Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q3 FY19 Earnings Presentation
61 slides from Rbl Bank's earnings presentation, Jan 28, 2019
Slide 1: Cover letter to stock exchanges
b RBL BANK apno ka bank January 28, 2019 The Secretary, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange Limited, 51 1 Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai- 400001. Mumbai
Slide 2: Limited Review Report
B S R & Co. LLP Chartered Accountants 5th Floor, Lodha Excelus, Telephone +91 (22) 4345 5300 Apollo Mills Compound Fax +91 (22) 4345 5399 N. M. Joshi Marg, Mahalaxmi Mumbai - 400 011 India Limited Review Report on the Unaudited Standalone Quarterly Financial Results and Standalone year to date Finan
Slide 3: Limited Review Report (Continued)
B S R & Co. LLP Limited Review Report on the Unaudited Standalone Quarterly Financial Results and Standalone year to date Financial Results of RBL Bank Limited pursuant to Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Slide 4: Standalone Unaudited Financial Results Q3 and nine months
bRBLBANK a p nohob a n k RBL Bank Limited Registered Office: 'Mahaveer', 179/E Ward, Shri Sha hu Market Yard, Ko lhapur - 416005 Corporate Office: One lndiabulls Centre, Tower 2B, 6t h Floor, 841, Sena pati Bapat M arg, Lower Pa rel {W). M umba i - 400013 Tel.: +91 22 4302 0600, Fax: +91 22 4302 052
Slide 5: Analytical Ratios
bRBLBANK apno ha banh Nine Nine Quarter Quarter Quarter Year months months Sr. ended ended ended ended Particulars ended ended No. 31.12.2018 30.09.2018 31.12.2017 31.03.2018 31.12.2018 31.12.2017 Unaudited Unaudited Unaudited Unaudited Unaudited Audited 17 Analytical Ratios Percentage of shares hel
Slide 6: Notes to financial results
bRBLBANK apno J<a bank 6. The Disclosures for NPA referred to in point 17 (iv) above correspo nd to Non Performing Advances. 7. Th e Bank has followed the sa me sign ifica nt accounting policies in the preparation of these financial results as those fo llowed in the an nual fina ncial statement for
Slide 7: Segment Reporting
bRBLBANK apno ha bank SEGMENT REPORTING FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2018 {~ in Lacs) Nine Nine Quarter Quarter Quarter months Months Year ended Sr. ended ended ended Particulars ended ended 31.03.2018 No 31.12.2018 30.09.2018 31.12.2017 31.12.2018 31.12.2017 (Audited) (Unaudit
Slide 8: Segment reporting notes
bRBLBANK apno ha bank Business Segments have been identified and reported taking into account the target customer profile, the nature of products and services, t he differing risks and returns, the organ isation structure, the internal business reporting structure, guidelines prescribed by RB I and
Slide 9: Press Release: Financial Results for Q3 FY19
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 For immediate release Financial Results for Q3 FY19 RBL Bank reports advances growth of 35% in Q3 FY19, Operating profit increase of 50% and Net Profit increase of 36% at 225.2 crore
Slide 10: Performance highlights Q3 FY19
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Performance highlights – Quarter ended December 31, 2018 (Q3 FY19): Net Interest Income (NII) at 655.1 crore as against 467.3 crore in Q3 FY18, an increase of 40% Other Income at
Slide 11: Operating review
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 Operating review Asset growth and quality The Bank’s growth in advances portfolio continued to be robust at 35% on a year-on-year basis. The net advances as at December 31, 2018 were
