Rbl Bank Ltd. · NSE:RBLBANK
Rbl Bank — Q3 FY2020 Earnings Presentation
52 slides from Rbl Bank's earnings presentation, Jan 22, 2020
Slide 1: Investor Presentation 3rd Quarter/ Nine Months FY 20
Investor Presentation 3rd Quarter/ Nine Months FY 20 Jan 22, 2020
Slide 2: 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 3: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System INR Indian Rupee Agri Agribusiness Banking IPO Initial Public Offering API Application Programming Interface LAP Loan Against Property ARC Asset Reconstruction Company MF Mutual Funds ATM Automated Teller Machine Mn Million BC Business Corre
Slide 4: 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 Micro-banking Update 35 Credit Cards Update 39 Annexures 43 4
Slide 5: Key Performance Highlights
Key Performance Highlights 5
Slide 6: Q3/ 9M FY20 Financial Highlights
Q3/ 9M FY20 Financial Highlights Q3/ 9M FY20 continues to track well to business drivers, Profitability impacted by short term challenges Total Revenue growth in Q3 FY20 of 37% YOY (9M FY20 of 42% YoY) NII growth of 41% YoY in Q3 FY20 (9M FY20 growth of 45% YOY); Other Income growth of 30% YoY in Q3
Slide 7: Q3 FY20 Highlights
Q3 FY20 Highlights YoY Growth QoQ Growth Net interest Income Rs. 923cr 41% 6% Core Fee Income Rs. 474cr 37% 22% Net Total Income Rs. 1,410cr 37% 8% Operating Profit Rs. 732cr 47% 15% Net Profit Rs. 70cr (69%) 29% 7
Slide 8: 9M FY20 Highlights
9M FY20 Highlights YoY Growth Net interest Income Rs. 2,609cr 45% Core Fee Income Rs. 1,273cr 33% Net Total Income Rs. 4,018cr 42% Operating Profit Rs. 1,987cr 44% Net Profit Rs. 391cr (37%) 8
Slide 9: Q3 FY20 Highlights Contd....
Q3 FY20 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 59,635cr 20% 2% Wholesale Rs. 29,290cr 3% (4%) Advances Non-Wholesale Rs. 30,345cr 42% 8% Advances Deposits Rs. 62,907cr 21% 0% CASA Rs. 16,855cr 31% 1% 9
Slide 10: 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 11: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 14.2% 10.4% 35.6% 16.4% 36.7% 73.2% 13.5% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Current Deposits 11
Slide 12: RBL Vision 2020
RBL Vision 2020 12
Slide 13: Performance to Vision 2020 Goals
Performance to Vision 2020 Goals RBL Vision 2020 Actual Q3 FY20 (Post IPO/Sept 2016) CAGR since Q2 FY17: 31% Advances 30-35% CAGR Q3 FY20 : 20% FY 16: 18.6%; FY 17: 22.0%; 0.75 - 1% increase CASA Ratio FY 18: 24.3%; FY 19: 25.0%; every year Q3 FY20: 26.8% Other Income % ~ 1/3rd of Net Total Income 3
Slide 14: 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, ET Money, Paisa Bazaar, MoneyTap) Enhancing distribution
Slide 15: 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 16: Financial Performance
Financial Performance 16
Slide 17: Strong Operating Profit Momentum Continues; Accelerated Provisioning Impacts Net Profit
Strong Operating Profit Momentum Continues; Accelerated Provisioning Impacts Net Profit Parameter Q3 FY20 Q3 FY19 YoY Q2 FY20 QoQ 9M FY20 9M FY19 Net Interest Income 923 655 41% 869 6% 2,609 1,801 Other Income 487 374 30% 442 10% 1,410 1,033 Net Total Income 1,410 1,029 37% 1,310 8% 4,018 2,834 Oper
