National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q1 2018 Earnings Presentation
21 slides from National Development Bank's earnings presentation, May 14, 2018
Slide 1: Investor Webinar Q1 2018
Best Bank in Sri Lanka 2018 INVESTOR WEBINAR Q1 2018 National Development Bank PLC [CSE Stock Code - NDB.N0000] 14 May 2018 : 1430 HRS (UTC + 0530) : Colombo Sri Lanka December - 2016
Slide 2: Forward Looking Statements
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 regard
Slide 3: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Director/ Chief Executive Officer Panelists Finance & Planning Lalith T Fernando – Group Chief Financial Officer Suvendrini Muthukumarana - AVP-Finance & Planning Heads of Business Buwaneka Perera - VP-Corporate Banking Niran Mahawatte – VP-Tr
Slide 4: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 4
Slide 5: Agenda – Part I Business Overview
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 5
Slide 6: Business Overview
Business Overview Incorporated in 1979 as a Development Financing Awards – 2018 Institution under and by virtue of National Development Bank of Sri Lanka Act No. 2 of 1979 Converted in to a fully fledged commercial bank in 2005 A network of 107 branches and 124 ATMs [including 3 Cash Recycling
Slide 7: Business Overview - Strategic Focus
Business Overview - Strategic Focus • “Transformation 2020” - The Bank’s strategic framework spanning up to year 2020 Key focus areas of • Goal : To transform the Bank to a large, the Transformation systemically important bank from its current mid 2020 Strategy… sized status CASA • Developed with
Slide 8: Agenda – Part II Financial Performance
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 8
Slide 9: Q1 2018 – Key Performance Indicators [Bank]
Q1 2018 – Key Performance Indicators [Bank] Profitability Indicators [Vs. Q1 2017] Balance Sheet Indicators [Vs. FY 2017] NII up by 44% - LKR 3,351 mn Total assets growth of 3% - LKR 396 bn Net fee & comm income by 28% - LKR 710 mn Net loans to customers growth of 3% - LKR 282 bn Total op. income up
Slide 10: Income Statement [Bank]
Income Statement [Bank] LKR Mn Q1-2018 Q1-2017 Variance % Gross Income 11,943 9,986 1,957 20 Net Interest Income 3,351 2,334 1,017 44 Net Fee and Commission Income 710 554 156 28 Total Operating Income 5,410 3,765 1,645 44 Impairment charges for loans and other losses 800 134 666 497 Net operating i
Slide 11: Revenue Analysis – Fund Based Income
Revenue Analysis – Fund Based Income LK Mn Q1 2018 Q1 2017 % growth Interest income 9,984 8,556 16 Industry NIM as of Q1 2018 – 3.7% Interest expenses 6,533 6,221 5 NII 3,351 2,334 44 NIM (%) 3.49 2.78 71 bps 12,000 4.00% • NII of LKR 3,351 million in Q1 2018, an increase 3.49% of 44% 10,000 • Faste
Slide 12: Revenue Analysis – Other Income
Revenue Analysis – Other Income LKR Mn Q1 2018 Q1 2017 % growth Net Fee and Commission Income 710 554 28 Net gain from trading 355 273 30 Net gain from financial investments 310 0.1 292,583 Other operating income 683 603 13 Total non-interest income 2,058 1,430 44 Net fee & Comm income – All busin
Slide 13: Operating Expenses [Bank]
Operating Expenses [Bank] LKR Mn Q1 2018 Q1 2017 % growth Vast improvement in Cost to Income Ratio due to improvement in core banking income and better Personnel expenses 1,015 918 11 cost management Depreciation & amortization 105 103 2 Total Operating Income vs. Expenses Other expenses 811 697 16
Slide 14: Balance Sheet [Bank]
Balance Sheet [Bank] LKR Bn Q1 2018 FY 2017 YTD growth Quantum Industry YTD % growth growth % Total assets 396 383 3.3 12.6 3.7 Net loans and receivables from 282 274 2.9 8 4.6 customers Total deposits from customers 284 273 3.8 10.8 4.2 Stated capital 3 2 36.7 0.8 - Total equity 29.7 28.7 3.3 1.0 -
Slide 15: Loans & Receivables [Bank]
Loans & Receivables [Bank] Total loans growth Segmental mix of Gross Loans 350 300 3% 210 223 23% 250 188 180 200 160 LCY 150 136 FCY 57% 108 100 17% 50 68 64 55 54 58 45 33 0 2013 2014 2015 2016 2017 Q1 2017 Q1 2018 Corporate Retail Business Banking Other • Moderated YTD loan growth due to high com
Slide 16: Asset Quality
Asset Quality Sector-wise Loan book composition* Manufacturing NPL ratio 1% Bank Bank Industry Consumption & Education FY 2017 Q1 2018 Q1 2018 1.83% 2.46% 3.0% 4% 3% Construction & 24% Infrastructure 9% Development Wholesale & Retail Trade • The increase in the Bank NPL ratio 9% reflects the industr
Slide 17: Customer Deposits
Customer Deposits Customer Deposits • Total deposits of LKR 284 billion. 300 • 3.9% YTD growth – Quantum increase 250 of LKR 10.8 Bn • 82:18 composition of LCY:FCY mix of 200 the deposits 232 LKR Bn 221 • CASA continues to be challenging in 150 LCY 179 159 the prevailing market conditions 134 FCY 10
Slide 18: Capital Management
Capital Management BASEL III – Q1 2018 Bank Group Common Equity Tier 1 Capital Ratio (Minimum Requirement -6.375%) 8.73% 10.14% Tier 1 Capital Ratio (Minimum Requirement - 7.875%) 8.73% 10.14% Total Capital Ratio (Minimum Requirement - 11.875%) 13.35% 14.44% Capital adequacy ratios metrics remain
Slide 19: Investor Ratios
Investor Ratios Investor Ratios Bank Group Q1 2018 FY 2017 Q1 2018 FY 2017 Price per share (LKR) 133.10 136.40 NA NA EPS (LKR) (Annualized) 27.62 24.52 26.33 19.66 ROE (%) 16.78 16.27 14.03 11.09 ROA (%) 1.26 1.21 1.18 0.96 Book value per Share (LKR) 167.31 167.58 189.32 192.51 Dividend per Share (L
Slide 20: Agenda – Part III Q&A Forum
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 20
Slide 21: NDB Investor Relations
NDB Investor Relations NDB’s Investor Relations is the recipient of the Gold Award for Best Investor Relations at the coveted CFA Sri Lanka Capital Market Awards, for two consecutive years in 2017 & 2016. Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the end of
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