RBL Bank Ltd. · NSE:RBLBANK
RBL Bank — Q4 FY2018 Earnings Presentation
44 slides from RBL Bank's earnings presentation, Apr 27, 2018
Slide 1: Investor Presentation 4th Quarter/FY 18
Investor Presentation 4th Quarter/FY 18 April 27, 2018
Slide 2: 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 3: 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 4: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 12 Financial Performance 16 Distribution Network 30 Shareholding Pattern and Ratings 32 Awards and New Initiatives 34 Annexures 37 4
Slide 5: Key Performance Highlights
Key Performance Highlights 5
Slide 6: Q4 FY18 / FY18 Financial Highlights
Q4 FY18 / FY18 Financial Highlights FY 18 has tracked well to RBL Vision 2020 goals Total Revenue growth in FY 18 of 38% YoY ; Net Profit growth in FY18 of 42% YoY NII growth of 45% YoY in FY18; Other Income growth of 41% YoY in FY18 NIM improving consistently – 3.98% in Q4 FY18 and 3.80% for FY18 A
Slide 7: Q4 FY 18 Highlights
Q4 FY 18 Highlights YoY Growth QoQ Growth Net interest Income Rs. 500 cr 42% 7% Core Fee Income Rs. 270 cr 32% 18% Net Total Income Rs. 812 cr 38% 12% Operating Profit Rs. 383 cr 36% 15% Net Profit Rs. 178 cr 37% 8% 7
Slide 8: Full Year FY 18 Highlights
Full Year FY 18 Highlights YoY Growth Net interest Income Rs. 1,766 cr 45% Core Fee Income Rs. 887 cr 41% Net Total Income Rs. 2,834 cr 43% Operating Profit Rs. 1,331 cr 45% Net Profit Rs. 635 cr 42% 8
Slide 9: Full Year FY 18 Highlights Contd....
Full Year FY 18 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 40,268 cr 37% 9% Wholesale Rs. 23,752 cr 33% 6% Advances Non-Wholesale Rs. 16,516 cr 42% 13% Advances Deposits Rs. 43,902 cr 27% 14% CASA Rs. 10,678 cr 40% 15% 9
Slide 10: 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 17 26,773 46% 3.4% 129 1.17% Q4 17 29,449 39% 3.5%
Slide 11: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 4.8% 12.2% 14.1% 40.3% 12.2% 22.1% 75.7% 18.7% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Agri Current Deposits 11
Slide 12: RBL Vision 2020
RBL Vision 2020 12
Slide 13: Performance Tracking to Vision 2020 Goals
Performance Tracking to Vision 2020 Goals RBL Vision 2020 Actual FY 18 (Post IPO/Sept 2016) Advances 30-35% CAGR 37% 0.75 - 1% increase FY 16: 18.6%; FY 17: 22.0% CASA Ratio every year FY 18: 24.3% Other Income % ~ 1/3rd of Net Total Income 37.7% Cost/Income ratio of FY 16: 58.6%; FY 17: 53.5% Opera
Slide 14: 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 15: 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 16: Financial Performance
Financial Performance 16
Slide 17: Strong Profitability Momentum Continues
