National Development Bank PLC · CSELK:NDB.N0000
National Development Bank — Q1 2016 Earnings Presentation
22 slides from National Development Bank's earnings presentation, 2016
Slide 1: Investor Update 1Q 2016
YZNDB bank Our Commitment. Your Suc YOURS Investor Update 1Q 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This document has been prepared by National Development Bank (“NDB”, “Bank” or the “Group”) solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclosed i
Slide 3: Agenda
Agenda Overview of NDB Group Macro Economic Overview Awards & Accolades Financial Performance
Slide 4: Overview
Overview 58.7% 99.9% 99.9% 77.8% 99.9% 99.9% 60.0% Vision Mission Values “The driving force for a To be the catalyst in the Integrity financially empowered financial services industry by Sri Lanka” creating superior shareholder Accountability value and contributing to the national development throug
Slide 5: Brief History – Milestones
Brief History – Milestones 1995 2015 Setting up of NDB 2005 Establishment of NDB Stockbrokers 1999 2011 Zephyr Partners Ltd. 1979 (NDBZ) in 2014; jointly & NDB The merger of NDB Partners Zurich owned by NDB Capital Venture Bank and National Establishment of Formation of Insurance in Holdings PLC and
Slide 6: Macro Economic Overview
Macro Economic Overview Highlights Interest Rates 11.00 • Since end 2015, CBSL tighten the monetary policy to AWPLR AWDR negate excessive demand pressures on inflation, credit SLFR SDFR and money expansion 9.00 • Overall BOP position remains vulnerable given the poor performance at the export front
Slide 7: Operational Excellence Strategy
Operational Excellence Strategy Strong Sales Culture Higher Fee Income Profitable Balance Sheet Growth Cost Optimization Strong Corporate Governance ,Compliance , Risk Management & CSR Best In Class Engaged and Inspired Team
Slide 8: Key Focus Areas – 1Q Update
Key Focus Areas – 1Q Update Fee : NII Cost : Income 35% 58% 30% 56% 25% 54% 52% 20% 50% 15% 48% Average CASA Growth of a Branch in 2015 100 > 6 Yrs 90 80 70 < 2 Yrs 60 LKR Mn 50 40 >4 Yrs & <6 Yrs >2 Yrs & <4 Yrs 30 20 10 - 0 0.5 12 1.5 24 2.5 3 3.5 4 4.5 5 Vintage (Yrs)
Slide 9: External Recognitions
External Recognitions Global Finance - World's Best Banks Awards 2015 • BEST EMERGING MARKETS BANKS IN ASIA PACIFIC - Winner - Sri Lanka CFA Sri Lanka Capital Market Awards 2015 • Best Investor relations - Silver Award EUROMONEY Awards for Excellence 2015 • NDBIB - Best Investment Bank in Sri Lanka
Slide 10: Financial Performance
Financial Performance J
Slide 11: 1Q 2016 Performance - Summary
1Q 2016 Performance - Summary 1Q 2015 1Q 2016 YoY Change Operating Income 3,142 3,346 7% Profitability Operating Expenses (LKR Mn) 1,561 1,723 10% Profit for Shareholders 869 548 -37% Cost to Income Ratio 49.7% 51.5% Efficiency & Net Interest Margin Return 2.7% 2.6% Return on Average Equity 12.6% 7.
Slide 12: Income Statement
Income Statement LKR Mn Year – to - date Variance over 2015 2016 2015 % Net Interest Income 1,984 2,064 81 4 Operating Income 3,142 3,346 205 7 Impairment (64) 546 609 960 Operating Expenses 1,561 1,723 161 10 Operating Profit 1,644 1,078 (566) (34) Tax 801 508 (293) (37) PAS 869 548 (322) (37) Y-o-
Slide 13: Revenue Analysis
Revenue Analysis LKR Mn 1Q 2015 1Q 2016 % • Timely price changes and the upward trend in market rates helped realizing a 22% YoY growth in Interest Gross Income 6,320 7,555 20 Income • Fee & Commission income growth in Corporate and Interest Income 5,162 6,273 22 Retail & SME segments was commendabl
Slide 14: Expenses Analysis
Expenses Analysis LKR Mn 1Q 2015 1Q 2016 % • Interest expenses grew at a higher pace as a result of the revised monetary policy stance during the quarter Interest Expenses 3,178 4,208 32 • Impairment charges increased due to prudential Impairment (64) 546 960 measures taken by the bank, acknowledgin
Slide 15: Balance Sheet
Balance Sheet LKR Mn LKR Mn Dec-15 Mar-16 % Dec-15 Mar-16 % Cash & Cash Equivalents 20,002 23,201 16 Deposits 184,152 196,510 7 Investments 77,327 70,187 (9) Debt Securities & Borrowings 72,118 64,778 (10) Net Loans & Investments 209,666 215,679 3 Subordinated Term Debts 19,574 20,125 3 Fixed Assets
Slide 16: Loans & Advances
Loans & Advances Growth Trend YoY 23% 5 Yr CAGR : 26% • Gross Loan Book stood at LKR 221 Bn 54 56 • Grew by 3% from Dec-2015 42 45 LKR Bn 33 • Corporate Segment represent 37% of Loan book 28 167 159 73 23 compared to 42% in Mar-2015 138 136 108 49 19 91 2010 2011 2012 2013 2014 2015 1Q 1Q 2015 2016
Slide 17: Asset Quality
Asset Quality Gross NPL Ratio Impairment Allowance: % of Gross Loans 5.6% 3.8% NDB 3.3% 3.2% 3.1% 4.3% 4.3% 3.0% 4.2% 4.0% Industry 2.7% 3.2% 2.6% 3.0% 2.8% 2.8% 2.8% 2.7% 2.5% 2.5% 2.7% 2.6% 2.5% 2.5% 2.5% 2.4% NDB Peer Avg. 2013 2014 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 2013 2014 Mar-15 Jun-15 Sep-1
Slide 18: Customer Deposits
Customer Deposits Growth Trend Deposit Mix (Mar 2016) YoY 21% Current 9% 5 Yr CAGR : 25% 15% Savings 49 51 Time LKR Bn 45 37 30 79 28 147 133 76 6 118 115 100 55 5 76% 2010 2011 2012 2013 2014 2015 1Q 2015 1Q 2016 FCY LKR Healthy Liquidity Liquidity Coverage Ratio DBU FCBU Minimum Requirment 289% 22
Slide 19: Capital Adequacy
Capital Adequacy Capital Adequacy Trend Tier I Tier I + II 21.0% 25.0% 20.7% Minimum Requirement (Tier I+II) 17.6% 15.8% 20.0% 15.3% 15.2% 18.8% 12.9% 15.0% 14.9% 11.1% 14.2% 10.0% 10.8% 10.0% 5.0% 0.0% 2011 2012 2013 2014 2015 1Q 2016 RWA (LKR Bn) 116.1 135.1 163.2 208.6 245.3 249.8 Leverage 8.42x
Slide 20: Investor Ratios
Investor Ratios % 2014 1Q-2015 1H-2015 3Q-2015 2015 1Q-2016 EPS (LKR) 25.14 21.12 17.54 18.25 21.51 13.37 Book value per Share (LKR) 169.35 170.70 174.19 176.79 172.35 168.80 P/E (times) 9.95 11.74 14.84 12.18 9.02 14.51 Price to Book value (times) 1.48 1.45 1.49 1.26 1.13 1.00 Dividends Trend Share
Slide 21: Q&A
YA NDB bank Q&A
Slide 22: Investor Relations
Investor Relations Telephone : +94 112 448 448 (ext. 3838) Email : investor.relations@ndbbank.com Web : www.ndbbank.com
National Development Bank — Q1 2016 Earnings Presentation on 6ix