State Bank Of India · NSE:SBIN
State Bank Of India — Q3 FY2019 Earnings Presentation
45 slides from State Bank Of India's earnings presentation, Feb 1, 2019
Slide 1: Cover letter to stock exchanges
qn-frq €e ffo, SBI .flr_dq €e +o, STATE BANK OF INDIA 01.02.2019 CC/S&B/S A12994 The Executive Director The Executive Director National Stock Exchange of lndia Ltd. BSE Limited Exchange Plaza, Ph iroze Jeejeebhoy Towers, Plot No.C/1, G- Block, Dalal Street, Bandra Kurla Complex, Mumbai- 400001 Bandr
Slide 2: Press Release Q3FY19 Results Highlights
State Bank of India PRESS RELEASE Q3FY19 RESULTS Highlights: The Bank registered a Net Profit of Rs. 3,955 Cr during Q3FY19 as against Net Loss of Rs. 2,416 Cr in corresponding period last year. Sequential growth is 318.56% Robust Domestic credit off-take, mainly across Per. Retail & high rated
Slide 3: Press release: financial performance Q3 and 9M
2 Growth in Interest Expenses on Deposits was contained at 5.73% YoY from Rs. 33,549 Cr in Q3FY18 to Rs. 35,473 Cr in Q3FY19 despite a growth in deposits by 6.76% YoY. Non-Interest Income declined by 0.61% YoY from Rs. 8,084 Cr in Q3FY18 to Rs. 8,035 Cr in Q3FY19 mainly on account of decline in
Slide 4: Press release: overheads, deposits and advances
3 Increase in Overheads Expenses was contained at 5.00% YoY from Rs. 19,433 Cr in 9MFY18 to Rs. 20,405 Cr in 9MFY19. 2. DEPOSITS Deposits at the Whole Bank level grew by 6.76% YoY from Rs.26,51,240 Cr as on December 17 to Rs.28,30,538 Cr as on December 18 Domestic Savings Bank Deposits grew by
Slide 5: Press release: asset quality, capital adequacy, key ratios
4 Provision Coverage Ratio (Excluding AUCA) improved by 830 bps YoY from 48.59% as on December 17 to 56.89% as on December 18 and by 294 bps sequentially. Provision Coverage Ratio on NCLT List-I & II were at 66% and 86% respectively, with 20 accounts having been fully provided for. PCR Gross NPA
Slide 6: Annexure
5 ANNEXURE Rs. in Crores Nine months Quarter ended Growth (%) Ended 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Interest Income 62,277 58,793 54,803 1,79,883 1,64,558 9.31 5.92 13.64 Interest Expenses 39,586 37,888 36,115 1,14,488 1,09,679 4.39 4.48 9.
Slide 7: Quarterly Results Q3FY19 Analyst Presentation
Quarterly Results Q3FY19 Analyst Presentation 01.02.2019
Slide 8: Safe Harbor
Safe Harbor Certain statements in these slides are forward- looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety
Slide 9: Contents
Contents 1 Financial Performance 2 Business 3 Capital Adequacy & Asset Quality 4 Digital Banking & Financial Inclusion 5 Subsidiaries, Group Financials & Balance Sheet 3
Slide 10: Performance Highlights (1/2)
Performance Highlights (1/2) In % Credit Robust credit off-take across retail & high FY18 4.81 Growth Q2FY19 11.11 rated corporates (Domestic YoY) Q3FY19 15.65 In % Higher credit growth, better spreads and FY18 2.67 NIM lower slippages leading to improved NIM Q2FY19 2.80 (Domestic) Q3FY19 2.97 Slipp
Slide 11: Performance Highlights (2/2)
Performance Highlights (2/2) Corporate Credit growth at 20.67% YoY; Retail Per Segment loan growth at 17.57% CD Ratio at 68.67%; LCR at 140.85% to sustain further credit growth NII growth at 21.42% YoY; driven by robust credit growth, lower slippages and lower funding cost Strength of our li
