Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q2 FY21 Earnings Presentation
31 slides from Pnb Housing Finance's earnings presentation, Oct 28, 2020
Slide 1: Exchange filing cover letter: Investor Presentation
@ pnb Housing 1 1 ) • I r , 1 r o E?httr Ki Bttttt October 28, 2020 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, "Exchange Plaza" Dalal Street, Sandra Kurla Complex, Mumbai - 400 001 Sandra (E), Mumbai- 400 051 Scrip Cod
Slide 2: PNB Housing Finance Limited Investor Presentation October 2020
PNB Housing Finance Limited Investor Presentation October 2020
Slide 3: Performance Highlights
Performance Highlights Total Provision/ 2.99% Disbursement* INR 3,138 Crore Total Assets Asset Under 2.59% on Loan Assets Management INR 81,221 Crore GNPA 2.20% on AUM Retail Loans 82% of the AUM Write-offs since 11 bps Inception** Book Value Per Deposits INR 16,600 Crore Share INR 506 Average Cost
Slide 4: India's Mortgage Market
India’s Mortgage Market Under-penetrated Indian mortgage market Growth in Indian mortgage market Mortgage to GDP Ratio (%) Loan Assets (INR trillion) 82% +20% CAGR 69% 36.9 63% +16% 31.0 50% CAGR 26.1 45% 36% 34% 21.2 19.1 31% 16.6 14.2 20% 18% 18% 12.3 10.4 13% 8.8 10% South Africa Sweden Malaysia
Slide 5: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 31% 32% 19% 26% 25% 25% 21% 20% 22% 21% 20% 20% 22% 15% 19% 21% 15% 12% 11% 3% 16% 3% 3% 65% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Other Loans Overall Portfolio Home Loans Home Loan LAP Construction F
Slide 6: Business Trends
Business Trends No. of Logins No. of Sanctions 20,165 14,226 17,063 11,733 5,071 3,288 Q4FY20 Q1FY21 Q2FY21 Q4FY20 Q1FY21 Q2FY21 (Pre COVID) (Pre COVID) Disbursement (INR Crore) 2,826 222 2,444 • Achieved over 80% of Pre Covid-19 levels in 148 all parameters 2,604 2,296 • Wide bouquet of products wi
Slide 7: Key Updates for Q2 / H1 FY20-21
Key Updates for Q2 / H1 FY20-21 Business Financials • Cost of Borrowing reduced sharply by • Disbursements in Q2 FY21 reached 86% 12 bps in Q2 FY21 QoQ of Q4 FY20 disbursements • Cost rationalisation measures resulted • Sell down and accelerated pre payment in operating expenses down by 19% in of IN
Slide 8: Financial Highlights – Q2 FY21
Financial Highlights – Q2 FY21 (INR Crore) Revenue Expense Pre-provision Operating Profit PAT 2,230 1,652 578 575 367 2,022 1,447 313 1,521 1,340 131 107 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Finance Cost Operating Expense Average Yield Average Cost of Borrowing Spread NIM 10.95% 1
Slide 9: Robust Risk Buying Processes
Robust Risk Buying Processes Specialization Customer profiling Other mitigating 3C Approach measures • Robust income • 3C approach: Counsel, • Well qualified team with assessment and • Workflow based Collect and Cure vast mortgage assessment on single established banking • Periodical portfolio scrub
Slide 10: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Classification of the Assets based on the ECL computation under Ind AS: Particulars (INR Crore) 30-Sep-20 30-Jun-20 30-Sep-19 Gross Stage 1 & 2 65,214 66,130 73,729 % portfolio in stage 1 & 2 97.4% 97.2% 99.2% ECL Provision Stage 1 & 2 1,241 1,092 586 Net Stage
Slide 11: Gross Non-Performing Assets
Gross Non-Performing Assets % of Loan Asset Non-Performing Assets 2.75% 2.76% 2.59% As on 30-Sep-2020 INR Crore 1.75% 1.75% 1.67% Gross NPA 1,737 1.46% 1.25% 0.84% ECL Provision 2,004 0.65% Regulatory provision 672 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 GNPA NNPA • Gross NPA on AUM is at
Slide 12: Business Operations
Business Operations Branches – Point of Sales & Services AUM – derisked Geographical Hubs – Fountain head for Decision Making concentration 29% 42% Geography Hub Branches North 8 31 29% South 7 31 North South West West 7 34 Disbursement Origination (H1 FY21) • 96 branches with pan-India presence in
Slide 13: Business Update
Business Update (INR Crore) Disbursement 36,079 33,195 9,630 9,112 18,626 1,515 24,083 26,449 17,111 3,138 168 2,970 FY18 FY19 FY20 H1FY21 Corporate Retail Asset AUM CAGR +16% 84,722 83,346 81,221 62,252 74,023 67,571 66,951 57,014 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20 AUM Loan Assets 11
Slide 14: Asset Under Management
Asset Under Management As % to AUM Product-wise Break-up AUM Mix Individual Housing Loan 18% 20% 21% 18% 18% 4% Retail Loan Against Property 57% 21% Retail Non- residental Premises Loan Corporate Loan 82% 82% Segment-wise Breakup 80% 79% Corporate 18% Retail 82% Salaried 44% 31-Mar-18 31-Mar-19 31-M
Slide 15: Retail Focused Lending Operations
