Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q4 FY2022 Earnings Presentation
42 slides from Federal Bank Ltd. (india)'s earnings presentation, May 6, 2022
Slide 1: Secretarial Department cover letter to exchanges
Secretarial Department SD/ F24/22/2022-23 May 06,2022 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, Dalal St
Slide 2: Investor Information Q4 FY 2022
Investor Information ee Q4 FY 2022
Slide 3: Disclaimer
Disclaimer This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from th
Slide 4: Key Messages
Key Messages Profitability • Net Profit @ 541 Cr, grew by 13% YoY Credit Growth in Chosen Areas • Operating Profit for Q4 at 798 Cr, impacted by • Total Advances grew by 9% YoY RoA & RoE at the family pension cost and loss on revaluation of • CV/CE grew by 40% and Auto Loans grew by Security Receipt
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) RoA and RoE at the guided level, despite full absorption of family pension cost 12.20 11.62 11.93 10.73 3.27 3.16 1.03 9.03 3.23 3.15 3.20 1.02 1.02 0.92 0.76 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1539 1525 1479 648 1420 1418 478 492 484 465 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Fee Income 453 Net Profit 412 541 522 363 373 478 460 367 255 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q4 FY21 Q
Slide 7: Key Indicators
Key Indicators Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Book Value 80.77 82.60 83.52 86.05 88.75 (Per Share in ₹) Shareholder Value EPS 9.71 7.38 8.79 9.85 10.43 (annualized) CASA + Deposits <2 Cr 88% 91% 92% 92% 92% Granularity (% of Total Deposits) ROA 1.02 0.76 0.92 1.02 1.03 Profitability RoRWA 1
Slide 8: Asset Quality Trends
Asset Quality Trends Amt in Rs.Cr. Repayment behaviour of restructured book is better 2.92 2.86 2.84 2.62 2.61 than the forecast owing to 2.28 2.36 2.24 5194 5310 4998 improved collection 2.01 2.01 1.96 1.73 1.76 116 efficiency and quality of the 1.71 1.67 1.59 4328 139 69 1.28 book 1.14 1.00 1.08 1
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q3 FY22 Q4 FY22 Q4 Q1 Q2 Q3 Q4 TYPE Of which Of which FY21 FY22 FY22 FY22 FY22 Balance Balance Bonds Bonds Retail 301 127 85 95 86 STANDARD 3723 17 3536 17 Agri 89 157 98 103 147 Net NPA 459 102 427 100 TOTAL 4181 119 3963 117 BuB 73 169 49 84 68
Slide 10: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q3 FY22 Q4 FY22 Q4 FY22 8% A & above 79% 78% 3% 7% BBB 11% 11% 3% 11% 11% < BBB 3% 3% Q3 FY22 Others 7% 8% 79% Internal Rating of ‘others’ (Externally unrated C
Slide 11: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q3 FY22 Q4 FY22 5% Q4 FY22 5% 17% FBR1 5% 5% 33% 17% 32% FBR2/FBR3 17% 17% Q3 FY22 17% FBR4 17% 17% 17% 29% FBR5/FBR6 29% 28% 28% Staff 3% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance against 29
Slide 12: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances 6% 20% 15% 12% 7% 9% 44866 -> 47593 16041 -> 19238 12030 -> 13869 13190 -> 14806 48748 -> 52133 134877 -> 147639 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 15% 313 5% 10% bps 58370 -> 67121 33.81
Slide 13: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances 0% Advances 5% 4% 6% 3% 3% 45541 -> 47593 18431 -> 19238 13104 -> 13869 14339 -> 14806 52223 -> 52133 143638 -> 147639 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 4% 26 3% 4% bps 64343 -> 67121 36.68 -> 36
Slide 14: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Digital Migration Digital Transformation Future Readiness 88.17% SHARE OF DIGITAL TRANSACTION 169% YOY GROWTH IN UPI TRANSACTIONS 300+ API'S AVAILABLE IN OPEN BANKING %14.2K ‘CR WORTH MONTHLY MOBILE BANKING TRANSACTIONS 210+ RPA PROCESSES R
Slide 15: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 31 Pine Labs Ln meontweoe , PAYU tn oe Full stack for Neo Banks Eon PG Checkout Inter-bank payments using UPI GadLoane account NEO BANKS Lentra Gold Loan OPENING & Account Security (8 APIs) — Creation —/ DIGITAL CREDIT (9 APIs) 300+ API's E
Slide 16: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 15
Slide 17: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 16
Slide 18: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 17
Slide 19: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Branch vs Digital Transactions (In Lakhs) 120 89.00% 100 ° a 88.00% 80 ° 87.00% 60 86.00% 40 * 76.76 mner: 79.98 88.55 96.9 45.00% 20 13.16 8.39 11.42 11.69 13 94.00% o | — 7 — | 83.00% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 mm Transactions thr
Slide 20: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 19
Slide 21: Business Parameters
aheeeerataetieor Business Parameters 20
Slide 22: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio 36.16% 36.68% 36.94% Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 33.81% 34.81% 104086 99615 98598 97719 97265 67471 64725 62562 59336 58713 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 CA & SA CASA + Demand Dep Other Retail Dep 51381 53014 54510 47686 49996 Remittance Ma
Slide 23: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 10% 10% 55% 13% 35% 32% 45% Retail Wholesale Retail Agri BuB CoB CIB Yield on Advances 66562 66939 61939 60775 62702 8.04 7.92 Q3 FY22 74611 77076 80700 72938 72012 Q4 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 22
