State Bank Of India · NSE:SBIN
State Bank Of India — Q1 2023 Earnings Presentation
57 slides from State Bank Of India's earnings presentation, Aug 6, 2022
Slide 1: Q1FY23 Analyst Presentation
QUARTERLY Q1FY23 Analyst Presentation 06.08.2022
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety o
Slide 3: Contents
Contents 1 Macro Economic Indicators 2 Performance Highlights 3 Financial Performance 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 4: Macro-Economic Indicators
Macro-Economic Indicators High Frequency Activity Indicators ➢ In FY23, credit growth gained traction and grew by 14.0% (YoY) as on July 15, 2022 (6.5% last year) ➢ Petroleum Consumption, Domestic Passenger Vehicles, Two-Wheeler and tractor sales, non-oil non-gold imports, Fertilizer Retail Sale hav
Slide 5: Performance Highlights
Performance Highlights
Slide 6: Key trends in Q1FY23
Key trends in Q1FY23 Balance Sheet crosses Rs. 50 lakh crores Credit growth continues – ~15% YoY Led by strong growth in Retail Per advances and Corporate advances Gold Loan portfolio crosses Rs. 1 lakh crore Improving profit metrics – Net Interest Income growth at 12.87% YoY Domestic NIM improved b
Slide 7: Key Indicators
Key Indicators Rs. in Crores CASA Term Deposits Quarter Ended YoY 6.54% 9.34% Rs. in Crores Growth Q1FY22 Q1FY23 17,67,666 21,32,185 16,59,234 19,50,107 Net Interest Income 27,638 31,196 12.87% Profit & Net Interest Margin – 3.15 3.23 8 bps Loss Domestic (%) (Rs. in Jun 21 Jun 22 Jun 21 Jun 22 Opera
Slide 8: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Jun 2021 Jun 2022 • Strong growth in Retail Personal, driven by Home Loans, Xpress Credit and other loans Retail Pers., Retail Pers., 40.4% • Corporate Credit growth continues to trend 42
Slide 9: Credit Growth: Retail Personal Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Retail Personal Banking As on Jun 2022 Leadership across all segments Retail Personal Portfolio of Rs 10.3 lakh crore 3 - year CAGR at ~16% As a % of Dom. Adv. Jun 21: 40.4 Jun 22: 42.2 P
Slide 10: Credit Growth: Diversified Loan Portfolio
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Diversified Loan Portfolio Rs. in Crores High quality asset book Industry mix Corporate Rating mix Outstanding as on 30th Jun 22 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastruct
Slide 11: Credit Growth: International Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions International Banking (Rs. in Crores) Gross Advances: Healthy Credit Growth Loan Portfolio across Geographies 10% USA 4,49,816 3% UK 4,11,910 26% 3% HongKong 4% Singapore 3,67,517 5% Bahr
Slide 12: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Jun 2021 Jun 2022 CA, CA, 6.3% 6.0% 65% of new savings accounts opened through YONO in Q1FY23 SA, TD, SA, 39.3% TD, 39.7% 54.0% 54.7% CASA: 45.97% CASA: 45.33% Rs. in Crores Particulars J
Slide 13: Asset Quality: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Provisions Growth Growth Asset Quality Income Income Expenses Slippages and Restructuring Rs. in Crores Slippages Restructuring As on As on 15,666 Restructuring 1.0 March 22 June 22 Retail Personal 3,010 2,877 Corporate 3,016 1,899 9,740 SME 4,840 4
Slide 14: Net Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Net Interest Margins Yield on Investments in % 3.33 3.35 3.36 3.15 3.23 6.16 6.10 6.05 6.05 6.07 3.09 3.11 3.12 3.02 2.92 1.32 1.06 1.06 1.06 1.07 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-2
Slide 15: Non-Interest Income: Fee Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Rs. in Crores Fee Income Loan Processing Commission on Govt. Commission on Charges Business LC/BG 17.93% 66.40% 1,312 14.86% 1,022 -6.58% 823 788 890 768 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY2
Slide 16: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Jun 21 Jun 22 SDLs, Treasury Operations 11.5% SDLs, Corporate Corporate 11.0% Bonds, Bonds, 23.1% Others, 20.3% Others, 11.2% CP, 9.6% 8.7% CP, 5.3% G-Sec and G-Sec and T Bill, T Bill, 49