Retail Focused Lending Operations Retail segment contribute 95% of the H1FY21 disbursement Quality of Loan Portfolio tested against three major systemic events i.e. Demonetisation, GST and tight Liquidity Loans given as Individual Housing Loans, Loan Against Property and Non Residential Premises Loa
Slide 16: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 1.9% 0.6% 1.6% 0.4% 1.4% 0.3% 1.3% 0.2% 3.0% 2.5% 1.9% 1.8% 6.2% 5.0% 4.7% 4.2% 4.5% 3.3% 3.2% 6.7% 12.9% 12.5% 13.9% 13.3% 13.5% 15.1% 16.6% 15.8% 18.6% 18.1% 19.4% 20.4% 35.6% 35.1
Slide 17: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes Average Ticket Size Weighted Average Loan to Value 52 51 69% 71% 71% 71% 47 46 47% 49% 49% 49% 31 31 29 28 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Completed Indiv
Slide 18: Corporate Book Summary
Corporate Book Summary Unique Corporate AUM No. of Unique Product Segment % of AUM houses ATS (INR Crore) Corporate houses INR Crore Construction Finance 10,352 12.7% 158 Corporate Term Loan 2,955 3.6% 103 130 Lease Rental Discounting 1,024 1.3% 88 Total Corporate Book 14,331 18% Geographical Distri
Slide 19: Corporate Book Remedial Actions on Key NPA accounts
Corporate Book Remedial Actions on Key NPA accounts Accounts Resolved Resolution Underway ✓ Pate Developers - INR 20 crore; an MOU has ✓ Vipul Ltd. - IINR 356 Cr; got symbolic been executed with leading developer of Pune possession of the project; JDA with a large who has paid 10% payment earnest mo
Slide 20: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 6.5% 8.5% 7.4% 10.9% 7.7% 2.5% 18.2% 24.4% 24.0% 19.5% 5.7% 6.7% 17.2% 7.1% 17.5% 19.6% 9.6% 20.6% 0.5% 2.6% 37.5% 22.5% 28.0% 17.2% 12.9% 18.8% 17.7% 8.8% 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20 NHB Refinance Loan from Banks ECBs Deposits CP NCDs Direct
Slide 21: Margin Analysis
Margin Analysis Average Yield Average Cost of Borrowings Spread 10.2% 10.4% 10.7% 10.8% 8.0% 8.2% 8.1% 2.7% 7.7% 2.5% 2.5% 2.4% FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 Net Interest Margin Gross Margin 3.2% 3.1% 3.5% 3.3% 2.9% 3.0% 3.2% 3.1% FY18 FY19 FY20 H1FY21 FY18 FY19 F
Slide 22: Operating Leverage and Returns
Operating Leverage and Returns Opex to ATA Ratio Cost to Income Ratio 0.7% 19.6% 0.6% 0.6% 17.2% 16.9% 0.5% 16.0% FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 Return on Asset Return on Equity 1.6% 1.6% 17.4% 1.5% 14.2% 13.8% 0.8% 8.1% FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 Ratios are calculated
Slide 23: Strong Balance Sheet
Strong Balance Sheet Provisions Stage 3 Coverage ratio 28.4% 20.9% 36.2% 43.9% (%) 3.0% 2,500 2.6% 3 2,004 2,000 1,766 2 1,500 0.8% 0.8% 1 1,000 594 500 432 0 0 -1 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20 Total Provision (as a % of assets) Total Provision Average Gearing (x) Capital to Risk Asset Rat
Slide 24: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q2 FY21 Q2 FY20 YoY Q1 FY21 QoQ H1 FY21 H1 FY20 YoY FY20 Interest Income 1,960 2,016 1,802 3,762 3,995 7,688 Add: Net gain on fair value changes 31 23 50 80 64 159 Add: Income on derecognized (assigned) loans 0 110 0 0 229 336 Less: Financ
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-20 31-Mar-20 Particulars (INR Crore) 30-Sep-20 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Debt Securities 14,339 17,837 (a) Cash and cash equivalents 7,472 8,514 (b) Borrowings (Other than Debt Securities) 33,
Slide 26: Shareholding
Shareholding Shareholding as on 30-Sep-20 6.5% 0.8% 1.6% Top Shareholders 2.3% 32.7% 24.0% General Atlantic Singapore Fund, SSG Capital, Franklin Templeton MF, Malabar Investments, Southeastern Asset Management, Vanguard, Reliance Capital MF, United India Insurance, Edelweiss Trusteeship MF, Blackro
Slide 27: ESG Snapshot
ESG Snapshot Environment CSR: “Saksham” • COVID-19: • Over 95% reduction in usage of paper for customer • Supported scientific R&D of efficient and reusable PPE material in communication partnership with IIT Delhi to create masks and surgical gowns • 99% EMI collections through digital mode • Contri
Slide 28: Key Takeaways
Key Takeaways Improving Cost to Strong Wide Spread Retail Focus on Retail Diversified Income Ratio Balance Sheet Distribution Network Borrowing Mix with and Unique balanced ALM Operating Model Wide spread retail Focus on Retail Diverse funding mix Operating leverage Conservative distribution network
Slide 29: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR Cost to Income (%) cost) / (Net Revenue-Acquisition Cost) NIM (%) Net Interest
Slide 30: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 31: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com