National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q1 2020 Earnings Presentation
21 slides from National Development Bank's earnings presentation, May 21, 2020
Slide 1: Investor Webinar Earnings Call Q1 2020
INVESTOR WEBINAR Earnings Call Q3Q1 2019 2020 National Development Bank PLC National [CSE StockDevelopment Code - NDB.N0000] Bank PLC NDB.N0000 15 November 2019 10:00 HRS Colombo Sri21 May 2020 Lanka 10.00 am Colombo – Sri Lanka
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 • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 4
Slide 5: Agenda
Agenda • Part I –Impact of COVID-19 • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 5
Slide 6: Impact of COVID-19
Impact of COVID-19 Globally • The pandemic has caused the most dramatic economic downturn in world history • The IMF has announced an economic recession, likely to be worse than the 2008 financial crisis • Financial institutions better prepared to this crisis than they were for the economic crisis i
Slide 7: Impact of COVID-19: Sri Lanka Banking Sector
Impact of COVID-19 Sri Lanka Banking Sector • Economic downturn has affected balance sheet growth and asset quality of banking institutions • NIMs, profitability and liquidity to be impacted by relief measures introduced to customers • Following relief measures to be given to affected eligible custo
Slide 8: Agenda
Agenda • Part I – Impact of COVID-19 • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 8
Slide 9: 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 • 113 branches. Over 150 ATMs and CRMs spread across the country • A strong digital banking platform compr
Slide 10: Agenda
Agenda • Part I – Impact of COVID-19 • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 10
Slide 11: Key Performance Indicators
Key Performance Indicators Income Statement - YoY growth Total operating income - Up by 11% to LKR 6.6 Bn Post tax profitability - Up by 27% to LKR 1.7 Bn Mixed performance in NII and Net Fee and Comm income NII down by 7% to LKR 4.3 Bn Net Fee & Comm Income up by 19% to LKR 1 Bn Balance Sheet
Slide 12: Income
Income Fund based income • Relatively larger increase in interest expenses due to • Quoted debentures issued in end March 2019 LKR Mn Q1 2020 Q1 2019 Variance % • Expansion in the deposit base with greater Interest Income 13,747 12,770 977 8 skewness towards fixed deposits • NII impacted by narrowin
Slide 13: Impairment and Operating Expenses
Impairment and Operating Expenses Impairment charges NPL Ratio Q1 19 3.37% LKR Mn Q1 2020 Q1 2019 Variance % Individual Impairment 854 1,039 [185] [18] FY19 Collective Impairment 387 [243] 630 259 4.77% Other provisions - charge 45 45 - - Q1 20 4.78% Total impairment charges 1,287 842 445 53 Impairm
Slide 14: Taxation
Taxation LKR Mn Q1 2020 Q1 2019 % VAT on Financial services 556 489 14 NBT on Financial services - 66 [100] Debt repayment Levy - 275 [100] Income tax 631 716 [12] Total taxes 1,188 1,546 [23] Effective tax rate [%] 41% 53% - • Considerable reduction in taxes due to Removal of NBT and DRL VAT on Fin
Slide 15: Balance Sheet Growth
Balance Sheet Growth LKR Bn Q1 2020 FY 2019 Q1 2019 YTD YTD % YoY YOY % Quantum growth Quantum growth growth growth Total assets 553 530 483 23.7 4 70.7 15 Gross loans 425 409 361 15.5 4 63.7 18 Total deposits 414 405 315 9.1 2 63.1 18 Borrowings 87 72 82 14.8 21 4.9 6 Total equity 41 39 35 1.6 4 5.
Slide 16: Loan Book & Funding Sources
Loan Book & Funding Sources Loan book analysis Funding • Currency composition of the loan book • Deposits increase of 4% YTD LCY:FCY Q1 20 - 79:21 CASA base – 2% increase from granular CASA FY 19 - 80:20 CASA ratio maintained at 20% • All segments contributed towards the loan Currency composition of
Slide 17: Capital & Liquidity
Capital & Liquidity BASEL III – Q1 2020 Bank Group Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7.0%] 9.03 9.88 Tier 1 Capital Ratio % [Minimum Requirement – 8.0%] 9.03 9.88 Total Capital Ratio % [Minimum Requirement – 12.0%] 12.96 13.65 Liquidity Coverage Ratio [%] – Rupee [Minimum Re
Slide 18: Investor Ratios
Investor Ratios Investor Ratios Bank Group Q1 2020 FY 2019 Q1 2020 FY 2019 Closing price per share [LKR] 66.20* 100.00 - - EPS [LKR] [Annualized] 25.96 23.05 21.48 21.53 ROE [%] 14.99 13.73 11.38 11.59 ROA [%] [Pre-tax] 1.93 2.01 1.47 1.97 Book value per Share [LKR] 176.50 178.02 191.14 195.60 P/E [
Slide 19: Post COVID-19 - NDB's Readiness
Post COVID-19 - NDB’s Readiness • All applications received from our customers for the debt moratorium are now being processed • The Bank holds sufficient liquidity and capital to face the post COVID-19 scenario and grow the business sustainably • Investments in digital banking infrastructure proved
Slide 20: Agenda
Agenda • Part I – Impact of COVID-19 • Part II – Business Overview • Part III – Financial Performance • Part IV – Q&A 20
Slide 21: 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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