State Bank Of India · NSE:SBIN
State Bank Of India — FY2019 Earnings Presentation
46 slides from State Bank Of India's earnings presentation, May 10, 2019
Slide 1: Annual Results FY 2019 Analyst Presentation
ANNUAL RESULTS FY 2019 ANALYST PRESENTATION 10.05.2019
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety o
Slide 3: Contents
Contents 1 Performance Highlights 2 Strategic Initiatives 3 Financial Performance 4 Business 5 Capital Adequacy & Asset Quality 6 Financial Inclusion - Future Growth Driver 7 Subsidiaries, Group Financials & Balance Sheet 3
Slide 4: Performance Highlights (1/2)
Performance Highlights (1/2) NET PROFIT FY 17: Rs. (-)1,805 FY 18: Rs. (-)6,547 FY 19: Rs. 862 (in Rs. cr) CREDIT GROWTH Domestic 13.99% Corporate Retail- Per 18.52% 14.83% 13.55% 4.81% 1.54% 2.18% FY17 FY18 FY19 FY18 FY19 FY18 FY19 Home loan portfolio crosses Rs 4,00,000 cr ASSET QUALITY NPA Ratios
Slide 5: Performance Highlights (2/2)
Performance Highlights (2/2) NET INTEREST INCOME NII Growth NIM (Domestic) Cost of Deposits 2.93% 2.95% 18.03% 5.84% 8.16% 2.67% 5.30% 5.10% -0.46% FY17* FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Stable liability franchise, Pricing, Credit growth & Lower Slippages led to NIM expansion and higher NII g
Slide 6: Strategic Initiatives
Strategic Initiatives 6
Slide 7: Strategic Initiatives Undertaken
Strategic Initiatives Undertaken • Revised assessment of Customer satisfaction measures, redesigned ‘customer service index’ with Customer weightage to critical parameters Service • Revised Benchmarking of Efficiency Parameters; simplification of Service Categories • Training Programme- ‘Nayi Disha-
Slide 8: Revamping Corporate Credit Structure and Systems
Revamping Corporate Credit Structure and Systems Widen universe of clients and focus on new segments Corporate Increase product penetration across high priority relationships Credit – Way Forward Strengthening of credit processes Capture risk in a more meaningful way before sanction of credi
Slide 9: Realizing shared value through our people: The HR Journey
Realizing shared value through our people The HR Journey • Attract right talent & brand SBI as • Achieve Optimal Manpower by leveraging employer of first choice data and technology to assess manpower • Recruitment of domain experts through on an annual basis in-house lateral hiring process Manpower
Slide 10: Realizing shared value through our people: The Learning & Development Journey
Realizing shared value through our people The Learning & Development Journey • Entire training system revamped to • For bringing agility and change of lay foundation for a Divya & Bhavya mindset Corporate Communication SBI. programme Nayi Disha was launched. In Phase I 2.40 lakh employees were • Ape
Slide 11: Digital Leadership / Wealth Management Business
Digital Leadership As on 31st March 2019 Handled 129 crore remit transactions during the year. Market Share (latest available) No. 1 Remitter Bank with market share of 21.48% UPI Processing > 1 Cr transactions per day. Debit Cards Spends 29.89% Number of UPI users: 55.34 Mn POS Terminals 15.
