Canara Bank · NSE:CANBK
Canara Bank — Q1 FY2011 Earnings Presentation
41 slides from Canara Bank's earnings presentation, June 2010
Slide 1: June 2010
June 2010 www.canarabank.com Save Trees, Save Water and Save Environment Page 1
Slide 2: Major Highlights
Major Highlights Riding on High Growth Trajectory- Consistent Growth in Business and Profit Return on Assets at 1.55% NIM crosses the 3% mark …at 3.01% Both Gross NPA and Net NPA in absolute and ratio terms have come down compared to March 2010, net NPA at 1% www.canarabank.com Save Trees, Sav
Slide 3: Major Highlights
Major Highlights Recovery and Upgradation together overshoot Slippages CBS coverage increased to 2681 branches as on 16th July 2010, accounting for 96% of total business All branches will be under CBS before 31st July 2010 www.canarabank.com Save Trees, Save Water and Save Environment Page 3
Slide 4: Total Business
TOTAL BUSINESS 4,12,649 400,000 CAGR at 24.4% 350,000 3,34,325 300,000 2,66,122 Rs. Crore 250,000 200,000 150,000 100,000 Jun-08 Jun-09 Jun-10 Total Business added Rs.78324 Crore Y.o.Y 55% Growth in 2 Years www.canarabank.com Save Trees, Save Water and Save Environment Page 4
Slide 5: Total Deposits
TOTAL DEPOSITS CAGR at 23.7% 2,38,855 250,000 225,000 1,93,657 200,000 175,000 1,56,295 Rs. Crore 150,000 125,000 100,000 75,000 50,000 Jun-08 Jun-09 Jun-10 53% Growth in 2 Years www.canarabank.com Save Trees, Save Water and Save Environment Page 5
Slide 6: Net Advances
NET ADVANCES 1,73,794 175,000 CAGR at 25.5% 150,000 1,40,668 125,000 1,09,827 Rs. Crore 100,000 75,000 50,000 25,000 Jun-08 Jun-09 Jun-10 58% Growth in 2 Years www.canarabank.com Save Trees, Save Water and Save Environment Page 6
Slide 7: Consistent Profit Growth
CONSISTENT PROFIT GROWTH NET PROFT 1,100 1013 1,000 CAGR at 187% 900 800 700 555 Rs. Crore 600 500 400 300 200 123 100 0 Jun-08 Jun-09 Jun-10 Over Rs.1000 Cr Net Profit in a Single Quarter www.canarabank.com Save Trees, Save Water and Save Environment Page 7
Slide 8: Value for Stakeholders
VALUE FOR STAKEHOLDERS Dividend ... Progressive Return for the Shareholders 90% 80% 100% 70% 80% 80% 60% 70% 66% 50% 55% 40% 30% 20% 10% 0% DIVIDEND FY05 FY06 FY07 FY08 FY09 FY10 www.canarabank.com Save Trees, Save Water and Save Environment Page 8
Slide 9: Performance Highlights
PERFORMANCE HIGHLIGHTS June 2008 – June 2010 (Amt. in Rs. Crore) Jun’2010 Jun’2009 Jun’2008 % Gr Jun’10 over Jun’08 Net Profit 1013 555 123 723.6% Operating Profit 1483 921 704 110.7% Net Interest Income 1728 1291 1019 69.6% Total Business 412649 334325 266122 55.1% Total Deposits 238855 193657 1562
Slide 10: Key Profitability Ratios: Last 3 Years
KEY PROFITABILITY RATIO: LAST 3 YEARS Jun’ 2010 Jun’ 2009 Jun’ 2008 NIM (%) 3.01 2.70 2.57 RoAA (%) 1.55 1.02 0.27 Capital Adequacy Ratio (%) 12.44 13.59 12.66 Cost of Deposits (%) 5.69 6.48 6.36 Yield on Advances (%) 9.35 10.05 10.06 www.canarabank.com Save Trees, Save Water and Save Environment Pa
Slide 11: Robust Profit Growth
ROBUST PROFIT GROWTH www.canarabank.com Save Trees, Save Water and Save Environment Page 11
