National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — FY2015 Earnings Presentation
24 slides from National Development Bank's earnings presentation, 2016
Slide 1: Investor Update 2015
Investor Update 2015 y, Our Commitment. Your Success.
Slide 2: Forward Looking Statements
Forward Looking Statements This document has been prepared by National Development Bank (“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 regarding the information disclosed i
Slide 3: Outline
Outline Overview of NDB Group Macro Economic Overview Awards & Accolades Financial Performance
Slide 4: Overview
Overview 58.7% 99.9% 99.9% 77.8% 99.9% 99.9% 59.8% Vision Mission Values “The driving force for a To be the catalyst in the Integrity financially empowered financial services industry by Sri Lanka” creating superior shareholder Accountability value and contributing to the national development throug
Slide 5: Brief History – Milestones
Brief History – Milestones 1995 2005 2015 Setting up of The merger of NDB Bank NDB and National Establishment of NDB Zephyr 1979 Stockbrokers 1999 Development Bank Partners Ltd. In 2014 (NDBZ); & NDB jointly owned by NDB Capital Formation of Venture Partners Zurich Holdings PLC (60%) and the Nationa
Slide 6: Macro Economic Overview
Macro Economic Overview Highlights Real GDP Growth • Sri Lanka’s economy grew by 4.8% in Q3. 9.9% • Construction which had driven the economy for the previous years, declined noticeably in 2015 6.0% 4.9% 4.7% 4.8% • Relatively low inflation throughout the period under review 1.9% 0.7% • Pressure on
Slide 7: Key Business Strengths
Key Business Strengths • Universal Banking model • Expanding Retail & SME Business • New product innovations through enhanced use of IT • Aggressively pursuing strategy to enhance shareholder value • Robust GCR framework
Slide 8: Operational Excellence Strategy
Operational Excellence Strategy Strong Sales Culture Higher Fee Income Profitable Balance Sheet Growth Cost Optimization Strong Corporate Governance ,Compliance , Risk Management & CSR Best In Class Engaged and Inspired Team
Slide 9: External Recognition
External Recognition Global Finance - World's Best Banks Awards BEST Retail/Wholesale Banking Awards 2015 EMERGING MARKETS • Domestic Retail Bank of the Year – Sri Lanka BANKS IN ASIA PACIFIC • Best SME Bank – Sri Lanka 2015- Winner - Sri • Cash Management Bank of the year – Sri Lanka Lanka • Projec
Slide 10: Financial Performance
Financial Performance J
Slide 11: 2015 Performance - Summary
2015 Performance - Summary 2014 2015 % Change Operating Income 12,966 13,291 2.5% Profitability Operating Expenses (LKR Mn) 5,911 6,830 15.6% Profit for Shareholders 4,134 3,542 -14.3% Cost to Income Ratio 45.6% 51.4% Efficiency & Return on Average Equity Return 15.8% 12.6% Return on Average Assets
Slide 12: Income Statement
Income Statement LKR Mn Year – to - date Variance over 2014 2015 2014 % Operating Income 12,966 13,291 325 3 Impairment 529 746 217 41 Operating Expenses 5,911 6,830 919 16 Operating Profit 6,527 5,715 (811) (12) Tax 2,378 2,123 (255) (11) PAS 4,134 3,542 (592) (14) Y-o-Y movement in Profit after Ta
Slide 13: Revenue Analysis
