Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q3 FY2022 Earnings Presentation
35 slides from Equitas Small Finance Bank's earnings presentation, January 2022
Slide 1: Investor Presentation Q3FY22
Investor Presentation Q3FY22 BEYOND BANKING When you bank with us, you contribute towards a better society.
Slide 2: Disclaimer
Disclaimer Disclaimer: The information in this document, including facts and figures, is being provided by Equitas Small Finance Bank Limited (the “Bank”) for informational purposes only and could be subject to change without notice. The information has also not been independently verified. No repre
Slide 3: Table of Contents
Table of Contents 01 KEY HIGHLIGHTS PAGE 08 02 FINANCIAL PERFORMANCE PAGE 14 03 ADVANCES PAGE 18 04 LIABILITIES & BRANCH BANKING PAGE 23 05 DIGITAL BANKING PAGE 28 06 FINANCIALS PAGE 30
Slide 4: Journey of building a Stable, Sustainable and Scalable Bank
Journey of building a Stable, Sustainable and Scalable Bank 4
Slide 5: Diversifying across the informal segment
Diversifying across the informal segment 25,0 00 25. 00% 22.90% 23. 00% 21.80% 21.50% 19,687 20,0 00 17,925 18,978 21. 00% 19.70% 19.22% 18.90% 17,837 18.66% 18.13% 19. 00% 17.69% 17.75% 15,367 15,0 00 17. 00% 11,704 15. 00% 10,0 00 13. 00% 6,125 8,238 10.70% 7,176 10.10% 11. 00% 9.40% 9.11% 9.09% 9
Slide 6: Liability franchise evolution
Liability franchise evolution 2,729 3,323 4,311 4,135 4,682 5,097 4,726 5,176 5,222 4,769 5,056 4,672 6,395 4,909 3,996 3,127 1,799 712 8.05% 7,000 9.63% 8.14% 7.82% 9.12% 8.27% 8.18% 7.96% 8.76% 8.23% 6,767 7.96% 6,231 7.77% 7.56% 7.36% 7.27% 565 538 7.20% 5,869 6.97% 4,983 5,500 4,377 3,811 3,075
Slide 7: Key Highlights
Key Highlights 7
Slide 8: Quarterly Snapshot
Quarterly Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT: 17 States and UTs Rs. 19,687 Cr [Rs. 17,373 Cr] Rs. 17,884 Cr [Rs. 15,862 Cr] Rs. 108 Cr [Rs. 111 Cr] SBL- 45%, VF - 25%, MFI- 19%, MSE – 6%, NBFC – 4%, Others – 1% Third Party Products:
Slide 9: Advances and Liabilities Highlights
Advances: • Advances as of Q3FY22 was at Rs. 19,687 Cr, Advances growth of 13% YoY • 81% of advances is secured loans • Quarterly disbursement of Rs. 2,861 Cr in Q3FY22, as the Bank focused on collections in the month of October and November 2021 • Collection Efficiency for December 2021 across majo
Slide 10: Profit & Loss and Asset Quality Highlights
Profit & Loss: • Net Interest Income for Q3FY22 at Rs. 541 Cr as against Rs. 484 Cr in Q3FY21. NIM at 9.09% • Core Income (Net Income other than PSL Fees, Treasury & Others) at 87.62% • Pre Provisioning Operating Profit (PPoP) for Q3FY22 at Rs. 225 Cr as against Rs. 283 Cr in Q3FY21 • PPoP as a perc
Slide 11: DPD Bucket Movement and Collection Efficiency
31-90 DPD Bucket movement Collection Efficiency • 60-90 DPD Bucket is at 2.12% against 1.51% in September’21 Product Oct-21 Nov-21 Dec-21 • X Bucket improves to 82% against 80.5% in September ‘21 Micro Finance 100.21% 94.04% 96.29% Small Business 101.73% 97.40% 94.21% Loans Vehicle Finance 87.08% 86
Slide 12: Highlights
Highlights Key Ratios: • Cost to Income at 64.67% in Q3FY22 as compared to 66.27% in Q2FY22 and 54.07% in Q3FY21; after adjsuting digital expenses to corresponding digital income. • RoA and RoE for Q3FY22 at 1.70% and 12.27% respectively Capital: • As of December 31, 2021 Total CRAR at 21.91% Treasu
Slide 13: Financial Performance – Quarterly trends
Financial Performance – Quarterly trends 13
