Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q4 FY2019 Earnings Presentation
67 slides from Rbl Bank's earnings presentation, Apr 18, 2019
Slide 1: Outcome of Board Meeting
April18, 2019 RBlBANK apno i<a bani< The Secretary, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange Limited, 1'' Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E) Mumbai- 400001 Mumbai -400051
Slide 2: Enclosures and Company Secretary signoff
RBlBANK In supplement to the above, please find enclosed herewith the following: apno lw bani< 6. Press Release on the above-mentioned Audited Financial Results of the Bank for the quarter and year ended March 31, 2019. 7. Investor Presentation on the Audited Financial Results of the Bank for the qu
Slide 3: Auditor's Report on Standalone Financial Results
8 S R & Co. LLP Chartered Accountants 5th Floor, Lodha Excelus, Telephone +91 (22) 4345 5300 Apollo Mills Compound Fax +91 (22) 4345 5399 N. M. Joshi Marg, Mahalaxmi Mumbai - 400 011 India Auditor's Report on the Standalone Financial Results of RBL Bank Limited pursuant to Regulation 33 of the Secur
Slide 4: Auditor's Report on Standalone Financial Results (Continued)
8 SA & Co. LLP Auditor's Report on the Standalone Financial Results of RBL Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Continued) 4. In our opinion and to the best of our information and acc
Slide 5: Auditor's Report on Consolidated Financial Results
B S R & Co . LLP Chartered Accountants 5th Floor, Lodha Excelus, Telephone +91 (22) 4345 5300 Apollo Mills Compound Fax +91 (22) 4345 5399 N. M. Joshi Marg, Mahalaxmi Mumbai- 400 011 India Auditor's Report on the Consolidated Financial Results of RBL Bank Limited pursuant to Regulation 33 of the Sec
Slide 6: Auditor's Report on Consolidated Financial Results (Continued)
B S R & Co. LLP Auditor's Report on the Consolidated Financial Results of RBL Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Continued) RBL Bank Limited (iii) give a true and fair view of the c
Slide 7: Financial Results for the Quarter and Year Ended March 31, 2019
b RBL BA N K apno ha banh RBL Bank Limited Registered Office: 'Mahaveer', 179/E Ward, Shri Shahu Market Yard, Kolhapur- 416005 Corporate Office: One lndiabulls Centre, Tower 2B, 6th Floo r, 841, Senapati Bapat Marg, Lower Parel (W), Mumbai- 400013 Tel.: +91 22 4302 0600, Fax: +91 22 4302 0520 Websit
Slide 8: Financial Results (Continued)
RB BA N K apno ka bank Standalone Consolidated (Note 4) Quarter Quarter Quarter Year ended ended ended ended Year ended Year ended Year ended 31.03.2019 31.12.2018 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 Sr. No. Particulars Audited Unaudited Audited Audited Audited Audited Audited Net
Slide 9: Notes to the Financial Results
RBL BA K apno ka bank 3. The results for the quarter and year ended March 31, 2019 have been arrived at after considering provision for standard assets including requirements for exposures to entities with Un-hedged Foreign Currency Exposures, Non- Performing Assets (NPAsL depreciation on investment
Slide 10: Segment Reporting
RBL BA K apno ka bank SEGMENT REPORTING FOR THE QUARTER AND YEAR ENDED MARCH 31,2019 (~in Lacs) Standalone Consolidated Sr. Particulars Quarter Quarter Quarter Year Year Year Year No ended ended ended ended ended ended ended 31.03.2019 31.12.2018 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.201
Slide 11: Summarised Balance Sheet
RBL BA N K apno ka bank Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, the differing risks and returns, the organisation structure, the internal business reporting structure, guidelines prescribed by RBI and i
