State Bank Of India · NSE:SBIN
State Bank Of India — FY2018 Earnings Presentation
45 slides from State Bank Of India's earnings presentation, May 22, 2018
Slide 1: Annual Results FY18 Analyst Presentation
Annual Results FY18 Analyst Presentation 22.05.2018
Slide 2: 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 o
Slide 3: Contents
Contents Financial Performance Digital Banking Wealth Management & Transaction Banking Financial Inclusion Subsidiaries Balance Sheet 3
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Operating Performance
Operating Performance Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Interest Income 55,941 54,803 58,968 2,20,499 2,23,982 -1.55 2.08 -5.13 Other Income 12,495 8,084 12,222 44,601 42,637 4.61 54.56 2.23 Total Inc
Slide 6: Provisions and Net Result
Provisions and Net Result Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Operating Profit including Exceptional Item & one 15,883 11,755 17,309 59,511 59,461 0.08 35.12 -8.24 time items Total Provisions 23,601 14,
Slide 7: Interest Income / Expenses
Interest Income / Expenses Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Interest on Loans 34,235 35,185 37,488 1,41,363 1,54,171 -8.31 -2.70 -8.68 Interest on Resources 18,534 18,422 18,042 72,588 62,955 15.30 0
Slide 8: Non-Interest Income
Non-Interest Income Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Fee Income 8,430 4,979 7,434 23,636 21,389 10.51 69.31 13.40 Profit/Loss on Sale of 941 1,026 1,997 12,303 13,610 -9.61 -8.27 -52.88 Investments F
Slide 9: Stable Fee Income
Stable Fee Income Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Fee Income 8,430 4,979 7,434 23,636 21,389 10.51 69.31 13.40 of which: 1,360 627 1,332 3,277 3,249 0.88 116.93 2.06 Loan Processing Charges Commissi
Slide 10: Contained Operating Expenses (1/2)
Contained Operating Expenses (1/2) Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Staff Expenses 9,254 8,497 8,914 33,179 33,975 -2.34 8.91 3.82 Overheads 7,332 6,520 7,064 26,765 24,400 9.69 12.44 3.79 Operating
Slide 11: Contained Operating Expenses (2/2)
Contained Operating Expenses (2/2) Rs. in Crores Quarter ended Year Ended Growth (%) FY18 Q4FY18 Q4FY18 Q4FY18 Q3FY18 Q4FY17 FY18 FY17 over over over FY17 Q3FY18 Q4FY17 Staff Expenses 9,254 8,497 8,914 33,179 33,975 -2.34 8.91 3.82 of which: Salary 6,761 7,016 6,139 27,180 26,028 4.43 -3.64 10.13 Co
Slide 12: Key Performance Indicators : Performance Ratios
Key Performance Indicators : Performance Ratios Net Interest Margin (%) Yield & Costs (%) Yield on Advances Yield on Investments Domestic Whole Bank Foreign Cost of Funds Cost of Deposits 2.93 9.32 2.61 2.67 2.59 2.74 2.50 8.49 8.46 8.38 8.28 2.45 2.50 2.43 2.36 7.63 7.38 7.33 7.31 7.31 1.28 5.94 1.
