Canara Bank · NSE:CANBK
Canara Bank — Q3 FY2012 Earnings Presentation
32 slides from Canara Bank's earnings presentation, December 2011
Slide 1: Performance Highlights December 2011
PERFORMANCE HIGHLIGHTS DECEMBER 2011 www.canarabank.com Page 1
Slide 2: Highlights
HIGHLIGHTS Total Business at ` 534710 crore, up by 18% y.o.y Sequential Increase in Net Profit for 3 Quarters of FY12 Return on Assets at 1.02% Capital Adequacy Ratio at 13.22% Major Highlights Tier I Capital Ratio at 9.48% Record Cash Recovery at `2346 crore for 9 months compared to ent
Slide 3: Sequential Increase in Net Profit
SEQUENTIAL INCREASE IN NET PROFIT ` Crore 852 876 900 800 726 700 600 500 400 Q1 FY12 Q2 FY12 Q3 FY12 www.canarabank.com Page 3
Slide 4: Income, Expenditure and Profit
INCOME, EXPENDITURE AND PROFIT Amt. in ` Crore Q3 9M Y-o-Y Y-o-Y FY11 FY12 Incr ( %) FY11 FY12 Incr (%) Interest Income 5878 7812 32.9 16551 22583 36.4 Interest Expenditure 3789 5894 55.6 10796 16934 56.9 Net Interest Income 2089 1919 -- 5755 5649 -- Non-Interest Income 566 779 37.6 1865 2158 15.7 O
Slide 5: Provisions
PROVISIONS Amt. in ` Crore Q3 9M FY11 FY12 FY11 FY12 Provisions for NPA 130 142 460 904 Standard Assets 61 10 91 60 Income Tax 250 200 750 600 Provision for Investments 20 185 30 261 Other Provisions -53 164 -46 174 Total Provisions 407 701 1285 1999 Increase in Provisions on account of Depreciation
Slide 6: Earnings Profile
EARNINGS PROFILE In Percent Q3 9M FY11 FY12 FY11 FY12 NIM 3.21 2.52 3.15 2.48 Domestic NIM 3.61 2.64 3.26 2.60 ROAA 1.62 1.02 1.52 0.95 EPS (`) 26.97 19.76 76.27 55.39 Book Value (`) 381.07 422.80 381.07 422.80 ROE 29.61 18.89 29.61 18.89 Cost-Income Ratio 43.03 41.55 42.10 42.97 www.canarabank.com
Slide 7: Other Income
OTHER INCOME Amt. in ` Crore Q3 9M FY11 FY12 FY11 FY12 Commission & Exchange 169 205 507 582 Profit from Exchange Transaction 120 101 266 304 Trading Profit 29 157 254 229 Dividend Income 36 15 112 97 Recovery in w/off A/cs 72 73 227 270 Other Misc. Income 140 228 499 676 Total Other Income 566 779
Slide 8: Major Components of Income
MAJOR COMPONENTS OF INCOME DECEMBER 2010 DECEMBER 2011 Inter Bk Int Inter Bk Int 1.0% Other Income 0.8% Other Income 7.4% 8.1% Investment Investment Income Income 22.1% 24.5% Int on Adv Int on Adv 66.4% 69.7% Interest Income continues to drive growth in income .. 70% of earnings from int on advances
Slide 9: Book Value
BOOK VALUE (In `) 422.8 450 405 381.07 400 350 305.83 300 250 200 150 100 Mar-10 Mar-11 . Dec-10 Dec-11 Increase in Book Value on Enlarged Capital www.canarabank.com Page 9
Slide 10: Trend in Cost and Yield (%)
TREND IN COST AND YIELD (%) In Percent Dec’10 Mar’11 Jun’11 Sep’11 Dec’11 Cost of Deposits 5.66 5.80 7.05 7.13 7.27 Cost of Funds 5.26 5.37 6.50 6.55 6.59 Yield on Advances 9.67 9.73 10.50 10.72 10.85 Yield on Funds 8.12 8.13 8.63 8.76 8.79 Yield on Investments 7.68 7.72 7.86 7.89 7.93 www.canaraban
Slide 11: Shareholding Pattern
SHAREHOLDING PATTERN As on December 31, 2011 5.8 4.5 1.0 7.5 13.6 67.7 Govt of India FIIs Insurance Companies Resident Individuals Banks Others www.canarabank.com Page 11
Slide 12: Business Profile