Slide 14: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.27% 7.20% 9.09% 8.48% 7.57% 7.87% 8.14% 1.84% 1.80% 1.70% 6.93% 6.81% 6.16% 6.45% 5.53% 5.36% 5.73% 6.47% 0.65% 0.19% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3
Slide 15: Income Evolution
Income Evolution Net income evolution (in Rs. Cr) 541 484 449 461 484 130 130 100 95 53 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 NII Other Income (Net) Other income contribution Other Income Break-up (Rs. Cr) 2.5 0% 2.0 0% 2.04% 2.10% 20% 21% 1.5 0% 1.55% 1.50% 1.0 0% 0.5 0% 0.85% 0.0 0% 59% Q3FY21 Q4FY21
Slide 16: Opex Evolution
Opex Evolution Rs Cr Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Employee expenses 205 204 222 228 240 Other expenses (Excl digital expenses) 110 112 115 144 152 Depreciation 19 19 20 19 19 Total Operating expenses 334 335 357 391 411 No. of employees 16,036 16,556 16,770 17,441 17,509 Opex evolution 13.50%
Slide 17: Advances
> equibas Advances
Slide 18: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book 887 , 217 , 4% 1% Rs Cr Q3FY21 Q3FY22 YoY Growth % 1,111 , 3,695 , 6% 19% Micro Finance 3,491 3,695 6% Small Business & Home Loans 7,496 8,919 19% 4,859 , 25% Vehicle Finance 4,275 4,846 13% MSE Finance 988 1,194 21% 8,919 , NBFC 898 817 -9% 45% Others † 225 216
Slide 19: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Micro Finance 3,491 3,236 3,128 3,438 3,695 Small Business and Home Loans 7,496 7,971 8,015 8,596 8,919 Small Business Loans 5,890 6,227 6,227 6,629 6,824 Housing Finance 834 959 1,017 1,175 1,310 Agri Loans 772 785 771 7
Slide 20: Product Segment & Disbursement Details
Product Segment & Disbursement Details ATS @ ATS @ PCR Product Segment Number of Live Loans GNPA (%) Disbursement (Lacs) Portfolio (Lacs) (%) Micro Finance 19.38L 0.32 0.19 6.05% 48.58% Small Business Loans (Incl. HF) 2.41L 6.04 3.71 3.51% 41.29% Vehicle Finance 1.53L 3.24 3.17 4.26% 36.95% MSE Fina
Slide 21: Asset Quality Trend
Asset Quality Trend 950 .00 4.58% 4.64% 5.0 0% 4.16% 4.39% 3.59% 850 .00 4.0 0% 750 .00 650 .00 2.29% 2.37% 2.38% 3.0 0% 550 .00 1.71% 1.52% 2.0 0% 450 .00 350 .00 459.42 1.0 0% 250 .00 0.0 0% 722.62 289.90 642.78 266.17 816.17 398.22 880.82 439.64 863.82 150 .00 50.0 0 -1.00% Q3FY21 Q4FY21 Q1FY22 Q
Slide 22: Liabilities & Branch Banking
Liabilities & Branch Banking 22
Slide 23: Customer Deposits Evolution
Customer Deposits Evolution Update for Q3Y22 CA SA CASA TD CASA+TD as on 31 December 2021 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 531 8,554 9,085 8,799 17,884 as a % of total borrowings (Rs. xx Cr) 2% 40% 42% 41% 83% as a % of total de
Slide 24: Customer Deposit Profile
Customer Deposit Profile Mass Affluent Customer* (Deposit in Rs. Cr) Savings Account Value Slabs Deposits by Category 5% 16% 2,839 22% 2,684 OTHERS 4% 2,279 16% 2,107 1,906 6,120 5,351 4,155 TRUSTS 5% 2,378 3,262 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 41% < 1L 1L to < 10L 10L to < 1Cr 1Cr to < 10Cr 10Cr
Slide 25: Funding Profile
Funding Profile As on 31 Dec 2021 In Rs Cr Sep 2021 Dec 2021 4.5% 1% TD 9,894 8,799 Refinance 2,980 2,635 12% TD CASA 8,200 9,085 41% CASA CD - - Refinance Sub-ordinated Debt Sub Debt 150 150 IBPC IBPC 700 968 42% RBI Borrowing - - Total Borrowings 21,924 21,637 Daily Average Cost of Funds 7.27% 7.2
Slide 26: Treasury
Treasury Investments The Bank’s total investment portfolio of Rs. 4,925 Crore comprises of SLR and Non-SLR securities as given below: Category (Rs. