Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Q2 2024 Earnings Presentation
24 slides from Hdfc Bank's earnings presentation, Oct 16, 2023
Slide 1: Q2FY24 Earnings Presentation
Q2FY24 Earnings Presentation October 16, 2023
Slide 2: Executive summary
HDFC BANK Executive summary • Merger consummated effective 1st July 2023 • Key performance metrics for Q2 Sep’23: ✓ Advances grew ₹ 1.1 tr in the quarter resulting in sequential growth of 4.9% ✓ Deposits grew ₹ 1.1 tr in the quarter resulting in sequential growth of 5.3% ✓ Stable asset quality leadi
Slide 3: Merger Consummated
HDFC BANK Merger Consummated • The completion of merger with HDFC Limited brings into the Bank’s fold long tenor mortgage portfolio, which further enhances our ability to provide a comprehensive array of in-house products & services ✓ Employees of eHDFC have been successfully onboarded into appropri
Slide 4: Consolidated Income Statement
CONSOLIDATED Consolidated Income Statement P&L ₹ bn Q1FY24 Q2FY24 QoQ Net revenue 350.6 663.2 89.1% Operating expenses 151.8 420.4 177.0% PPOP 198.8 242.8 22.1% Provisions 32.9 33.1 0.6% Profit before tax 165.9 209.7 26.3% Consolidated profit 123.7 168.1 35.9% Consolidated EPS 22.2 22.2 Consolidated
Slide 5: Key Financial Parameters for Q2FY24
HDFC BANK STANDALONE Key Financial Parameters for Q2FY24 Gross advances at ₹ 23,546 bn, Net profit at ₹ 160 bn, EPS grew 4.9% QoQ (merged basis) for the quarter ₹ 21.1 Deposits at ₹ 21,729 bn, grew 5.3% QoQ (merged basis); Gross NPA 1.34% CASA 38% Net interest margin^ at 3.4% Return on Assets at 2.0
Slide 6: Income Statement
STANDALONE Income Statement P&L (₹ bn) Q1FY24 Q2FY24 QoQ Net interest income 236.0 273.9 16.0% Non-interest income 92.3 107.1 16.0% Net revenue 328.3 380.9 16.0% Operating expenses 140.6 154.0 9.5% PPOP 187.7 226.9 20.9% Provisions 28.6 29.0 1.5% Profit before tax 159.1 197.9 24.4% Profit after tax
Slide 7: Growth in advances and deposits
BUSINESS GROWTH Growth in advances and deposits Gross advances Deposits ₹ bn ₹ bn h 4.9% h 5.3% 23,546 21,729 22,447 20,638 19,131 16,300 Jun'23 Jun'23 (P) Sep'23 Jun'23 Jun'23 (P) Sep'23 *(P) indicates balances on merged basis 7 Q2FY24 Earnings Presentation HDFC Limited merged with HDFC Bank effect
Slide 8: Sustained growth across segments
LOAN BOOK Sustained growth across segments Growth across all segments Diversified retail loan book Sep’23 Loans (₹ bn) Jun’23 Jun’23 (P) Sep’23 QoQ (P) 1% 1% Retail Mortgages 1,873 6,928 7,171 3.5% 5% 15% Retail Non-Mortgages 4,705 4,705 4,824 2.5% 8% Retail 6,578 11,633 11,995 3.1% CRB 6,428 6,428
Slide 9: Stable and granular deposits
HIGH QUALITY DEPOSIT FRANCHISE Stable and granular deposits Granular deposits Proportion of CASA deposits 42% 39% 38% 17% 17% 17% 13% 12% 11% 83% 83% 83% 29% 27% 26% Jun'23 Jun'23 (P) Sep'23 Jun'23 Jun'23 (P) Sep'23 Retail Wholesale SA Mix CA Mix Retail anchoring deposit growth *(P) indicates ratios
Slide 10: Stable NIM aided by low cost of funds
CONSISTENT PERFORMANCE Stable NIM aided by low cost of funds Yield and Cost of Funds Stable Net Interest Margin (NIM) 8.1% 8.2% 7.9% 4.3% 4.3% 4.3% 4.3% 7.7% 4.1% 4.1% 4.1% 7.4% 4.1% 3.6% 3.4% 4.8% 4.0% 3.5% 3.7% 3.3% Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1
Slide 11: Granular and well diversified fee income
STRONG NON-FUNDED REVENUE Granular and well diversified fee income Fee Income Mix Retail Fee Income Mix 7% 7% 6% 7% 8% 20% 20% 17% 22% 19% 35% 35% 36% 36% 37% 93% 93% 94% 93% 92% 20% 22% 21% 23% 21% 23% 23% 28% 22% 20% Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q
Slide 12: Efficiency in growth
CONTINUING INVESTMENTS Efficiency in growth Cost to Income Ratio New branches – investing for future 42.0% 42.8% 39.6% 40.4% 39.2% Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 684 638 121 41.0% 40.4% 85 39.7% 39 38.6% 36.3% 36.9% Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Net Branch Addi
