State Bank Of India · NSE:SBIN
State Bank Of India — FY2017 Earnings Presentation
37 slides from State Bank Of India's earnings presentation, May 19, 2017
Slide 1: Chairman's Presentation: Annual Results FY17
Annual Results FY17 Chairman’s Presentation 19.05.2017
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 results may differ materially from those included in these statements due to a variety of
Slide 3: India's National Champion, Now Among Global Top Fifty Banks
India’s National Champion, Now Among Global Top Fifty Banks Unbroken Record of Profits & Dividends for over 100 Years Among top 50 Banks ~4x the 2nd Globally in Largest Indian Terms of Total Bank in Assets and Business size Tier 1 Capital 1 2 2nd Largest Sustainability Footprint Globally Report an -
Slide 4: Performance
Performance 4
Slide 5: Sustained Operating Performance (Q4)
Sustained Operating Performance In Rs Crores Q4FY17 Q4FY16 YoY Interest on loans up by 2.12% while Interest on Deposits Net Interest 18,071 15,401 17.33% contained at 8.61% even as Deposits grew by 18.14% YoY Income Non* Excluding all one time items in both years, growth is Interest 10,327 10,585 -2
Slide 6: Sustained Operating Performance (FY)
Sustained Operating Performance In Rs Crores FY 17 FY 16 YoY Interest on Loans up by 3.32% while Interest on Deposits Net Interest 61,860 57,195 8.16% contained at 6.81% even as Deposits grew by 18.14% YoY Income Non* Excluding all one time items in both years, growth is Interest 35,461 27,845 27.35
Slide 7: Consistent Growth in Cross Sell Income
Consistent Growth in Cross Sell Income Cross Sell CAGR FY 17 Income FY 13 FY 14 FY 15 FY 16 FY 17 No. of customers (%) (in lakhs) (in Rs. crs) Life 144.0 159.5 244.6 337.2 464.6 34.0% MF 52 MF 33.9 28.1 70.0 62.3 181.1 52.1% General 23.3 40.9 56.6 73.1 107.0 46.4% Life 89 Other 7.4 6.3 17.1 16.5 23.
Slide 8: AUCA Recovery
AUCA Recovery Rs. In Crores 4,500 21.6% 3,477 21.2% 3,000 2,859 52.9% 2,359 1,543 1,500 - 2014 2015 2016 2017 Recovery from Written off accounts • Initiatives taken to Scale Up o High value AUCA accounts adopted for recovery by top executives of Stressed Asset Management Group o Schemes for One Time
Slide 9: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. In Crores YoY Growth (%) YoY Growth (%) Mar 17 Mar 17 Over Mar 16 Mar 16 Mar16 Over Mar 15 Total Deposits 20,44,751 18.14 17,30,722 9.76 Foreign Offices 91,451 -3.02 94,298 5.29 Domestic 19,53,300 19.36 16,36,425 10.03 Market Share Domestic 18.05
Slide 10: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. In Crores Mar 17 Mar 16 YOY Gr % Domestic Advances 13,41,054 12,42,683 7.92 Food Credit 4,554 21,555 -78.87 Domestic Advances (Excluding Food Credit) 13,36,500 12,21,128 9.45 Comm. Paper (CP) 58,651 13,094 347.92 Corp. Bonds (CB) 59,636 41,152 44.92 Domestic Total (in
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. In Crores YoY Growth (%) Mar 17 Mar 17 Over Mar 16 Mar 16 Total Advances 16,27,273 7.80 15,09,500 Foreign Offices 2,86,219 7.27 2,66,817 Domestic 13,41,054 7.92 12,42,683 Market Share Domestic 17.02% 65 bps 16.37% Large Corporate 3,41,990 3.59 3,30,136 Mid Corporate 2,
Slide 12: We Remain Well Capitalized
We Remain Well Capitalized 13.73% 13.11% 13.12% Tier II 12.00% 3.08% AT1 2.76% 3.20% Tier I 2.40% 0.53% 0.68% CET1 0.11% 0.29% 10.65% 10.35% 9.97% 9.82% 9.81% 9.92% 9.31% 9.60% Mar 17 Dec 16 Mar 16 Mar 15 Major Contributors to Capital Retained Earnings Rs 8,379 Cr Capital infusion from GoI Rs. 5
