Yes Bank Limited · NSE:YESBANK
Yes Bank — Q4 FY2023 Earnings Presentation
51 slides from Yes Bank's earnings presentation, Apr 22, 2023
Slide 1: Exchange Intimation: Press Release and Investor Presentation
YBL/CS/2023-24/012 April 22, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Corporate Relations Department Plot no. C/1, G Block, P.J. Towers, Dalal Street Bandra - Kurla Complex Mumbai – 400 001 Bandra (E), Mumbai - 400 051 Tel.: 2272 8013/15/58/8307 Tel.: 2659 8235/36 84
Slide 2: YES Bank Announces Financial Results for Quarter and Year Ended March 31, 2023
April 22, 2023 YES BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2023 Key Highlights • Second straight year of Full Year Profitability • Q4FY23 Profits at INR 202 Crs despite accelerated provisioning, three times higher than Q3FY23 profits • Q4FY23 NII at INR 2,105 Crs up
Slide 3: Financial Highlights
Financial Highlights Profit and Loss ▪ Q4FY23 NII at INR 2,105 Crs up 15.7% Y-o-Y and 6.8% Q-o-Q. FY23 NII at INR 7,918 Crs up 21.8% Y-o-Y ▪ NIM for Q4FY23 at 2.8% up nearly 30 bps on both Y-o-Y and Q-o-Q basis. FY23 NIM at 2.6% up 30 bps Y-o-Y ▪ Q4FY23 Non-Interest Income at INR 1,082 Crs, up 22.8%
Slide 4: Asset Quality; Digital & Other Highlights
Asset Quality ▪ Significant Improvement in Asset Quality • GNPA ratio at 2.2% vs. 13.9% in Q4FY22 and 2.0% in Q3FY23 • NNPA ratio at 0.8% vs. 4.5% in Q4FY22 and 1.0% in Q3FY23 ▪ Slippages continue to trend lower for – • FY23 at INR 4,775 Crs vs. INR 5,795 Crs in FY22 • Q4FY22 at INR 1,196 Crs vs. IN
Slide 5: Financial Highlights from Q4FY23 and FY23 Results
Financial Highlights from Q4FY23 and FY23 Results Profit & Loss Statement Highlights (INR Cr) Q4FY23 Q3FY23 Growth % Q4FY22 Growth % FY23 FY22 Growth % Net Interest Income 2,105 1,971 6.8% 1,819 15.7% 7,918 6,498 21.8% Non Interest Income 1,082 1,143 -5.3% 882 22.8% 3,927 3,262 20.4% Total Net Incom
Slide 6: Investor Presentation Q4FY23 and FY23 Financial Results
INVESTOR PRESENTATION Q4FY23 and FY23 Financial Results April 22, 2023 S&P Global CDP Moody’s Highest ESG score Rated ‘A-’ for its 2022 ESG Solutions amongst Indian banks in Climate Change Ranked 5th in ESG, the S&P Global Corporate disclosures - highest rated amongst 90 Retail & Sustainability Asse
Slide 7: Contents
Contents YES Bank of Today Financial Results Update YES BANK Franchise
Slide 8: New Generation, Professionally Run, Private Sector Bank with a Scalable Platform
New Generation, Professionally Run, Private Sector Bank with a Scalable Platform ▪ 6th Largest Private Sector, Universal Bank offering comprehensive suite of product and services via its pan India network of 1,192 branches, 150 BCBO and 1,300+ ATMs in over 300 districts of India New Generation ▪ 1 P
Slide 9: Strategic Shift towards a Granular Franchise
Strategic Shift towards a Granular Franchise All figures in INR Crs 1 Strong 2.2x growth in Retail Advances between Mar’20 to Mar’23, Retail Advances at ~INR 90,000 Crore and at 45% of Net Advances Net Advances Growth Led by Retail Advances Retail Advances - Growth and Change in Mix Diversified Reta
Slide 10: Fortified Balance Sheet - Marked Improvement in Asset Quality
Fortified Balance Sheet - Marked Improvement in Asset Quality All figures in INR Crs Strong Past Trend of Recoveries & Upgrades of INR ~20,000 Crores 1 Both i) Net NPA and ii) Net NPA + Net carrying Value of SRs, consistently trending lower 2 since Reconstruction (INR Crores) 8.0% Pro-forma Incremen
Slide 11: Protected PPOP/Assets during the Strategic Shift towards Granular Franchise
Protected PPOP/ Assets during the strategic shift towards Granular Franchise through Efficiency Gains Significant investments into the Retail franchise over past few years in order to Efficiency gains in the Retail franchise has aided this strategic shift in mix- resulting in 1 2 organically build a
Slide 12: Contents
Contents YES Bank of Today Financial Results Update YES BANK Franchise
Slide 13: Results At a Glance – Q4FY23
Results At a Glance – Q4FY23 All figures in INR Crs Total Assets Advances Total Disbursements1,2 Deposits CD Ratio 2 Advances Mix 2 Retail & SME: Mid Corp: Corporate 354,786 203,269 26,317 v/s. 217,502 92.0% v/s. 59%:14%:27% 3.2%: Q-o-Q 4.5%: Q-o-Q 27,311 Q3FY23 1.8%: Q-o-Q 89.7% Q3FY23 58% : 13% :
Slide 14: Highlights for Q4FY23 and FY23
Highlights for Q4FY23 and FY23 Marked improvement in Asset Quality: ~60 bps Q-o-Q reduction in (NNPA + net Sustained Earnings: Second straight year of full year profitability carrying value of SR) % ▪ Net Profit at INR 202 Crs for Q4FY23 despite accelerated provisioning during the quarter ▪ (NNPA +
Slide 15: Strategic Objectives & Guidance Tracker
Strategic Objectives & Guidance Tracker FY 2023 Key Strategic Objectives FY 2023 Remarks Guidance Industry wide headwinds due to rising interest rate environment CASA Ratio 35% 30.8% Significant improvement in CA Ratio by ~200 bps, at 15.4% Further Improve Retail & SME and Mid Corporate Retail + SME
Slide 16: Powering Digital India
Powering Digital India– Processes nearly every 3 Digital Transaction in the country rd 1 Market share is higher with progressive payment platforms1 2 Multiple channels of engagement 38.3% Branch/ RM Rank 1 Assisted 22.78% Contact Center 17.7% 11.22% YES XPRESS – Industry First Digital Rank 1 Rank 1
Slide 17: Profit and Loss Statement
Profit and Loss Statement All figures in INR Crs ▪ Net Profit at INR 202 Crs despite Profit and Loss Statement Quarter Ended Growth Year Ended Growth accelerated provisioning during the Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y quarter Net Interest Income 2,105 1,971 1,819 6.8% 15.7% 7,918 6,
Slide 18: Break Up of Non-Interest Income
Break Up of Non-Interest Income All figures in INR Crs ▪ Non-Interest Income at INR 1,082 Crs for Break up of Non Interest Income Quarter Ended Growth Year Ended Growth Q4FY23, up 22.8% Y-o-Y, down 5.3% Q-o-Q Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y Non Interest Income 1,082 1,143 882 -5.3%
Slide 19: Break up of Operating Expenses
Break up of Operating Expenses All figures in INR Crs ▪ Opex for Q4FY23 grew 4.5% Q-o-Q and Quarter Ended Growth Year Ended 19.3% Y-o-Y Cost Head Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y ▪ Opex for FY23 grew 26.5% Y-o-Y v/s. normalised Total Income growth of 25.6% Staff 854 857 772 -0.4% 10.
Slide 20: Provisions and P&L
Provisions and P&L All figures in INR Crs ▪ Provision costs for Q4FY23 declined Break up of Provisions Quarter Ended Growth Year Ended Growth 20.4% Q-o-Q, led by Q4FY23 Q3FY23 Q4FY22 Q-o-Q Y-o-Y FY23 FY22 Y-o-Y Operating Profit/(Loss) 889 914 774 -2.7% 14.8% 3,183 2,916 9.2% – Security Receipts Rede
Slide 21: Balance Sheet
Balance Sheet All figures in INR Crs ▪ Balance Sheet grew 11.5% Y-o-Y Growth % Growth % Balance Sheet 31-Mar-23 31-Dec-22 31-Mar-22 – C/D ratio at 92.0%1 v/s. 91.8% last (Q-o-Q) (Y-o-Y) fiscal and 89.7% in Q3FY23 Assets 354,786 343,778 318,220 3.2% 11.5% ▪ Advances growth at 12.3% Y-o-Y. Normalized
Slide 22: Break up of Advances & Deposits
Break up of Advances & Deposits All figures in INR Crs ▪ Sustained Granularization of Balance Sheet: Break up of Advances 31-Mar-23 31-Dec-22 31-Mar-22 QoQ YoY Growth (%) Growth (%) – Retail Advances mix at 45.2% v/s. 43.7% in Q3FY23 (ex- Reverse Repo adj.) Retail 90,447 83,769 65,250 8.0% 38.6% – C
Slide 23: Break up of Investments
Break up of Investments All figures in INR Crs ▪ Total Net Investments at INR 76,902 Crs Investments breakup Rating wise break up of Standard Performing NSLR Investments ▪ SLR – INR 65,158 Crs 0.2% ▪ NSLR – INR 11,744 Crs 2% • Standard Performing – INR 6,497 Crs • Others1 – INR 5,247 Crs HTM 3% 37%
Slide 24: NPA Highlights
NPA Highlights All figures in INR Crs Asset Quality Parameters 31-Mar-23 31-Dec-22 31-Mar-22 ▪ Gross NPA Ratio at 2.2% vs 2.0% in 1 Gross NPA (%) 2.2% 2.0% 13.9% 1 Q3FY23 Net NPA (%) 0.8% 1.0% 4.5% 2 Provision Coverage Ratio (%) 62.3% 49.4% 70.7% ▪ Slippages at INR 1,196 Crs for Q4FY23 vs. INR 1,610
Slide 25: Summary of Labelled & Overdue Exposures
Summary of Labelled & Overdue Exposures All figures in INR Crs ▪ Slippage of ~INR 283 Crs from Standard 31-Mar-23 31-Dec-22 31-Mar-22 In INR Cr Restructured Advances pool of Q3FY23 Gross Provisions Gross Provisions Gross Provisions NPA 4,395 2,736 3,904 1,930 27,976 19,771 ▪ Overdue book of 31-90 da
Slide 26: Organic accretion of Capital: CET 1 ratio at 13.3%
Organic accretion of Capital: CET 1 ratio at 13.3% 1 Bank’s Capital Adequacy Ratio1 CET 1 Ratio at 13.3% 17.4% 18.2% 17.9% 5.1% Organic accretion in CET 1% 4.7% 5.8% during the quarter ▪ Post full warrant conversion ~150 CRAR bps to further accrue to CET I ratio Discounting as per Basel III TIER II
Slide 27: Contents
Contents YES Bank of Today Financial Results Update YES BANK Franchise
Slide 28: Retail Bank: Full spectrum retail bank growing with strong momentum
Retail Bank: Full spectrum retail bank growing with strong momentum All figures in INR Crs Strong growth in Retail Advances Pan-India Highest Ever presence via 1,192 54% of branches in branches, 101 BC Top 200 deposit +39% p.a. banking outlets centers 78,400 83,769 90,447 and 1,301 ATMs, 65,250 71,5
Slide 29: Retail Assets: Fast growing diversified book
Retail Assets: Fast growing diversified book All figures in INR Crs 1 Retail asset disbursements momentum continues 3 Diversified retail book1 12,667 12,705 Secured Business Loans Preferred financier status 12,563 11,863 6% with leading Auto OEMs Auto Loans 4% 16% 10,201 Highest Ever Personal Loans
Slide 30: Rural Assets: Deepen the penetration in emerging rural markets
Rural Assets: Deepen the penetration in emerging rural markets & generate Agri PSL All figures in INR Crs 1 Business originations 3 Robust Farmer financing book & improved collections in JLG book ▪ High quality farmer financing book with NPA of 1% ▪ NPA <2% in the JLG book generated post–COVID (disb
Slide 31: SME Banking: Granular book creation with a solution led approach