Slide 12: About RBL Bank
RBL Bank Limited One Indiabulls Centre, Tower 2B 6th Floor, 841, Senapati Bapat Marg, Lower Parel West, Mumbai 400013 About RBL Bank RBL Bank is one of India’s fastest growing private sector banks with an expanding presence across the country. The Bank offers specialized services under six business
Slide 13: Investor Presentation
Investor Presentation 3rd Quarter/ Nine Months FY 19 January 28, 2019
Slide 14: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by RBL Bank Limited (the “Company”) for use in presentations by
Slide 15: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System IFI Institutional Financial Inclusion Agri Agribusiness Banking INR Indian Rupee API Application Programming Interface IPO Initial Public Offering ARC Asset Reconstruction Company LAP Loan Against Property ATM Automated Teller Machine MF Mut
Slide 16: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 12 Financial Performance 16 Distribution Network 31 Shareholding Pattern and Ratings 33 Microbanking Update 35 Credit Cards Update 39 Annexures 42 4
Slide 17: Key Performance Highlights
Key Performance Highlights 5
Slide 18: Q3 FY19 / 9M FY19 Financial Highlights
Q3 FY19 / 9M FY19 Financial Highlights Q3 FY19 / 9M FY19 continues to track well to RBL Vision 2020 goals Total Revenue growth in Q3 FY19 of 42% YoY( 9M FY19 growth of 40% YoY) NII growth of 40% YoY in Q3 FY19 ( 9M FY19 growth of 42% YoY) ; Other Income growth of 45% YoY in Q3 FY19 ( 9M FY19 growth
Slide 19: Q3 FY19 Highlights
Q3 FY19 Highlights YoY Growth QoQ Growth Net interest Income Rs. 655cr 40% 10% Core Fee Income Rs. 346cr 50% 6% Net Total Income Rs. 1,029cr 42% 11% Operating Profit Rs. 498cr 50% 11% Net Profit Rs. 225cr 36% 10% 7
Slide 20: Nine Months FY19 Highlights
Nine Months FY19 Highlights YoY Growth Net interest Income Rs. 1,801cr 42% Core Fee Income Rs. 960cr 56% Net Total Income Rs. 2,834cr 40% Operating Profit Rs. 1,380cr 46% Net Profit Rs. 620cr 36% 8
Slide 21: Nine Months FY19 Highlights Contd
Nine Months FY19 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 49,893cr 35% 9% Wholesale Rs. 28,476cr 25% 5% Advances Non-Wholesale Rs. 21,417cr 51% 14% Advances Deposits Rs. 52,187cr 35% 9% CASA Rs. 12,821cr 38% 9% 9
Slide 22: Key Indicators
Key Indicators Pre-IPO Advances Deposits Net Profit RoA BVPS FY 11 1,905 2,042 12 0.5% Rs. 50 FY 16 21,229 24,349 292 1.0% Rs. 91 (84% CAGR FY 11-16) (64% CAGR FY 11-16) (88% CAGR FY 11-16) Post Listing Performance) Advances YoY NIM Net Profit RoA Q3 FY17 26,773 46% 3.4% 129 1.17% Q4 FY17 29,449 39%
Slide 23: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 13.6% 12.1% 40.0% 12.5% 29.4% 75.4% 17.1% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Current Deposits 11
Slide 24: RBL Vision 2020
RBL Vision 2020 12
Slide 25: Performance Tracking to Vision 2020 Goals
Performance Tracking to Vision 2020 Goals RBL Vision 2020 Actual Q3 FY19 (Post IPO/Sept 2016) Advances 30-35% CAGR 35% 0.75 - 1% increase FY 16: 18.6%; FY 17: 22.0% CASA Ratio every year FY 18: 24.3%;Q3 FY19: 24.6% Other Income % ~ 1/3rd of Net Total Income 36% Cost/Income ratio of FY 16: 58.6%; FY
Slide 26: Key Initiatives of Vision 2020
Key Initiatives of Vision 2020 Leveraging technology to acquire, engage and service clients API banking, Abacus (Digital savings account); Fintech Partnerships (Moneytap, Technology Zeta) ; Credit card partnerships (Bajaj Finserv, BookMyShow, HyperCity) Enhancing distribution through a combination o
Slide 27: Our Fundamentals Have Resulted in Consistent Strong Performance
