Slide 1: Investor Update December 2016
INVESTOR UPDATE December - 2016
Slide 2: Forward Looking Statements
01 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 regarding the information disc
Slide 3: Agenda
02 Agenda Macroeconomic Financial Overview Awards & Accolades Snapshot Performance
Slide 4: Overview
03 Overview 58.7% 99.9% 99.9% 77.8% 99.9% 99.9% 60.0% Vision Mission Values “The driving force for a To be the catalyst in the financial Integrity financially empowered services industry by creating Sri Lanka” superior shareholder value and Accountability contributing to the national development thr
Slide 5: Brief History – Milestones
04 Brief History – Milestones 1995 2015 Setting up of NDB 2005 1999 2011 Establishment of NDB Stockbrokers Zephyr Partners Ltd. (NDBZ) 1979 & NDB The merger of NDB in 2014; jointly owned by Partners Zurich Venture Bank and National Establishment of NDB Capital Holdings PLC Formation of the Insurance
Slide 6: Macro Economy & Industry Overview
05 Macro Economy & Industry Overview Global Economy • World economy grew by 3.1% in 2016, amidst China, the world’s largest trading nation posting the lowest GDP growth in 26 years. • Weak global demand continued throughout 2016 and international trade slowed down as fears of US trade war loom Sri L
Slide 7: Awards & Accolades
06 Awards & Accolades CFA Sri Lanka Capital Market Awards 2016 • Best Investor relations - Gold Award • Best Stockbroker Research Team – Gold Award EUROMONEY Awards for Excellence 2016 • NDBIB - Best Investment Bank in Sri Lanka – 5th consecutive year • NDB Capital Limited – Best Investment Bank in
Slide 8: Financial Performance 2016
V4 NDB bank Financial Performance 2016
Slide 9: 2016 Performance Summary
08 2016 Performance Summary 2015 2016 YoY Operating Income 12,209 13,151 8% Profitability Operating Expenses 6,050 6,449 7% (LKR Mn) Profit after Tax 3,511 3,170 -10% Total Assets 309 335 8% Financial Total Loans 215 234 9% Position (LKR Bn) Total Deposits 185 204 10% Cost to Income Ratio 49.5 49.0
Slide 10: Income Statement
09 Income Statement LKR Mn 2015 2016 Variance over 2015 % Net Interest Income 7,522 8,487 965 12.8 Other Income 4,687 4,663 (24) (0.5) Operating Income 12,209 13,151 942 7.7 Impairment 712 1,367 655 92.0 Operating Expenses 6,050 6,449 399 6.6 Operating Profit 5,448 5,335 (113) (2.1) Tax 1,936 2,165
Slide 11: Net Interest Income
10 Net Interest Income 13% 9,000 8,000 2015 2016 7,000 6,000 LKR Mn 5,000 4,000 3% 18% 20% 11% 3,000 2,000 1,920 1,979 1,742 2,061 1,844 2,204 2,016 2,243 7,522 8,487 1,000 - 1Q 2Q 3Q 4Q YTD • Interest income improved on the back of re-pricing of short term assets • Funding cost increased at a much
Slide 12: Other Income
11 Other Income Figures in LKR Mn 2015 2016 YoY (%) Fee & Commission 2,016 2,253 11.8 Forex trading 1,088 982 (9.8) Net gain/(loss) from financial investments 262 211 (19.3) Other Operating Income 1,321 1,217 (7.9) Total Other Income 4,687 4,663 (0.5) Fee & Commission - Segments • All business segme
Slide 13: Operating Expenses
12 Operating Expenses Figures in LKR Mn 2015 2016 YoY (%) Personnel Expenses 3,204 3,435 7.2 Depreciation & amortization 370 435 17.3 Personnel Expenses 40% Depreciation & amortization Other Expenses 2,475 2,580 4.2 41% 53% 53% Other Expenses Total Operating Expenses 6,050 6,449 6.6 6% 7% Cost to In
Slide 14: Balance Sheet
13 Balance Sheet Assets Liabilities Other Liabilities Fixed / Other Assets Equity Borrowings Loans 9% Deposits 10% Investments Cash Dec-15 Dec-16 Dec-15 Dec-16 • A modest growth (8%) in Total assets • Loan growth was curtailed specifically in the retail space due to; • High interest rates • Contract
Slide 15: Loans & Advances
14 Loans & Advances Growth Trend 5 Yr CAGR : 26% YoY 9% 54 FCY LKR 55 LKR Bn 45 33 28 23 19 108 136 160 180 73 91 49 2010 2011 2012 2013 2014 2015 2016 Loans – Segmental Mix • Loan growth was hindered due to challenging market Retail & SME conditions 33% Project Finance 38% 39% 41% Corporate Other •
Slide 16: Asset Quality
15 Asset Quality Diversified Portfolio NPL Ratio – sector wise Agriculture Utilities 0.1% F&B, Hotel and Tourism Construction 0.5% 10% 10% Metal, Chem. & Eng. Rubber and Wood 1.1% 9% 10% Retail Metal, Chem and Eng 1.3% 4% Rubber and Wood F&B, Hotel and Tourism 1.5% 9% Services Retail 1.6% 7% Textile
Slide 17: Customer Deposits
16 Customer Deposits Growth Trend 5 Yr CAGR : 25% YoY 10% 45 LKR Bn 51 FCY LKR 37 30 28 6 55 5 100 115 134 159 76 79 2010 2011 2012 2013 2014 2015 2016 Deposit Mix (Dec-2016) • Deposit growth was limited as market liquidity dried out during second half of 2016 8% Time Other • CASA ratio deteriorated
Slide 18: Capital Adequacy
17 Capital Adequacy Capital Adequacy Trend Tier I Tier I + II 17.9% Minimum Requirement (Tier I+II) 14.7% 13.0% 12.6% 12.4% 11.3% 12.1% 11.1% 10.1% 10.0% 9.3% 8.5% 2011 2012 2013 2014 2015 2016 Basel III • New regulations will be in effect from 01st July 2017. Pillar I : Total Tier I Ratio of 7.25
Slide 19: Investor Ratios
18 Investor Ratios 2014 2015 2016 EPS (LKR) 20.72 21.26 19.19 ROE (%) 16.33 15.63 13.36 Book value per Share (LKR) 134.7 137.4 149.8 P/E (times) 12.1 9.1 8.1 Price to Book value (times) 1.9 1.4 1.0 Share Price Movement 250 Volume 8,000 Thousands Price - LKR Price 7,000 200 6,000 Volume 150 5,000 4,0
Slide 20: Q&A
YA NDB bank Q&A
Slide 21: Investor Relations
Investor Relations Telephone : +94 112 448 448 (ext. 3838) Email : investor.relations@ndbbank.com Web : www.ndbbank.com