State Bank Of India · NSE:SBIN
State Bank Of India — Q2 FY19 Earnings Presentation
39 slides from State Bank Of India's earnings presentation, Nov 5, 2018
Slide 1: Quarterly Results Q2FY19 Analyst Presentation
Quarterly Results Q2FY19 Analyst Presentation 05.11.2018
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
Slide 3: Contents
Contents 1 Financial Performance 2 Business 3 Capital Adequacy & Asset Quality 4 Digital Banking & Financial Inclusion 5 Subsidiaries, Group Financials & Balance Sheet 3
Slide 4: Performance Highlights (1/2)
Performance Highlights (1/2) In % Credit Q4FY18 4.81 Healthy credit off-take across retail & Growth Q1FY19 7.21 high rated corporates (Domestic YoY) Q2FY19 11.11 In % In %* Q4FY18 2.67 2.67 Higher credit growth and lower NIM Q1FY19 2.95 2.71 slippages lead to improvement in NIMs (Domestic) Q2FY19 2.
Slide 5: Performance Highlights (2/2)
Performance Highlights (2/2) Financial institutions with high liquidity stand to gain; comfortable LCR around 144%, SLR at 29.45%, Well placed to leverage credit growth momentum; CD ratio at 66% Tight control on overheads, down 3.19% YoY and 1.72% QoQ Benefit of RBI dispensation with regard to amort
Slide 6: SBI: Leadership position in the Indian Banking System
SBI: Leadership position in the Indian Banking System Key Value Drivers Business Group Technology Leadership Synergies • YONO • SBI Life - #2 private life insurer • Omni-channel market • CASA deposits 3.5x of the • SBI Card - #2 credit card co. place next competitor in no. of Cards & Spends • SBI Fu
Slide 7: Financial Performance
Financial Performance 7
Slide 8: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY19 Q2FY19 Q2FY19 Q2FY19 Q1FY19 Q2FY18 H1FY19 H1FY18 over over over H1FY18 Q1FY19 Q2FY18 Interest Income 58,793 58,813 54,850 1,17,607 1,09,755 7.15 -0.03 7.19 Interest Expenses 37,888 37,015 36,264 74,903 73,563 1.82
Slide 9: Total Income
Total Income Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY19 Q2FY19 Q2FY19 Q2FY19 Q1FY19 Q2FY18 H1FY19 H1FY18 over over over H1FY18 Q1FY19 Q2FY18 Interest on Loans 38,326 38,865 35,801 77,192 71,943 7.30 -1.39 7.05 Interest on Resources 19,310 18,832 18,088 38,142 35,631 7.05 2.54 6.75
Slide 10: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY19 Q2FY19 Q2FY19 Q2FY19 Q1FY19 Q2FY18 H1FY19 H1FY18 over over over H1FY18 Q1FY18 Q2FY18 Fee Income 5,015 4,976 5,357 9,992 10,227 -2.30 0.78 -6.39 of which: 641 641 637 1,282 1,291 -0.69 -0.08 0.64 Loan Processing Charges
Slide 11: Total Expenses
Total Expenses Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY19 Q2FY19 Q2FY19 Q2FY19 Q1FY19 Q2FY18 H1FY19 H1FY18 over over over H1FY18 Q1FY19 Q2FY18 Interest on Deposits 34,934 34,258 33,980 69,192 68,970 0.32 1.97 2.81 Interest on Borrowings 1,929 1,706 1,107 3,635 2,125 71.05 13.11 74
Slide 12: Contained Overhead Expenses
Contained Overhead Expenses Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY19 Q2FY19 Q2FY19 Q2FY19 Q1FY19 Q2FY18 H1FY19 H1FY18 over over over H1FY18 Q1FY18 Q2FY18 Overheads 6,680 6,796 6,900 13,476 12,913 4.36 -1.72 -3.19 Of which: 1,328 1,173 1,270 2,502 2,468 1.36 13.21 4.56 Rent, Taxe
Slide 13: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY19 Q2FY19 Q2FY19 Q2FY19 Q1FY19 Q2FY18 H1FY19 H1FY18 over over over H1FY18 Q1FY19 Q2FY18 Operating Profit 13,905 11,973 19,999 25,878 31,873 -18.81 16.13 -30.47 Total Provisions 12,960 16,849 18,418 29,809 28,286 5.38 -23.
Slide 14: Costs, Yields and Margins
Costs, Yields and Margins Yield on Advances (%) Net Interest Margin (%) 8.57% 8.46% 2.95 Domestic NIM 2.88 8.38% 8.43% 2.67 2.59 2.61 8.28% Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Foreign NIM 1.47 1.42 Cost of Deposits (%) 1.17 1.16 1.14 5.42% 5.34% 5.30% Whole Bank NIM 5.11% 2.80 2.73 5.10% 2.43 2.45 2.