Our Fundamentals Have Resulted in Consistent Strong Performance Key Pillars Robust corporate governance framework and processes Broad Based Shareholder and Strong Capital Base Professional and experienced management team Eminent Board of Directors 15
Slide 28: Financial Performance
Financial Performance 16
Slide 29: Strong Profitability Momentum Continues
Strong Profitability Momentum Continues Parameter Q3 FY19 Q3 FY18 YoY Q2 FY19 QoQ 9M FY19 9M FY18 Net Interest Income 655 467 40% 593 10% 1,801 1,266 Other Income 374 258 45% 333 12% 1,033 756 Net Total Income 1,029 726 42% 926 11% 2,834 2,022 Operating Profit 498 333 50% 449 11% 1,380 948 Net Profi
Slide 30: Strong Growth in Business; Improvement in Asset Quality
Strong Growth in Business; Improvement in Asset Quality Parameter December 31,2018 December 31, 2017 YoY Advances 49.893 36,890 35% Deposits 52,187 38,623 35% Investments 14,815 13,071 13% Parameter December 31,2018 December 31,2017 September 30,2018 CASA 24.6% 24.0% 24.5% GNPA 1.38% 1.56% 1.40% NNP
Slide 31: Well Diversified Other Income Profile; Rising Core Fee Income
Well Diversified Other Income Profile; Rising Core Fee Income Other Income Core Fee Income Breakup 1,033 960 7% 756 8% 374 333 346 7% 18% 325 616 2% 40% 8% 258 9% 9% 93% 230 11% 40% 41% 27% 3% 9% 98% 82% 3% 13% 93% 31% 3% 3% 14% 71% 4% 14% 14% 12% 30% 23% 89% 29% 23% 23% 17% 12% 15% 12% 11% Q3 FY18
Slide 32: Cost Increase Driven by Business Expansion; Range Bound Credit Costs
Cost Increase Driven by Business Expansion; Range Bound Credit Costs Operating Expenses Net Credit Cost by Business (bps) 20* 26* 30* 72* 81* 1,454 17 43 1,075 14 531 54% 477 47% 392 25 56% 55% 6% 49% 7 17 6% 16 8% 6 15 16 8% 6 5 13 5 6% 4 6% 6% 7% 4 3 8% 8% 39% 32% 8 2 31% 2 37% 31% Q3 FY18 Q2 FY19
Slide 33: Changing Advances Mix and Improving Yields Helping NIMs
Changing Advances Mix and Improving Yields Helping NIMs Yield December 31,2018 December 31,2017 YoY Proportion 9M FY19 C&IB 19,935 15,606 28% 8.8% CB 8,541 7,106 20% (8.9%) 57% Wholesale 28,476 22,712 25% Retail Assets 14,644 9,397 56% LAP 5,659 3,791 49% Credit Cards 4,496 1,759 156% Retail Agri 1,
Slide 34: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - Tenor of Advances Secured/Unsecured 49,893 49,893 45,873 45,873 9% 8% 9% 8% 8% 36,890 24% 36,890 8% 23% 7% 20% 12% 7% 21% 20% 20% 67% 68% 68% 64% 64% 66% December 31, 2017 September 30, 2018 December 31, 2018 December 31, 2017 September 30, 2018 Dece
Slide 35: Stable Borrowers' Rating Profile
Stable Borrowers’ Rating Profile December 31, 2017 September 30, 2018 December 31, 2018 2.3% 2.3% 3.3% 3.3% 3.1% 3.1% 13.2% 10.2% 10.3% 16.0% 16.2% 20.6% 30.6% 33.3% 32.4% 38.6% 37.5% 37.5% 47.6% 47.5% 48.6% 39.1% 39.8% 36.6% 6.2% 3.0% 5.7% 3.0% 5.6% 3.4% Internal Borrower Internal Facility Ratings
Slide 36: Diversified Industry Mix
Diversified Industry Mix Top 10 industry* Outstanding Industry FB-NFB Split % of Exposure Loan Exposure Retail / Distribution 3,683 82:18 5.6% Engineering 3,404 42:58 5.1% Construction 3,375 44:56 5.1% NBFC (ex. HFC & DFI) 2,521 97:3 3.8% Pharma 2,500 84:16 3.8% Real Estate 2,396 93:7 3.6% Power 2,2
Slide 37: Asset Quality Continues to Remain Strong
Asset Quality Continues to Remain Strong Gross NPA by business segment Quarter Ended Business segment December September December December September December 31,2018 30,2018 31,2017 31,2018 30,2018 31,2017 C&IB 92.1 92.1 142.2 Movement of Gross NPAs Opening Balance 645 596 487 % of total advances 0.