Slide 18: Strong Growth in Business and CASA Continues
Strong Growth in Business and CASA Continues Parameter Dec 31,2019 Dec 31,2018 YoY Advances 59,635 49.893 20% Deposits 62,907 52,187 21% Investments 19,100 14,815 29% Parameter Dec 31,2019 Dec 31,2018 Sep 30,2019 CASA 26.8% 24.6% 26.5% GNPA 3.33% 1.38% 2.60% NNPA 2.07% 0.72% 1.56% Net Stressed Asset
Slide 19: Well Diversified Other Income Profile; Cards Driving Core Fee Income
Well Diversified Other Income Profile; Cards Driving Core Fee Income Other Income Core Fee Income Breakup 1,410 1,273 10% 9% 960 1,033 474 8% 7% 487 9% 388 441 3% 346 40% 54% 374 9% 12% 90% 8% 57% 7% 57% 41% 3% 3% 97% 93% 13% 11% 88% 3% 3% 14% 3% 93% 12% 23% 14% 9% 23% 11% 12% 10% 9% 12% 10% 11% Q3
Slide 20: Cost Growth Driven by Business Expansion; Credit Costs due to Increased Provisions
Cost Growth Driven by Business Expansion; Credit Costs due to Increased Provisions Operating Expenses Net Credit Cost by Business (bps) 30* 93* 109* 82* 239* 64 2,032 129 61 674 677 1,454 59% 531 72 53% 60% 58% 26 52% 5% 22 44 6% 8% 17 15 32 5% 5% 9% 6% 8% 7% 11% 28% 9 17 13 32% 3 4 5 8 6 29% 28% 3
Slide 21: Changing Advances Mix and Improving Yields Helping NIMs
Changing Advances Mix and Improving Yields Helping NIMs Yield Dec 31,2019 Dec 31,2018 YoY Proportion 9M 20 C&IB 21,260 19,935 7% 9.1% CB 8,031 8,541 (6%) (8.8%) 49% Wholesale 29,290 28,476 3% Retail Assets 21,874 14,644 49% LAP 7,459 5,659 32% Credit Cards 9,386 4,496 109% Retail Agri 1,510 1,562 (3
Slide 22: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - Tenor of Advances Secured/Unsecured 59,635 58,476 59,635 58,476 6% 6% 9% 45,873 49,893 9% 8% 8% 9% 29% 31% 8% 8% 18% 18% 24% 20% 62% 65% 64% 67% 64% 65% Dec 31, 2018 Sep 30, 2019 Dec 31, 2019 Dec 31, 2018 Sep 30, 2019 Dec 31, 2019 Secured Unsecured -
Slide 23: Borrowers’ External Rating Profile
Borrowers’ External Rating Profile* Dec 31, 2018 Sep 30, 2019 Dec 31, 2019 3.1% 8.6% 8.8% 28.5% 27.4% 29.1% 34.8% 33.7% 32.2% 26.7% 24.0% 24.0% 6.9% 6.0% 6.1% External Ratings External Ratings External Ratings AAA AA- & Above A- & Above BBB- & Above BB+ & Below * Based on standard exposures; Unrated
Slide 24: Diversified Industry Mix
Diversified Industry Mix Top 10 Industry* Outstanding % of Outstanding FB+NFB Industry FB-NFB Split FB+NFB Exposure Exposure Construction 3,782 35:65 4.9% NBFC (ex. HFC & DFI) 3,767 99:1 4.9% Engineering 2,655 38:62 3.4% Retail/ Distribution 2,572 62:38 3.3% Real Estate 2,538 92:8 3.3% Professional
Slide 25: Asset Quality Impacted by Stress in Select Accounts
Asset Quality Impacted by Stress in Select Accounts Gross NPA by business segment Quarter Ended Business segment Dec Sep Dec Dec Sep Dec 31,2019 30,2019 31,2018 31,2019 30,2019 31,2018 Movement of Gross NPAs C&IB 1,375.3 842.4 92.1 Opening Balance 1,539 789 645 % of total advances 2.28% 1.43% 0.18%
Slide 26: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars Dec 31, 2019 Dec 31, 2018 Sep 30, 2019 Tier 1 Capital Funds* 10,236 7,060 7,542 Tier 2 Capital Funds 721 722 685 Total Capital Funds 10,957 7,781 8,227 Total RWA 68,158 56,406 66,976 Tier 1 CRAR* 15.0% 12.5% 11.3% Total CRAR* 16.1% 13