Slide 15: Business
Business 15
Slide 16: Strong Liability Franchise
Strong Liability Franchise Domestic Deposits SEP 18 SEP 17 CA, 6.42% CA, 6.50% CASA CASA SA, 45.27% 44.88% 38.38% SA, 38.85% TD, TD, 54.73% 55.12% Rs. in Crores Sep 18 Sep 17 YoY Growth Current Account Deposits (CA) 1,74,076 1,64,149 6.05 Saving Bank Deposits (SA) 10,52,728 9,69,833 8.55 CASA Deposi
Slide 17: Diversified Loan Portfolio (1/2)
Diversified Loan Portfolio (1/2) SEP 18 Domestic Advances SEP 17 Retail Retail 58.09% 59.26% Per, 32.42% Per, 31.54% Agri, 11.95% Agri, 10.73% Corporate, Corporate, 41.91% 40.74% SME, 14.94% SME, 15.77% YoY Growth Rs. in Crores Sep 18 Sep 17 (%) Retail (SME, Agri, Per Seg) 10,33,022 9,48,479 8.91 SM
Slide 18: Diversified Loan Portfolio (2/2)
Diversified Loan Portfolio (2/2) SEP 18 Adj. Domestic Advances SEP 17 Per, 30.12% Per, 29.38% Corporate, Agri, 9.96% 38.93% Agri, 11.13% Corporate, 37.95% SME, 13.88% SME, 14.69% CP & CB, CP & CB, 7.12% 6.85% Rs. In Crores Sep 18 Sep 17 YOY Gr % Domestic Advances 17,78,321 16,00,546 11.11 Comm. Pape
Slide 19: Retail Banking - Leadership across all segments
Retail Banking - Leadership across all segments As on Sept 2018 Market leader- Retail Personal Portfolio of Rs 5.77 lakh crore NPA ratio at 1.20% % of Dom. Adv. 32.42 Home* Xpress Other P Auto Loans Loans Credit segment Loans O/S, 3,59,651 66,973 84,933 65,037 In Rs cr YoY 14.26 8.27 32.79 1.32 Grow
Slide 20: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Sep 18 Jun 18 Sep 17 Sep 18 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 2,85,986 16.08 2,60,633 15.12 2,52,764 15.79 13.14 of which: Power 1,78,988 10.06 1,76,760 10.26 1,66,893 10.43 7.25 Telecommunic
Slide 21: Treasury Operations
Treasury Operations Rs. In crores AFS Book SEP 18 SEP 17 Others, 5.6% Others, 6.4% Corporate Corporate Bonds, 12.9% Bonds, 12.6% SDLs, 14.0% SDLs, 11.2% G-Sec and T Bill, 55.8% CP, 10.9% G-Sec and T Bill, CP, 11.7% 58.8% Modified Duration: 2.44 Modified Duration: 3.48 Total Investments Book Sep 18 M
Slide 22: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 22
Slide 23: Capital Adequacy
Capital Adequacy Tier I CAR CET I AT I Tier II Sep 17 10.24% 0.72% 2.60% 13.56% 10.96% Mar 18 9.68% 0.68% 2.24% 12.60% 10.36% Sep 18 9.65% 0.71% 2.25% 12.61% 10.36% • “CRWAs on Advances to Total Advances” Ratio improved to 58.21% as on Sep 18 from 64.16% as on Sep 17 • “TRWAs to Total Assets” Ratio
Slide 24: Asset Quality (1/3)
Asset Quality (1/3) Rs. in Crores Gross NPA Net NPA 2,23,427 1,10,855 2,12,840 2,05,864 1,99,141 1,02,370 1,86,115 99,236 97,896 94,810 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Sep 18 Jun 18 Mar 18 Dec 17 Sep 17 Gross NPA Ratio (%) 9.95 10.69 10.91 10.35 9.83 Net NPA Rat
Slide 25: Asset Quality (2/3)
Asset Quality (2/3) Rs. in Crores Movement of NPAs: Q2FY19 Q1FY19 FY18 Q4FY18 Q3FY18 Q2FY18 Opening Level of Gross NPAs 2,12,840 2,23,427 1,77,866 1,99,141 1,86,115 1,88,068 Total Reductions 17,865 24,936 54,726 8,535 13,754 12,581 Of which: Recovery + Upgradation 4,327 14,856 14,530 85 4,442 3,323
Slide 26: Asset Quality- Corporate Watchlist (3/3)
Asset Quality- Corporate Watchlist (3/3) Watchlist is 0.98% of Advances Rs. in Crores Corporate Slippages coming off During Q2FY19 Watchlist Break- up Break-up Sectorwise Break-up As on Sep 2018 3,189 3,189 20,359 20,359 1,036 3,295 196 797 547 4,291 1,595 3,051 Others Textile 3,497 SMA 2 Others SMA
Slide 27: Power Sector – Stress mostly recognized