Strong Profitability Momentum Continues Parameter Q4 18 Q4 17 YoY Q3 18 QoQ FY 18 FY 17 Net Interest Income 500 352 42% 467 7% 1,766 1,221 Other Income 312 237 32% 258 21% 1,068 755 Net Total Income 812 589 38% 726 12% 2,834 1,977 Operating Profit 383 282 36% 333 15% 1,331 920 Net Profit 178 130 37%
Slide 18: Strong Growth in Business; Improvement in Asset Quality
Strong Growth in Business; Improvement in Asset Quality Parameter FY 18 FY 17 YoY Advances 40,268 29,449 37% Deposits 43,902 34,588 27% Investment 15,447 13,482 15% Parameter FY 17 Q3 18 FY 18 CASA 22.0% 24.0% 24.3% GNPA 1.20% 1.56% 1.40% NNPA 0.64% 0.97% 0.78% Total Stressed Assets 1.45% 1.74% 1.48
Slide 19: Well Diversified Other Income Profile; Rising Core Fee Income
Well Diversified Other Income Profile; Rising Core Fee Income Other Income Core Fee Income Breakup 1,068 887 17% 10% 10% 311 755 627 270 28% 258 10% 17% 230 10% 237 13% 14% 4% 205 11% 9% 3% 14% 14% 9% 33% 16% 83% 15% 31% 89% 4% 6% 86% 83% 4% 19% 14% 28% 87% 71% 12% 37% 38% 29% 24% 19% 16% 15% 14% 16
Slide 20: 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) 1,503 13* 20* 24* 85 96 53 157 1,056 42 44 132 42 120 429 49% 40 120 116 3738 392 107 43% 32 307 56% 28 49% 6% 6% 8% 49% 9% 53 6% 46 8% 6% 15 6% 8% 42% 11 10 10 37% 26 8% 8 37% 3
Slide 21: Changing Advances Mix and Lower Cost of Funds Helping NIMs
Changing Advances Mix and Lower Cost of Funds Helping NIMs Yield FY 18 FY 17 YoY FY 18 Proportion C&IB 16,240 12,339 32% 8.76% CB 7,512 5,510 36% 59% (9.89%) Wholesale 23,752 17,849 33% Retail Assets 8,891 5,370 66% DB & FI 5,684 4,122 38% Micro-banking 3,560 2,161 65% IFI 13.40% 1,543 1,631 -5% 41%
Slide 22: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - By Geography Secured/Unsecured 40,268 40,268 36,890 36,890 17% 29,449 32% 17% 29,449 32% 19% 16% 18% 32% 21% 42% 41% 68% 68% 68% 38% 24% 25% 22% FY 17 Q3 18 FY 18 FY 17 Q3 18 FY 18 Secured Unsecured North West South East 22
Slide 23: Stable Borrowers’ Rating Profile and Tenor of Advances
Stable Borrowers’ Rating Profile and Tenor of Advances Breakup of rated exposures* Tenor of Advances 7.8% 8.3% 7.5% 7.0% 7.2% 7.7% 40,268 14.4% 29.0% 13.4% 29.7% 14.6% 36,890 29.2% 8% 7% 6% 16.6% 17.2% 17.7% 29,449 7% 18% 8% 20% 8% 24.6% 24.5% 22.4% 23% 68% 22.0% 23.1% 24.6% 66% 92.5% 93.8% 94.5% 61
Slide 24: Well Diversified Industry Exposure & Growing NFB Exposure
Well Diversified Industry Exposure & Growing NFB Exposure Top 10 industry exposures* Industry Exposure FB-NFB Split % of Exposure Construction 4,561 44:56 6.7% Retail / Distribution 3,599 76:24 5.3% Power 2,928 54:46 4.3% Engineering 2,758 53:47 4.1% Real estate 2,658 95:5 3.9% Pharma 2,589 82:18 3.