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Movement of NPAs
Movement of NPAs Rs. In Crores FY17 Q4FY17 Q3FY17 FY16 Q4FY16 Opening Level of Gross NPAs 98,173 1,08,172 1,05,783 56,725 72,792 Less :Recovery 5,197 1,203 1,003 4,389 1,627 Less: Up-gradation 3,437 1,002 1,059 2,598 97 Less :Transfer to AUCA 20,570 3,992 5,906 15,763 3,208 Add: Increase in O/s 4,30
Slide 15: Asset Quality: Impaired Assets
Asset Quality : Impaired Assets Rs. In Crores Mar 17 Dec 16 Sep 16 June 16 Mar 16 Gross Advances 16,27,273 14,97,164 14,81,832 14,63,690 15,09,500 Restructured Standard 36,634 34,628 36,570 36,551 39,055 Total Gross NPAs plus Restructured Std. 1,48,977 1,42,800 1,42,353 1,38,092 1,37,228 Gross NPA +
Slide 16: Corporate Watch List
Corporate Watch List Fund based Outstandings Rs. In Crores Total Corporate Slippages Post Watch list Slippages Merger 34,776 Watch List 2.3% 1.6% 28,419 32,427 3,396 - 818 807 1,181 3152 (72%) 4,299 3,503 20,576 3,137 17,992 8,657 776 807 13,310 11,075 1,906 4,748 397 1,933 807 2,952 131 1,794 2,791
Slide 17: Improving Corporate Risk profile
Improving Corporate Risk profile In percentages 84 79 72 65 61 55 Mar 17 Mar 16 Mar 15 A and above - New loans A and above stock 84% of New Connections are PSUs or rated A & above • Early Sanction Review, Loan Review Mechanism, Early Warning System, Dynamic Rating Review, Legal Audit etc. implemente
Slide 18: Personal Segment now 30% of Domestic Loan Book
Personal Segment now 30% of Domestic Loan Book Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 17% 21% 34% 2,22,605 46,736 38,549 1,11,143 82,708 1,90,552 Mar 16 Mar 17 Mar 16 Mar 17 Mar 16 Mar 17 25.52% 25.88% 25.21% 27.16% 52.91% 52.95% Total P-Segment Mar 16 Mar 17 Mar 16 Mar 17 Mar 16
Slide 19: Agri: Initiatives to improve asset quality
Agri : Initiatives to improve asset quality 10.07% 9.66% 9.39% 9.20% 8.97% 8.90% 8.31% 8.28% 6.93% 5.53% FY 13 FY 14 FY 15 FY 16 FY 17 Agri as % of Advances Agri NPA as % of agri advances • Focus on diversified risk mitigated products like Agri Gold Loan (~31% of total Agri portfolio as on Mar 17),
Slide 20: SME: Initiatives to improve asset quality
SME : Initiatives to improve asset quality SME portfolio as a % of Advances NPA % 9.00% 14.42% 7.82% 7.50% 7.04% 13.84% 6.00% Mar-16 Mar-17 Mar-16 Mar-17 Bank will continue to leverage its inherent strengths in this segment, given the huge growth potential • Total finance requirement of Rs.32.5 lakh
Slide 21: International Banking: Improving Asset Quality
International Banking : Improving Asset Quality US $ Million FY 2016-17 FY 2015-16 • Higher share of long term Based on Tenor Average % share in Average % share in loans to have a positive impact Outstandings total loans Outstandings total loans on NII Short Term Loans 15224 36.67 16472 41.17 • Redu
Slide 22: Continued Focus on NPA Resolutions
Continued Focus on NPA Resolutions NPA resolutions In Rs Cr Sale of core and non core assets by Corporates in FY16 & FY17 (Our Share) 4,778 Restructuring under S4A during FY17 5,935 Restructuring under SDR during FY17 4,281 E-Auctions / Recoveries through DRT / ARC Sales in FY16 & FY17 5,610 Top 5
Slide 23: Transformation to A New Age Bank
Transformation to A New Age Bank 23
Slide 24: Robust IT Infrastructure – with a large growth potential
Robust IT Infrastructure – with a large growth potential Capacity Utilization of CBS (in %) Number of branches Robust IT 50 infrastructure 45 24,017 performing at high scale 25 25 16,327 Database Server Application Server CPU Memory SBI BoFA+Wells+JPMC Robust IT infrastructure- a capacity to handle