Slide 13: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. in Crores Mar 18 YoY Growth (%) Mar 17 Mar 18 Over Mar 17 (SBI+e-ABs+BMB) Total Deposits 27,06,343 4.68 25,85,320 Foreign Offices 1,06,950 17.07 91,359 Domestic 25,99,393 4.23 24,93,961 TD 14,12,099 1.84 13,86,527 CA 1,87,907 3.81 1,81,008 SB 9,9
Slide 14: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. in Crores Mar 18 Mar 17 YOY Gr % Domestic Advances 17,46,389 16,66,288 4.81 Comm. Paper(CP) 58,456 60,158 -2.83 Corp. Bonds(CB) 79,124 63,329 24.94 Domestic Total (Incl. CP & CB) 18,83,969 17,89,775 5.26 Advances in Foreign Offices 3,01,998 2,86,219 5.51 Whole Bank Ad
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. in Crores YoY Growth (%) Sequential Growth (%) Mar 17 Mar 18 Mar 18 Over Mar 17 Mar 18 Over Dec 17 (SBI+e-ABs+BMB) Total Advances 20,48,387 4.91 6.43 19,52,507 Foreign Offices 3,01,998 5.51 0.74 2,86,219 Domestic 17,46,389 4.81 7.48 16,66,288 Large Corporate 4,11,897 1
Slide 16: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Mar 18 Dec 17 Mar 17 Mar 18 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 2,55,612 14.64 2,51,298 15.47 2,54,971 15.30 0.25 of which: Power 1,70,181 9.74 1,67,496 10.31 1,70,874 10.25 -0.41 Telecommunica
Slide 17: Personal Segment Continues to drive Loan Growth
Personal Segment Continues to drive Loan Growth Market Share Avg. LTV Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 13.26% 15.19% 13.44% 3,13,106 1,67,126 66,362 2,76,454 1,47,323 57,609 Mar 17 Mar 18 Mar 17 Mar 18 Mar 17 Mar 18 32.12% 32.13% 33.77% 34.97% 52.95% 53.46% Total P-Segment M
Slide 18: We Remain Well Capitalized
We Remain Well Capitalized 12.60% 12.68% 12.85% Tier II 2.24% 2.38% 2.80% AT1 Tier I 0.68% 0.70% 0.64% CET1 10.36% 10.30% 10.05% 9.68% 9.60% 9.41% Mar 18 Dec 17 01.04.2017 FY18 • Credit Risk Weighted Assets to gross Advances declined by 780 bps from 78.94% as on 01.04.2017 to 71.17% as on 31.03.2018
Slide 19: Asset Quality : Gross NPAs - Segment wise (1/5)
Asset Quality : Gross NPAs - Segment wise (1/5) Rs. in Crores 01-04-2017 Mar 18 Dec 17 Sep 17 Sector Merged NPA Ratio % NPA Ratio % NPA Ratio % NPA Ratio % Agri 21169 11.25 19344 9.97 18982 9.93 12191 6.37 Per Segment 6735 1.23 6929 1.33 7096 1.41 3717 0.77 SME 25719 9.53 24621 9.20 27540 10.91 Larg
Slide 20: Asset Quality : Movement of NPAs (2/5)
Asset Quality : Movement of NPAs (2/5) Rs. in Crores FY18 Q4FY18 Q3FY18 Q2FY18 Q1FY18 FY17 Opening Level of Gross NPAs 177866 199141 186114 188068 177866 121973 Total Reductions (Recovery+Upgradation+Transfer to AUCA) 54726 8535 13754 12581 19856 60040 Increase in O/s 5506 -849 944 1601 3810 5685 Fr
Slide 21: Status of NCLT accounts (3/5)
Status of NCLT accounts (3/5) Mar 2018, Rs. in Crores List 1 Fund Based o/s* Rs. 49,116 PCR on NCLT accounts 75% 63% 56% List 2 Fund Based o/s* Rs. 28,510 NCLT 1 NCLT 2 Total Total Rs. 77,626 * Including amount transferred to AUCA Expected Timeline for NCLT List 1 43.7% 56.3% Q1FY19 Q2FY19 • Expecte
Slide 22: Asset Quality (4/5)
