,336 340 8 Total operating expenses 12,078 10,143 1,935 19 Cost to i
Slide 9: Taxes and profitability
3Q2024 Results Appendix Taxes and profitability Rs. Mn – 9 months ended 30 September 2024 2023 ∆ Rs. ∆% Profitability and Effective tax Rate (ETR) PBT 9,339 9,547 (148) (2) 12,0 00 53. 00 Tax on financial services 2,632 2,405 226 9 2,231 1,929 302 16 10,096 52. 00 Income tax 9,547 10,0 00 9,339 51.7
Slide 10: Customer loans and deposits
3Q2024 Results Appendix Customer loans and deposits YTD movement in gross loan book in Rs. Bn Rs. Bn – As at end 3Q24 FY 23 ∆ Rs. ∆% 1% Gross loans 501.1 496.1 5 1 Customer deposits 611.5 615.6 (4.1) (1) Other balance sheet items Investments 224.1 233.5 (9.4) (4) Borrowings 64.7 77.3 (12.6) (16) Equ
Slide 11: Capital
3Q2024 Results Appendix Capital Rs. Bn – As at end 3Q24 FY23 ∆ Rs. ∆% Capital progression – Capital in Rs. Bn, ratios in % Common Equity Tier 1 (CET1) capital 50.1 54.7 (4.6) (8) 140.0 18 Tier 1 capital 50.1 54.7 (4.6) (8) Total capital 71.0 74.5 (3.5) (5) 120.0 15.42 15.9 16.02 15.7016 RWA 452.9 46
Slide 12: Key ratios
3Q2024 Results Appendix Key ratios Investor ratios 3Q24 FY23 ∆ Liquidity trend Closing Price per Share - Rs. 78.30 64.90 13.4 EPS - Rs. (Annualised) 13.69 12.92 0.77 269.95 282.80 280.39 262.09 ROE (%) 8.02 8.03 (1)bps 237.92 243.89 232.68 228.58 ROA (%)Pre-tax 1.53 1.25 28bps 171.33 Book Value per
Slide 13: Awards
3Q2024 Results Appendix Awards Euromoney Awards for Excellence 2024 • Sri Lanka's Best Bank for Corporates • Sri Lanka's Best Bank for Diversity and Inclusion Asian Banking and Finance Magazine (Singapore) Awards 2024 Independent external endorsements affirming NDB’s prowess in Corporate & Investmen
Slide 14: Way forward
3Q2024 Results Appendix Way forward 1 Optimising cost of funds 2 Enhancing fee based income through transaction banking 3 Enhancing portfolio quality 14
Slide 15: Q&A
Q&A
Slide 16: APPENDIX
APPENDIX
Slide 17: Financial performance summary
3Q2024Results Appendix Financial performance summary Income and profitability - Rs. Mn - for the quarter of 3Q23 4Q23 1Q24 2Q24 3Q24 ∆% vs 3Q23 Gross income 36,156 29,451 26,074 26,356 21,750 (40) NII 9,376 7,543 8,076 8,420 7,892 (16) NFBI 5,699 3,734 2,005 4,438 1,695 (70) Total operating income 1
Slide 18: Banking NII
3Q2024Results Appendix Banking NII NII & NIM 3Q23 4Q23 1Q 24 2Q24 3Q24 ∆% vs 3Q23 NII - Rs. Mn (for the quarters) 9,376 7,543 8,076 8,420 7,892 (15.8) NIM - % (as at end of the quarters) 4.00 3.96 4.23 4.26 4.21 21bps Average interest earning assets - Rs. Bn (as at end of the quarters) 780 795 786 7
Slide 19: Impairment
3Q2024Results Appendix Impairment Impairment and related ratios - As at end 3Q23 4Q23 1Q24 2Q24 3Q24 ∆% vs 3Q23 Impairment on loans (Rs. Mn) 2,187 2,398 3,107 4,009 2,572 18 Impairment on investments (Rs. Mn) 3,868 4,820 1,250 32 80 (98) Impaired Loans (Stage 3) Ratio (%) 9.18 8.58 8.27 7.68 6.45 (2
Slide 20: Expenses
3Q2024Results Appendix Expenses Expenses - Rs. Mn - for the quarter of 3Q23 4Q23 1Q24 2Q24 3Q24 ∆% vs 3Q23 Personnel Expenses 1,944 1,548 2,078 2,251 2,251 16 Depreciation and amortization 229 248 258 265 284 24 Other Expenses 1,453 1,715 1,560 1,584 1,547 6 Total operating expenses 3,627 3,510 3,89
Slide 21: Balance Sheet
3Q2024Results Appendix Balance Sheet Rs. Bn - As at end 3Q23 4Q23 1Q24 2Q24 3Q24 ∆% vs 3Q23 Total assets 789.2 779.9 757.4 764.5 763.2 (3.3) Gross loans 514.4 496.1 485.6 504.9 501.1 (2.6) Net loans 473.2 452.7 439.6 459.0 453.9 (4.1) Customer deposits 627.7 615.6 614.4 619.2 611.5 (2.6) Return on a
Slide 22: Capital Liquidity
3Q2024Results Appendix Capital Rs. Bn - As at end 3Q23 4Q23 1Q24 2Q24 3Q24 ∆% vs 3Q23 Common Equity Tier 1 (CET1) Capital 53.4 54.7 52.8 50.9 50.1 (6) Tier 1 Capital 53.4 54.7 52.8 50.9 50.1 (6) Total Capital 69.8 74.5 70.9 68.1 71.1 2 Liquidity % - As at end 3Q23 4Q23 1Q24 2Q24 3Q24 ∆3Q23 bps Liqui
Slide 23: ESG performance
3Q2024Results Appendix ESG performance Environmental Social Governance Comprehensive ESMS system embedding social and GHG emissions 2023 - 5,510 tCO2e 40% female representation at Board level environmental consciousness to lending decisions 27.85% YoY reduction in Scope 1 emissions in 2023 24% femal
Slide 24: Glossary
3Q2024Results Appendix Glossary AWDR Average weighted deposits rate NGFAFVP&L Net gain/(loss) from financial assets at fair value through profit or loss AWPR Average weighted prime lending rate NGT Net gains from trading bps Basis points NII Net interest income CAR Capital adequacy ratio NIM Net int
Slide 25: Analyst support
3Q2024Results Appendix Analyst support Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for any queries and clarifications Email investor.relations@ndbbank.com Web www.ndbbank.com/Inves
Slide 26: Forward looking statements
3Q2024Results Appendix 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. The information contained in this document should be considered in the context of the
Slide 27: ZANDB bank
ZANDB bank
National Development Bank — 9M 2024 Earnings Presentation on 6ix