Yes Bank Limited · NSE:YESBANK
Yes Bank — Q1 FY2024 Earnings Presentation
45 slides from Yes Bank's earnings presentation, Jul 22, 2023
Slide 1: Exchange intimation letter: press release and investor presentation
✓vESBANK YBL/CS/2023-24/077 July 22, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relations Department Plot no. C/1, G Block, P.J. Towers, Dalal Street Bandra - Kurla Complex Mumbai – 400 001 Bandra (E), Mumbai - 400 051 Tel.: 2272 8013/15/58/8307 Tel.: 2659 82
Slide 2: YES Bank announces financial results for quarter ended June 30, 2023
July 22, 2023 YES BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2023 r Key Highlights ▪ Sustained Earnings: Net Profit at INR 343 Crs up 10.3% Y-o-Y and 69.2% Q-o-Q • NII at INR 2,000 Crs for Q1FY24 up 8.1% Y-o-Y • NIM at 2.5% up 10 bps Y-o-Y • Non-Interest Income at INR 1,141 Crs,
Slide 3: Financial Highlights
Financial Highlights Profit and Loss ▪ Q1FY24 NII at INR 2,000 Crs up 8.1% Y-o-Y ▪ NIM for Q1FY24 at 2.5% up nearly 10 bps Y-o-Y ▪ Q1FY24 Non-Interest Income at INR 1,141 Crs, up 54.0% Y-o-Y and 13.7% Q-o-Q ▪ Q1FY24 Operating Expenses at INR 2,322 Crs, up 16.0% Y-o-Y and 4.6% Q-o-Q ▪ Operating profi
Slide 4: Asset Quality and Digital & Other Highlights
Asset Quality ▪ (NNPA + net carrying value of SR) as % of Advances at 2.4% in Q1FY24 v/s. 4.5% in Q1FY23 and 2.4% in Q4FY23 • GNPA ratio at 2.0% vs. 13.4% in Q1FY23 and 2.2% in Q4FY23 • NNPA ratio at 1.0% vs. 4.2% in Q1FY23 and 0.8% in Q4FY23 ▪ Gross Slippages for Q1FY24 at INR 1,430 Crs v/s. INR 1,
Slide 5: Financial Highlights from Q1FY24 Results
Financial Highlights from Q1FY24 Results Profit & Loss Statement Highlights (INR Crs) Q1FY24 Q4FY23 Growth % Q1FY23 Growth % Net Interest Income 2,000 2,105 -5.0% 1,850 8.1% Non Interest Income 1,141 1,004 13.7% 741 54.0% Total Net Income 3,141 3,109 1.0% 2,591 21.2% Operating Profit/(Loss) 818 889
Slide 6: Investor Presentation Q1FY24 Financial Results
INVESTOR PRESENTATION Q1FY24 Financial Results July 22, 2023 S&P Global CDP Moody’s Highest ESG score Rated ‘A-’ for its 2022 ESG Solutions amongst Indian banks in Climate Change Ranked 5th in ESG, the S&P Global Corporate disclosures - highest rated amongst 90 Retail & Sustainability Assessment Ind
Slide 7: New Generation, Professionally Run, Private Sector Bank with a Scalable Platform
New Generation, Professionally Run, Private Sector Bank with a Scalable Platform • 6th Largest Private Sector, Universal Bank offering comprehensive suite of product and services via its pan India network of 1,212 branches, 150 BCBO and 1,300+ ATMs in over 300 districts of India New Generation • 1 P
Slide 8: YES BANK – Life Ko Banao Rich: Refreshed Brand Identity
Refreshed Brand Identity YES BANK – “Life Ko Banao Rich” The Bank unveiled its refreshed brand identity on May 30, 2023, as a part of which a vibrant new logo was launched which carries forward the visual DNA of the Bank and builds on it. The refreshed identity draws inspiration from the Bank’s Valu
Slide 9: Contents
✓vESBANK Contents Financial _L _Results _ Update _ _/ YES BANK Franchise
Slide 10: Results At a Glance – Q1FY24
Results At a Glance – Q1FY24 All figures in INR Crs Arrows indicative of Y-o-Y Trends Total Assets Advances Total Disbursements1,2 Deposits CD Ratio 2 Advances Mix 2 Retail & SME: Mid Corp: Corporate 355,754 200,204 24,730 v/s. 219,369 91.3% v/s. 61%:14%:25% 11.7%: Y-o-Y 7.4%: Y-o-Y 22,636 Q1FY23 13
Slide 11: Profit and Loss Statement
Profit and Loss Statement All figures in INR Crs • Net Profit for Q1FY24 at INR 343 Crs up Quarter Ended Growth Profit and Loss Statement 10.3% Y-o-Y, and 69.2% Q-o-Q Q1FY24 Q4FY23 Q1FY23 Q-o-Q Y-o-Y • Operating Profit up 38.8% Y-o-Y Net Interest Income 2,000 2,105 1,850 -5.0% 8.1% 1 • NII at INR 2,
Slide 12: Break Up of Non-Interest Income
Break Up of Non-Interest Income All figures in INR Crs • Non-Interest Income at INR 1,141 Crs for Quarter Ended Growth 1 Q1FY24, up 54.0% Y-o-Y, and 13.7% Q-o-Q Break up of Non Interest Income Q1FY24 Q4FY23 Q1FY23 Q-o-Q Y-o-Y • Strong momentum in Y-o-Y trends, Q-o-Q Non Interest Income 1,141 1,004 7
Slide 13: Break up of Operating Expenses
Break up of Operating Expenses All figures in INR Crs • Opex for Q1FY24 grew 16.0% Y-o-Y and Quarter Ended Growth 4.6% Q-o-Q Break up of Operating Expenses 1 Q1FY24 Q4FY23 Q1FY23 Q-o-Q Y-o-Y • Opex / Avg. Assets have been flattish at 2.5%-2.6% over last 6 quarters Staff 946 854 827 10.7% 14.3% • Sim
Slide 14: Provisions and P&L
Provisions and P&L All figures in INR Crs • Provision costs for Q1FY24 up 70.4% Y- Quarter Ended Growth o-Y but declined 30.7% Q-o-Q Break up of Provisions Q1FY24 Q4FY23 Q1FY23 Q-o-Q Y-o-Y • Non-Tax provisions at 0.4% of Avg. Assets (Annualized) during the quarter Operating Profit/(Loss) 818 889 590
Slide 15: Balance Sheet
Balance Sheet All figures in INR Crs • Balance Sheet grew 11.7% Y-o-Y Growth % Growth % • C/D ratio at 91.3% v/s. 96.4% in Balance Sheet 30-Jun-23 31-Mar-23 30-Jun-22 (Q-o-Q) (Y-o-Y) Q1FY23 and 92.0% in Q4FY23 • Advances growth at 7.4% Y-o-Y. Assets 355,754 354,786 318,475 0.3% 11.7% Normalized for
Slide 16: Break up of Advances & Deposits
Break up of Advances & Deposits All figures in INR Crs • Sustained Granularization of Balance 1 Q-o-Q Y-o-Y Break up of Advances 30-Jun-23 31-Mar-23 30-Jun-22 Sheet: Growth (%) Growth (%) • Retail Advances mix at 47.2% Retail 94,445 91,036 71,919 3.7% 31.3% v/s.38.6% in Q1FY23 and 45.5% in Q4FY23 (e
Slide 17: Break up of Investments
Break up of Investments All figures in INR Crs • Total Net Investments at INR 70,971 Crs Investments Breakup • SLR – INR 59,754 Crs • NSLR – INR 11,217 Crs • Standard Performing – INR 7,185 Crs: ~98% Rated AA and above HTM 3% • Security Receipts – INR 2,651 Crs • Others1 – INR 1,381 Crs AFS 8% SLR 8
Slide 18: NPA Highlights
NPA Highlights All figures in INR Crs Asset Quality Parameters 30-Jun-23 31-Mar-23 30-Jun-22 • Gross NPA Ratio at 2.0% vs 2.2% in Q4FY23 Gross NPA (%) 2.0% 2.2% 13.4% 1 Net NPA (%) 1.0% 0.8% 4.2% • Gross Slippages for Q1FY24 at INR Provision Coverage Ratio excl. Technical W/O (%) 48.4% 62.3% 72.0% 1
Slide 19: Summary of Labelled & Overdue Exposures
Summary of Labelled & Overdue Exposures All figures in INR Crs 30-Jun-23 31-Mar-23 30-Jun-22 • Slippage of INR 114 Crs in Q1FY24 In INR Cr from Standard Restructured Gross Provisions Gross Provisions Gross Provisions Advances pool of Q4FY23 NPA 4,073 1,972 4,395 2,736 27,747 19,982 Other Non Perform
Slide 20: Capital Position comfortable: CET 1 Ratio at 13.6%
Capital Position comfortable: CET 1 Ratio at 13.6% 1 Bank’s Capital Adequacy Ratio 1 18.3% 17.9% 17.7% 4.7% 4.7% CET 1 Ratio at 13.6% Warrants Application / 5.8% CRAR Subscription money amounting to INR 948 Crs TIER II already received in cash, Post full warrant conversion ~110 bps have been conside
Slide 21: Contents: YES BANK Franchise
✓vESBANK Contents Financial Results Update _/ YES _ Franchise_ _/ BANK _
Slide 22: Retail Bank
Retail Bank: Full spectrum retail bank growing with strong momentum All figures in INR Crs Strong growth in Retail Advances 1 Highest Ever +31% p.a. Pan-India presence via 1,212 84,262 91,036 94,445 branches, 150 BC 56% of branches in 71,919 78,954 banking outlets Top 200 deposit and 1,327 ATMs, cen
Slide 23: Branch Banking
Branch Banking: Expanding Footprint, Enhanced Digital CX & Growth in Granular Deposits All figures in INR Crs 1 Steady buildup in Branch Network 2 Digital Journeys for seamless Customer Acquisition, Servicing & Cross sell Branch Count Assisted Digital • 93% SA opened digitally 1,212 1,192 • 90% SA o
Slide 24: Retail Assets
Retail Assets: Fast growing diversified book All figures in INR Crs 1 Retail asset disbursements momentum continues 2 Diversified retail book1 Home Loans Preferred financier status 12,563 12,705 5% with leading Auto OEMs 12,132 Personal Loans 4% 17% 11,863 11,283 Secured Business Loans 4% 2% Auto Lo
Slide 25: Rural Assets
Rural Assets: Deepen the penetration in emerging rural markets & generate Agri PSL All figures in INR Crs 1 Business originations 2 Robust Rural Assets book ▪ High quality farmer financing book with NPA of 1% ▪ NPA <2% in the women microfinance book generated post–COVID (disbursements on or after Ap
Slide 26: SME Banking
SME Banking: Granular book creation with a solution led approach All figures in INR Crs 1 Steady growth in funded book 2 Funded and Non-Funded Book composition 24.1% Y-o-Y Growth 19% Working capital & Term Loan 3% Channel Finance 26,722 28,130 28,900 11% 23,280 24,784 Commodity Finance 67% Q1FY23 Q2
Slide 27: Credit Cards
Credit Cards: Strong business growth and enhanced customer experience 1 Sustained Strong Growth in Cards, Book Size & Card Spends 2 Growth in Acquisition and Cross sell No of Cards In (‘000s) • Steady growth in new card acquisition leading to 16% Y-o-Y growth in customer Book Size in Cr 1,496 base t
Slide 28: Wholesale Banking
Wholesale Banking: Granularization of incremental lending book All figures in INR Crs 1 Corporate Book & Disbursements – Debulking Continues 2 Providing tailored solutions to clients across business segments 69,948 Funded O/S Non-Funded O/S Disbursements 1 • Team of 188 Relationship Bankers spread a
Slide 29: Large Corporates
Large Corporates Focus Sectors Pan India Presence Products • Auto • Metals • IT / ITES • Presence in 10 major locations • Working capital Finance, Project Finance, • Cement • Logistics & Supply Chain Finance , FX and Derivatives. • Chemicals • Delhi • Bengaluru Warehousing • • Growing non-fund book
Slide 30: Institutional & Government Banking
Institutional & Government Banking YES BANK’s Institutional & Government Banking Group is divided into 7 segments Anchoring the Wholesale liabilities franchise Cooperative banks, Scheduled commercial banks & DFIs, NBFCs, Indian Financial International International banks, Global Insurance, Mutual Fu
Slide 31: Mid Corporates
Mid Corporates Knowledge Sectors – Media & Growth led by NTB and X-sell - Entertainment, Gems & Jewellery, ECOM Team higher wallet share and Food & Agri, Pharma, Chemicals, Unicorn and Soonicorn Focus productivity Auto ancillary, Logistics, Metals Initiatives to maintain Bank’s Leadership Position i
Slide 32: Digital & Transaction Banking
Digital & Transaction Banking: Sustainable & Granular Revenues through Digital Payments, Trade Finance & Cash Mgt. 19% growth in TBG* embedded CA & 13% growth in Trade NFB* (YoY) 36% growth in Retail Mobility Transaction Volume YoY Issued First e-Bank Guarantee (e-BG) in partnership with NeSL 95% of
Slide 33: Curated & Expansive Digital Interface
Curated & Expansive Digital Interface Enriched customer experience across all customer segments Yes Online - (Web) Corporate & MSME Banking Revamped, Simplified and Futuristic Revamped, Simplified and Futuristic Net Banking Service Online & Mobility Service Smart Trade & Digital Supply Chain IRIS –
Slide 34: Embedded (Connected) Banking
Embedded (Connected) Banking Digitizing client journeys & creating inorganic client acquisition funnel thru Fintech partnerships Partnership roadmap of Digital & Transaction Banking Source Digital Onboard Digital Transact Digital Service Phygital Monitor Digital ▪ Digital Acquisition at ▪ Digital Cl
