National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q1 2014 Earnings Presentation
19 slides from National Development Bank's earnings presentation, 2014
Slide 1: National Development Bank PLC Results Review - 2014 (1st Quarter)
National Development Bank PLC Results Review - 2014 (1st Quarter)
Slide 2: Content
Content NDB Overview 2014 Q1 Performance Asset Quality and Risk Profile The way Forward © National Development Bank PLC Finance and Planning Division
Slide 3: NDB Overview
Section 1 NDB Overview © National Development Bank PLC Finance and Planning Division 3
Slide 4: NDB Overview
NDB Overview Business Highlights Corporate Structure — Established by an Act of Parliament in 1979 and started commercial Banking operations after acquisition of ABN AMRO Bank Colombo in 2001 — NDB Group since then has transformed to provide diversified full-fledged banking services including commer
Slide 5: Strong National Brand
Strong National Brand The NDB figures among the top 20 national brands according to Brand Finance Lanka (2013). NDB has a strong presence in Sri Lanka by making its products and services available to customers through its nationwide branch network • Principal sponsor - 2013 Asia-Pacific Entrepreneur
Slide 6: 2014 Q1 Performance
Section 2 2014 Q1 Performance © National Development Bank PLC Finance and Planning Division 6
Slide 7: Performance Snapshot
2013 Performance Snapshot Performance Snapshot NDB reported a higher growth in profits and Business volumes over 2013 Q1 LKR Mn Operating Income 3,229 31% Profit for Shareholders 1,205 141% Earnings Per Share (LKR) 29.66 134% Loans and Advances 149,864 25% Customer deposits 134,984 23% Tier I+ II Ca
Slide 8: Banking revenue increased significantly
Banking revenue increased significantly Banking revenue growth supported by the Non Funded Income 31% 2013 Q1 2014 Q1 3,173 Bank’s NII grew by 14% YoY amidst the pressure 14% on Margins 2,419 Non –funded income Growth was mainly 1,863 54% 68% supported by the fee and commission income and 1,608
Slide 9: Margins maintained, Returns and efficiency Improved
Margins maintained , Returns and efficiency Improved Margins Maintained while industry margins declined Impressive Profit After Tax growth for 2014 Q1 LKR Bn Profit before Tax Profit after Tax YOY Growth PAT LKR Mn NII Bank NIM Industry NIM Bank 10.39 4.2% 4.1% 8.93 3.7% 3.7% 3.7% 3.5% 223.3% 3.5% 1
Slide 10: Loans and Advances growth out performed the industry
Loans and Advances growth out performed the industry Loans grew by 6% during the first quarter while industry growth was negative LKR Bn YTD growth with peers FCY LCY NTB 39 34 SEYL 5 Year CAGR 20% 28 SAMP 107 111 23 91 HNB 19 73 14 COMB 49 40 NDB 2009 2010 2011 2012 2013 2014 Q1 -6.00% -4.00% -2.00
Slide 11: Steady and consistent growth in Customer Deposits
Steady and consistent growth in Customer Deposits YTD Deposit growth of 4% is impressive in comparison to peers with wider reach LKR Bn FCY LCY YTD growth with peers NTB 30 5 Year CAGR 33% 30 SEYL 28 105 100 SAMP 6 5 80 75 HNB 5 54 45 COMB NDB 2009 2010 2011 2012 2013 2014 Q1 0.00% 0.50% 1.00% 1.50%
Slide 12: Asset Quality and Risk Profile
Section 3 Asset Quality and Risk Profile © National Development Bank PLC Finance and Planning Division 14
Slide 13: Non performing Loans remained low among peers
Non performing Loans remained low among peers Despite the climbing NPLs across the industry, NDB’s NPLs grew at slower pace LKR Mn Total NPAs Specific Provision Coverage (%) 6.2% 4,000.0 Industry Provision coverage 100% 5.4% 5.6% 3,500.0 75% 75% 80% 3,000.0 62% 3.8% 3.7% 2,500.0 51% 48% 60% 45% 46%
Slide 14: Strong Capital Adequacy
Strong Capital Adequacy Consistency in healthy Capital Adequacy NDB’s CAR compared to Peers 25.0% 20.0% 20.7% 21.0% 20.3% 20.3% 20.0% 18.8% 17.8% 15.8% 18.0% 15.2% 14.6% 14.2% 15.0% 16.0% 10.0% 5.0% 14.0% 0.0% 201 0 201 1 201 2 201 3 201 4 Q 1 12.0% Tier 1 Tier 1 & 2 10.0% 17.4% NDB Group’s Risk Wei
Slide 15: The way Forward
Section 4 The way Forward © National Development Bank PLC Finance and Planning Division 17
Slide 16: Strategic Focus and Strategic Pillars
Future focus Strategic Focus The 7 Strategic Pillars Profitable Balance Sheet Growth Best In Class Engaged and Inspired Disciplined Execution of Strategy Operational Excellence Strong Sales Culture Higher Fee Income Cost Optimization Focused on the basics of Banking Team Supporting clients nee
Slide 17: Top Strategic initiatives to be rolled out
Top 3 Strategic initiatives to be rolled out 1. Completing and upgrading new client interface 2. Joining common ATM switch 3. Rolling out Islamic Banking © National Development Bank PLC Finance and Planning Division 19
Slide 18: Strategic Initiatives
Strategic Initiatives Network Expansion Strong commitment to increase the number of branches to 140 by 2018 from the current 79 To enhance profitability through optimization of balance sheet, reduction of costs, cross selling, using group Increasing Profitability synergies and organic & inorganic gr
Slide 19: Disclaimer
Disclaimer This document has been prepared by National Development Bank (“NDB or the “Bank”) solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclosed in this document The in
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