Slide 17: Operating Expenses: Cost to Assets
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Q1FY23 Overheads, 41.9% • Focus continues on improving income streams with control on costs Retiral benefits & other provisions, • Excluding treasury income, Cost to Income 12.4% Ratio is
Slide 18: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.61% for Q1FY23 • PCR at 75.05%, legacy book well provided • Non NPA provisions at Rs 29,272 crores, ~104% of Net NPA at end of Q1FY23 Available Buffer, Rs in Crores Pr
Slide 19: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoE (FY00 – FY15) – 15.2 ROE (in %) At variance to long term trends 18.2 18.1 18.2 18.1 17.8 15.9 13.9 16.0 15.5 16.1 14.2 15.1 11.2 9.9 10.1 14.0 12.8 7.7 11.9 10.5 7.7 0.5 -1.1 -3.8 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Slide 20: Financial Performance
Financial Performance
Slide 21: Financials – At a Glance
Financials – At a Glance Quarter ended Growth (%) Q1FY23 Q1FY23 Particulars, Rs in Crores Q1FY22 Q4FY22 Q1FY23 over over Q4FY22 Q1FY22 Interest Income 65,564 70,733 72,676 2.75 10.85 Interest Expenses 37,926 39,535 41,480 4.92 9.37 Net Interest Income 27,638 31,198 31,196 -0.01 12.87 Non Interest In
Slide 22: Total Income
Total Income Quarter ended Growth (%) Q1FY23 Q1FY23 Particulars, Rs in Crores Q1FY22 Q4FY22 Q1FY23 over over Q4FY22 Q1FY22 Interest on Loans 41,144 44,611 46,474 4.18 12.95 Interest on Resources 21,405 22,763 23,618 3.75 10.34 Other Interest income 3,016 3,359 2,585 -23.05 -14.29 Total Interest Inco
Slide 23: Fee Income Break Up
Fee Income Break Up Quarter ended Growth (%) Q1FY23 Q1FY23 Particulars, Rs in Crores Q1FY22 Q4FY22 Q1FY23 over over Q4FY22 Q1FY22 Loan Processing Charges 788 1,526 1,312 -14.06 66.40 Commission on Govt. Business 890 847 1,022 20.58 14.86 Commission on LC/BG 823 917 768 -16.23 -6.58 Cross Selling 422
Slide 24: Total Expenses
Total Expenses Quarter ended Growth (%) Q1FY23 Q1FY23 Particulars, Rs in Crores Q1FY22 Q4FY22 Q1FY23 over over Q4FY22 Q1FY22 Interest on Deposits 34,793 35,762 37,300 4.30 7.21 Interest on Borrowings 1,750 2,297 2,737 19.17 56.37 Other Interest paid 1,383 1,476 1,443 -2.23 4.39 Total Interest Expens
Slide 25: Overheads
Overheads Quarter ended Growth (%) Q1FY23 Q1FY23 Particulars, Rs in Crores Q1FY22 Q4FY22 Q1FY23 over over Q4FY22 Q1FY22 Rent, Taxes and Lighting 1,085 1,567 1,186 -24.27 9.40 Depreciation 796 822 837 1.76 5.14 Printing and Stationery 89 183 134 -26.91 49.43 Postage & Telecommunications 99 144 114 -2
Slide 26: Provisions & Profit
Provisions & Profit Quarter ended Growth (%) Q1FY23 over Q1FY23 over Particulars, Rs in Crores Q1FY22 Q4FY22 Q1FY23 Q4FY22 Q1FY22 Operating Profit 18,975 19,717 12,753 -35.32 -32.79 Loan Loss 5,030 3,262 4,268 30.86 -15.14 Standard Assets 1,578 419 -1,295 -408.62 -182.06 Investment Depreciation 517
Slide 27: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 28: Well-Capitalized Bank with Adequate Liquidity
Well-Capitalized Bank with Adequate Liquidity Capital Ratios (%) 13.66% 13.83% 13.43% 2.34 2.41 2.28 12.1 1.41 1.48 1.43 8.6 11.42 11.15 11.32 9.91 9.94 9.72 Jun-21 Mar-22 Jun-22 Min regulatory Total CET-1 AT-1 Tier-2 Min regulatory CET1 ratio Capital ratio RWA to Total Assets (%) Jun 21 Mar 22 Jun
Slide 29: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, Rs in Crores Net NPA, Rs in Crores 1,34,259 1,23,942 1,20,029 43,153 37,119 34,540 1,12,023 1,13,272 27,966 28,258 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Cumulative for the Period (%) Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Gross NPA Ratio 5.3
Slide 30: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q1FY23 Opening Level of Gross NPAs 1,26,389 1,34,259 1,23,942 1,20,029 1,26,389 1,12,023 Total Reductions 8,428 14,609 6,493 11,612 41,142 8,866 of which : Recovery + Upgradation 4,969 7,407 2,306 6,756 21,437 5,208