Slide 38: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars December 31, 2018 December 31, 2017 September 30, 2018 Tier 1 Capital Funds* 7,060 6,407 6,969 Tier 2 Capital Funds 721 814 712 Total Capital Funds 7,781 7,222 7,681 Total RWA 56,406 45,324 55,867 Tier 1 CRAR* 12.5% 14.1% 12.5% Total
Slide 39: Sustained Growth in Deposits, Led by CASA
Sustained Growth in Deposits, Led by CASA 38% yoy growth in CASA, while total deposits grew by 35% CASA : 24.0% CASA : 24.5% CASA : 24.6% CASA : 9,280 CASA : 11,712 CASA : 12,821 52,187 47,790 12.1% 11.9% 38,623 12.5% 12.6% 10.5% 13.5% 75.5% 75.4% 76.0% December 31, 2017 September 30, 2018 December
Slide 40: Diversified Borrowing Streams
Diversified Borrowing Streams Borrowing Breakup 10,265 9,610 7% 8% 7% 8,297 1% 9% 17% 53% 55% 1% 41% 38% 31% 32% December 31,2017 September 30,2018 December 31,2018 Refinance FCY Inter-bank CBLO/LAF Tier II 28
Slide 41: Steady Investment Book
Steady Investment Book Investment Breakup 14,815 13,749 13,071 6% 4% 8% 2% 7% 9% 10% 12% 15% 76% 76% 76% December 31, 2017 September 30, 2018 December 31, 2018 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q3 FY19 Q3 FY18 Q2 FY19 9M FY19 9M FY18 Total Investments 7.5% 7.2% 7.
Slide 42: NIM Improvement Helped by Lower Cost of Funds and Stable Yields
NIM Improvement Helped by Lower Cost of Funds and Stable Yields Pre-IPO FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Yield on Advances 10.9% 12.6% 13.1% 12.9% 12.3% 11.7% Cost of Funds 5.8% 8.3% 9.6% 9.4% 8.4% 7.6% Cost of Deposits 5.8% 8.1% 8.9% 8.8% 8.3% 7.7% Post Listing Performance Q3 FY17 Q4 FY17 Q1 FY1
Slide 43: Distribution Network
Distribution Network 31
Slide 44: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 2 4.50 4.91 5.33 5.82 GIFT 21 3.98 1 city 8 New Delhi branch December March 31, June 30, September December 7 31, 2017 2018 2018 30, 2018 31, 2018 10 5 Channel Breakup Channels Number of transaction points 24 15 Dec
Slide 45: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings 33
Slide 46: Diversified Shareholding & Strong/Improving Rating Profile
Diversified Shareholding & Strong/Improving Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.6 0.6 Basel III compliant Tier II ICRA AA- hyb (Stable) 7.3 bonds CARE AA- (Stable) 29.6 15.9 Certificate of Deposits ICRA A1+ 21.2 23.7 Medium term fixed deposit ICRA MAA (Stable) pro
Slide 47: Microbanking Update
Microbanking Update 35
Slide 48: Microbanking Distribution Network
Microbanking Distribution Network State Name % of Portfolio Bihar 15% Tamil Nadu 15% Maharashtra 12% (25) 6 Karnataka 10% (19) Odisha 8% 41 West Bengal 6% 48 (27) (28) Rajasthan 6% (69) Madhya Pradesh 5% 74 29 71 15 Gujarat 5% (40) (27) (53) 20 Punjab 4% 73 Jharkhand 3% 102 Haryana 2% (21) Micro Ban
Slide 49: Microbanking - Portfolio Growth
Microbanking - Portfolio Growth Portfolio Mix December 31 ,2018 In Rs. crores Pre-Jan 2017 0.2% Post Jan 2017 99.8% 4,220 3,917 3,560 Loan Tenor 0.6% 2,161 1,483 839 42.5% 324 56.9% March March March March March September December 31,2014 31,2015 31,2016 31,2017 31,2018 30,2018 31,2018 2.2 Mn Active
Slide 50: Micro-banking - Through the door Mix