Asset Quality (4/5) Q4FY18, Mar 2018, Rs. in Crores Corporate Slippages Corporate Slippages Total Corporate Slippages Break-up Sectorwise Break-up Sectorwise Break-up 29,037 29,037 11,601 4,196 7,767 211 8- 11,601 6,684 17,435 2,648 866 - 502 3571 6,684 2,437 858 17,435 10,569 11,071 Total Slippages
Slide 23: Asset Quality (5/5)
Asset Quality (5/5) Mar 2018, Rs. in Crores 1.26% of Total Advances 25,802 4,721 • All stressed accounts from 9MFY18 Standard Stressed classification which continue to be 2,662 under stress are included in the watchlist; and 3,454 some new stressed accounts have been added 4,390 • All SDR accounts s
Slide 24: Digital Banking
Digital Banking 24
Slide 25: Channel and Digital Strategy
Channel and Digital Strategy Share of Transactions (%) Mar 18 Mar 17 Internet Banking 21 18 POS 13 37 9 31 Mobile Banking 3 80 3 75 ATM / CDM 34 37 BC channel 9 7 Branch 20 25 • Customer Experience Excellence Program (CEEP): implemented in 5,255 branches; process changes, tech –enablement and perfor
Slide 26: Digital & e-Commerce (1/2)
Digital & e-Commerce (1/2) • Registered users --14.9 lakh • No. of Transactions --7.7 lakh • Downloads -- 4.37 Million • Logins -- 1,90,000 per day • Digital & Insta Accounts -- 1.36 lakhs • Pre-approved Personal Loans activated • Financial Super Store (FSS) -- SBI Life, SBI Cards, SBI Cap Sec and S
Slide 27: Digital & e-Commerce (2/2)
Digital & e-Commerce (2/2) INB Users Vol. of INB Transactions Value of INB (Nos. in lakhs) (Nos. in Crs.) Transactions (Rs. in Crs) • 5th most popular 98,82, online global 479.22 905 financial site. 79,67, 382.1 149 159 967 132 59,03, 308.10 • 4.79 Cr Users 975 • 158.92 Crore txns. during FY18. Mar
Slide 28: Unlocking the Digital Potential
Unlocking the Digital Subsidiaries Potential (3/3) : Others 19.64 lakh+ Merchant Payments Acceptance Touch Points BHARAT QR BHIM-Aadhaar-SBI PoS 2,02,362 4,96,970 6,09,789 SBI PAY BHIM MERCHANTS 5,58,440 96,771 28
Slide 29: Accolades & Social Media Leadership
Accolades & Social Media Leadership ‘Social Banking Excellence Award-2017’ by Assocham India ‘CSR Leadership Award’ by ET Now for Best Use of CSR Practices National Award for ‘Highest SHG bank linkages’ for the year 2017-18 by Ministry of Rural Development Platform Status Rank Comments Highest numbe
Slide 30: Wealth Management & Transaction Banking
Wealth Management & Transaction Banking 30
Slide 31: Wealth Management & Transaction Banking
Wealth Management & Transaction Banking Sustainable levers for Fee Income Wealth Management Business No. of customers to more than double by the end of FY19 AUM & Customers- Wealth Management AUM is expected to double by FY19 24,168 Acquiring and mapping NRI clients to e-Wealth centres by 14,284 pla
Slide 32: Financial Inclusion
Financial Inclusion 32
Slide 33: Financial Inclusion (1/2)
Financial Inclusion ….(1/2) Financial Inclusion Accounts (No. in Crs) Average Balance (Rs.) PMJDY Others 1787 5.09% 12.77 13.42 1594 1490 10.03 1398 1345 9.38 3.39 3.39 Mar 17 Mar 18 Out of PMJDY A/cs: Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Aadhar seeded A/cs as on Mar 18: 7.41 crs Rupay Cards issued as
Slide 34: Financial Inclusion (2/2)