Slide 12: Declaration on Audit Reports with Unmodified Opinion
b RBL BANK apno ka bank Ap ri11 8, 2019 The Secretary, The Ma nager, Listing De partment, Listing Departm ent, BSE Limited, The National Stock Exchange Limited, 151 Floor, Phiroze Jeejeebhoy Towe rs, Exchange Plaza, C-1, Block G, Dala l Street, Sandra Kurla Complex, Sandra (E) Mumbai - 400001 Mumbai
Slide 13: Financial Results for Q4 FY19 (Press Release)
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 For immediate release Financial Results for Q4 FY19 RBL Bank reports advances growth of 35% in Q4 FY19, Operating profit increase of 46% and Net Profit increase of 39% at 247.2 crore
Slide 14: Performance highlights – Quarter ended March 31, 2019
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Performance highlights – Quarter ended March 31, 2019 (Q4 FY19): Net Interest Income (NII) at 738.7 crore as against 500.5 crore in Q4 FY18, an increase of 48% Other Income at 40
Slide 15: Operating review
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Operating review Asset growth and quality The Bank’s growth in advances portfolio continued to be robust at 35% on a year-on-year basis. The net advances as at March 31, 2019 were 54
Slide 16: About RBL Bank
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 About RBL Bank RBL Bank is one of India’s fastest growing private sector banks with an expanding presence across the country. The Bank offers specialized services under six business
Slide 17: Investor Presentation 4th Quarter / FY19
Investor Presentation 4th Quarter/ FY 19 April 18, 2019
Slide 18: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by RBL Bank Limited (the “Company”) for use in presentations by
Slide 19: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System IFI Institutional Financial Inclusion Agri Agribusiness Banking INR Indian Rupee API Application Programming Interface IPO Initial Public Offering ARC Asset Reconstruction Company LAP Loan Against Property ATM Automated Teller Machine MF Mut
Slide 20: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 12 Financial Performance 16 Distribution Network 31 Shareholding Pattern and Ratings 33 Awards 35 Microbanking Update 37 Credit Cards Update 41 Annexures 44 4
Slide 21: Key Performance Highlights
Key Performance Highlights 5
Slide 22: Q4 FY19 / FY19 Financial Highlights
Q4 FY19 / FY19 Financial Highlights Q4 FY19 / FY19 continues to track well to RBL Vision 2020 goals Total Revenue growth in Q4 FY19 of 41% YoY(FY19 growth of 40% YoY) NII growth of 48% YoY in Q4 FY19 (FY19 growth of 44% YoY) ; Other Income growth of 31% YoY in Q4 FY19 (FY19 growth of 35% YoY) Net Pr
Slide 23: Q4 FY19 Highlights
Q4 FY19 Highlights YoY Growth QoQ Growth Net interest Income Rs. 739cr 48% 13% Core Fee Income Rs. 388cr 43% 12% Net Total Income Rs. 1,148cr 41% 12% Operating Profit Rs. 560cr 46% 12% Net Profit Rs. 247cr 39% 10% 7
Slide 24: FY19 Highlights
FY19 Highlights YoY Growth Net interest Income Rs. 2,539cr 44% Core Fee Income Rs. 1,348cr 52% Net Total Income Rs. 3,982cr 40% Operating Profit Rs. 1,940cr 46% Net Profit Rs. 867cr 37% 8
Slide 25: FY19 Highlights Contd....
FY19 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 54,308cr 35% 9% Wholesale Rs. 30,229cr 25% 6% Advances Non-Wholesale Rs. 24,079cr 49% 12% Advances Deposits Rs. 58,394cr 33% 12% CASA Rs. 14,587cr 37% 14% 9
Slide 26: Key Indicators
Key Indicators Pre-IPO Advances Deposits Net Profit RoA BVPS FY 11 1,905 2,042 12 0.5% Rs. 50 FY 16 21,229 24,349 292 1.0% Rs. 91 (84% CAGR FY 11-16) (64% CAGR FY 11-16) (88% CAGR FY 11-16) Post Listing Performance) Advances YoY NIM Net Profit RoA Q3 FY17 26,773 46% 3.4% 129 1.17% Q4 FY17 29,449 39%