Slide 31: Movement of NPAs and AUCA (3/4)
Movement of NPAs and AUCA (3/4) Rs. in Crores Movement of NPAs (incl. Advances under Collection) Mar 20 Mar 21 Mar 22 Jun 22 Opening Level of GNPA + AUCA 3,09,755 3,16,684 3,00,496 2,85,358 Gross Addition (Increase in O/s + Slippages) 54,510 29,332 26,776 10,115 Total GNPA + AUCA + Additions 3,64,26
Slide 32: Asset Quality (4/4)
Asset Quality (4/4) Rs. in Crores Slippages SMA 1 & SMA 2 Accounts with exposure above Rs. 5 cr: CRILC data 11,303 25,021 3,326 6,690 6,983 15,666 1,814 2,351 4,167 9,740 3,544 7,977 1,599 555 5,169 4,176 4,339 2,334 2,845 2,989 2,568 FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Jun-21 Sep-21 Dec-21 Mar-
Slide 33: Digital Journey
Digital Journey
Slide 34: Accelerating digital agenda (1/7)
Accelerating digital agenda (1/7) YONO – Key objectives Deliver world class customer Productivity gains through digital experience – Through end-to-end redesign of processes distinctive, omni-channel and seamless customer journeys 1 2 3 4 Orchestrate the digital ecosystem Achieve growth through digi
Slide 35: Accelerating digital agenda (2/7)
Accelerating digital agenda (2/7) YONO – New capabilities added during Q1FY23 Digital bank “Seamless Omni-channel customer experience” PRM Forced Password Email ID Integration Change through Update MPIN YONO Shop &Order “B2C Online Market Digitized Auto Natively integrated Enhanced User redirection
Slide 36: Accelerating digital agenda (3/7)
Accelerating digital agenda (3/7) YONO – Our flagship digital offering Digital bank Financial superstore Journey digitization Online Market Place “Create seamless omni- “Enable higher cross- “Improve productivity sell of JV/subsidiary “Increase customer channel customer and reduce cost” products” en
Slide 37: Accelerating digital agenda (4/7)
Accelerating digital agenda (4/7) YONO – Key trends this year for YONO Retail Pre- Approved Personal Loans (Amount Disbursed Rs. in Cr) Insta Home Top Up (Amount Disbursed Rs. in Cr) 4,403 102 2,426 22 Jun 21 Jun 22 Jun 21 Jun 22 Saving Accounts opened through YONO V-KYC based account opening 56,073
Slide 38: Accelerating digital agenda (5/7)
Accelerating digital agenda (5/7) Through YONO FSS – JV Performance SBI General Through YONO (Premium Amt. Rs. in Cr) SBI Life Through YONO (Premium Amt. Rs. in Cr) 108 97 31 6 Jun 21 Jun 22 Jun 21 Jun 22 SBI MF Through YONO (AUM Sourced Rs. in Cr) SBI Card Through YONO (No. of Cards sourced in Lakh
Slide 39: Accelerating digital agenda (6/7)
Accelerating digital agenda (6/7) YONO Business journeys for superior user experience Journey (Since) Value (₹ in Crs.) YB CINB (11.02.2022) 5 75,03,284 YB Payments (22.07.2022) 2,260.85 ✓Value: ₹ 2,11,049 Crs. (since Nov 2019) 4 Import LC ✓Before YB Digital % 7.19 %, After 63 % yonobusiness.sbi For
Slide 40: Accelerating digital agenda (7/7)
Accelerating digital agenda (7/7) Digital Leadership across channels Leadership across channels - Market share (As per latest available data) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 26.69% 14.21% 30.05% 23.65% 21.95% Presence across mu
Slide 41: Analytics – Strategic Direction
Analytics – Strategic Direction Digital Banking Circle Digitization Next-gen Tech Vertical Collaboration Agenda Analytics, CRM, Analytics to collaborate AI/ML, Personalization to Adoption of technologies Yono & Digital Marketing with Circle Officials to drive increased width & like Cloud Services, b
Slide 42: Analytics – Quarter in Review
Analytics – Quarter in Review Per Home Loans ~₹17,225 Cr. ~₹590 Cr. Asset Business through Analytics in Q1 FY’23 ~₹21,635 Cr. Agri MSME ~₹1,952 Cr. ~₹1,868 Cr. 42
Slide 43: Analytics – Way Forward
Analytics – Way Forward Customer Analytics driven Engagement via Personalized Chatbots & Marketing Voicebots Advanced Hyper- Analytics to personalization increase through user product behavior offerings & analytics penetration Digitization, Real time AI for Customer Digitization of Eligibility Journ
