PNB Housing Finance Limited · NSE:PNBHOUSING
PNB Housing Finance — Investor Presentation (June 2018)
52 slides from PNB Housing Finance's investor presentation, June 2018
Slide 1: Investor Presentation
Investor Presentation June 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 3: About PNB Housing Finance
About PNB Housing Finance Housing
Slide 4: Leading Housing Finance Company
Leading Housing Finance Company… Disbursement: INR 33,195 Crore* (US$ 5,104 mn) Asset Under Management: INR 62,252 Crore (US$ 9,571 mn) Loan Assets: INR 57,014 Crore (US$ 8,766 mn) GNPA: 0.31% on AUM / 0.33% on Loan Assets Average Cost of Borrowing: 7.71%* No. of employees: 1,290 ISO 9001:2015 certi
Slide 5: Started in 1988
started in 1988 • IPO - Raised INR 3,000 2018 Crore • AUM crossed INR • MTN set-up 2017 for $1bn to 25,000 crore raise off- • Introduced • DEPL is shore funds new brand acquired by QIH, • Certified as a image • AUM crossed “Great Place • Destimoney • Robust and of the Carlyle 2016 INR 50,000 Enterpr
Slide 6: HFC Sector well placed
HFC Sector well placed... Housing
Slide 7: India's Mortgage Market
India’s Mortgage Market… Under penetrated mortgage market, rising urbanization coupled with increase in housing demand is leading to mortgage market expansion Indian mortgage market is significantly under-penetrated Increasing urban population Mortgage to GDP Ratio (%) 40.00% 65% 63% 31.99% 32.37% 3
Slide 8: Outpacing Traditional Channels
Outpacing Traditional Channels with… Increasing HFCs Share in a Steadily Expanding Home Loan Portfolio (INR Lakh Crore) 20 30% Banks HFC's Banks Growth HFC's Growth 18 26% 25% 16 21% 20% 14 19% 20% 20% 18% 12 18% 17% 15% 14% 18% 15% 10 15% 8 10% 6 5% 4 2 0% Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17
Slide 9: Sustainable Growth of HFCs
Sustainable Growth of HFCs Portfolio Growth of HFCs Total Loan of all HFCs: INR 8.9 Lakh Crore as on 31-Dec-17 30% 27% 26% 26% 23% Top 5 HFCs: 82% 21% 22% 21% 14% 20% 20% 21% 19% 19% 20% 1% 18% 1% Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 2% 38% Other Loans Overall Portfolio Home Loans 6% 9% Portfolio Comp
Slide 10: Government Initiatives
Government Initiatives Housing
Slide 11: Growth Drivers
Growth Drivers Urbanization Improved Affordability Favourable Demographics Home Buyers Developers Financers • Incentives from PMAY subsidy • 100% tax exemption on • Infrastructure status for affordable and tax deductions affordable housing construction housing, enabling easier institutional for deve
Slide 12: PMAY-CLSS
PMAY-CLSS Changes / Inclusion in the scheme effective 1-Jan-17 • Existing scheme renamed as PMAY-CLSS for EWS/LIG • Maximum tenure changed from 15 to 20 years • Scheme extended to Middle Income Group (MIG) available upto March 2019 Category EWS LIG MIG I MIG II Household Income (INR Lakhs per annum)
Slide 13: Expansion Led Growth and Robust TOM
Expansion Led Growth and Robust TOM 13
Slide 14: Expanding Footprints
Expanding Footprints… Branches – Point of Sales & Services No. of Branches Processing Hubs – Fountain head for Decision Making Zonal Hubs - Guides, Supervises & Monitors the HUB No. of Branches Unique Cities* Geography Hub Branches 21 84 North 7 28 South 7 27 16 8 West 7 29 9 5 6 7 32 47 27 FY14 FY1
Slide 15: Driven by Scalable Hub & Spoke Model