Slide 27: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 14.0% 10.9% 39.3% 14.1% 30.3% 75.0% 16.3% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Current Deposits 11
Slide 28: RBL Vision 2020
RBL Vision 2020 12
Slide 29: Performance Tracking to Vision 2020 Goals
Performance Tracking to Vision 2020 Goals RBL Vision 2020 Actual FY19 (Post IPO/Sept 2016) Advances 30-35% CAGR 35% 0.75 - 1% increase FY 16: 18.6%; FY 17: 22.0% CASA Ratio every year FY 18: 24.3%; FY19: 25.0% Other Income % ~ 1/3rd of Net Total Income 36% Cost/Income ratio of FY 16: 58.6%; FY 17: 5
Slide 30: Key Initiatives of Vision 2020
Key Initiatives of Vision 2020 Leveraging technology to acquire, engage and service clients API banking, Abacus (Digital savings account); Fintech Partnerships (Moneytap, Technology Zeta) ; Credit card partnerships (Bajaj Finserv, BookMyShow, HyperCity) Enhancing distribution through a combination o
Slide 31: Our Fundamentals Have Resulted in Consistent Strong Performance
Our Fundamentals Have Resulted in Consistent Strong Performance Key Pillars Robust corporate governance framework and processes Broad Based Shareholder and Strong Capital Base Professional and experienced management team Eminent Board of Directors 15
Slide 32: Financial Performance
Financial Performance 16
Slide 33: Strong Profitability Momentum Continues
Strong Profitability Momentum Continues Parameter Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY19 FY18 Net Interest Income 739 500 48% 655 13% 2,539 1,766 Other Income 409 312 31% 374 9% 1,442 1,068 Net Total Income 1,148 812 41% 1,029 12% 3,982 2,834 Operating Profit 560 383 46% 498 12% 1,940 1,331 Net Profit
Slide 34: Strong Growth in Business; Improvement in Asset Quality
Strong Growth in Business; Improvement in Asset Quality Parameter March 31,2019 March 31, 2018 YoY Advances 54,308 40,268 35% Deposits 58,394 43,902 33% Investments 16,840 15.447 9% Parameter March 31,2019 March 31, 2018 December 31, 2018 CASA 25.0% 24.3% 24.6% GNPA 1.38% 1.40% 1.38% NNPA 0.69% 0.78
Slide 35: Well Diversified Other Income Profile; Rising Core Fee Income
Well Diversified Other Income Profile; Rising Core Fee Income Other Income Core Fee Income Breakup 1,442 7% 1,348 9% 1,068 409 374 388 5% 17% 346 887 40% 7% 9% 311 10% 8% 93% 270 13% 29% 4% 41% 41% 10% 93% 4% 13% 95% 83% 33% 4% 14% 71% 3% 6% 11% 14% 14% 23% 87% 28% 24% 23% 23% 16% 12% 14% 11% 12% Q4
Slide 36: Cost Increase Driven by Business Expansion; Range Bound Credit Costs
Cost Increase Driven by Business Expansion; Range Bound Credit Costs Operating Expenses Net Credit Cost by Business (bps) 24* 30* 29* 96 111 2,042 69 24 55% 1,503 588 531 17 49% 429 57% 56% 34 55% 10 6% 26 9 6% 8% 19 19 8% 17 6% 6% 8% 31% 5 13 6% 7% 37% 4 4 8% 3 10 29% 2 2 31% 31% 1 0 Q4 FY18 Q3 FY1
Slide 37: Changing Advances Mix and Improving Yields Helping NIMs
Changing Advances Mix and Improving Yields Helping NIMs Yield March 31,2019 March 31,2018 YoY Proportion FY19 C&IB 21,354 16,240 31% 8.9% CB 8,875 7,910 12% (8.6%) 56% Wholesale 30,229 24,150 25% Retail Assets 16,468 10,434 58% LAP 6,453 4,161 55% Credit Cards 5,283 2,244 135% Retail Agri 1,571 1,53
Slide 38: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - Tenor of Advances Secured/Unsecured 54,308 54,308 49,893 9% 49,893 10% 9% 8% 8% 40,268 40,268 8% 25% 11% 8% 24% 6% 21% 20% 21% 18% 66% 67% 68% 61% 68% 64% March 31, 2018 December 31, 2018 March 31, 2019 March 31, 2018 December 31, 2018 March 31, 2019
Slide 39: Stable Borrowers' Rating Profile
