National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — H1 2020 Earnings Presentation
20 slides from National Development Bank's earnings presentation, Aug 14, 2020
Slide 1: Investor Webinar Earnings Call H1 2020
INVESTOR WEBINAR Earnings Call Q3H1 2019 2020 National Development Bank PLC National Development [CSE Stock Code - NDB.N0000]Bank PLC NDB.N0000 15 November 2019 10:00 HRS Colombo 14 SriAugust Lanka 2020 10.00 am Colombo – Sri Lanka National Long Term Rating: A+(lka) Stable Outlook by Fitch Ratings L
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/ Group Chief Executive Officer Panelists Buwaneka Perera – Senior Vice President - Corporate Banking Sanjaya Perera – Senior Vice President – Personal Banking & Branch Network Deepal Akuratiyagama – Chief Operating Officer Suvendrini
Slide 4: Agenda
Agenda • Part I –Impact of COVID-19 and NDB’s Response • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 4
Slide 5: Agenda
Agenda • Part I –Impact of COVID-19 and NDB’s Response • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 5
Slide 6: Impact of COVID-19 & NDB's Response
Impact of COVID-19 & NDB’s Response NDB’s response during the island wide lockdown Digital financial services functional in full force to ensure access to safe banking 86% of the transactions carried out in April 2020 were via digital modes 3 mobile ATM trucks deployed across the country Bra
Slide 7: Agenda
Agenda • Part I –Impact of COVID-19 and NDB’s Response • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 7
Slide 8: Business Overview
Business Overview • 40 years of banking excellence with competence to thrive through crises • Best Domestic Bank in Sri Lanka for the second consecutive year, as judged by AsiaMoney Awards 2020 • Best Consumer Digital Bank of the Year 2019, as judged by Global Finance USA • 113 branches. Over 150 AT
Slide 9: Agenda
Agenda • Part I –Impact of COVID-19 and NDB’s Response • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 9
Slide 10: Performance Highlights
Performance Highlights H1 2020 H1 2019 % Operating Income 12.9 11.5 11 Profitability Operating Expenses 4.7 4.7 0 (LKR Bn) Profit before All Tax 5.0 5.0 0 Profit after Tax 3.0 2.2 34 H1 2020 FY 2019 % Total Assets 562 530 6 Financial Position Total Gross Loans 429 409 5 (LKR Bn) Total Deposits 428 4
Slide 11: Income
Income Fund based income LKR Mn H1 2020 H1 2019 Variance % Interest Income 27,255 25,963 1,292 5 Highlight: Interest Expense 18,432 17,310 1,122 6 Marginal growth in NII Net interest income 8,824 8,653 171 2 Movement in Market Rates and Bank NIM • Relatively larger increase in interest expenses due
Slide 12: Income (Contd.) Non Fund based income
Income (Contd.) Non Fund based income LKR Mn H1 2020 H1 2019 Variance % Net fee and commission income 1,739 1,763 (24) (1) Other non-fund based income 2,297 1,133 1,164 103 Total non-fund based income 4,036 2,896 1,140 39 Highlight: Marginal reduction in net fee and commission income due to reduced
Slide 13: Impairment
Impairment Impairment charges LKR Mn H1 2020 H1 2019 Variance % Highlight: LKR 626 Mn Individual Impairment 1,745 1,972 (227) (12) accounted for, in other Collective Impairment 952 (210) 1,161 554 impairment charges Other provisions - charge 479 115 364 316 for Day 01 impact on the moratoriums Total
Slide 14: Operating Expenses
Operating Expenses Operating Expenses Cost composition % LKR Mn H1 2020 H1 2019 % H1 2020 H1 2019 Personnel expenses 2,496 2,403 4 54 51 Depreciation & amortization 276 260 6 6 6 Other expenses 1,883 2,001 (6) 40 43 Total operating expenses 4,655 4,663 (0) 100 100 • Slight reduction in total operati
Slide 15: Taxation & Profitability
Taxation & Profitability Taxation LKR Mn H1 2020 H1 2019 % VAT on Financial services 965 912 6 NBT on Financial services - 122 (100) Highlight: Effective tax rate of 41% [Down Debt repayment Levy - 498 (100) from 56% in H1 2019] Income tax 1,093 1,256 (13) Total taxes 2,059 2,788 (26) • Considerable
Slide 16: Balance Sheet Performance
Balance Sheet Performance LKR Bn H1 2020 FY 2019 H1 2019 YTD YTD % YoY YOY % Quantum growth Quantum growth growth growth Total assets 562 530 490 32 6 72 15 Gross loans 429 409 372 20 5 57 15 Total deposits 428 405 355 23 6 73 21 Borrowings 81 72 87 9 12 (6) (7) Total equity 43 39 36 4 9 7 18 • Dive
Slide 17: Capital & Liquidity
Capital & Liquidity BASEL III – H1 2020 Bank Group Common Equity Tier 1 Capital Ratio % [Minimum Requirement -6.5%] 9.30 10.09 Tier 1 Capital Ratio % [Minimum Requirement – 8.0%] 9.30 10.09 Total Capital Ratio % [Minimum Requirement – 12.0%] 12.94 13.57 Liquidity Coverage Ratio [%] – Rupee [Minimum
Slide 18: Investor Ratios
Investor Ratios Investor Ratios Bank Group H1 2020 FY 2019 H1 2020 FY 2019 Closing price per share [LKR] 76.90 100.00 - - EPS [LKR] [Annualized] 21.56 23.05 18.19 21.53 ROE [%] 12.18 13.73 9.49 11.59 ROA [%] [Pre-tax] 1.56 2.01 1.46 1.97 Book value per Share [LKR] 184.25 178.02 197.13 195.60 P/E [ti
Slide 19: Agenda
Agenda • Part I –Impact of COVID-19 and NDB’s Response • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 19
Slide 20: 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 four consecutive years in 2019, 2018, 2017 & 2016. INVESTOR WEBINAR Investor/ Analysts Support Q3 2019 Clearly defined Quarterly Re
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