SME Banking: Granular book creation with a solution led approach All figures in INR Crs 1 Steady momentum in disbursements1 3 Strengthening Relationship Management Highest Ever Liability Book 13,282 14,321 11,731 11,714 12,127 7,389 6,008 6,104 5,089 5,001 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q
Slide 32: Credit Cards: Strong business growth and enhanced customer experience
Credit Cards: Strong business growth and enhanced customer experience 1 Sustained Strong Growth in Cards, Book Size & Card Spends 3 Growth in Acquisition and Cross sell No of Cards In (000s) 1,419 ▪ Steady growth in new card acquisition leading to 20% YoY growth in customer base to Book Size in Cr r
Slide 33: Wholesale Banking: Granularization of incremental lending book
Wholesale Banking: Granularization of incremental lending book All figures in INR Crs 1 Corporate Book & Disbursements – Debulking Continues 3 Providing tailored solutions to clients across business segments Book Disbursements 1 ▪ Team of 195 Relationship Bankers spread across 10 locations servicing
Slide 34: Large Corporates
Large Corporates Focus Sectors Pan India Presence Products ▪ Auto ▪ Metals Presence in 10 major locations ▪ Working capital Finance, Project Finance, Supply ▪ Cement ▪ IT / ITES Chain Finance , FX and Derivatives. ▪ Chemicals ▪ Delhi ▪ Bengaluru ▪ Logistics & Warehousing ▪ ▪ Growing non-fund book -
Slide 35: Institutional & Government Banking
Institutional & Government Banking YES BANK’s Institutional & Government Banking Group is divided into 7 segments Anchoring the Wholesale liabilities franchise Cooperative banks, Scheduled commercial banks & DFIs, NBFCs, Indian Financial International International banks, Global Insurance, Mutual Fu
Slide 36: Mid Corporates
Mid Corporates Knowledge Sectors – Media & Growth led by NTB and X-sell Entertainment, Gems & Jewellery, ECOM Team - higher wallet share and Food & Agri, Pharma, Chemicals, Unicorn and Soonicorn Focus productivity Auto ancillary, Logistics, Metals Initiatives to maintain Bank’s Leadership Position i
Slide 37: Financial Markets – Customised solutions to clients
Financial Markets – Customised solutions to clients >15 yrs Remittances FX All 32% Currency Exotics Notes Active FX trading desk FX GO Available across digital 5-15 yrs Imports for market making platforms for Rate booking 36% Full providing best in class FX Sales Product YesFX Suite pricing for cust
Slide 38: Transaction Banking: Annuity income through Trade and Cash Management
Transaction Banking: Annuity income through Trade and Cash Management Trade Finance | Cash Management | Capital Markets | Custody | Bullion & FES | Supply Chain 95% of our Corporate CASA is embedded with Transaction Banking 2+ PPI* in Corporates covers 82% CA, 97% CMS Thruput, 95% Trade FB*, Product
Slide 39: Transaction Banking: Continued & Expansive API Banking Leadership
Transaction Banking: Continued & Expansive API Banking Leadership API’fication of our Marketplace model Sachetization of Solutions across Industry Segments (YES Bank + Partner Offerings) Smart Collections E-Invoicing Remittances FinTechs Cardless cash Payments (FT2/IMPS) Traders Exchange Houses with
Slide 40: Transaction Banking: API Infrastructure rails for Digital needs of Businesses
@ Transaction Banking: API Infrastructure rails for Digital needs of Businesses Customer 1st Approach ONE BANK Approach ▪ Leverage strengths of existing ▪ Platform for both YBL as well as digital assets instead of build from Non YBL Bank Customer scratch (KYCeed) ▪ Eliminate need for creating same ▪
Slide 41: Transaction Banking @ Public Digital Infrastructure