Slide 27: CASA Growth Driving Overall Deposit Growth
CASA Growth Driving Overall Deposit Growth 31% yoy growth in CASA, while total deposits grew by 21% CASA : 24.6% CASA : 26.5% CASA : 26.8% CASA : 12,821 CASA : 16,620 CASA : 16,855 62,829 62,907 10.4% 10.4% 52,187 12.0% 16.1% 16.4% 12.5% 73.5% 73.2% 75.4% Dec 31, 2018 Sep 30, 2019 Dec 31, 2019 Term
Slide 28: Diversified Borrowing Streams
Diversified Borrowing Streams Borrowing Breakup 14,893 13,953 5% 5% 2% 4% 10,265 7% 39% 35% 7% 55% 53% 56% 31% December 31,2018 Sep 30, 2019 December 31,2019 Refinance FCY Inter-bank CBLO/LAF Tier II 28
Slide 29: Steady Investment Book
Steady Investment Book Investment Breakup 19,100 19,778 3% 3% 5% 7% 14,815 10% 9% 6% 8% 10% 82% 81% 76% December 31, 2018 Sep 30, 2019 December 31, 2019 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 Total Investments 7.2% 7.5% 7.6% 7.5%
Slide 30: NIM Improvement Helped by Higher Yields due to Changing Mix
NIM Improvement Helped by Higher Yields due to Changing Mix 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 Q2 FY18 Q3 FY18 Q4 FY18 Q1
Slide 31: Distribution Network
Distribution Network 31
Slide 32: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 6.51 6.92 7.32 7.82 32 5.82 GIFT 2 city 10 New Delhi branch December March 31, June 30, September Dec 31, 11 31, 2018 2019 2019 30, 2019 2019 11 6 Channel Breakup 2 Channels Number of transaction points 27 14 Dec
Slide 33: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings 33
Slide 34: Diversified Shareholding & Strong/Improving Rating Profile
Diversified Shareholding & Strong/Improving Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.4 0.7 Basel III compliant Tier II ICRA AA- hyb (Stable) 7.7 bonds (Re-affirmed dated Jan 23.9 10, 2020) CARE AA- (Stable) 24.3 (Re-affirmed dated Oct 3, 2019) 14.6 Certificate of Depos
Slide 35: Micro-banking Update
Micro-banking Update 35
Slide 36: Micro-banking Distribution Network
Micro-banking Distribution Network • In FY-20 233 BC branches opened (In Q3-100 branches) • In FY-20 138 RBL Finserve branches opened (In Q3-75 branches) % of Portfolio % of Portfolio State Name Dec’19 Sept’19 • 255 Banking Outlets Tamil Nadu 13.8% 13.8% Bihar 13.3% 13.3% Maharashtra 11.5% 11.6% Kar
Slide 37: Micro-banking - Portfolio Highlights
Micro-banking - Portfolio Highlights Loan Book Portfolio Mix December 31st 2019 In Rs. crores 31% 41% RBL Finserve & 55% Direct 5,520 5,028 4,220 3,560 Other BCs 45% 2,161 2.78 Mn active loan accounts Mar 31,2017 Mar 31,2018 Mar 31,2019 Dec 31,2018 Dec 31,2019 Quarter on Quarter Disbursement Shows H
Slide 38: Micro-banking - Through the door Mix
Micro-banking - Through the door Mix Bureau Rejection Rate Borrowing Cycle with RBL Bank 21% 23% 26% 31% 29% 33% 35% 29% 30% 26% 79% 77% 74% 69% 71% Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY 20 Q3 FY 20 Q3 FY19 Q4 FY19 Q1FY20 Q2FY20 Q3FY20 First Cycle Repeat Cycle Bureau Hit Rate Loan Tenor 1.4% 35.7% 82% 82% 7
Slide 39: Credit Card Update
Credit Card Update 39
Slide 40: Credit Card Base Increasing Steadily