Power Sector – Stress mostly recognized Fund based O/S, in Rs cr Particulars Sept 2018 June 2018 NPA 32,676 32,289 Standard 1,46,312 1,44,471 In watchlist 9.969 10,081 Not in watchlist 1,36,343 1,34,390 Public (in %) 60% 63% Private (in %) 40% 37% A- and above 66% 69% BBB+, BBB, BBB- 15% 22% BB+ and
Slide 28: NBFC – Exposure to High Quality Private Sector and PSUs
NBFC – Exposure to High Quality Private Sector and PSUs Fund based O/S, in Rs cr Particulars Sept 2018 June 2018 Housing Finance Companies 50,698 52,988 Public 23% 13% Private 77% 87% Other NBFCs 99,312 107,655 Public 48% 53% Private 52% 47% Grand Total 1,50,010 1,60,653 28
Slide 29: Status of NCLT accounts
Status of NCLT accounts As on Sept 2018, Rs. in Crores List 1 Fund Based o/s* PCR on NCLT accounts Rs. 31,066 cr 78% 70% List 2 Fund Based o/s* 64% Rs. 22,309 cr NCLT 1 NCLT 2 Total Total Rs. 53,375 cr Total (Incl.AUCA) PCR with AUCA 66% 81% 73% Rs. 61,652 cr • Three accounts resolved from NCLT 1, w
Slide 30: Digital Banking / Financial Inclusion
Digital Banking / Financial Inclusion 30
Slide 31: Technology and Innovation (1/2)
Technology and Innovation (1/2) Share of Alternate Channels ↑ 502 bps YoY Sep-17 Sept 18 4.8% 3.4% 13.1% 18.1% 22.0% 16.8% 0.8% Share of 8.7% Share of 4.0% 0.7% 5.3% Alt. Channel Alt. Channel 5.5% 12.6% 12.1% 83.47% 78.45% 1.6% 1.0% 36.6% 32.9% Internet Banking Cash @ POS POS & e-Commerce Mobile Ban
Slide 32: Technology and Innovation (2/2)
Technology and Innovation (2/2) Integrated Centralized Payments platform will combine all existing and emerging payment products Payments Processed more than 10mn transaction on UPI platform on Nov 1, 2018 Hub Technology CRM and Predictive models to identify prospective customers using Machine
Slide 33: YONO- our flagship venture- powerful engine for future growth
YONO- our flagship venture- powerful engine for future growth • Run rate of 20,000 accnts opened/ day, peak of 31,000 on 27th Sept; • 61% customers in the age 18 – 30 years age bracket. 38% of total SB Gaining Momentum accts opened during Q2FY19. • Pre-approved personal loan book size of Rs 500 cr,
Slide 34: Financial Inclusion
Financial Inclusion Accounts Transactions Amount and Deposits Level (No. in Crores) (Rs. in Crores) 1,00,000 29,000 26,130 13.2 13.4 13.8 90,000 16.0 30.0 24,000 14.0 79,257 25.0 12.0 10.0 10.5 80,000 9.8 19,661 20.0 10.0 19,000 70,000 8.0 15.0 7.6 15.0 7.2 7.4 12.7 6.0 11.5 10.0 58,182 4.0 60,000 1
Slide 35: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 35
Slide 36: SBI Subsidiaries- Significant Value Creation
SBI Subsidiaries- Significant Value Creation H1FY19 H1FY18 • New Business Premium increased by 30% • Strong financial performance: VoNB Margin : 17% PAT (in Rs. cr) 605 539 • AUM up by 20% at Rs.126K crs. ROE (in %) 17.77 18.37 H1FY19* H1FY18* • 2nd highest base in Industry in terms of Cards & Spend
Slide 37: SBI Group Financials – H1FY19
SBI Group Financials – H1FY19 Rs. In crores Growth Year Ended Year Ended (%) Rs. In crores H1FY19 H1FY18 YoY H1FY19 H1FY18 Interest Earned 1,22,627 1,13,746 7.81 ROA (%) -0.20 0.29 Non-Interest Income 32,135# 37,015* -13.18 Total Income 1,54,763 1,50,761 2.65 ROE (%) -3.94 5.71 Interest Expended 75,
Slide 38: Balance Sheet
Balance Sheet Rs. in Crores Liabilities SBI SOLO SBI GROUP YOY YOY Sep 18 Sep 17 Sep 18 Sep 17 Growth (%) Growth (%) Capital 892 863 3.39 892 863 3.39 Reserves and Surplus 2,17,109 2,30,428 -5.78 2,28,670 2,41,107 -5.16 Minority Interest 5,270 4,526 16.44 Deposits 28,07,420 26,23,180 7.02 28,39,115
Slide 39: Thank You
Thank You