Driven by Scalable Hub & Spoke Model… Spokes Regional Hub Central Operations Customer acquisition / Underwriting Post Disbursement Operations servicing CPC Field Investigation DSA DST Fraud Control Fountain head Unit for decision Underwriter reviews making the reports, does the financial assessment
Slide 16: Robust Risk Processes
and Robust Risk Buying Processes… Underwriting to Collections Specialization Customer profiling Other mitigating 3C Approach measures Professionally qualified Selective approach to Mark to Market policies 3C approach: Counsel, with vast mortgage customer profiling and with tailor made offeri
Slide 17: Strong Business Growth
leading to Strong Business growth… (INR Crore) Disbursement 33,195 CAGR +52% 20,639 14,456 9,440 FY15 FY16 FY17 FY18 Asset 62,252 CAGR +53% 41,492 27,555 57,014 17,297 38,531 27,177 16,819 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 AUM Loan Assets 1 Crore = 10 million 17
Slide 18: Lower NPAs and Adequate Credit Cost
with Lower NPAs and Adequate Credit Cost Non Performing Assets 2-years lagged NPA* 0.35% 0.33% 0.30% 1.6 0.25% 0.25% 0.22% 0.22% 1.2 0.20% 0.20% 1 1 0.14% 0.15% 0.15% 0.67 0.5 0.10% 0.07% 0.05% 0.5 0.6 0.00% 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 GNPA NNPA PN
Slide 19: Sustainable Portfolio Mix
Sustainable Portfolio Mix 19
Slide 20: Disbursement Mix
Disbursement Mix Share of Housing Loans Product-wise Breakup (FY18) (% of Incremental Disbursement) Housing Loan- 69% 31% Individual Housing Loan 31 29 30 31 53% Construction Finance 16% Non-Housing Loan Disbursement Origination (FY18) 69 71 70 69 35% In-House DSA FY15 FY16 FY17 FY18 65% Non-Housing
Slide 21: Asset Under Management
Asset Under Management Product-wise Break-up Wide Product Offering (As on 31-Mar-18) (% of AUM) Housing Loan- 71% 29% Individual Housing Loan 28 29 30 29 Construction Finance 59% 12% Non-Housing Loan 72 71 70 71 Loan Assets Walk (INR Crore) (As on 31-Mar-18) 62,252 5,238 57,014 31-Mar-15 31-Mar-16 3
Slide 22: Loan Assets
Loan Assets Wide Product Offering Housing Loans – 69.8% (% of Loan Assets) Individual Housing Loans – 56.2% 6% 4% 1% 29 30 29 30 (INR Crore) 32,043 6% 22,880 ATS: INR 31 16,645 Lakh 71 70 71 70 (US$ 47.7 k) 10,260 83% 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 Home Purchase Loans Residential Plot Loans
Slide 23: Non-Housing Loan Assets Distribution
Non- Housing Loan Assets Distribution Non-Housing Loans - 30.2% (INR Crore) 12% 17,244 15% 11,269 ATS: INR 73 Lakh (US$ 112.2 k) 8,025 4,878 56% 16% 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 LAP LRD CTL NRPL Data as on 31-Mar-18 1 Crore = 10 million ATS: Average Ticket Size 23
Slide 24: Individual Housing Loan Profile
Individual Housing Loan Profile Individual Housing Loans % of Loan Assets 56.2% INR 31 Lakh Average Ticket Size (US$ 47.7 k) Weighted Average Loan to Value (at Origination) 69% Salaried vs Self-Employed 68% : 32% Weighted Average Tenure* 17.8 Years Primary Security Mortgage of Property Focus on Mass
Slide 25: Loan Against Property Profile
Loan Against Property Profile Loan Against Property % of Loan Assets 17% INR 48 Lakh Average Ticket Size (US$ 73.8 k) Weighted Average Loan to Value (at Origination) 48% Salaried vs Self-Employed 19% : 81% Weighted Average Tenure* 12 Years Primary Security Mortgage of Property Robust Credit Underwri
Slide 26: Construction Finance Profile
Construction Finance Profile Construction Finance % of Loan Assets 13.6% Average Ticket Size INR 67 Crores (US$ 10.3 mn) Security Coverage > 1.5x of specific security Debt Service Coverage Charge on receivables Number of Unique Developers 106 Number of Loan Accounts 180 Weighted Average Tenure* 3.5