BUSINESS PROFILE Amt. in ` Crore Y-o-Y Dec’10 Mar’11 Dec’11 Growth (%) Global Business 453379 506440 534710 18.0 Global Deposits 263497 293973 315456 19.7 Global Advances (Net) 189882 212467 219253 15.5 CD Ratio (%) 72.06 72.27 69.50 -- Over ` 80000 Crore Business Added www.canarabank.com Page 12
Slide 13: Domestic Business Profile
DOMESTIC BUSINESS PROFILE Amt. in ` Crore Y-o-Y Y-o-Y Growth (%) Dec’10 Dec’11 Growth By the (%) Industry Domestic Business 430360 506614 17.7 16.5 Domestic Deposits 250785 297827 18.8 16.9 Domestic Advances (Net) 179575 208787 16.3 15.9 Deposits and Advances grew higher than the Industry www.canara
Slide 14: Credit Portfolio
CREDIT PORTFOLIO Amt. in ` Crore Y-o-Y Dec’10 Mar’11 Dec’11 Growth(%) Priority Sector Credit 65891 70757 72753 10.4 Agriculture Credit 27056 29656 31179 15.2 MSME Advances 35348 37684 39017 10.4 Retail Lending 23183 25259 24950 7.6 Housing 14348 15219 15802 10.1 Infrastructure Advances 32480 34702 3
Slide 15: Pioneers in Education Loan
PIONEERS IN EDUCATION LOAN NUMBER 1 AMONGST NATIONALIZED BANKS IN OUTSTANDING EDUCATION LOANS Education Loans grew by 13.9 % y.o.y Outstanding Education Loans at ` 3898 crore The portfolio covers over 2.06 lakh students On-line Education Loan application in web portal www.canarabank.com Page
Slide 16: Financial Inclusion
FINANCIAL INCLUSION 150 Rural/Semi Urban Branches opened so far to implement Financial Inclusion Programme, covering 15 States. These 150 branches have so far opened 3.55 lakhs accounts, with a business of ` 214 Cr. Mobilized 14.09 lakhs No-frill Accounts during 9 Months of Holistic FY12 Approac
Slide 17: Financial Inclusion
FINANCIAL INCLUSION 26 Financial Literacy and Credit Counseling Centres (FLCCs) in Kerala, Tamil Nadu, Karnataka and Bihar. ‘Canara Financial Advisory Trust’ to manage FLCCs Aadhaar enrolment is done in Delhi, Karnataka, Uttar Pradesh, Andhra Pradesh, Bihar, Kerala and Rajasthan. Holistic So
Slide 18: Investments
INVESTMENTS Amt. in ` Crore Dec’10 Dec’11 Net Investments (Domestic) 78699 93403 Held to Maturity 61943 67308 Available for Sale 16416 25677 Held for Trading 339 417 SLR Portfolio to NDTL (%) 26.04 25.94 www.canarabank.com Page 18
Slide 19: Duration of Investment Portfolio
DURATION OF INVESTMENT PORTFOLIO DURATION OF AFS BOOK AND TOTAL INVESTMENT BOOK Dec’10 Dec’11 Duration of AFS Book 4.25 3.21 Duration of HTM Book 6.06 5.47 Duration of Total Investment Book 5.77 4.87 MODIFIED DURATION OF AFS BOOK AND TOTAL INVESTMENT BOOK Dec’10 Dec’11 Modified duration of AFS Book
Slide 20: Asset Quality
ASSET QUALITY Amt. in ` Crore Dec’10 Mar’11 June’11 Sep’11 Dec’11 Gross NPA (` Crore) 2753 3089 3606 3793 3999 Gross NPA Ratio (%) 1.44 1.45 1.67 1.73 1.81 Net NPA (` Crore) 1991 2347 2871 3117 3266 Net NPA Ratio (%) 1.05 1.11 1.34 1.43 1.49 Cash Recovery (` Crore) 1200 2032 750 1558 2346 Record Cas
Slide 21: Movement of NPA
MOVEMENT OF NPA Amt. in ` Crore March’11 June’11 Sep’11 Dec’11 Opening Balance 2590 3089 3606 3793 Fresh Slippages (+) 3508 1373 1236 862 Upgradation (-) 889 224 161 147 Cash Recovery (-) 1071 345 345 400 Write-off (-) 1049 287 543 109 Closing Balance 3089 3606 3793 3999 Total Cash Recovery at `788