Slide 12: Income Growth: Q1 FY11
INCOME GROWTH: Q1 FY 11 Amt. in Rs. Crore Jun’10 Jun’09 Growth Total Income 5895 5032 17.1% Interest Income 5161 4558 13.2% Interest from Loans/Adv 3794 3425 10.8% Non Interest Income 734 474 55.0% Robust Growth of 55% in Non-Interest Income www.canarabank.com Save Trees, Save Water and Save Environ
Slide 13: Expenditure Growth: Q1 FY11
EXPENDITURE GROWTH: Q1 FY 11 Amt. in Rs. Crore Jun’10 Jun’09 Growth Total Expenditure 4412 4111 7.3% Interest Expenditure 3433 3267 5.1% Operating Expenses 978 844 15.9% Cost-Income Ratio (%) 39.75 47.80 -805bps Favourable Cost-Income Ratio Below Benchmark Level www.canarabank.com Save Trees, Save W
Slide 14: Net Interest Income: Q1 FY11
NET INTEREST INCOME : Q1 FY 11 Amt. in Rs. Crore Jun’10 Jun’09 Net Interest Income 1728 1291 Y-o-Y Growth 33.8% 26.7% Net Interest Margin (%) 3.01 2.70 ROBUST GROWTH IN NET INTEREST INCOME SIGNIFICANT JUMP IN NIM BY 31 bps www.canarabank.com Save Trees, Save Water and Save Environment Page 14
Slide 15: Decline in Cost-Income Ratio
DECLINE IN COST-INCOME RATIO (%) 59 56 53 49.30 47.80 50 47 44 39.75 41 38 35 32 29 26 23 20 'Jun-08 'Jun-09 'Jun-10 www.canarabank.com Save Trees, Save Water and Save Environment Page 15
Slide 16: Profit Growth: Q1 FY11
PROFIT GROWTH : Q1 FY11 Amt. in Rs. Crore Jun’10 Jun’09 Operating Profit 1483 921 Growth 61.0% 31.0% Provisions 470 366 Net Profit 1013 555 Growth 82.5% RoAA (%) 1.55% 1.02 EPS (Rs.) (Not Annualized) 24.72 13.54 Buoyant Bottomline and Healthy Profitability Ratios www.canarabank.com Save Trees, Save
Slide 17: Major Components of Income
MAJOR COMPONENTS OF INCOME Interest Income continues to drive growth in income …over 2/3rd of earnings from interest on advances/loans Robust growth under Non-Interest Income Q1 FY11 (Jun’10) Q1 FY 10 (Jun’09) Others 9.4% Others 10.1% Investment Investment Income Income 21.8% 26.2% Int on Adv In
Slide 18: Break-up of Other Income
BREAK-UP OF OTHER INCOME Amt. in Rs. Crore Jun’10 Jun’09 Total Other Income 733.97 473.57 Commission & Exchange 163.78 172.09 Profit from Exchange Trans 74.35 51.23 Trading Profit 223.95 28.16 Dividend Income 35.38 13.81 Recovery in w/off A/cs 88.00 79.08 Other Misc. Income 148.51 129.20 www.canarab
Slide 19: Measures to Augment Non Interest Income
MEASURES TO AUGMENT NON INTEREST INCOME Increased thrust on Fee Income Broadbasing of Fee Income sources Cross Selling of Insurance Mutual Fund Products On-line Trading Services Other Traditional Services- LCs, Guarantees, DDs and others. www.canarabank.com Save Trees, Save Water and Save Env
Slide 20: Earnings Profile
EARNINGS PROFILE 305.83 330.83 80 73.69 300 70 258.25 244.87 60 50.55 250 50 38.17 202.33 40 24.72 200 30 13.54 20 150 10 0 100 EPS (INR) BV (Rs) M ar-08 M ar-09 M ar-10 . Jun-09 Jun-10 Mar-08 Mar-09 Mar-10 . Jun-09 Jun-10 The Bank continued to sustain high levels of earnings. Book Value and Earni
Slide 21: Share Holding Pattern