Slide 12: SBI: Leadership position in the Indian Banking System
SBI: Leadership position in the Indian Banking System As on Dec 2018 1. Ranked 53rd among the top Banks globally in terms of assets 2. Commercial entity with the highest operating profit in India (FY 18) 1 Global League 3. Second largest footprint globally – over 1.38 lakh touch points 4. Serving ~4
Slide 13: Financial Performance
Financial Performance 7
Slide 14: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter ended Nine Months Ended Growth (%) 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Interest Income 62,277 58,793 54,803 1,79,883 1,64,558 9.31 5.92 13.64 Interest Expenses 39,586 37,888 36,115 1,14,488 1,09,67
Slide 15: Total Income
Total Income Rs. in Crores Quarter ended Nine Months Ended Growth (%) 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Interest on Loans 41,821 38,326 35,185 1,19,012 1,07,128 11.09 9.12 18.86 Interest on Resources 19,131 19,310 18,422 57,273 54,053 5.96 -0
Slide 16: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter ended Nine Months Ended Growth (%) 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Fee Income 4,724 5,015 4,979 14,715 15,206 -3.23 -5.81 -5.13 of which: 926 641 627 2,208 1,918 15.16 44.62 47.79 Loan Processing Ch
Slide 17: Total Expenses
Total Expenses Rs. in Crores Quarter ended Nine Months Ended Growth (%) 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Interest on Deposits 35,473 34,934 33,549 1,04,665 1,02,519 2.09 1.54 5.73 Interest on Borrowings 2,981 1,929 1,494 6,616 3,619 82.81 54
Slide 18: Contained Overhead Expenses
Contained Overhead Expenses Rs. in Crores Quarter ended Nine Months Ended Growth (%) 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Overheads 6,929 6,680 6,520 20,405 19,433 5.00 3.74 6.27 Of which: 1,284 1,328 1,257 3,786 3,726 1.61 -3.37 2.09 Rent, Taxe
Slide 19: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter ended Nine Months Ended Growth (%) 9MFY19 Q3FY19 Q3FY19 Q3FY19 Q2FY19 Q3FY18 9MFY19 9MFY18 over over over 9MFY18 Q2FY19 Q3FY18 Operating Profit 12,625 13,905 11,755 38,503 43,628 -11.75 -9.20 7.40 Total Provisions 8,670 12,960 14,171 38,479 42,457 -9.37 -33.
Slide 20: Costs, Yields and Margins
Costs, Yields and Margins Yield on Advances (%) Net Interest Margin (%) 8.57 8.48 2.95 8.43 2.88 2.92 Domestic NIM 8.38 2.67 8.28 2.61 Cost of Deposits (%) Foreign NIM 1.47 1.42 5.34 1.38 5.30 1.16 1.14 5.11 Whole Bank NIM 5.10 5.09 2.80 2.73 2.76 2.45 2.50 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17
Slide 21: Business
Business 15
Slide 22: Strong Liability Franchise
Strong Liability Franchise DEC 18 Domestic Deposits DEC 17 CA, 6.33% CA, 6.90% SA, 38.23% SA, 38.90% TD, TD, 54.77% 54.87% CASA :45.23% CASA :45.13% Rs. in Crores Dec 18 Dec 17 YoY Growth Current Account 1,73,081 1,75,442 -1.35 Saving Bank 10,64,497 9,72,696 9.44 CASA 12,37,578 11,48,138 7.79 Term D
Slide 23: Diversified Loan Portfolio
Diversified Loan Portfolio DEC 18 Domestic Advances DEC 17 Per, 32.60% Per, 32.07% Agri, 10.57% Agri, 11.94% Corporates, 41.23% Corporates, SME, 16.48% 39.51% SME, 15.60% Retail 58.77% Retail 60.49% YoY Growth Rs. in Crores Dec 18 Dec 17 (%) Retail: 11,04,338 9,82,769 12.37 SME 2,93,060 2,67,688 9.4