Slide 12: Technology and Innovation
Technology and Innovation Share of Transactions through Alternate Channels (88.1%) Transactions (87.75%) Mar 18 Mar 19 2.4% 3.3% 12.0% 16.0% 18.6% 22.1% 2.8% Share of Txns through 13.8% Share of Txns through 5.0% Alt. Channel 16.0% Alt. Channel 14.1% 84.0% 5.5% 88.1% 36.7% 31.7% Internet & Mobile Ba
Slide 13: YONO: Our flagship digital offering
YONO: Our flagship digital offering – for both lifestyle and Banking Paper-less and branch-less processes Enhancement of customer experience Higher staff productivity Increased branch business E2e digitisation and Digital Bank • Fixed Deposits • Account Opening • Personal Loans • Fund Transf
Slide 14: SBI and its Subsidiaries - Leveraging Synergies
SBI and its Subsidiaries - Leveraging Synergies As on Mar-2019 • #2 in Total New Business Premium with Private market • Rank 3rd in AUM with Market Share of 11.59%. share of ~20% • AUM at Rs.284K Crores, up by 30.40% • New Business Premium increased by 26% • Grew by 7.36% vis-à-vis Industry growth r
Slide 15: Financial Performance
Financial Performance 15
Slide 16: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter Ended Year Ended Growth (%) Q4FY19 Q4FY19 FY19 over Q4FY19 Q3FY19 Q4FY18 FY19 FY18 over over FY18 Q3FY19 Q4FY18 Interest Income 62,985 62,277 55,941 2,42,869 2,20,499 10.14 1.14 12.59 Interest Expenses 40,032 39,586 35,967 1,54,520 1,45,646 6.09 1.13 11
Slide 17: Total Income
Total Income Rs. in Crores Quarter Ended Year Ended Growth (%) FY19 Q4FY19 Q4FY19 Q4FY19 Q3FY19 Q4FY18 FY19 FY18 over over over FY18 Q3FY19 Q4FY18 Interest on Loans 42,628 41,821 34,235 1,61,640 1,41,363 14.34 1.93 24.52 Interest on Resources 18,313 19,131 18,534 75,585 72,588 4.13 -4.28 -1.20 Other
Slide 18: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter Ended Year Ended Growth (%) FY19 Q4FY19 Q4FY19 Q4FY19 Q3FY19 Q4FY18 FY19 FY18 over over over FY18 Q3FY19 Q4FY18 Loan Processing Charges 1,502 926 1,360 3,710 3,277 13.21 62.13 10.46 Commission on Govt. Business 1,118 953 1,003 3,974 3,409 16.57 17.32 11.45 C
Slide 19: Total Expenses
Total Expenses Rs. in Crores Quarter Ended Year Ended Growth (%) FY19 Q4FY19 Q4FY19 Q4FY19 Q3FY19 Q4FY18 FY19 FY18 over over over FY18 Q3FY19 Q4FY18 Interest on Deposits 35,607 35,473 33,206 1,40,272 1,35,726 3.35 0.38 7.23 Interest on Borrowings 3,223 2,981 1,694 9,839 5,312 85.21 8.13 90.32 Other
Slide 20: Contained Overhead Expenses
Contained Overhead Expenses Rs. in Crores Quarter Ended Year Ended Growth (%) FY19 Q4FY19 Q4FY19 Q4FY19 Q3FY19 Q4FY18 FY19 FY18 over over over FY18 Q3FY19 Q4FY18 Rent, Taxes and Lighting 1,480 1,284 1,415 5,266 5,140 2.44 15.30 4.61 Depreciation 831 797 852 3,212 2,919 10.03 4.19 -2.48 Printing and
Slide 21: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter Ended Year Ended Growth (%) FY19 Q4FY19 Q4FY19 Q4FY19 Q3FY19 Q4FY18 FY19 FY18 over over over FY18 Q3FY19 Q4FY18 Operating Profit 16,933 12,625 15,883 55,436 59,511 -6.85 34.12 6.61 Loan Loss 17,336 13,971 24,080 54,529 70,680 -22.85 24.09 -28.01 Standard Ass
Slide 22: Costs, Yields and Margins (Cumulative)
Costs, Yields and Margins (Cumulative) Yield on Advances (%) Net Interest Margin (%) 8.57 Domestic NIM 8.48 8.49 2.95 2.92 2.95 8.43 2.88 2.67 8.28 Foreign NIM Cost of Deposits (%) 1.47 1.42 5.30 1.38 1.32 1.14 Whole Bank NIM 5.11 5.10 5.10 5.09 2.80 2.76 2.78 2.73 2.50 Mar-18 Jun-18 Sep-18 Dec-18 M