Slide 44: Revamped Contact Center for superior customer experience
Revamped Contact Center for superior customer experience Banking as easy as 1-2-3-4 20+ Services Launched Self Service Focus Agent Experience • Balance, account (enquiry, statement, …) 1.4 Cr+ 3500+ monthly calls received Enabled, Trained agents • Debit card services (block, reissue, PIN, …) 35% 12
Slide 45: Outbound contact center driving bottomline improvement
Outbound contact center driving bottomline improvement Proactive outreach for digital handholding PAPL PABL Insta HL, PA2WL CC-based E2E journey (Coming soon) underway 5L+ Drop-offs management <2 hr TAT for Customers called Across Web, mobile drop-offs Dedicated team for HL callback requests for sal
Slide 46: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 47: Financial Inclusion
Financial Inclusion As on June 2022 No. of BC outlets Transactions in BC Deposits in FI Channel Market Leader Channel Social Security 60,000 3,143 Schemes (PSBs) 20 2,758 3,000 13.90 50,000 12.44 15 43.23 2,500 40.95 40,000 10 31.62 2,000 60,000 30,000 5 1,500 71,705 67,735 52,439 81,477 0 20,000 45
Slide 48: Contributing to Society
Contributing to Society Through Pan India Presence under CSR Adopted 10 flood-affected villages of Chamoli district, Uttarakhand to enable sustainable development of these villages in partnership with HESCO at a financial outlay of ₹ 4.76 Cr. Initiated Project ‘Formation & Expansion of 18 Farmer Liv
Slide 49: SBI's ESG Snapshot
SBI’s ESG Snapshot SBI’s CRISIL ESG ✓ Responsible finance at the core. Lines RISK of credits availed from World Bank, KfW ASSESSMENT etc. being used to fund projects with ESG – an positive environmental & social impacts. integral part A SBI placed in “Strong of Bank’s Category” Business ✓ A “Climate
Slide 50: SBI's Sustainability Framework
SBI’s Sustainability Framework Financial Inclusion Responsible Digital Agenda People Practices & Carbon Neutrality Journey Investment Community Building SHG Bank Linkage Internal Commitment Green Bonds & Loan YONO Fighting the Pandemic SBI adjudged as one of the To achieve carbon neutral status Sign
Slide 51: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 52: SBI and its Subsidiaries - Leveraging Synergies (1/2)
SBI and its Subsidiaries - Leveraging Synergies (1/2) Rs. in Crores As on June 2022 Q1FY22 Q1FY23 Q1FY22# Q1FY23# PAT (₹ in cr) 223 263 PAT (₹ in cr) 305 627 ROE (in %) 8.5 9.0 ROE (in %) 18.7 30.8 Total New Gross Written Value of New Receivables Business Premium CIF (In Crore) Spends Premium Busine
Slide 53: SBI and its Subsidiaries - Leveraging Synergies (2/2)
SBI and its Subsidiaries - Leveraging Synergies (2/2) Rs. in Crores As on June 2022 Q1FY22# Q1FY23# Q1FY22 Q1FY23 PAT (₹. in cr) 245 248 PAT (₹ in cr) 76 139 ROE (in %) 34.7 25.9 ROE (in %) 11.4 20.3 Performance Highlights • Continues to be industry leader : Market share increased by Gross Written A
Slide 54: Regional Rural Banks
Regional Rural Banks Sponsored by SBI Rs. in Crores Performance Highlights for Q1FY23 14 RRBs operating in 13 States & 1 UT Network of 4,730 branches in 221 districts • Deposits at Rs.1,11,823 Crs 5.11% YoY • Gross NPA 166 bps YoY at 5.39% • CASA 98 bps YoY at 55.14% • Net Profit of Rs.359 Crs 8
Slide 55: SBI Group Financials – Q1FY23
SBI Group Financials – Q1FY23 Rs. in Crores Growth Rs. In crores Quarter Ended Quarter Ended (%) Q1FY22 Q1FY23 YoY Q1FY22 Q1FY23 Interest Earned 68,960 76,781 11.34 ROA (%) 0.61 0.54 Non-Interest Income 24,307 17,743 -27.00 Total Income 93,267 94,524 1.35 ROE (%) 12.67 11.16 Interest Expended 38,249
Slide 56: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Jun 21 Jun 22 Jun 21 Jun 22 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,60,388 2,90,471 11.55 2,83,092 3,17,106 12.01 Minority Interest 9,915 11,621 17.20 Deposits 37,20,987 40,45,696 8.73 37,56,764
Slide 57: Thank You
Thank You