SHARE HOLDING PATTERN As on June 30, 2010 4.6% 2.8% 1.0% 7.4% 11.1% 73.2% Govt of India FIIs Insurance Companies Resident Individuals MFs Others www.canarabank.com Save Trees, Save Water and Save Environment Page 21
Slide 22: Business Profile
BUSINESS PROFILE Amt. in Rs. Crore Jun’10 Jun’09 Y-o-Y Gr Aggregate Business 412649 334325 23.4% Total Deposits 238855 193657 23.3% Net Advances 173794 140668 23.6% CD Ratio (%) 72.76 72.64 Business Growth of Rs.78324 Crore Domestic Business Constituted 96.6% www.canarabank.com Save Trees, Save Wate
Slide 23: CASA Deposits Growth
CASA DEPOSITS GROWTH Amt. in Rs. Crore Jun’10 Jun’09 Y-o-Y Gr CASA Deposits 69350 53854 28.8 Savings Deposits 53565 41756 28.3 CASA per branch 22.66 19.66 Deposits Clientele (Mn) 33.03 31.07 1.96 Mn 29% GROWTH IN CASA Highest CASA per Branch among Peers www.canarabank.com Save Trees, Save Water and
Slide 24: Credit Focus
CREDIT FOCUS Amt. in Rs. Crore Jun’10 Jun’09 Y-o-Y Gr Priority Sector Credit 57621 50242 14.7% Retail Lending 23703 19819 19.6% Housing 10101 7975 26.7% Infrastructure Advances 40173 21027 91.1% Adv Clientele (Mn) 4.46 4.33 Well Diversified Credit Portfolio Focus on Productive Sectors www.canarabank
Slide 25: Priority Sector
PRIORITY SECTOR Amt. in Rs. Crore Jun’10 Jun’09 Y-o-Y Gr Priority Credit O/s 57621 50242 14.7% Agriculture Adv O/s 23128 20677 11.9% MSME Advances O/s 31597 23675 33.5% www.canarabank.com Save Trees, Save Water and Save Environment Page 25
Slide 26: Pioneering Education Loan
PIONEERING EDUCATION LOAN Education Loans up by 24.7% y.o.y Outstanding Education Loans as at Jun ‘10 Rs.2,976 crore The portfolio covers over 1.71 lakhs students On-line Education Loan application in web portal Number ONE amongst Nationalised Banks In Outstanding Education Loans www.canarab
Slide 27: Canara Nayee Disha: Driving 100% Financial Inclusion
‘CANARA NAYEE DISHA’ … DRIVING 100% FINANCIAL INCLUSION Mobilised over 75,000 No-frill Accounts during Q1 Cumulative No-frill Accounts 22.54 lakhs Achieved Total Financial Inclusion in all the 26 Lead Districts Sanctioned over 2 lakhs General Credit Cards since inception 9 Exclusive Micro-Fi
Slide 28: Profitability Ratios
PROFITABILITY RATIOS (In %) Jun’10 Jun’09 Cost of Deposits 5.69 6.48 Yield on Advances 9.35 10.05 79 bps Decline in Cost of Deposits www.canarabank.com Save Trees, Save Water and Save Environment Page 28
Slide 29: Productivity Ratios
PRODUCTIVITY RATIOS Jun’10 Jun09 Business per Employee (Rs. Crore) 10.17 8.10 Business per Branch (Rs. Crore) 134.81 122.06 Gross Profit per Employee (Rs. Lakh) 14.63 8.92 Net Profit per Employee (Rs. Lakh) 9.99 5.38 JUMP IN BUSINESS PER EMPLOYEE Highest Per Branch Business among Peers www.canaraban
Slide 30: Investment Portfolio
INVESTMENT PORTFOLIO Amt. in Rs. Crore Jun’10 Jun’09 Net Investments (Domestic) 71354 59255 57309 38121 Held to Maturity (80.3%) (64.3%) 13642 20784 Available for Sale (19.1%) (35.1%) 403 351 Held for Trading (0.6%) (0.6%) Figures in the brackets are percentage shares in total www.canarabank.com Sav
Slide 31: Asset Quality