Slide 27: Operational and Financial Performance
Operational and Financial Performance 27
Slide 28: Well Diversified Borrowing Profile
Well Diversified Borrowing Profile Access to a Diverse Base of Funding Relationships with multiple lending partners Total Borrowing 16,751 26,159 35,657 54,268 31 Banks (INR Crore) 10.60% 7.90% 7.70% 7.17% 7.40% 6.90% 8.47% 2.30% 4.20% 2.70% 20.30% 654 Provident 27.20% 21.35% Funds 3.60% 28.00% 29.2
Slide 29: Margin Analysis
Margin Analysis Average Yield Average Cost of Borrowings 11.65% 11.25% 9.42% 9.07% 10.76% 10.07% 8.55% 7.71% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Spread Net Interest Margins 2.36% 2.98% 3.10% 2.97% 3.07% 2.23% 2.18% 2.21% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Ratios are calculated on Monthly Av
Slide 30: Operating Leverage playing out with Better Return Profile
Operating Leverage playing out with Better Return Profile Opex to ATA Ratio Cost to Income Ratio 0.98% 30.87% 0.83% 25.15% 0.73% 22.43% 0.68% 19.54% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Return on Asset Return on Equity 1.54% 17.12% 1.46% 16.08% 1.37% 14.92% 1.28% 14.00% FY15 FY16 FY17 FY18 FY15 F
Slide 31: Employee Efficiency
Employee Efficiency (INR Crore) Disbursement / Employee Loans Outstanding / Employee 28.99 49.79 45.28 24.25 39.91 21.23 17.16 30.58 FY15 FY16 FY17 FY18 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 Total Revenue / Employee Profitability / Employee 4.59 4.82 0.72 3.96 0.62 3.23 0.48 0.36 FY15 FY16 FY17 FY
Slide 32: Return to Shareholders
Return to Shareholders Earnings Per Share (INR) Dividend Per Share (INR) 49.8 9.0 36.7 6.0 27.5 24.4 3.0 3.4 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Book Value Per Share (INR) 378.5 336.7 152.3 169.1 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 32
Slide 33: Maintaining Prudence
Maintaining Prudence... Housing
Slide 34: Balanced Asset Liability Maturity Profile
with balanced Asset Liability maturity profile (INR Crore) 23,442 19,642 17,980 18,056 17,324 11,540 10,442 9,178 Upto 1 yr 1-3 yrs 3-5 yrs Over 5 yrs Assets Liabilities Data as on 31-Mar-18 1 Crore = 10 million 34
Slide 35: Adequate Capital & Comfortable Gearing
and adequate Capital & Comfortable Gearing Capital to Risk Asset Ratio 21.62% 5.14% 16.69% 13.76% 3.92% 12.70% 3.35% 3.66% 16.48% 12.77% 10.41% 9.04% 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 Tier 2 Tier 1 Average Gearing (x) 10.73 10.77 8.72 7.60 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 Ratio is calcu
Slide 36: Shareholding
Shareholding Housing
Slide 37: Shareholding
Shareholding Shareholding as on 31-Mar-18 4.0% 1.0% 1.9% 6.5% Top Shareholders 33.0% 16.3% General Atlantic Singapore Fund, Birla Sunlife MF, Motilal Oswal MF, Wasatch, T.Rowe Price, Fidelity, Reliance MF, Invesco, Malabar Investments 37.3% Promoters Quality Investment Holdings Foreign Inst. Investo
Slide 38: Detailed Financials
Detailed Financials ©) Housing |
Slide 39: Profit & Loss Statement
Profit & Loss Statement Particulars (INR Crore) Q4 FY18* Q4 FY17 Y-o-Y Q3 FY18 Q-o-Q FY18* FY17 Y-o-Y Interest Income 1,468.6 1,010.6 45.3% 1,335.7 10.0% 5,123.4 3,678.5 39.3% Fee & Other Operating Income 101.4 65.3 102.8 393.0 229.2 Other Income 0.2 0.1 0.1 0.6 0.2 Total Revenue 1,570.2 1,076.0 45.
