IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q1 FY2019 Earnings Presentation
32 slides from IndusInd Bank's earnings presentation, Jul 10, 2018
Slide 1: Cover letter to stock exchanges
Induslnd Bank July I 1, 2018 'fhe Asst. Vice President The Dcputy General Manager Listing Department Corporatc RelationshiP DePt. National Stock Exchange of India Ltd' BSE Ltd. Exchange Plaza, 5th Floor l't Floor, New Trading Ring Plot No. C/l, G Block Rotunda Building, P. J. Towers Bandra Kurla Com
Slide 2: Investor Presentation
Investor Presentation July 10, 2018
Slide 3: Q1 – FY19 Performance Highlights
FY 18-19 tracking well towards PC4 targets Q1 – FY19 Performance Highlights Q1 FY19 marked by strong QoQ growth in headline numbers Q1 PAT growth up by 24% ; Core PAT up 33% excluding trading gains Although cost of funds increased during the quarter, NIM still stood healthy at 3.92% Credit
Slide 4: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome Q1-FY19 Outcome Loan Growth 25% - 30% 29% CASA Ratio 40% 43.42% Revenue Exceed Balance Resulting in 16% Growth Sheet Growth RoRWA > 2.4% 2.33% Branch 2,000 1,410 Network Customer Base Double to >20mn On track 3
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 1.86% 1.90% 1.96% 1.86% 1.91% 16.96% 17.25% 16.48% 16.56% 4.00% 4.00% 3.99% 3.97% 16.17% 3.92% Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 *on average equity Cost / Income
Slide 6: Ratings
Ratings CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND A1+ for Shor
Slide 7: Financial Performance
Financial Performance ° IndusiInd Bank
Slide 8: Steady Headline Numbers for Q1-FY19
Steady Headline Numbers for Q1-FY19 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 2,122 crs 20% 6% Income Core Fee Income Rs 1,165 crs 20% 5% Revenue Rs 3,424 crs 16% 6% Operating Profit Rs 1,911 crs 20% 8% Net Profit Rs 1,036 crs 24% 9% 7
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 1,50,675 crs 29% 4% Corporate Rs 90,411 crs 30% 3% Advances Consumer Finance Rs 60,264 crs 28% 5% Advances Deposits Rs 1,58,862 crs 19% 5% CASA Rs 68,979 crs 37% 3% SA Rs 47,711 crs 51% 4% Borrowings Rs 37,040 crs 35% (3%) 8
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q1FY19 Q1FY18 Y-o-Y (%) Q4FY18 Q-o-Q (%) Capital & Liabilities Capital 600 599 - 600 - Reserves and Surplus 24,321 20,902 16% 23,242 5% Deposits 1,58,862 1,33,673 19% 1,51,639 5% Borrowings 37,040 27,404 35% 38,289 (3%) Other Liabilities and Provisions 8,056
Slide 11: Profit and Loss Account – Q1FY19
Profit and Loss Account – Q1FY19 (Rs Crs) Q1FY19 Q1FY18 Y-o-Y (%) Q4FY18 Q-o-Q (%) Net Interest Income 2,122 1,774 20% 2,008 6% Other Income 1,302 1,167 12% 1,208 8% Total Income 3,424 2,941 16% 3,216 6% Operating Expenses 1,513 1,352 12% 1,447 5% Operating Profit 1,911 1,589 20% 1
Slide 12: Key Financial Indicators
Key Financial Indicators Q1FY19 Q1FY18 Q4FY18 Return on Assets 1.91% 1.86% 1.86% ROE (On average equity) 17.25% 16.17% 16.56% Cost / Income Ratio 44.18% 45.99% 44.98% Net Interest Margin 3.92% 4.00% 3.97% Net NPA 0.51% 0.44% 0.51% EPS (annualized, Rs. per share) 69.00 55.92 63.54 Capital + Reserves
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 1,44,954 1,50,675 1,50,675 1,13,081 88,419 60% 54% 60% 68,788 60% 59% 59% 40% 46% 40% 40% 41% 41% FY15 FY16 FY17 FY18 Jun-18 Jun-18 (BBG forming part of Consumer Finance Division Corporate & Commercial Banking Consumer) (Rs crs) Small (Rs crs) Corporates
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book Gems and Jewellery 4.83% Power Generation 3.69% Microfinance 3.69% NBFCs 3.58% Real Estate 3.44% Services 3.09% Lease Rental 2.93% Constn related to infra.- EPC 2.54% Steel 2.48% Petroleum & Products 1.93% Food Beverages and Food processing 1.25% Telecom- Cellular 1.1
Slide 15: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P E R 22% C E 20% Investment Grade Sub Investment Grade N T 18% O F 16% R 14% Unsecured Non Fund Based % A Secured Non Fund Based % T 12% E Unsecured Fund Based % D 10% Secured Fund Based % P O 8% R T 6% F O 4% L I O 2% 0% IB1 IB2+ IB2 (AA) IB2- IB3+ IB3 (A) IB3- (
Slide 16: Behavioural Scoring affirms quality of Vehicle Financing Portfolio