ASSET QUALITY Jun’10 Jun’ 09 Gross NPA (Rs. Crore) 2549 2463 Gross NPA Ratio (%) 1.46 1.74 Net NPA (Rs. Crore) 1729 1812 Net NPA Ratio (%) 1.00 1.29 Provision Coverage Ratio at 78.01% www.canarabank.com Save Trees, Save Water and Save Environment Page 31
Slide 32: Comfortable Capital Position
COMFORTABLE CAPITAL POSITION CRAR of 12.44% at Jun’10 …well above the regulatory minimum of 9% Medium Term Objective .. CRAR of above 12% …still undiluted 73.17% GoI Holding in the Bank Adequate Headroom for Capital Augmentation www.canarabank.com Save Trees, Save Water and Save Environment Page
Slide 33: Capital Adequacy – Basel II
CAPITAL ADEQUACY – Basel II 15% Tier I capit al Tier 2 capit al 13% 6.33% 6.24% 6.09% 4.89% 9.0% 11% Minimum Total 9% 4.34% CRAR 7% 6.0% 8.10% Minimum 5% 7.17% 7.01% 8.01% 8.54% Tier I CRAR 3% 1% -1% M ar.0 7 M ar.0 8 M ar.0 9 M ar.1 0 Jun.1 0 Total 13.50% 13.25%* 14.10* 13.43* 12.44* CRAR % * Mar’0
Slide 34: Expanding the Reach
EXPANDING THE REACH Jun’10 Jun’09 Y-o-Y Incr Branch Network 3061 2739 322 ATM Strength 2017 2019 Card Base (In Lakh) 55.50 48.10 7.40 Strategic Initiatives Focus on Expanding Domestic Branch Network Addition of 15 branches during FY11 Opened a branch at Leicester and Representative Office at Sh
Slide 35: 4th Overseas Branch at Leicester, UK
4th OVERSEAS BRANCH AT LEICESTER, UK C&MD Shri A.C Mahajan inaugurated the Branch on 12.04.2010 in presence of Lord Mayor of Leicester. www.canarabank.com Save Trees, Save Water and Save Environment Page 35
Slide 36: Representative Office at Sharjah, UAE
REPRESENTATIVE OFFICE AT SHARJAH, UAE C&MD Shri A.C Mahajan inaugurated the Rep Office at Sharjah on 20.06.2010 in the presence of His Excellency www.canarabank.com Shri Save Trees, Save WaterM andKSave Lokesh, EnvironmentIndian Ambassador to Page 36
Slide 37: Expanded Clientele Base
EXPANDED CLIENTELE BASE Jun’10 Jun’09 Y-o-Y Incr Clientele Base in Mn 37.49 35.40 2.09 - No of Deposit a/cs (Mn) 33.03 31.07 1.96 - No of Borrowal a/cs (Mn) 4.46 4.33 Over 37 million strong and growing clientele base 20 lakh Deposit Accounts Added www.canarabank.com Save Trees, Save Water and Save E
Slide 38: Infotech Progress
INFOTECH PROGRESS 16July’10 Jun’09 Core Banking Branches 2681 1058 Anywhere Banking Branches 2091 2078 Internet & Mobile Banking Branches 2681 1362 NEFT and RTGS All Branches 96% Business under Core Banking Solution 100% CBS before 31st July 2010 www.canarabank.com Save Trees, Save Water and Save En
Slide 39: No.1 Bank in Karnataka
NO.1 BANK IN KARNATAKA www.canarabank.com Save Trees, Save Water and Save Environment Page 39
Slide 40: Future Plans
FUTURE PLANS Aiming at a Total Business of Rs.5,00,000 crore by Mar’11 … Rs.2,85,000 crore under Deposits … Rs.2,15,000 crore under Advances Over 200 new branches to be opened during the year Continued focus on Core Business Growth and Strong Fundamentals Cover all branches under CBS before 3
Slide 41: Save Trees, Save Water and Save Environment
www.canarabank.com Save Trees, Save Water and Save Environment Page 41