Revenue Analysis LKR Mn 2014 2015 % • Downward trend in market rates was a challenging Gross Income 26,205 26,916 3 factor throughout 2015 • Impressive growth in Fee & Commission, driven Interest Income 21,152 21,432 1 through Retail & SME segments Net Fee & Commission 2,564 3,157 23 • Market opport
Slide 14: Expenses Analysis
Expenses Analysis LKR Mn 2014 2015 % • Interest expenses slightly increased given the move towards more stable funding Interest Expenses 13,239 13,625 3 Impairment 529 746 41 • Impairment increased due to prudential measures taken by the Bank to impair several accounts Operating Expenses 5,911 6,830
Slide 15: Balance Sheet
Balance Sheet LKR Mn LKR Mn Dec-14 Dec-15 % Dec-14 Dec-15 % Cash & Cash Equivalents 12,737 20,002 57 Deposits 151,485 184,152 22 Investments 73,248 77,327 6 Debt Securities & Borrowings 68,955 72,118 5 Net Loans & Investments 175,236 209,666 20 Subordinated Term Debts 11,149 19,574 76 Fixed Assets 2
Slide 16: Loans & Advances
Loans & Advances Growth Trend YoY Growth - Segmental Contribution 14% 5 Yr CAGR : 26% 56 45 LKR Bn Corporate 33 28 159 73 23 Project Finance 136 49 19 108 91 54% Retail & SME 32% 2010 2011 2012 2013 2014 2015 FCY LKR Growing Retail & SME Book Other Corporate Project Finance Retail & SME 39% 38% • Gr
Slide 17: Volume Growth
Volume Growth DML Housing 10,500 3,500 3,000 10,000 2,500 9,500 LKR Mn LKR Mn 2,000 9,000 1,500 1,000 8,500 500 8,000 - 2014 2015 2014 2015 Auto Finance Credit Cards* 14,000 900 12,000 800 700 10,000 600 LKR Mn LKR Mn 8,000 500 6,000 400 300 4,000 200 2,000 100 - - 2014 2015 2014 2015 * Outstanding
Slide 18: Asset Quality
Asset Quality Gross NPL Ratio Impairment Allowance: % of Gross Loans 5.6% 3.7% 4.2% 4.3% 4.3% 3.1% 3.1% 3.0% 3.2% 4.0% 3.2% 2.5% 2.5% 2.5% 2.6% 2.7% 3.0% 2.8% 2.8% 2.7% 2.8% 2.5% 2.4% NDB NDB Industry Peer Avg. 2013 2014 Mar-15 Jun-15 Sep-15 Dec-15 2013 2014 Mar-15 Jun-15 Sep-15 Dec-15 A Well Divers
Slide 19: Customer Deposits
Customer Deposits Growth Trend CASA Trend 5 Yr CAGR : 25% 51 28.7% 37 LKR Bn 24.6% 25.3% 30 22.4% 24.0% 24.0% 28 6 133 115 100 55 5 79 76 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 FCY LKR Healthy Liquidity Liquidity Coverage Ratio DBU FCBU Minimum Requirment 289% 252% 226% 226% 234
Slide 20: Capital Adequacy
Capital Adequacy Capital Adequacy Trend 20.7% 21.0% 17.6% 15.8% 18.8% 15.3% 12.9% 15.2% 14.2% 11.1% 10.0% Tier I Tier I + II Minimum Requirement (Tier I+II) 2011 2012 2013 2014 2015 RWA (LKR Bn) 116.1 135.1 163.2 208.6 245.3 Leverage 8.42x 7.00x 8.44x 9.65x 11.11x
Slide 21: Investor Ratios and Dividends Trend
Investor Ratios % 2014 1Q-2015 1H-2015 3Q-2015 2015 EPS (LKR) 25.14 21.12 17.54 18.25 21.51 Book value per Share (LKR) 169.35 170.70 174.19 176.79 172.35 P/E (times) 9.95 11.74 14.84 12.18 9.02 Price to Book value (times) 1.48 1.45 1.49 1.26 1.13 Dividends Trend DPS Pay out 79% 80% 14.0 62% 70% 12.0
Slide 22: Summary
Summary PAS of LKR 3.5 Bn for 2015 declined 14% y-o-y due to margin squeeze and Profitability one-off exception items. Core Banking Profits & volumes on the Growth Risk Quality Strong Credit Quality reflected by improved NPL Ratio to 2.43% Well capitalized with strong liquidity. Capital & Liquidity
Slide 23: Q&A
YA NDB bank Q&A
Slide 24: Investor Relations
Investor Relations Telephone : +94 112 448 448 (ext. 3838) Email : investor.relations@ndbbank.com Web : www.ndbbank.com
National Development Bank — FY2015 Earnings Presentation on 6ix