Slide 23: Business
Business 23
Slide 24: Strong Liability Franchise
Strong Liability Franchise MAR 19 Domestic Deposits MAR 18 CA, 7.18% CA, 7.23% SA, 38.45% SA, TD, TD, 38.56% 54.26% 54.32% CASA: 45.74% CASA: 45.68% Rs. in Crores Mar 19 Mar 18 YoY Growth Current Account 2,02,134 1,87,907 7.57 Saving Bank 10,85,151 9,99,387 8.58 CASA 12,87,285 11,87,294 8.42 Term De
Slide 25: Diversified Loan Portfolio
Diversified Loan Portfolio Domestic Advances MAR 18 MAR 19 Per, 32.54% Per, 31.30% Agri, 10.18% Agri, 10.78% Corporates, Corporates, SME, 14.50% 42.78% SME, 15.45% 42.47% Retail 57.22% Retail 57.53% YoY Growth Rs. in Crores Mar 19 Mar 18 (%) Retail Per 6,47,844 5,46,594 18.52 Agri 2,02,681 1,88,251
Slide 26: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Mar 19 Dec 18 Mar 18 Mar 19 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 3,12,688 15.71 3,06,255 16.30 2,55,612 14.64 22.33 of which: Power 1,99,583 10.03 1,95,133 10.38 1,70,181 9.74 17.28 Telecommunic
Slide 27: Drivers of Corporate Growth
Drivers of Corporate Growth YoY growth in advances Mar 19 over Mar 18 Growth driven by PSUs 96.9% Power Rs. 29,402 cr 21.8% -18.7% Central Govt. State Govt. Others Growth driven by GoI Undertaking 92.0% Roads & Rs. 20,791cr Ports 8.0% GoI undertaking Other Accounts NBFCs – Growth driven by Govt. Sec
Slide 28: Retail Banking - Leadership across all segments
Retail Banking - Leadership across all segments As on Mar 2019 Personal Retail Portfolio of Rs 6.5 lakh crore NPA ratio at 1.03% % of Dom. Adv. 32.54 Home Xpress Other P Auto Loans Loans Credit segment Loans O/S, 70,676 4,00,377 71,884 1,04,906 In Rs cr YoY 17.41 8.32 40.79 9.23 Growth, % Market sha
Slide 29: Treasury Operations
Treasury Operations Rs. In crores AFS Book MAR 19 MAR 18 Others, 7.0% Others, 4.9% Corporate Corporate Bonds, 12.4% Bonds, 18.2% SDLs, 12.4% G-Sec and T Bill, SDLs, 15.9% 49.7% CP, 10.6% G-Sec and T Bill, CP, 9.6% 59.7% Modified Duration: 2.62 Modified Duration: 2.83 Break up of Domestic Investments
Slide 30: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 30
Slide 31: Capital Adequacy
Capital Adequacy 12.60% 12.77% 12.72% Tier II 2.24% 2.23% 2.07% AT1 1.03% Tier I 0.68% 0.97% CET1 9.68% 10.36% 9.57% 10.54% 9.62% 10.65% Mar 18 Dec 18 Mar 19 • AT1 Bonds raised - Rs 7,371 cr in FY19 • Tier II Bonds raised - Rs 4,116 cr in FY19. • “Credit Risk Weighted Assets on Advances to Gross Adv
Slide 32: Asset Quality (1/3)
Asset Quality (1/3) Rs. in Crores Gross NPA Net NPA 2,23,427 1,10,855 2,12,840 99,236 94,810 2,05,864 80,944 65,895 1,87,765 1,72,750 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Mar 19 Dec 18 Sep 18 Jun 18 Mar 18 Gross NPA Ratio (%) 7.53 8.71 9.95 10.69 10.91 Net NPA Ratio
Slide 33: Asset Quality (2/3)
Asset Quality (2/3) Rs. in Crores Movement of NPAs: FY19 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY18 Q4FY18 Opening Level of Gross NPAs 2,23,427 1,87,765 2,05,864 2,12,840 2,23,427 1,77,866 1,99,141 Total Reductions 90,417 22,976 24,641 17,865 24,936 54,726 8,535 Of which : Recovery + Upgradation 31,512 5,712
Slide 34: Asset Quality - Whole Bank SMA 1 & SMA 2 (3/3)
Asset Quality- Whole Bank SMA 1 & SMA 2 (3/3) As on Mar 2019 Rs. in Crores Sector-wise Corporate Slippages SMA 1 & SMA 2 During Q4FY19 17,059 Decline in SMA1 driven by regularization of pvt. 3,618 sector power accounts 638 7,762 1,220 2,284 13,440 2,766 176 140 40 4,996 70 Roads & Ports Iron & Steel