Slide 13: Resilient asset quality
RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment 1.9% 1.8% 1.8% 1.8% 1.6% 1.4% 1.3% 1.2% 1.2% 1.2% 1.1% 0.9% 1.0% 0.9% 0.4% 0.3% 0.4% 0.3% Jun'23 Jun'23 (P) Sep'23 Jun'23 Jun'23 (P) Sep'23 GNPA NNPA Retail CRB CRB (ex-Agri) Wholesale Stable asset quality; high provision
Slide 14: Strong returns and healthy capital ratios
BALANCE SHEET PRODUCTIVITY Strong returns and healthy capital ratios Return on Assets Capital adequacy 19.4% 19.3% 19.5% 18.9% 18.0% 17.8% 17.1% 17.2% 17.1% 16.9% 2.0% 2.2% 2.2% 2.1% 2.0% Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Total Capital Tier 1 Capita
Slide 15: Balance sheet and capital productivity
STRONG FRANCHISE Balance sheet and capital productivity Consistent growth in assets and RoA ₹ bn 40,000 2.0 2.1 1.9 2.0 2.0 1.9 1.9 1.9 1.9 2.0 2.0 2.1 2.0 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Q2FY24 Assets RoA % Capital posi
Slide 16: Consistent performance
STRONG FRANCHISE Consistent performance Standalone book value per share h 17% 525 534 480 502 433 451 456 395 414 Q2 Sep'21 Q3 Dec'21 Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Consolidated book value per share h 17% 543 553 495 519 446 464 471 407 427 Q2 Sep'21 Q3 Dec'21
Slide 17: Branch expansion and customer relationships driving growth
BUILDING FRANCHISE STRENGTH Branch expansion and customer relationships driving growth Branch network Customer base #s # mn 7,821 7,860 7,945 85 91 83 6,342 71 Mar'22 Mar'23 Jun'23 Sep'23 Mar'22 Mar'23 Jun'23 Sep'23 Distribution strength enables Large customer base with potential to customer engagem
Slide 18: Subsidiaries – Q2FY24 update – HDB Financial Services
GROUP COMPANIES Subsidiaries – Q2FY24 update – HDB Financial Services HDB Financial Services • 94.8% stake held by the Bank as of September 30, 2023 • 13.6 million customers serviced through a network of 1,602 branches across 1,119 cities/towns • Healthy momentum in disbursements across all three bu
Slide 19: Subsidiaries – Q2FY24 update – HDFC Life Insurance
GROUP COMPANIES Subsidiaries – Q2FY24 update – HDFC Life Insurance HDFC Life • 50.4% stake held by the Bank as of September 30, 2023 • 2.7 lac individual policies sold • 16.8 mn lives insured • Individual Weighted Received premium market share of 15.7% for H1FY24 • Q2FY24 performance highlights – Pr
Slide 20: Subsidiaries – Q2FY24 update – HDFC AMC
GROUP COMPANIES Subsidiaries – Q2FY24 update – HDFC AMC HDFC AMC • 52.5% stake held by the Bank as of September 30, 2023 • Quarterly average AUM ₹ 5.2 trillion; 11.2% market share • 58% of quarterly average AUM is equity oriented • 7.9 million unique investors; 20% penetration in the Mutual Fund ind
Slide 21: Subsidiaries – Q2FY24 update – HDFC ERGO General Insurance
GROUP COMPANIES Subsidiaries – Q2FY24 update – HDFC ERGO General Insurance HDFC ERGO • 50.5% stake held by the Bank as of September 30, 2023 • Gross direct premium market share of 6.1% overall and 9.5% private sector • Retail mix in business: 55% • Distribution network of 239 branches, 460 digital o
Slide 22: Subsidiaries – Q2FY24 update – HDFC Securities
GROUP COMPANIES Subsidiaries – Q2FY24 update – HDFC Securities HDFC Securities • 95.5% stake held by the Bank as of September 30, 2023 • 4.7 million customers serviced through a network of 203 branches across 145 cities • Around 94% of the active clients utilized the services offered through company
Slide 23: ESG at HDFC Bank
ESG – A WAY OF LIFE ESG at HDFC Bank Ratings Environmental Social Governance • Target to be carbon neutral • Leading responsibly • Commitment to principles of by FY32 • Taking banking to the independence, unbanked; accountability, responsibility, As of September 2023 • Commitment to have all • Suppo
Slide 24: Thank You
THANK YOU 24 Q2FY24 Earnings Presentation HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.