Yes Bank Limited · NSE:YESBANK
Yes Bank — Q3 FY2019 Earnings Presentation
44 slides from Yes Bank's earnings presentation, Jan 25, 2019
Slide 1: Exchange filing cover letter for Investor Presentation
BANK January 25, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Exchange Plaza, P.J. Towers, Dalal Sh·eet Plot no. C/1, G Block, Mumbai- 400 001 Bandra - Kurla Complex, Bandra (E) BSE Scrip Code: 532648 Mumbai - 400 051 NSE Symbol: YESBANK Dear Sirs, Sub: 'I
Slide 2: Investor Presentation Q3FY19 Update
INVESTOR PRESENTATION Q3FY19 Update
Slide 3: Recent Updates on YES Bank Board Matters
Recent Updates on YES Bank Board Matters The Bank has received RBI approval for its new MD & CEO, Mr. Ravneet Singh Gill for him to join on or before March 1, 2019 Received RBI approval for appointment of Mr. Brahm Dutt as a Non-Executive Part-Time Chairman. Approval valid till July 4th, 2020 (t
Slide 4: Table of Contents
Table of Contents QUARTERLY HIGHLIGHTS 4 -14 YES BANK PROFILE 15 - 26 DIGITAL BANKING 27 - 31 LEADERSHIP TEAM 32 - 34 YES BANK SUBSIDIARIES 35 - 37 ANNEXURES 38 - 40 3
Slide 5: Quarterly Highlights
QUARTERLY HIGHLIGHTS 4
Slide 6: Q3FY19 Highlights
Q3FY19 Highlights Resilience in Earnings NII: ` 26.66 Bn growth of Profit: ` 10.02 Bn growth NIMs stable at 3.3% 10.3% q-o-q of 3.9% q-o-q Y-o-Y growth of 41.2% Y-o-Y decline of 7.0% Rebalanced Growth with improving Granularity resulting in increasing Capital ratios 1.3% q-o-q Rebalanced Growth in 8
Slide 7: Income Growth Trends
Income Growth Trends Robust Earnings Delivery ` Billion Net Interest Income Non Interest Income Strong growth in NII of 41.2% for Q3FY19, driven by 30 27 growth in Advances of 42.2% y-o-y 25 24 22 22 NIMs continue to be stable at 3.3% 20 19 17 Non-Interest income de-growth of 37.4% yoy for 15
Slide 8: Non Interest Income Trends
Non Interest Income Trends Contribution across Transactional, Corporate, Trade, CMS and Retail Fees Of which a loss of ` 2.8 Billion has been recognized with an equivalent offset/ reversal in 4603 1781 2220 Investment Provisioning 2428 6441 6827 6677 4722 ` million 7231 2398 2162 2116 2241 1536 2900
Slide 9: Key Balance Sheet Growth Trends
Key Balance Sheet Growth Trends Well Segmented Growth As % of Total Advances, Incremental as on 31st December, 2018 ` Billion YoY Growth Growth Contribution 371 67.8% 83% 23% Corporate Banking 413 203 18% 9% 195 Medium 351 7.8% Enterprises 86% 12% 105 Small and Micro 9.2% Enterprises 1460 1056 38% 5
Slide 10: Well-diversified Liability Franchise
Well-diversified Liability Franchise ` Billion YoY Growth CA: 30.7% and SA:4.4% YoY Growth of Retail TD's: 37.2% Corp TD's: 39.9% 38.0% 36.5% 35.1% ` Billion 24.3% 800 33.8% 33.3% 40.0% 1000 23.4% 26.0% 22.9% 21.5% 900 20.8% 700 35.0% 24.0% 800 600 30.0% 22.0% 700 500 444 466 493 446 25.0% 600 20.0%
Slide 11: Strong Risk Management Framework
Strong Risk Management Framework Knowledge Superior Joint Delegation Portfolio Banking Structuring & Approval Analytics Committee One of the Early Warning Resilient lowest NPA & Problem Asset Quality Outcomes Ratios Solving Asset Quality Trends Robust Asset Quality Maintained 2.50% 95.0% Prudent R
Slide 12: Sectoral Exposure Mix
Sectoral Exposure Mix Social & Commercial Infrastructure Agri and Allied Beverages Roadways 2.5% 1.2% 0.4% 1.4% Technology/ITES Vehicles, Aviation Paper & Paper Products Petroleum, Coal and 0.9% Parts & Cement Telecommunication Equipments (Airports) 0.4% Other Fuels Rubber & 1.3% 2.6% 0.7% 2.4% Plas
Slide 13: Stable Risk Profile
Stable Risk Profile Rating Profile 22.0% 21.3% 21.0% Overall Corporate portfolio 13.4% 15.1% 13.3% continues to be well rated with >75% portfolio rated ‘A’ or better 42.8% 42.8% 43.0% (Based on Internal Corporate rating models mapped to external ratings) 19.0% 2.8% 18.3% 2.4% 20.3% and well distribu
Slide 14: Asset Quality remains Stable
Asset Quality remains Stable Q3FY19 S. No Particulars (%) Ex- Infrastructure Q2FY19 Q3FY18 Total Conglomerate 1 Credit Cost (bps) 29 5 18 18 2.10% 1.32% 2.1 GNPA 1.60% 1.72% (` 5,159 Crores) (` 3,246 Crores) 1.18% 0.59% 2.2 NNPA 0.84% 0.93% (` 2,876 Crores) (` 1,442 Crores) 2.3 PCR 44.2% 55.6% 47.8%
Slide 15: Asset Quality remains Stable