Slide 35: YES Connect: Enriched Customer Experience
YES Connect : Enriched Customer Experience Super App for Businesses API’fication of our Marketplace model Sachetization of Solutions across Industry Segments (YES Bank + Partner Offerings) YES Bank Services Partner Services Smart FinTechs Collections E-Invoicing Remittances Retailers Exchange Houses
Slide 36: IRIS: Enriched customer experience
IRIS : Enriched customer experience Super APP for Retail Customers ▪ IRIS is a native API-led mobile platform offering banking on fingertips across customer lifecycle ▪ Leveraging 30% mobile native consumers + Digital India stack to build a highly scalable and low C2I digital business model Key Diff
Slide 37: Strategically leverage Public Digital Infrastructure
Strategically leverage Public Digital Infrastructure Contributing to building new-age India through collaboration on Key Digital Initiatives Digital Initiatives Principle Objectives YES Differentiators Consent Layer for Data sharing system making Enables Digital Onboarding Account Aggregator (AA) le
Slide 38: Financial Markets – Customised solutions for clients
Financial Markets – Customised solutions for clients >15 yrs Remittances FX All 32% Currency Exotics Notes Active FX trading desk FX GO Available across digital 5-15 yrs Imports for market making Full platforms for Rate booking 36% providing best in class YesFX FX Sales Product Suite pricing for cus
Slide 39: Robust Governance Structure – Board Members
Robust Governance Structure – Board Members Eminent and Experienced Board Rama Subramaniam Gandhi Atul Malik Sharad Sharma Sadashiv Srinivas Rao Sanjay Kumar Khemani Non-Executive, Part time Chairman, Independent Director Independent Director Independent Director Independent Director Independent Dir
Slide 40: Professional and Seasoned Management team
Professional and Seasoned Management team Prashant Kumar Managing Director & CEO, YES Bank Ravi Thota Niranjan Banodkar Rajan Pental Country Head- Large Corporates (LCs) Chief Financial Officer Executive Director Arun Agrawal Archana Shiroor Dheeraj Sanghi Sachin Raut Country Head- Institutional & G
Slide 41: Strong Investor base
Strong Investor base Well diversified Investor base: Shareholding Pattern as on June 30, 2023 Category % STATE BANK OF INDIA Banks 32.9% CA BASQUE INVESTMENTS 26.1% VERVENTA HOLDINGS FDI 12.9% 1 46.7% LIFE INSURANCE CORPORATION OF INDIA Resident Individuals 29.3% HOUSING DEVELOPMENT FINANCE CORPORAT
Slide 42: Sustainability
Responsible franchise committed to a purposeful ESG agenda CDP S&P Global Rated ‘A-’ for its 2022 Moody’s ESG Highest ESG score Climate Change Solutions amongst Indian banks in disclosures - highest rated Ranked 5th in ESG, the S&P Global Corporate Indian Bank. Only Bank amongst 90 Retail & Sustaina
Slide 43: Strong people focus
Strong people focus: Stable leadership with focus on up-skilling talent, objective performance management & enabling employee flexibility Average • Employees in C-Suite, Leadership, Executive and Senior grades with average vintage of around 8.6 Vintage years within the Bank combined with top talent
Slide 44: Credit Rating
Credit Rating CARE Upgrades: ICRA Downgrades BASEL III Tier II to BBB from C Basel II Upper Tier II to D from BB BASEL II Tier I to BB+ from D INDIA Ratings CARE Downgrades INDIA Ratings Upgrades BASEL II Upper Tier II to BB+ from D CARE Upgrades Ratings across all Outlook-keeps Basel II Upper Tier
Slide 45: Thank You
✓vESBANK Thank You Disclaimer: 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 information or opinions contained herein. The information contained in this presentation is only current as of i