Slide 25: Asset Quality Continues to Remain Strong
Asset Quality Continues to Remain Strong Gross NPA by business segment Q4 18 FY 18 FY 17 Business FY 17 Q3 18 FY 18 Movement of Gross segment NPAs C&IB 103.8 142.2 83.1 Opening Balance 580 357 208 % 0.84% 0.91% 0.51% (+) Additions during the 115 569 533 CB 138.9 105.7 126.4 period (-) Upgrade 56 70
Slide 26: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars FY 18 FY 17 Q3 18 Tier 1 Capital Funds* 6,544 4,231 6,407 Tier 2 Capital Funds 826 867 814 Total Capital Funds 7,370 5,097 7,222 Total RWA 48,079 37,155 45,324 Tier 1 CRAR* 13.6% 11.4% 14.1% Total CRAR* 15.3% 13.7% 15.9% RWA/Total Ass
Slide 27: Sustained Growth in Deposits, Led by CASA
Sustained Growth in Deposits, Led by CASA 40% yoy growth in CASA, while total deposits grew by 27% CASA : 24.3% CASA : 24.0% CASA : 10,678 CASA : 22.0% CASA : 9,280 43,902 CASA : 7,603 38,623 12.2% 34,588 10.5% 12.2% 10.9% 13.5% 11.1% 76.0% 75.7% 78.0% FY 17 Q3 18 FY 18 Term Deposits Savings Account
Slide 28: Steady Investment Book
Steady Investment Book Investment Breakup 15,447 13,482 13,071 1% 13% 5% 2% 7% 7% 13% 15% 15% 76% 73% 73% FY 17 Q3 18 FY 18 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q4 18 Q4 17 Q3 18 FY 18 FY 17 Total Investments 7.2% 7.7% 7.2% 7.4% 7.8% SLR 7.3% 7.4% 7.3% 7.4% 7.5% Non
Slide 29: 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 Q3 17 Q4 17 Q1 18 Q2 1
Slide 30: Distribution Network
Distribution Network 30
Slide 31: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 2 13 3.98 4.50 GIFT 3.15 3.54 2.80 city 7 New Delhi branch 7 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 10 5 Channel Breakup Channels Number of transaction points 24 15 FY 18 Q3 18 FY 17 9 Branches 265 246 239 1 Metro 92 83 78 1
Slide 32: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings 32
Slide 33: Diversified Shareholding & Strong/Improving Rating Profile
Diversified Shareholding & Strong/Improving Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.3 1.0 Basel III compliant Tier II bonds ICRA AA- hyb (Stable) 10.9 CARE AA- (Stable) 34.2 15.5 Certificate of Deposits ICRA A1+ 13.2 23.9 Medium term fixed deposit ICRA MAA (Stable) pr
Slide 34: Awards & New Initiatives
Awards & New Initiatives 34
Slide 35: Awards and Initiatives
Awards and Initiatives Awards ‘ ‘Most Promising Company Of The Year’ ‘Best Bank’ (2017) ‘Best Small Bank’ (2017) ‘Best Small Bank’ & (2017) at CNBC TV18 – at the Outlook Money Business Today Banking ‘Fastest Growing Bank’ India Business Leader Awards Awards (2017) at Business World Awards Magna Awar
Slide 36: Awards and Initiatives (contd.)
Awards and Initiatives (contd.) 36
Slide 37: Annexures
Annexures 37
Slide 38: Board of Directors
Board of Directors Mr. Vishwavir Ahuja Mr. Palepu Sudhir Rao Managing Director and CEO Independent Director Previously, Managing Director & Country Executive Officer of Bank Currently, Associated with a Number of Corporates including Aditya of America for Indian Sub-continent Birla Money Ltd and Rad
Slide 39: 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 40: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Shrinath Bolloju Mr. Bhaskar Niyogi Chief Operations Officer Chief Risk Officer Previously, Global Head Securities Transformation – Deutsche Bank Previously, Chief General Manager at State Bank of India Singapore (40) (25) Mr. Ujual George Mr
Slide 41: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 18 Q4 17 Q3 18 FY 18 FY 17 Income Interest Earned 1,223 986 1,151 4,508 3,713 Interest Expended 722 634 683 2,741 2,492 500 467 1,766 1,221 Net Interest Income 352 312 258 1,068 755 Other Income 237 812 726 2,834 1,977 Total Income 589 Expenditure Operating Exp
Slide 42: Balance Sheet Statement
Balance Sheet Statement Particulars FY18 FY 17 Q3 18 Liabilities Capital 420 375 418 Reserves and Surplus 6,264 3,960 6,059 Deposits 43,902 34,588 38,623 Borrowings 9,261 7,980 8,297 Other Liabilities 2,003 1,771 1,972 Total 61,851 48,675 55,369 Assets Cash & Balances with RBI 2,589 2,948 2,318 Bala
Slide 43: Our Recent History
Our Recent History Particulars FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 40,268 Investments (Net) 892 2,334 5,571
Slide 44: 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/ 44