Asset Quality remains Stable Disclosure on Infrastructure and Financial Services Conglomerate exposure ` 1913 Crores Classified as ` 617 Crores continues to be NPA with 25% Provisioning Standard with 15% Provisioning 966 529 947 88 NIL NIL Roads Energy Maritime Others Ultimate Parent Financial Servi
Slide 16: Stable Capital Position supported by growth through Internal Accretion
Stable Capital Position supported by growth through Internal Accretion Tier I Ratio 9.7% 10.7% 9.9% 9.2% 10.9% 13.3% 13.8% 13.2% 14.7% 13.2% 12.8% 11.9% 12.0% ` Billion ` Billion 4000 B AT1– INR 400 54 Bn. 3500 QIP – US$ 350 750Mn. 3000 300 B AT1– INR 2500 250 30 Bn. 2000 200 1500 150 1000 100 500 5
Slide 17: YES Bank Profile
YES BANK PROFILE 16
Slide 18: Vision, Mission, Brand Ethos & Strategic Pillars
YES Bank – Vision, Mission, Brand Ethos & Strategic Pillars Vision: Building the Finest Quality Large Bank of the World in India Mission: To establish a high quality, customer centric, service driven, private Indian Bank catering to the ‘Future Businesses of India’ Brand Ethos: To be the Professiona
Slide 19: Large Bank Growth Phase: Strong Growth with increasing Granularity
Large Bank Growth Phase (FY16-20): Strong Growth with increasing Granularity ` Billion 2035 2007 4th Largest# Private Sector Bank with Total Assets in excess of ` 3.7 Trillion 1429 1323 One of the Fastest Growing Large Bank in India; 1117 982 912 CAGR (FY15-18): Advances: 39%; Deposits: 30% 75
Slide 20: Large Bank Growth Phase: Sustained Profit Delivery
Large Bank Growth Phase (FY16-20): Sustained Profit Delivery with Best in Class Return Ratios ` Billion Steady Growth in Income Streams Amongst the most Profitable Banks One of the lowest C/I ratios in the Industry; 52 • 40.5% as on Dec’18 (post adjusting for provisions write 42 back from invest
Slide 21: Seasoned Corporate Banker
Seasoned Corporate Banker: Capturing market share with lending to Better Rated Corporates ` Billion CAGR of 41% (FY15 to FY18) 195 Healthy Growth Delivery continued: 144 Strong growth across all Corporate Segments including IBU book 60 1460 Lending to better Rated Corporates resulting in 1237 im
Slide 22: MSME Financing: Banking MSME since Inception
MSME Financing: Banking MSME since Inception ` Billion MSME CAGR of 27% (FY15-18) Healthy Growth in MSME Advances with best in class Portfolio: 3 focused Relationship Groups: MEB (` 1,000- 5,000 Mn): CRM based acquisition through 250+ Sector 209 223 Specialists Relationship Managers. Avg. Ticket
Slide 23: Retail Assets: Rolling Momentum to drive growth
Retail Assets: Rolling Momentum to drive growth Strong Growth Momentum in Retail Assets: 400 ` Billion CAGR of 54% (FY15-18) 16.0% 350 15.2% 14.0% Retail Assets improved to 15.2% of Total Advances with a target to 10.8% reach 1,250 branches by 2020 12.2% 300 12.0% 9.1% 9.4% 250 10.0% Contributed
Slide 24: Building Relationships & Credibility as Long Term Consistent Player
Building Relationships & Credibility as - Long Term Consistent Player Acquisition Strategy Underwriting Portfolio Mix B2B2C Strategy – Alliances Cash Flow Healthy Traction in with Key Manufacturers to based Credit CV & CE book drive sales across the entire Underwriting given visible Value Chai
Slide 25: Debt Ratings Journey
Debt Ratings Journey Rating Upgrade Rating Upgrade: Rating Upgrade: CARE ICRA & CARE ICRA & CARE Upgraded to highest AAA rating for Basel III Tier LT II:AA, Basel III Tier II: AA+, II & Infra Bonds UT II:AA- INFRA BONDS:AA+ Upgraded to AA+ for ATI perpetual bonds, highest across all Banks Re-iterati
Slide 26: Commitment from Leading Global Financial Institutions
Commitment from Leading Global Financial Institutions USD 415 Mn for 12 yrs USD 50 Mn for 7 yrs To increase lending to MSME and Women Green infra Bonds- FMO’s 1st investment in a owned business Green Bond by a bank in India USD 325 Mn for 9 yrs (avg) USD 200 Mn for 7 yrs Upper Tier II, Long Term Sen
Slide 27: Sustainable & Responsible Banking Leadership
Sustainable & Responsible Banking Leadership VISION: Be the Benchmark Financial Institution for Inclusivity and Sustainability Environmental Social Governance Committed to mobilizing USD 5 billion Launched India’s 1st Green Retail First & only Indian Bank to be listed on DJSI towards climate action
Slide 28: Progress Widely Recognized By Leading Agencies