Behavioural Scoring affirms quality of Vehicle Financing Portfolio • Behavioural Score (B- score) measures post disbursement credit quality using long range historical data. • B-score assesses every borrower risk using Current and Historical DPD, LTV, Geography, Loan tenor, Customer type, etc. • B-s
Slide 17: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick 80,000 50% Expanding branch network 42.3% 42.9% 44.0% 43.4% 70,000 44% Focus on target market segments 36.9% 37.8% 60,000 38% Government business 50,000 68,980 59,776 62,614 66,729 33% 40,000 Capital market flows 46,646 50,501 27% 30,
Slide 18: Other Income
Other Income (Rs Crs) Q1FY19 Q1FY18 Y-o-Y (%) Q4FY18 Q-o-Q (%) Core Fee 1,165 974 20% 1,113 5% Securities/MM/FX 137 193 (29%) 95 44% Trading/Others Total 1,302 1,167 12% 1,208 8% 17
Slide 19: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q1FY19 Q1FY18 Y-o-Y(%) Q4FY18 Q-o-Q(%) Trade and Remittances 141 131 8% 153 (8%) Foreign Exchange Income 228 198 15% 197 16% Distribution Fees (Insurance, MF, 278 210 32% 273 2% Cards) General Banking Fees 80 64 25% 65 23% Loan Processin
Slide 20: Yield / Cost Movement
Yield / Cost Movement 11.15% 11.08% 9.36% Yield on Assets 9.06% Yield on Advances 6.20% 5.98% 5.44% Cost of Deposits 5.09% Cost of Funds Q1FY19 Q4FY18 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY19 Q4FY18 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 21: Credit Cost
Credit Cost (Rs Crs) FY15 FY16 FY17 FY18 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Corporate Bank 144 258 401 468 107 140 74 146 80 Consumer Finance 195 244 303 433 103 82 113 136 129 Gross Credit Costs 339 502 704 901 210 222 187 282 209 Gross Credit Costs 49 57 62 62 18 18 15 19 14 (Basis Points on Advan
Slide 22: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q1FY19 Q4FY18 Corporate Consumer Total Corporate Consumer Total Opening Balance 1,053 652 1,705 914 585 1,499 Additions 209 266 475 539 321 860 Deductions 152 287 439 400 254 654 Gross NPA 1,110 631 1,741* 1,053 652 1,705* Net NPA 7
Slide 23: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small LAP/HL/ Q1-FY19 Utility TW Cars Tractor Cards Total Vehicle Equip. CV PL Gross NPA 189 42 53 30 140 39 50 35 53 631 Gross NPA % 0.91% 1.38% 0.88% 1.09% 3.67% 0.69% 0.39% 1.20% 1.77% 1.04% Com. Const. Small LAP/HL/ Q4-FY18 Utility TW Cars
Slide 24: CRAR
CRAR (Rs Crs) 30 Jun 18 31 Mar 18 Basel – III Basel – III Credit Risk, CVA and UFCE 1,53,398 1,44,549 Market Risk 9,800 9,767 Operational Risk 18,840 18,840 Total Risk Weighted Assets 1,82,038 1,73,156 Core Equity Tier 1 Capital Funds 24,014 23,243 Additional Tier 1 Capital Funds 2,000 2,000 Tier 2
Slide 25: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Sept. 30, Dec. 31, Mar. 31, June 30, Particulars 2017 2017 2018 2018 Branch 1,250 1,320 1,400 1,410* Network ATMs 2,146 2,162 2,203 2,285 *includes 177 specialized branches • Branch/Representative Office • Strategic All
Slide 26: Shareholding Pattern
Shareholding Pattern June 30, 2018 NRIs/ Director/ Others, 2.59 GDR issue, 10.77 Promoters, 14.96 Individuals, 6.22 MFs / Banks/ Insurance Co, Private Corporates, 9.43 9.06 *[CATEGORY NAME], [VALUE] *includes FPIs 25
Slide 27: Accolades and New Initiatives
Accolades and New Initiatives 26
Slide 28: Accolades
Accolades IndusInd Bank has been awarded with the IBA Banking Technology Awards 2018 Winner in the category Medium Banks: • Best Payment Initiatives • Best IT Risk and Cyber Security Initiatives 27
Slide 29: Accolades
Accolades IndusInd Bank has been awarded with the IBA Banking Technology Awards 2018 Runner up in the category Medium Banks: • Technology Bank of the Year • Best Financial inclusion Initiatives 28
Slide 30: Accolades
Accolades IndusInd Bank has been awarded with the Gold Award at the Apex India CSR Excellence Award in CSR Banking category IndusInd Bank adjudged Winner of National Payments Excellence Awards 2017 in category ‘B’ Banks for excellent performance in NPS ATM Network 29
Slide 31: Thank you
“0 IndusiInd Bank
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No in