Slide 24: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Other 9812 12732 11582 10343 9892 24% 1746 59% 1809 1766 3583 1736 3840 4035 1751 4229 3603 8263 17% 7852 7783 7973 8453 20020 20124 20824 21685 20428 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Retail Agri BuB RETAIL BA
Slide 25: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio No of outstanding Accounts (in Lakhs) 17316 12.10 11.82 16378 11.62 15976 11.32 15816 15764 11.22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22 Tonnage 52.87 50.82 49.51 48.41 48.73 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22
Slide 26: Wholesale Banking
Wholesale Banking CoB Corporate (CIB) ₹ in Cr 22% 78% 52133 48851 52223 48748 47812 13190 12963 13851 14339 14806 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 WHOLESALE BANKING ➢ Onboarded 67 new clients in CIB and 87 new clients in CoB, across business groups, geographies and sectors during the quarter
Slide 27: Other Income: Distribution
Other Income : Distribution Other Income Distribution : Vertical Wise (In Cr) 1000 648 700 800 478 492 484 27 465 500 600 1 2 3 5 295 88 47 4 300 400 107 100 124 116 84 143 100 200 356 284 279 319 184 0 -100 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 Retail Wholesale Treasury Others Total Other Income
Slide 28: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Loan Processing Fee 97 53 96 104 105 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 226 161 227 258 280 Income 453 Net Profit on Forex 40 41 50 50 68 25% Transactions 363 Fee Income 363 255 373 412 453 Profit on s
Slide 29: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 29 3 1 21 27 Customers @ 23 8 12 Core BC led 2 Sales /Relationship 8 2 Channel Distribution 1 (Bank owned) 46 9 31 11 1 2 3 24 101 21 Direct Sales Agents /Connectors 12% 16% Q4 FY22 6 12% 16% 27 Q2 FY22 Q3 FY22 Q4 FY22 104 2 Q3 FY2
Slide 30: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Dec-21 Mar-22 Risk Weighted Assets Credit Risk 103462 107167 Market Risk 3747 3398 Operational Risk 11695 11695 Total RWA 118904 122260 Tier-1 Capital Funds 16073 17639 Tier-II Capital Funds 1014 1637 Total Capital Funds 17087 19276 CRAR 14.37% 15.77% Tier-I 1
Slide 31: Annexures
FEDERAL BANK Annexures 30
Slide 32: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q3 FY22 Q4 FY22 LIABILITIES Capital 420 421 Share Holding Pattern Reserves & Surplus 17832 18373 Deposits 175432 181701 Borrowings 8150 15393 30% Other Liabilities & Provisions 7043 5059 33% TOTAL 208876 220946 1% ASSETS Cash & Balance with RBI 9526 9999
Slide 33: Financials
Financials ₹ in Cr Q4 FY21 Q3 FY22 Q4 FY22 Q-o-Q Y-o-Y Interest Income 3366 3443 3483 1.2% 3.5% Interest Expenses 1946 1904 1958 2.9% 0.6% Net Interest Income 1420 1539 1525 -0.9% 7.4% Other Income 478 484 465 -4.0% -2.6% Operating Expense 1001 1109 1192 7.5% 19.1% Total Income 3844 3927 3948 0.5% 2
Slide 34: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance COAL/PETROLEUM/NUCLEAR FUEL 1.20% 31.03.2022 TRANSPORT VEHICLES & PARTS 1.42% CONTRACTORS 1.60% CHEMICALS 1.61% POWER GENERATION & TRANSMISSION 1.79% FOOD PRODUCTS 1.87% TEXTILES INCLUDING JUTE & COIR 1
Slide 35: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 73.30% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.89% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 36: External Ratings
External Ratings Fixed Deposit A1+ (Short term) Certificate of Deposit A1+ India Ratings IND AA Tier 2 (Capital) Bonds & Research CARE AA Pvt Ltd, CARE • Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 35
Slide 37: Thank You
Thank You AE A aA og
Slide 38: Press Release: Federal Bank delivers highest ever quarterly net profit
May 06, 2022 PRESS RELEASE Federal Bank delivers highest ever quarterly net profit at ₹ 541 Cr Federal Bank announced its audited financial results for the quarter and year ended 31st March 2022 today. Highlights • Net Profit @ ₹ 541 Cr, grew by 13% YoY • ROA for Q4 at 1.03% and ROE at 11.93% • CASA
Slide 39: Working Results at a Glance
Working Results at a Glance (₹ in Crore) Particulars Quarter Ended On Year Ended On 31-03-22 31-03-21 Growth % 31-03-22 31-03-21 Growth % Net Profit 540.54 477.81 13.13% 1889.82 1,590.30 18.83% Operating Profit 798.20 897.25 11.04% 3,757.85 3,800.69 01.13% Net Interest Income 1525.21 1,420.37 0
Slide 40: Capital Adequacy & Net worth
Capital Adequacy & Net worth The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel III guidelines, stood at 15.77% as on 31st March 2022, up by 115 bps YoY. The Net Worth of the Bank was at ₹ 18660. 98Cr as on 31st March 2022. Dividend The Board of directors at its meeting held today
Slide 41: Q4FY22 vs Q4FY21 Business Figures
Q4FY22 Vs Q4FY21 • Resident Savings Bank deposit registered a growth of 16.04% to reach ₹ 29,953.44 Cr • Total Deposits grew from ₹ 1,72,644.48 Cr to ₹ 1,81,700.57 Cr registering a growth of 5.25% • CASA recorded a growth of 14.99% to reach ₹ 67,121.21 Cr • NRE deposits reached ₹ 67,416.25 Cr from ₹
Slide 42: For further information, please contact
For further information, please contact: Mr. Venkatraman Venkateswaran Group President & CFO Tel: 04842634002, e-mail: venkatraman@federalbank.co.in Connect with us The Federal Bank Ltd. Registered Office: Federal Towers, P O Box No.103, Aluva, Kerala, India 683 101 E- mail: marketing@federalbank.co