Progress Widely Recognized By Leading Agencies The Asset Global SME Triple A Country FORBES Finance Awards Awards GLOBAL 2000 Product Innovation of Best New Bond Global winner Ranked #1,013 Bank of the Best Bank in Institutional the Year Award India Payments Global 2000 Year India, India for SMEs Ex
Slide 29: Digital Banking
DIGITAL BANKING 28
Slide 30: YES Bank adopts A.R.T of Digital Banking
YES Bank adopts A.R.T of Digital Banking Customer Service Increase Operational Efficiency Be omnipresent Deepen Existing Relationships Identify new customers Explore new business lines Innovate with Frugal Technology Experiment with Future Technology A.R.T makes the bank SMART by giving bank the agi
Slide 31: Leader of New Age Payments
Leader of New Age Payments UPI IMPS Highest market share of 30% in UPI Merchant payments as 1st rank (as a Remitter Bank) in evaluated by NPCI peer banking group by NPCI 100 Mn+ UPI ID 72% YoY increase in transaction vol. NEFT & RTGS AePS Market share of 2.92% by vol. One of the leading Acquirer & 2
Slide 32: Industry First Solution for Customers
Industry First Solution for Customers 1st Indian bank to India’s first app to Industry first 1st Bank to offer offer API Banking offer single platform initiative to apply for paperless import & suite for CMS and for multiple banking a credit facility export online Supply Chain Finance needs
Slide 33: Banking as a Service
Mobility driven Solutions for Anywhere Banking Mobile app registrations have increased ~1.75x YoY Transactions increased ~1.75x by vol. and ~2.3x by val. YoY Financial trx. volume crossed ~35 lakh in Q3FY19 YES Mobile First chatbot enabled wallet BHIM YES PAY app is powered with India Stack 1 in 3 N
Slide 34: Leadership Team
LEADERSHIP TEAM 33
Slide 35: Distinguished Board
Distinguished Board Mr. Brahm Dutt Lt Gen (Dr.) Mukesh Dr. Pratima Sheorey Non Executive Part-Time Sabharwal (Retd.) Independent Director Chairman Independent Director Former Secretary, Ministry of Former Lt General in Indian Army Director of Symbiosis Centre Road Transport and Highways, for Managem
Slide 36: Human Capital Management
Human Capital Management Making YES BANK a Great Place to Work Flat Organization Structure (5 levels) `First and only Bank to partner with “Kaizala Full Digital Average Age ONLY – Customer & Colleagues self-service channel”, 119 46 Top powered by Microsoft. Leadership Training Initiatives by YES S
Slide 37: YES Bank's Subsidiaries
YES BANK’S SUBSIDIARIES 36
Slide 38: YES Securities
YES Securities Incorporated in March 2013 as a wholly-owned subsidiary of YES Bank Limited Member Broker (NSE & BSE) Category 1 – Merchant Banker Investment Advisor Research Analyst AMFI-registered Distributor Commodities Broker (in process) Wealth Broking & Investment Advisory Financi
Slide 39: YES Asset Management
YES Asset Management Operating Model Customer Segments and Funds Category Customer Segment Solution Lean Operating Model with Simple Mix of Schemes and optimizing of the Distribution network Liquid and Treasury Institutional Management Outsourced/ Right Source Model: To partner with Retail Debt /Equ
Slide 40: Annexures
ANNEXURES 39
Slide 41: Diversified Shareholding Base
0 Diversified Shareholding Base Well Diversified holding with healthy mix of Marquee FIIs & Shareholding Pattern as on December 31, 2018 DIIs such as T. Rowe Price Vanguard Others, 6% Vontobel Resident Jasmine Capital Individuals, 17% FII's, 36% Govt. Pension Fund Ward Ferry Insurance
Slide 42: Key Financial Parameters
Key Financial Parameters Profit & Loss Growth % Growth % ` Million Q3FY19 Q3FY18 Q2FY19 (y-o-y) (q-o-q) Net Interest Income 26,664 18,888 41.2% 24,176 10.3% Non Interest Income 8,909 14,223 -37.4% 14,735 -39.5% Total Net Income 35,573 33,111 7.4% 38,910 -8.6% Operating Expense 15,669 13,093 19.7% 15
Slide 43: Thank you
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statement
Slide 44: Key Financial Update (Q3FY19 & 9MFY19)
January 24, 2019 YES BANK – KEY FINANCIAL UPDATE (Q3FY19 & 9MFY19) Income and Profitability trend Growth Growth Growth (` in Millions) Q3FY19 Q3FY18 Q2FY19 9MFY19 9MFY18 (y-o-y ) (q-o-q) (y-o-y) Net Interest Income 26,664 18,888 41.2% 24,176 10.3% 73,031 55,828 30.8% Non-Interest Income 8,909 14,223