Slide 24: Retail Banking - Leadership across all segments
Retail Banking - Leadership across all segments As on Dec 2018 Personal Retail Portfolio of Rs 6.1 lakh crore NPA ratio at 1.11% % of Dom. Adv. 32.60 Home* Xpress Other P Auto Loans Loans Credit segment Loans O/S, 3,80,982 70,827 93,893 66,893 In Rs cr YoY 16.54 8.88 36.04 8.69 Growth, % Market shar
Slide 25: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Dec 18 Sep 18 Dec 17 Dec 18 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 3,01,219 16.03 2,85,986 16.08 2,51,298 15.47 19.87 of which: Power 1,95,133 10.38 1,78,988 10.06 1,67,496 10.31 16.50 Telecommuni
Slide 26: Drivers of Corporate Growth
Drivers of Corporate Growth YoY growth in advances Dec 18 over Dec 17 Growth driven by PSUs 31.4% 21.2% Generation PSUs Power Rs. 27,637 cr Transmission PSUs 47.4% Other Accounts Growth driven by GoI Undertaking Roads & 6.3% Rs. 18,270 cr GoI undertaking Ports 93.7% Other Accounts NBFCs – key driver
Slide 27: Treasury Operations
Treasury Operations Rs. In crores AFS Book DEC 18 DEC 17 Others, 5.6% Corporate Others, 5.0% Corporate Bonds, 15.5% Bonds, 11.6% SDLs, 13.0% SDLs, 14.4% G-Sec and T Bill, 53.5% CP, 9.5% G-Sec and T Bill, CP, 11.0% 60.8% Modified Duration: 2.45 Modified Duration: 3.28 Break up of Domestic Investments
Slide 28: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 22
Slide 29: Capital Adequacy
Capital Adequacy Tier I (9.325%) Min. Reg. Req. Mar 19 CAR CET I (7.825) AT I Tier II (11.325) 10.54% Dec 18 9.57% 0.97% 2.23% 12.77% 10.36% Sep 18 9.65% 0.71% 2.25% 12.61% 10.30% Dec 17 9.60% 0.70% 2.38% 12.68% • “CRWAs on Advances to Total Advances” Ratio improved to 59.73% as on Dec 18 from 63.09
Slide 30: Asset Quality (1/3)
Asset Quality (1/3) Rs. in Crores Gross NPA Net NPA 2,23,427 1,10,855 1,02,370 99,236 2,12,840 94,810 2,05,864 80,944 1,99,141 1,87,765 Dec-17 Mar-18 Jun-18 Sep-18 Dec 18 Dec-17 Mar-18 Jun-18 Sep-18 Dec 18 Dec 18 Sep 18 Mar 18 Dec 17 Gross NPA Ratio (%) 8.71 9.95 10.91 10.35 Net NPA Ratio (%) 3.95 4
Slide 31: Asset Quality (2/3)
Asset Quality (2/3) Rs. in Crores Movement of NPAs: Q3FY19 Q2FY19 Q1FY19 FY18 Q4FY18 Q3FY18 Opening Level of Gross NPAs 2,05,864 2,12,840 2,23,427 1,77,866 1,99,141 1,86,115 Total Reductions 24,641 17,865 24,936 54,726 8,535 13,754 Of which : Recovery + Upgradation 6,617 4,327 14,856 14,530 85 4,442
Slide 32: Asset Quality - Whole Bank SMA 1 & SMA 2 (3/3)
Asset Quality- Whole Bank SMA 1 & SMA 2 (3/3) Rs. in Crores SMA 1 & SMA 2 across all Sectorwise Corporate Slippages verticals* 26 26 130 561 1,308 13,440 17,059 3,619 565 Others Roads & EPC Iron & Steel Textile Power SMA 1 SMA 2 Total Corporate Slippages – 1,308 Total SMA 1 and SMA 2 – 17,059 1 Corp
Slide 33: Power Sector – Stress mostly recognized
Power Sector – Stress mostly recognized Rs. in Crores Standard (Excl. SMA 1 & 2) Power Portfolio Classification Public Private 1,57,579 1,57,579 98,268 59,311 Standard Private (excl. SMA 1 & 2) 1,95,133 67% A- and above 31,449 BBB+, BBB, BBB- BB+ and below 6,105 Unrated Standard (excl. SMA 1 & 2) 12
Slide 34: NBFC Sector – Exposure to PSUs and High Quality Private Sector