Slide 40: Balance Sheet
Balance Sheet Particulars (INR Crore) 31-Mar-18* 31-Mar-17 Particulars (INR Crore) 31-Mar-18* 31-Mar-17 Equity and Liabilities Assets Shareholder's Funds 6,305.5 5,577.3 Non-Current Assets 55,834.3 37,744.0 Share Capital 166.6 165.6 Fixed Assets 85.8 60.4 Reserves and Surplus 6,139.0 5,411.7 -Tangib
Slide 41: Saksham – Contributing to the Society
Saksham – Contributing to the Society 41
Slide 42: Glimpses of Social Interventions
Glimpses of Social Interventions Enhancing Human Potential • Partnered with The Confederation of Real Estate Developers Association of India (CREDAI) to conduct Onsite & Offsite skill enhancement training programmes for construction workers Reaching Out, Reaching Far • Collaborated with various NGOs
Slide 43: Winning Awards & Accolades
winning Awards & Accolades Certified as a “Great Place to Work” second year in a row. This is testament to our work culture which is based on our core values and on the tenants of Trust, Pride and Camaraderie. PNB Housing Penguin TV Commercial has bagged the Gold Award at FICCI’s Best Animated Frame
Slide 44: Strong Management Team
Strong Management Team... Housing
Slide 45: Extensive Industry Experience
with Extensive Industry Experience… Age : 55 Years No. of Years with PNBHF : 8 Years Sanjaya Gupta Managing Director Prior Engagements : AIG, ABN Amro Bank N.V. and HDFC Limited Age : 46 Years Age : 52 Years Age : 56 Years No. of Years with No. of Years with No. of Years with PNBHF : 6 Years PNBHF :
Slide 46: Highly Experienced Board
under the Aegis of a Highly Experienced Board Sunil Mehta Sunil Kaul Shital Kumar Jain Gourav Vallabh R Chandrasekaran Non Executive Director Independent Director Independent Director Independent Director Chairman – Non Executive Age: Age: Age: Age: Age: 58 Years 58 Years 78 Years 40 Years 60 Years
Slide 47: Corporate Governance
Corporate Governance Board of Directors It has 10 members, 2 are non-executive directors, 7 are independent directors and Managing Director Audit Committee (ACB) It has 3 members, all are independent directors Nomination and Remuneration Committee (NRC) It has 3 members, 2 are independent directors
Slide 48: Key Takeaways
Key Takeaways Strong Distribution Growth in One of the Lowest Efficient Improving Cost to Network and Robust Loan Book NPA’s amongst Borrowing Mix Income Ratio TOM HFC’s Strong distribution 5th largest by Loan Assets Robust Asset Quality Diverse and cost Operating leverage network with pan India (1)
Slide 49: Annexure
Annexure Housing
Slide 50: Glossary
Glossary ATA Average Total Assets HFCs Housing Finance Companies ATS Average Ticket Size LAP Loan against Property AUM Asset Under Management LRD Lease Rental Discounting BVPS Book Value per Share NCDs Non-Convertible Debentures C/I Cost to Income NII Net Interest Income CRAR Capital to Risk Asset R
Slide 51: Formulas
Formulas Ratios Formulas Used Average Borrowings (%) Interest Expense / Average Borrowings Average Gearing Ratio (x) Average Borrowings / Average Net worth Average Yield (%) Interest Income on Loans / Average Loan Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisiti
Slide 52: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com
PNB Housing Finance — Investor Presentation (June 2018) on 6ix