Financial Inclusion ….(2/2) Transactions Amount (Rs. in Crores) Financial Literacy 69.24% 124930 Rural Self Employment Training Cumulative Institute RSETIs (Since 2011) 73820 (Total Numbers: 151) No of Training Programmes held 23,007 FY17 FY18 No of Youth trained 6,13,020 Social Security Schemes Num
Slide 35: Subsidiaries
Subsidiaries 35
Slide 36: SBI Group Financials : Net Profit FY18
SBI Group Financials : Net Profit FY18 Rs. In crores Year Ended Major Non Banking Subsidiaries FY18 FY17 SBI Life 1,150 955 SBI Capital Markets Ltd (Consolidated) 327 252 SBI Funds Management Pvt Ltd 331 224 SBI Cards & Payment Services Pvt Ltd 363 390 SBI General Insurance 396 153 36
Slide 37: Subsidiaries: SBI Cards
Subsidiaries (2/3)(1/3) Subsidiaries : Others SBI CARDS Performance Highlights: YoY • Robust business performance - Core PBT 30% FY18 FY17 YoY (Excl –one-off items ,of Rs.219.9 Cr), ROE @ (in %) 31% (Ex-1/Off ) #CIF market share (%) 16.42% 15.34% 108 bps • 2nd Highest base in terms of cards & spen
Slide 38: Subsidiaries: SBI Capital Markets
Subsidiaries (3/3)(2/3) Subsidiaries : Others Performance Highlights: SBI Capital Markets Limited • Capital Market Group -Debt Capital Market (CMG DCM: DCM) has been awarded three awards at The Asset Triple A Country Awards 2017 for: YoY o Best Quasi-Sovereign Bond, India for NTPC (€500 mn), FY18 FY
Slide 39: Subsidiaries: SBI Life
Subsidiaries (3/3): SBI Life In crores Premium ‘Life Insurance Company of the Year’ & 26.6% 24.2% 25,354 ‘Bancassurance Leader Life Insurance 21,015 10,966 15,825 (Large Category)’ and ‘Data Analytics 7,107 10,144 Initiative of the year’ Awards New Business Premium Gross Written Premium Mar 16 Mar 1
Slide 40: Balance Sheet
Balance Sheet 40
Slide 41: Balance Sheet : SBI
Balance Sheet : SBI Rs. in Crores Liabilities YOY Growth Mar 18 Mar 17 (%) Capital 892 811 10.05 Reserves and Surpluses 2,18,236 2,11,002 3.43 Deposits 27,06,343 25,85,320 4.68 Borrowings 3,62,142 3,32,106 9.04 Other Liabilities & Provisions 1,67,138 1,75,623 -4.83 Total Liabilities 34,54,752 33,04,
Slide 42: Balance Sheet : SBI Consolidated
Balance Sheet : SBI Consolidated Rs. in Crores Liabilities YOY Growth Mar 18 Mar 17 (%) Capital 892 797 11.93 Reserves and Surplus 2,29,429 2,16,395 6.02 Minority Interest 4,615 6,481 -28.78 Deposits 27,22,178 25,99,811 4.71 Borrowings 3,69,079 3,36,366 9.73 Other Liabilities & Provisions 2,90,238 2
Slide 43: SBI Group Financials – FY18
SBI Group Financials – FY18 Rs. In crores Year Ended Growth (%) FY18 FY17 Rs. In crores YoY Interest Earned 2,28,970 2,30,447 -0.64 Non-Interest Income 77,557* 68,193 13.73 Total Income 3,06,528 2,98,640 2.64 Interest Expended 1,46,603 1,49,115 -1.68 Operating Expenses(i+ii) 96,154 87,290 10.15 (i)
Slide 44: SBI Solo and Group Financials – FY18
SBI Solo and Group Financials – FY18 SBI SBI SBI Consolidated Standalone Mar 18 Mar 17 Mar 17 Mar 18 Mar 17 ROA (%) -0.19 -0.06 0.41 -0.13 0.01 ROE (%) -3.78 -1.07 7.25 -2.56 0.14 Earning Per Share (Rs.) -7.67 -2.23 13.43 -5.34 0.31 Book Value Per Share (Rs) 199 211 191 208 220 Expenses Ratio (%) 50
Slide 45: Thank You
Thank You