Credit Card Base Increasing Steadily Cards in Force ( In Mn) Card Additions ( In Mn) 2.51 0.39 2.29 0.38 2.02 0.31 0.34 0.33 1.71 0.26 1.43 0.21 1.19 0.20 0.80 0.97 Mar Jun Sep Dec Mar Jun Sep Dec Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 31,2018 30,2018 30,2018 31,2018 31,2019 30,2019 30,2019
Slide 41: Credit Cards - Sticky Customer Spends
Credit Cards - Sticky Customer Spends Total Spends (In Rs Crore) Consumer Loans 22.59 20.79 20.09 20.79 18.6 19.0 19.39 19.19 8,287 2,085 7,035 1,760 5,936 1,435 4,712 1,186 4,208 4,403 1,024 926 3,234 850 790 755 2,378 636 544 512 412 382 285 214 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 1
Slide 42: Credit Cards – Delinquency Trends Better Than Industry and Stable Revolving Balances
Credit Cards – Delinquency Trends Better Than Industry and Stable Revolving Balances 6 MOB $30+ rate – RBL vs Industry 6.0% Early delinquency trends for new acquisition at 5.0% 4.9% 6 MOB (months on book) 4.0% 3.0% 3.2% Consistently maintained below industry cohort. 2.0% This is on account of active
Slide 43: Annexures
Annexures 43
Slide 44: 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 of America for Indian Sub-continent Previously, Chairman of Central Board of Direct Taxes (CBDT) Mr. Sivanandhan D
Slide 45: 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 46: 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. Mohit Kapoor Mr. Bhavtaran Singh (Sunny)
Slide 47: Profit & Loss Statement
Profit & Loss Statement Particulars Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 Income Interest Earned 2,157 1,639 2,126 6,306 4,467 Interest Expended 1,235 984 1,257 3,697 2,666 Net Interest Income 923 655 869 2,609 1,801 Other Income 487 374 442 1,410 1,033 Total Income 1,410 1,029 1,310 4,018 2,834 E
Slide 48: Balance Sheet Statement
Balance Sheet Statement Particulars Dec 31, 2019 Sep 30, 2019 Dec 31, 2018 Liabilities Capital 508 431 428 Reserves and Surplus 10,039 7,368 6,848 Deposits 62,907 62,829 52,187 Borrowings 14,893 13,953 10,266 Other Liabilities 3,110 3,096 2,474 Total 91,458 87,678 72,202 Assets Cash & Balances with
Slide 49: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q3 FY20 Q3 FY19 Q2 FY20 9M FY20 9M FY19 Income Interest Earned 2,224 1,639 2,190 6,497 4,468 Interest Expended 1,235 984 1,257 3,697 2,665 Net Interest Income 989 656 933 2,800 1,802 Other Income 490 374 443 1,416 1,032 Total Income 1,479 1,029 1,376
Slide 50: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars Dec 31, 2019 Sep 30, 2019 Dec 31, 2018 Liabilities Capital 508 431 428 Reserves and Surplus 10,021 7,353 6,854 Deposits 62,907 62,824 52,186 Borrowings 14,893 13,953 10,266 Other Liabilities 3,122 3,110 2,490 Total 91,451 87,671 72,224 Assets Goodwill
Slide 51: Our Recent History
Our Recent History FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 9M Particulars FY20 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 10,321 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 62,907 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 4
Slide 52: 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/ 52