Slide 25: Digitization to drive efficiencies
Digitization to drive efficiencies Growth in income Cost to Income Ratio Growth in income as employees are Digitization and merger synergy redeployed from operational / admin 48.26% to drive down the CI Ratio roles to sales FY 2017 Redeployment to Gains in fee income Fee + Float Income FY 2020 FY 20
Slide 26: Dominant Player in the Digital Space
Dominant Player in the Digital Space Mar 17 Dec 16 Mar 16 Internet Banking 27 27 23 9 40 38 30 POS 8 5 77 77 74 Mobile Banking 3 3 3 ATM / CDM 38 39 43 Branch 23 23 26 Channel SBI Actuals Market Share (%) Number of Group ATMs (as on Mar 17) 59,263 28.44 Group ATMs : Value of Txns (Cr) (During FY 17)
Slide 27: Merger Synergies
Merger Synergies 27
Slide 28: Executive Summary of Merged Entity
Executive Summary of Merged Entity Rs. in Crores SBI + ABs + BMB (As on 1st April) SBI + ABs + BMB (Asset Quality Ratios as on 1st April) Total Deposits 25,85,320 Gross NPA Ratio (%) 9.11 CASA Ratio (%) 44.40 Total Advances 18,68,962 Net NPA Ratio (%) 5.19 Mkt. Share - Deposits (%) 23.07 Provision C
Slide 29: Synergies from Merger
Synergies from Merger New initiatives in Digital, Improved Wealth, availability of Technology Synergies Lower cost of skilled areas funds manpower Common treasury, Elimination of processing redundancies centres, and IT infrastructure Stronger and larger financial conglomerate SBI staff position post
Slide 30: Subsidiaries
Subsidiaries 30
Slide 31: Subsidiaries (1/3): SBI Life
Subsidiaries (1/3) : SBI Life In crores Premium 35.5% 27.8% 3.54x Price to Embedded Value during the recent 3.9% 21,015 12,867 15,825 P/EV stake sale to Institutional Investors 5,528 7,107 10,144 New Business Premium Gross Written Premium „Life Insurance Company of the Year‟ and FY 15 FY 16 FY 17 CA
Slide 32: Subsidiaries (2/3): Others
Subsidiaries (2/3) : Others SBI CARDS • Consistent business performance leading to PBT of YoY FY15 FY16 FY17 Rs. 598 Cr for FY17 @ YOY Growth of 37%. (in %) • 4Mio + Cards base with Industry Ranking of 2nd in CIF market share, % 15.0% 14.8% 15.3% 5 bps Card base as on Feb 17 (improved from 3rd rank
Slide 33: Subsidiaries (3/3): Others
Subsidiaries (3/3) : Others SBI Capital Markets Limited • Ranked 1st (by no. of issues) and 2nd (by issue YoY amount) for FY 2016-17 for overall equity deals as FY15 FY16 FY17 (in %) per prime database PAT (Rs. Cr) 334 279 252 -9.7 • Ranked 6th in FY17 in case of Private Placements Gross Income (Rs.
Slide 34: Sustained profitability in RRBs
Sustained profitability in RRBs SBI is the sponsor bank for 18 RRBs where it has 35% stake 50% stake held by GoI, 15% held by respective state governments Total Deposits at Rs.89,387 Cr up 22% YoY Total Advances at Rs. 51, 947 Cr up 11% YoY RRBs in certain states like AP, Chattisgarh, Rajast
Slide 35: Investments with significant market value
Investments with significant market value Strategic Investments SBI’s shareholding Net Profit (FY 16) Net –worth (FY 16) Name of strategic investment ROE (FY 16) (%) in % Rs. In crs Rs. In crs IL&FS 6.42% 274.0 5605.7 4.89% NSE 5.19% 439.3 5211.0 8.43% BSE 4.75% 106.1 2232.0 4.76% CDSL 9.57% 63.4 35
Slide 36: Disclaimer
Disclaimer This presentation has been prepared by State Bank of India (the “Bank”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any off
Slide 37: Thank You
Thank You 37