Transaction Banking @ Public Digital Infrastructure Building New Age India through collaboration on Key Digital Initiatives Digital Initiatives Principle Objectives YES Differentiators Consent Layer for Data sharing Account Aggregator (AA) system making lending and wealth • Enables Digital Onboardin
Slide 42: Transaction Banking: Connected Banking Strategy
Transaction Banking : Connected Banking Strategy Digitizing and embedding YES Bank within our Corporate Client Ecosystem Roadmap of Digital @ Transaction Banking Source Digital Onboard Digital Transact Digital Service Digital Monitor Digital Digital Acquisition at Scale Digital Onboarding & API’fica
Slide 43: Technology: Transformation initiatives – Aligned to Business growth
Technology: Transformation initiatives – Aligned to Business growth ▪ Enhance to an API first, microservices business architecture enabling faster integration with B2B customers and partners across journeys. ▪ Frictionless onboarding / service journeys Enable a connected ▪ Self Onboarding API capabi
Slide 44: Strong people focus: Stable leadership with focus on up-skilling talent
Strong people focus: Stable leadership with focus on up-skilling talent, objective performance management & enabling employee flexibility ▪ Top and Senior Management with average vintage of around 8.5 years within the Bank combined with new talent from the industry. ▪ ‘Advanced Leadership Program’ (
Slide 45: Sustainability
Responsible franchise committed to a purposeful ESG agenda CDP S&P Global Rated ‘A-’ for its 2022 Moody’s ESG Highest ESG score Climate Change Solutions amongst Indian banks in disclosures - highest Ranked 5th in ESG, the S&P Global Corporate rated Indian Bank. Only amongst 90 Retail & Sustainabilit
Slide 46: Credit Rating
Credit Rating CARE Upgrades: ICRA Downgrades BASEL III Tier II to BBB from C Basel II Upper Tier II to D from BB BASEL II Tier I to BB+ from D INDIA Ratings CARE Downgrades INDIA Ratings Upgrades BASEL II Upper Tier II to BB+ from D CARE Upgrades Ratings across all Outlook-keeps Basel II Upper Tier
Slide 47: Strong Investor base
Strong Investor base Well diversified Investor base: Shareholding Pattern as on March 31, 2023 Category % STATE BANK OF INDIA Banks 33.0% CA BASQUE INVESTMENTS 26.1% VERVENTA HOLDINGS FDI 12.9% 1 LIFE INSURANCE CORPORATION OF INDIA 45.7% Resident Individuals 29.9% HOUSING DEVELOPMENT FINANCE CORPORA
Slide 48: Robust Governance Structure – Board Members
Robust Governance Structure – Board Members Eminent and Experienced Board Rama Subramaniam Gandhi Atul Malik Sharad Sharma Sadashiv Srinivas Rao Sanjay Kumar Khemani Non-Executive, Part time Chairman, Independent Director Independent Director Independent Director Independent Director Independent Dir
Slide 49: Professional and Seasoned Management team
Professional and Seasoned Management team Prashant Kumar Managing Director & CEO, YES Bank Ravi Thota Niranjan Banodkar Rajan Pental Country Head, Large Corporates (LCs) Chief Financial Officer Executive Director Arun Agrawal Anurag Adlakha Dheeraj Sanghi Sachin Raut Country Head, Institutional & Go
Slide 50: Thank You
Thank You Disclaimer: No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of information or opinions contained herein. The information contained in this presentation is only current as of its date.
Slide 51: Appendix: Break up of Operating Expenses over last 8 quarters
Appendix: Break up of Operating Expenses over last 8 quarters Quarter Ended Quarter Ended Cost Head Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Staff 645 706 733 772 2,856 827 824 857 854 3,363 Business Volume linked 283 334 400 447 1,464 477 482 578 574 2,111 IT 167 170 173 17