Slide 22: Sectoral NPA
SECTORAL NPA Amt. in ` Crore March’11 June’11 Sep’11 Dec’11 Micro & Small Enterprises 555 1149 1318 1059 Agriculture 663 835 826 759 Other Priority Segments 474 463 400 366 Medium Enterprises 135 182 118 128 Large Industries 300 583 522 847 Non-Priority Segments 962 394 609 840 Total 3089 3606 3793
Slide 23: Composition Gross NPA
COMPOSITION GROSS NPA Amt. in ` Crore March’11 June’11 Sep’11 Dec’11 Substandard 1586 2053 2393 2129 Assets (51.3%) (56.9%) (63.1%) ( 53.2) 1477 1527 1371 1840 Doubtful Assets (47.8%) (42.4%) (36.1%) ( 46.0) 26 26 29 30 Loss Assets (0.9%) (0.7%) (0.8%) ( 0.8) Total NPA 3089 (100%) 3606 (100%) 3793 (
Slide 24: Amount Restructured During Q3 FY12
AMOUNT RESTRUCTURED DURING Q3 FY12 Amt. in ` Crore No. of Accounts Amount Agriculture 1410 16 MSME 297 32 Housing 84 7 Large Advances 20 1191 Others 1367 313 Total 3178 1559 Slippages during Q3 at ` 244 crore www.canarabank.com Page 24
Slide 25: Outstanding Restructured Advances as at Dec 2011
OUTSTANDING RESTRUCTURED ADVANCES AS AT DEC 2011 Amt. in ` Crore No. of Accounts Amount Agriculture 42595 618 MSME 5306 789 Housing 11194 535 Large Advances 2745 6114 Others 38561 1499 Total 100401 9555 Total Slippages at ` 1043 crore www.canarabank.com Page 25
Slide 26: Capital Adequacy
CAPITAL ADEQUACY By CRAR of 13.22% at December 2011 reckoning 9 months Tier I ratio at 9.48% profit, CAR works out to Tier II ratio at 3.74% 14.44%, Tier I ratio Govt. holding at 67.72% 10.69% Paid-up Capital at `443 crore Strong Capital Adequacy, with sufficient headroom for raising furth
Slide 27: Capital Adequacy – Basel II
CAPITAL ADEQUACY – BASEL II 16 4.51 14 4.75 3.78 3.63 3.74 12 10 8 6 8.27 10.87 9.59 9.15 9.48 4 2 0 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Total CRAR 13.02% 15.38% 13.37% 12.78% 13.22% % www.canarabank.com Page 27
Slide 28: Expanding the Reach
EXPANDING THE REACH Dec’10 Mar’11 Dec’11 Y-o-Y Incr Branch Network 3174 3257 3569 395 ATM Strength 2146 2216 2665 519 Card Base (In Lakh) 56.79 59.69 69.21 12.42 Branch Network Expanded by 395 and ATMs by 519 Addition of 312 branches and 449 ATMs during FY12 so far 5th Overseas Branch opened a
Slide 29: Dedicating 106 Branches and 106 ATMs to the Nation
DEDICATING 106 BRANCHES AND 106 ATMS TO THE NATION - ON 19th Nov’ 2011- The Bank’s Founder Day The Grand Function was Graced by the Hon’ble Union Finance Minister Shri Pranab Mukherjee in Mumbai www.canarabank.com Page 29
Slide 30: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) Increase Dec’10 Mar’11 Dec’11 Over Mar’11 4.14 Crore Strong Clientele Base 381 387 414 27 Clientele Base No. of Deposit A/Cs 338 342 367 25 No. of Borrowal A/Cs 43 45 47 2 27 lakhs Clientele Added During the Nine Months Period www.canarabank.com Page 30
Slide 31: Awards
AWARDS National Award - 2011 for excellence in the field of Khadi and Village Industries – Best Bank, South Zone for PMEGP. Corporate Social Responsibility Award for the year 2010- 11 conferred by Institute of Public Enterprises and Subir Raha Centre for Corporate Governance, Hyderabad. Covete
Slide 32: www.canarabank.com
hotel dp Z\ canara Bank www.canarabank.com