Stable Borrowers’ Rating Profile March 31, 2018 December 31, 2018 March 31, 2019 3.8% 3.1% 3.1% 3.3% 3.3% 3.8% 10.3% 9.3% 11.4% 16.2% 14.3% 18.7% 32.4% 31.4% 32.3% 37.5% 37.8% 38.2% 48.6% 50.1% 47.0% 39.8% 41.5% 36.7% 5.5% 2.6% 5.6% 3.4% 5.9% 3.1% Internal Borrower Internal Facility Ratings Internal
Slide 40: Diversified Industry Mix
Diversified Industry Mix Top 10 industry* Outstanding Industry FB-NFB Split % of Exposure Loan Exposure Engineering 3,895 42:58 5.3% Construction 3,546 39:61 4.9% Retail / Distribution 3,204 82:18 4.4% NBFC (ex. HFC & DFI) 2,816 98:2 3.9% Power 2,725 67:33 3.8% Real Estate 2,617 91:9 3.6% Pharma 2,5
Slide 41: Asset Quality Continues to Remain Strong
Asset Quality Continues to Remain Strong Gross NPA by business segment Quarter Ended Business segment March December March March December March 31,2019 31,2018 31,2018 31,2019 31,2018 31,2018 C&IB 121.5 92.1 83.1 Movement of Gross NPAs Opening Balance 696 645 580 % of total advances 0.22% 0.18% 0.21
Slide 42: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars March 31, 2019 March 31, 2018 December 31, 2018 Tier 1 Capital Funds* 7,210 6,544 7,060 Tier 2 Capital Funds 814 826 721 Total Capital Funds 8,024 7,370 7,781 Total RWA 59,607 48,079 56,406 Tier 1 CRAR* 12.1% 13.6% 12.5% Total CRAR* 1
Slide 43: Sustained Growth in Deposits, Led by CASA
Sustained Growth in Deposits, Led by CASA 37% yoy growth in CASA, while total deposits grew by 33% CASA : 24.3% CASA : 24.6% CASA : 25.0% CASA : 10,678 CASA : 12,821 CASA : 14,587 58,394 52,187 10.9% 43,902 12.1% 14.1% 12.1% 12.5% 12.2% 75.4% 75.0% 75.7% March 31, 2018 December 31, 2018 March 31, 20
Slide 44: Diversified Borrowing Streams
Diversified Borrowing Streams Borrowing Breakup 11,832 10,265 9,261 6% 7% 7% 8% 19% 49% 6% 55% 43% 31% 45% 24% March 31, 2018 December 31, 2018 March 31, 2019 Refinance FCY Inter-bank CBLO/LAF Tier II 28
Slide 45: Steady Investment Book
Steady Investment Book Investment Breakup 16,840 14,815 15,447 6% 1% 13% 6% 15% 8% 13% 10% 8% 76% 71% 73% March 31, 2018 December 31, 2018 March 31, 2019 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q4 FY19 Q4 FY18 Q3 FY19 FY19 FY18 Total Investments 7.5% 7.2% 7.5% 7.4% 7.4%
Slide 46: NIM Improvement Helped by Lower Cost of Funds and Stable Yields
NIM Improvement Helped by Lower Cost of Funds and Stable Yields Pre-IPO FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Yield on Advances 10.9% 12.6% 13.1% 12.9% 12.3% 11.7% Cost of Funds 5.8% 8.3% 9.6% 9.4% 8.4% 7.6% Cost of Deposits 5.8% 8.1% 8.9% 8.8% 8.3% 7.7% Post Listing Performance Q4 FY17 Q1 FY18 Q2 FY1
Slide 47: Distribution Network
Distribution Network 31
Slide 48: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 5.33 5.82 6.51 27 4.50 4.91 GIFT 2 city 10 New Delhi branch March 31, June 30, September December March 31, 9 2018 2018 30, 2018 31, 2018 2019 10 6 Channel Breakup 1 Channels Number of transaction points 26 15 Mar
Slide 49: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings 33
Slide 50: Diversified Shareholding & Strong/Improving Rating Profile
Diversified Shareholding & Strong/Improving Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.3 0.8 Basel III compliant Tier II ICRA AA- hyb (Stable) 7.0 bonds CARE AA- (Stable) 27.7 18.8 Certificate of Deposits ICRA A1+ 21.5 23.0 Medium term fixed deposit ICRA MAA (Stable) pro
Slide 51: Awards
Awards 35
Slide 52: Recent Awards
Recent Awards BEST PRIVATE SECTOR BEST FOR MICROFINANCE BEST SMALL BANK BANK ASIAMONEY AWARDS : INDIA SILVER, OUTLOOK MONEY BUSINESS TODAY- MONEY AWARDS TODAY FINANCIAL AWARDS 2019 2018 2018 36
Slide 53: Microbanking Update
Microbanking Update 37
Slide 54: Microbanking Distribution Network
