National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — H1 2016 Earnings Presentation
22 slides from National Development Bank's earnings presentation, 2016
Slide 1: Investor Update 1H 2016
INVESTOR UPDATE 1H 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This document has been prepared by National Development Bank PLC (“NDB”, “Bank” or the “Group”) solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos
Slide 3: Agenda
Agenda 1 Overview of NDB Group 2 Macro Economic Overview 3 Awards & Accolades 4 Financial Performance
Slide 4: Overview
Overview 58.7% 99.9% 99.9% 77.8% 99.9% 99.9% 60.0% Vision Mission Values “The driving force for a To be the catalyst in the Integrity financially empowered financial services industry by Sri Lanka” creating superior shareholder Accountability value and contributing to the national development throug
Slide 5: Brief History – Milestones
Brief History – Milestones 1995 2015 Setting up of NDB 2005 Establishment of NDB Stockbrokers 1999 2011 Zephyr Partners Ltd. 1979 (NDBZ) in 2014; jointly & NDB The merger of NDB Partners Zurich owned by NDB Capital Venture Bank and National Establishment of Formation of Insurance in Holdings PLC and
Slide 6: Macro Economic Overview
Macro Economic Overview Private Sector Credit Growth Private Sector Credit 200 30% 25% 150 • The appetite for bank credit by the private sector Credit [LHS Axis] 20% LKR Bn continued in spite of the upward movement in market 100 Growth [RHS Axis] 15% interest rates. 50 10% • YoY growth of 28% agains
Slide 7: Awards & Accolades
Awards & Accolades CFA Sri Lanka Capital Market Awards 2016 • Best Investor relations - Gold Award EUROMONEY Awards for Excellence 2016 • NDBIB - Best Investment Bank in Sri Lanka – 5th consecutive year Asian Banking & Finance Retail Banking Awards 2016 • Domestic Retail Bank of the Year - Sri Lanka
Slide 8: Financial Performance 1H 2016
Financial Performance 1H 2016
Slide 9: 1H 2016 Performance Summary
1H 2016 Performance Summary 1H 2015 1H 2016 YoY Operating Income 6,136 6,523 6% Profitability (LKR Mn) Operating Expenses 3,280 3,501 7% Profit for Shareholders 1,444 1,083 -25% Total Assets 277 321 16% Financial Position (LKR Bn) Total Loans 186 226 21% Total Deposits 170 190 12% Cost to Income Rat
Slide 10: Income Statement
Income Statement LKR Mn Year – to - date Variance over 2015 2016 2015 % Net Interest Income 3,803 4,234 431 11 Operating Income 6,136 6,523 387 6 Impairment 218 879 661 304 Operating Expenses 3,280 3,501 221 7 Operating Profit 2,638 2,143 (495) (19) Tax 1,228 1,017 (211) (17) PAS 1,444 1,083 (361) (
Slide 11: Net Interest Income
Net Interest Income Figures in LKR Mn • Interest income improved on the back of re-pricing of 1H-2016 YoY (%) short term assets (60%-70% of the loan book) Interest Income 13,217 28.2 Interest Expenses 8,982 38.0 Prime Lending Rate 12.0 Net Interest Income 4,234 11.3 10.0 8.0 6.0 2015 % 4.0 2016 Cost
Slide 12: Non Interest Income
Non Interest Income Figures in LKR Mn • Fee & Commission growth at the Group level was hindered by the moderation of capital market 1H-2016 YoY (%) activities. Fee & Commission 1,503 2.8 • However, there was a 15% YoY growth at the Bank Gain / (Loss) Trading 456 (2.5) level. Other operating income 3
Slide 13: Operating Expenses
Operating Expenses Figures in LKR Mn • Major portion of the incremental depreciation is due 1H-2016 YoY (%) to the continued focus on network expansion. Personnel expenses 1,893 4.4 Depreciation and amortization 240 17.5 Branches Other expenses 1,368 8.3 105 14 Total operating expenses 3,501 6.7 100
Slide 14: Balance Sheet
Balance Sheet LKR Mn Asset Mix (June 2016) Jun-16 Dec-15 % Other Assets Cash & Cash Equivalents 19,651 20,002 (2) 2% Investments 71,995 77,327 (7) Fixed Assets 1% Net Loans & Investments 220,439 209,666 5 Loans LKR 78% Fixed Assets 2,487 2,455 1 69% Investments Other Assets 6,304 5,905 7 22% Total A
Slide 15: Loans & Advances
Loans & Advances Growth Trend YoY 21% 5 Yr CAGR : 26% • Gross Loan Book stood at LKR 226 Bn 49 56 • Grew by 5% from Dec-2015 46 45 LKR Bn 33 • Corporate Segment represents 36% of Loan book 28 23 compared to 42% in June-2015 49 19 108 136 159 140 177 73 91 2010 2011 2012 2013 2014 2015 1H 2015 1H 201
Slide 16: Asset Quality
Asset Quality Gross NPL Ratio Impairment Allowance: % of Gross Loans 5.6% 3.8% NDB 3.3% 3.2% 3.1% 4.3% 4.3% 4.2% 3.0% 4.0% Industry 2.7% 3.2% 2.6% 3.1% 3.0% 2.4% 2.8% 2.8% 2.8% 2.7% 2.6% 2.5% 2.5% 2.7% 2.6% 2.5% 2.5% 2.5% 2.5% 2.4% NDB Peer Avg. 2013 2014 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 20
Slide 17: Customer Deposits
Customer Deposits Deposit Mix (June 2016) Growth Trend YoY 12% Current 8% 5 Yr CAGR : 26% 45 Savings 51 16% 50 37 LKR Bn Time 30 28 6 5 76% 100 115 133 120 146 55 76 79 2010 2011 2012 2013 2014 2015 1H 2015 1H 2016 FCY LKR Source: Internal Analysis Source: Internal Analysis Healthy Liquidity DBU FCB
Slide 18: Capital Adequacy
Capital Adequacy Capital Adequacy Trend Tier I Tier I + II 21.0% 25.0% 20.7% Minimum Requirement (Tier I+II) 17.6% 15.8% 20.0% 15.3% 14.9% 18.8% 15.0% 14.9% 15.2% 14.2% 10.9% 12.9% 10.0% 11.1% 10.8% 5.0% 0.0% 2011 2012 2013 2014 2015 1Q 2016 1H 2016 RWA (LKR Bn) 116.1 135.1 163.2 208.6 245.3 249.8 2
Slide 19: Investor Ratios
Investor Ratios 2014 1Q-2015 1H-2015 3Q-2015 2015 1Q-2016 1H 2016 EPS (LKR) 25.14 21.12 17.54 18.25 21.51 13.37 13.19 ROE (%) 15.78 12.42 10.21 10.55 12.59 7.84 7.64 Book value per Share (LKR) 169.35 170.70 174.19 176.79 172.35 168.80 173.52 P/E (times) 9.95 11.74 14.84 12.18 9.02 14.51 12.80 Price
Slide 20: Outlook
Outlook Improve Margins Manage Cost Better Focus on Risk Management Governance & Controls Build Leadership & Talent Contribute to Society & Environment
Slide 21: Q&A
YA NDB bank Q&A
Slide 22: Investor Relations
Investor Relations Telephone : +94 112 448 448 (ext. 3838) Email : investor.relations@ndbbank.com Web : www.ndbbank.com
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