NBFC Sector – Exposure to PSUs and High Quality Private Sector Rs. in Crores Housing Finance Others NBFC Portfolio Classification 1,63,947 59,301 1,04,646 1% 36,502 17% Central Govt. 46,559 38% Backed by PSU Housing Finance Backed by large Pvt 1,63,947 44% Sector Institutions Pvt. Others 22,904 57,9
Slide 35: Status of NCLT accounts
Status of NCLT accounts As on Dec 2018 List 1 Fund Based o/s PCR on NCLT accounts Rs. 25,681 cr 86% 75% List 2 Fund Based o/s 66% Rs. 18,641 cr NCLT 1 NCLT 2 Total Total Rs. 44,323 cr Total (Incl.AUCA) PCR without AUCA 57% 81% 67% Rs. 58,927 cr • Four accounts resolved from NCLT 1 & 2 List, with rec
Slide 36: Digital Banking / Financial Inclusion
Digital Banking / Financial Inclusion 30
Slide 37: Technology and Innovation
Technology and Innovation Share of Transactions through Alternate Channels (87.75%) Transactions (87.75%) Dec 18 Dec 17 3.2% 4.4% 12.3% 17.0% 16.2% 20.8% 4.0% 11.3% Share of Txns through 1.9% Share of Txns through 1.1% 5.1% Alt. Channel Alt. Channel 13.4% 13.0% 5.4% 87.75% 83.80% 1.1% 1.5% 36.4% 31.
Slide 38: YONO: Our flagship digital offering
YONO: Our flagship digital offering – for both lifestyle and Banking Paper-less & Better Lower time Increased branch-less customer & effort for branch processes experience staff business Financial Super Online Market E2e Digitisation & Digital Bank Store Place Products Transactions 1. Cards 1. Brows
Slide 39: Digital Leadership
Digital Leadership As on Dec 2018 Market Share (latest available) Surpassed 10 mn UPI Transactions in a Single Day UPI No. 1 Remitter Bank with market share of 21% Debit Cards Spends 30.16% POS Terminals 16.36% Debit No of cards at 31.10 cr No. of ATMs 28.73% Cards Debit Card spends crossed
Slide 40: Financial Inclusion
Financial Inclusion Accounts Transactions Amount and Deposits Level (No. in Crores) (Rs. in Crores) 1,80,000 27,787 30,000 13.40 13.42 13.98 16.0 30.0 1,60,000 25,000 14.0 25.0 21,358 12.0 10.5 10.5 10.7 1,40,000 10.0 20.0 1,23,403 20,000 1,20,000 8.0 14.0 7.9 15.0 7.4 7.4 12.7 6.0 10.9 10.0 1,00,00
Slide 41: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 35
Slide 42: SBI Subsidiaries- Significant Value Creation
SBI Subsidiaries- Significant Value Creation • #2 in Total New Business Premium with Private 9MFY19 9MFY18 market share of ~20% • New Business Premium increased by 32% PAT (in Rs. cr) 869 769 • Strong financial performance: VoNB Margin : 17.5% • AUM up by 20.2% at Rs.134K crs. ROE (in %) 16.7 17.1 •
Slide 43: SBI Group Financials – 9MFY19
SBI Group Financials – 9MFY19 Rs. In crores Growth Year Ended Year Ended (%) Rs. In crores 9MFY19 9MFY18 9MFY19 9MFY18 YoY Interest Earned 1,87,538 1,70,760 9.82 ROA (%) 0.04 0.12 # Non-Interest Income 51,575 54,192* -4.83 Total Income 2,39,113 2,24,952 6.29 ROE (%) 0.76 2.33 Interest Expended 1,15,
Slide 44: Balance Sheet
Balance Sheet Rs. in Crores Liabilities SBI SOLO SBI GROUP YOY YOY Dec 18 Dec 17 Dec 18 Dec 17 Growth (%) Growth (%) Capital 892 863 3.39 892 863 3.39 Reserves and Surplus 2,19,471 2,16,076 1.57 2,31,486 2,27,197 1.89 Minority Interest 5,502 4,556 20.78 Deposits 28,30,538 26,51,240 6.76 28,60,150 26
Slide 45: Thank You
Thank You
State Bank of India — Q3 FY2019 Earnings Presentation on 6ix