Microbanking Distribution Network State Name % of Portfolio Tamilnadu 15% Bihar 14% Maharashtra 12% Karnataka 10% (25) Odisha 8% 6 (19) West Bengal 8% Rajasthan 6% 49 48 (35) (32) Madhya Pradesh 5% (69) (2) Gujarat 4% 74 29 78 15 (42) (27) (59) Punjab 4% 20 Jharkhand 3% 74 105 Haryana 3% (21) Micro
Slide 55: Micro-banking - Portfolio Growth
Micro-banking - Portfolio Growth Portfolio Mix March 31st ,2019 In Rs. crores Pre-Jan 2017 0.03% Post Jan 2017 99.97% Loan Tenor 5,028 0.8% 4,220 3,560 2,161 1,483 839 40.9% Mar 31,2015 Mar 31,2016 Mar 31,2017 Mar 31,2018 Dec 31,2018 Mar 31,2019 58.3% • Post Jan 2017 – 90+DPD : 0.54% • 2.49 Mn activ
Slide 56: Micro-banking - Through the door Mix
Micro-banking - Through the door Mix Bureau Rejection Rate Borrowing Cycle with RBL Bank 22% 20% 21% 21% 23% 33% 30% 28% 27% 26% 78% 80% 79% 79% 77% Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 First Cycle Repeat Cycle Bureau Hit Rate 82% 82% 79% 78% 78% Q4 FY18 Q1
Slide 57: Credit Card Update
Credit Card Update 41
Slide 58: Credit Card Base Increasing Steadily
Credit Card Base Increasing Steadily Cards in Force ( In Mn) Card Additions ( In Mn) 1.71 0.34 1.43 0.31 1.19 0.26 0.97 0.20 0.21 0.80 0.18 0.62 Dec Mar Jun Sep Dec Mar Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 31,2017 31,2018 30,2018 30,2018 31,2018 31,2019 Advances Breakup (In Rs. crore) Cus
Slide 59: Credit Cards - Sticky Customer Spends
Credit Cards - Sticky Customer Spends Total Spends (In Rs Crore) Consumer Loans 20.79 20.09 19.19 18.6 19.19 19.39 4,712 1,186 4,403 4,208 1,024 3,234 790 636 2,378 544 512 1,889 412 382 325 285 214 170 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 N
Slide 60: Annexures
Annexures 44
Slide 61: Board of Directors
Board of Directors Mr. Vishwavir Ahuja Mr. Prakash Chandra Managing Director and CEO Non – Executive Part Time Chairman Previously, Managing Director & Country Executive Officer of Bank Previously, Chairman of Central Board of Direct Taxes of America for Indian Sub-continent (CBDT) Mr. Sivanandhan D
Slide 62: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. Vishwavir Ahuja Mr. Rajeev Ahuja Managing Director and CEO Executive Director Managing Director & Country Executive Officer of Bank of America Previously, associated with Citibank India, Bank of America, India for Indian Sub-continent from 2007-2009 a
Slide 63: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Ramnath Krishnan Mr. Pankaj Sharma Chief Risk Officer Chief Operations Officer Previously, Country Chief Risk Officer , HSBC Malaysia Berhad Previously, Head Retail Operations, Axis Bank (31) (20) Mr. Mohit Kapoor Mr. Bhavtaran Singh (Sunny)
Slide 64: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 FY19 Q4 FY18 Q3 FY19 FY19 FY18 Income Interest Earned 1,834 1,223 1,639 6,301 4,508 Interest Expended 1,095 722 984 3,761 2,741 Net Interest Income 739 500 655 2,539 1,766 Other Income 409 312 374 1,442 1,068 Total Income 1,148 812 1,029 3,982 2,834 Expenditure
Slide 65: Balance Sheet Statement
Balance Sheet Statement Particulars March 31, 2019 December 31, 2018 March 31, 2018 Liabilities Capital 427 428 420 Reserves and Surplus 7,121 6,848 6,264 Deposits 58,394 52,187 43,902 Borrowings 11,832 10,266 9,261 Other Liabilities 2,585 2,474 2,003 Total 80,359 72,202 61,851 Assets Cash & Balance
Slide 66: Our Recent History
Our Recent History Particulars FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 40,268 54,308 Investmen
Slide 67: Thank you
Thank you Contact us at: ir@rblbank.com +91-22-4302 0600 Please email us your contact details at the above id to get added to our investor relations mailing list Please visit our Investor Relations website – https://ir.rblbank.com/ 51