Slide 35: Power Sector – Stress mostly recognized
Power Sector – Stress mostly recognized As on Mar 2019 Rs. in Crores Standard Power Power Portfolio Classification Public Private 1,99,583 1,74,252 1,05,608 68,644 25,331 Rating break-up of Std. Pvt 58.5% 1,74,252 A- and above BBB+, BBB, BBB- BB+ and below Unrated 9.2% 14.9% 17.4% Standard NPA • One
Slide 36: Telecom Sector – Stress mostly recognized
Telecom Sector – Stress mostly recognized As on Mar 2019 Rs. in Crores Standard Portfolio Classification Telecom Portfolio Classification Public Private 28,268 20,507 7,350 13,157 7,761 Standard Private 99.1% 20,507 A- and above Others 0.9% Standard NPA • ~99% of Std. Pvt Sect. is to two highly rate
Slide 37: NBFC Sector – Exposure to PSUs and High Quality Private Sector
NBFC Sector – Exposure to PSUs and High Quality Private Sector As on Mar 2019 Rs. in Crores Housing Finance Others NBFC Portfolio Classification 1,87,589 62,511 1,25,078 1,87,589 Backed by PSU 36,389 19% 35% Housing Backed by large Finance Pvt Sector 67,226 Institutions Pvt. Others 46% 20,941 63,033
Slide 38: Large Infrastructure Conglomerate
Large Infrastructure Conglomerate As on Mar 2019 Rs. in Crores Portfolio Classification Standard Portfolio Classification 3,487 2,362 97 224 PCR on NPA 1,125 position - 40.1% 451 937 2,362 654 Green category Amber category Red category International Not classified in any category Standard NPA • PCR
Slide 39: Status of NCLT accounts
Status of NCLT accounts As on Mar 2019 List 1 Fund Based o/s PCR on NCLT accounts Rs. 24,277 cr 99% 93% 87% List 2 Fund Based o/s Rs. 14,263 cr NCLT 1 NCLT 2 Total Total Rs. 38,540 cr PCR without AUCA 98% 75% 90% • Four accounts resolved from NCLT 1 & 2 List, with recovery > 67%; • Two accounts from
Slide 40: Financial Inclusion - Future Growth Driver
Financial Inclusion - Future Growth Driver 40
Slide 41: Financial Inclusion
Financial Inclusion Accounts & Amount in FI Channel Transactions in BC Channel (No. in Crores) (No. & Amt. in Crores) No. of Accounts 39.75 2,20,000 41.50 13.42 14.25 2,00,000 36.50 1,80,000 31.22 1,73,381 31.50 10.5 11.0 1,60,000 26.50 1,40,000 1,24,930 21.50 1,20,000 2.9 3.3 1,00,000 16.50 11.50 M
Slide 42: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 42
Slide 43: SBI Subsidiaries - Significant Value Creation
SBI Subsidiaries- Significant Value Creation FY19 FY18 FY19* FY18* PAT (in Rs. cr) 1,327 1,150 PAT (in Rs. cr) 428 336 ROE (in %) 18.81 19.05 ROE (in %) 31.12 31.65 FY19* FY18* FY19* FY18* PAT (in Rs. cr) 788 581 PAT (in Rs. cr) 334 265# ROE (in %) 30.20 33.40 ROE (in %) 20.10 22.10# *(As per IND AS
Slide 44: SBI Group Financials – FY19
SBI Group Financials – FY19 Rs. In crores Growth Year Ended Year Ended (%) Rs. In crores FY19 FY18 FY19 FY18 YoY Interest Earned 2,53,322 2,28,970 10.64 ROA (%) 0.06 -0.13 Non-Interest Income 77,365* 77,557* -0.25 Total Income 3,30,687 3,06,528 7.88 ROE (%) 1.23 -2.56 Interest Expended 1,55,867 1,46
Slide 45: Balance Sheet
Balance Sheet Rs. in Crores Liabilities SBI SOLO SBI GROUP YOY YOY Mar 19 Mar 18 Mar 19 Mar 18 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,20,021 2,18,236 0.82 2,33,603 2,29,429 1.82 Minority Interest 6,037 4,615 30.81 Deposits 29,11,386 27,06,343 7.58 29,40,541 27
Slide 46: Thank You
Thank You