Micro-banking - Through the door Mix Bureau Rejection Rate Borrowing Cycle with RBL Bank 22% 22% 20% 21% 21% 27% 30% 27% 28% 33% 78% 78% 80% 79% 79% Q3FY- 18 Q4 FY-18 Q1 FY-19 Q2 FY-19 Q3 FY-19 Q3 FY-18 Q4 FY-18 Q1 FY-19 Q2 FY-19 Q3 Fy-19 First Cycle Repeat Cycle Hit Rate Growth in volumes through n
Slide 51: Credit Card Update
Credit Card Update 39
Slide 52: Credit Card Base Increasing Steadily
Credit Card Base Increasing Steadily Cards in Force ( In Mn) Card Additions ( In Mn) 0.29 1.43 0.26 1.19 0.20 0.21 0.97 0.18 0.80 0.12 0.62 0.46 Sep Dec Mar Jun Sep Dec Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 30,2017 31,2017 31,2018 30,2018 30,2018 31,2018 Advances Breakup (In Rs. crore) Customer Metric
Slide 53: Credit Cards - Sticky Customer Spends
Credit Cards - Sticky Customer Spends Total Spends (In Rs crore) Consumer Loans 21 20 19 19 19 17 1,024 790 544 512 4,208 4,403 412 382 3,234 325 285 2,378 206 214 1,889 170 1,460 120 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 No.of Loans ('000) Loans Booked (Rs. Crore)
Slide 54: Annexures
Annexures 42
Slide 55: Board of Directors
Board of Directors Mr. Vishwavir Ahuja Mr. Prakash Chandra Managing Director and CEO Non – Executive Part Time Chairman Previously, Managing Director & Country Executive Officer of Bank Previously, Chairman of Central Board of Direct Taxes of America for Indian Sub-continent (CBDT) Mr. Sivanandhan D
Slide 56: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. Vishwavir Ahuja Mr. Rajeev Ahuja Managing Director and CEO Executive Director Managing Director & Country Executive Officer of Bank of America Previously, associated with Citibank India, Bank of America, India for Indian Sub-continent from 2007-2009 a
Slide 57: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Ramnath Krishnan Mr. Pankaj Sharma Chief Risk Officer Chief Operations Officer Previously, Country Chief Risk Officer , HSBC Malaysia Berhad Previously, Head Retail Operations, Axis Bank (31) (20) Mr. Ujual George Mr. Bhavtaran Singh (Sunny)
Slide 58: Profit & Loss Statement
Profit & Loss Statement Particulars Q3 FY19 Q3 FY18 Q2 FY19 9M FY19 9M FY18 Income Interest Earned 1,639 1,151 1,463 4,467 3,285 Interest Expended 984 683 870 2,666 2,019 Net Interest Income 655 467 593 1,801 1,266 Other Income 374 258 333 1,033 756 Total Income 1,029 726 926 2,834 2,022 Expenditure
Slide 59: Balance Sheet Statement
Balance Sheet Statement Particulars December 31, September 30, December 31, 2018 2018 2017 Liabilities Capital 428 431 418 Reserves and Surplus 6,848 6,609 6,059 Deposits 52,187 47,790 38,623 Borrowings 10,266 9,610 8,297 Other Liabilities 2,474 2,716 1,972 Total 72,202 67,156 55,369 Assets Cash & B
Slide 60: Our Recent History
Our Recent History Particulars FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 9M FY19 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,072 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 52,187 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 40,268 49,893 Invest
Slide 61: Thank you
Thank you Contact us at: ir@rblbank.com +91-22-4302 0600 Please email us your contact details at the above id to get added to our investor relations mailing list Please visit our Investor Relations website – https://ir.rblbank.com/ 49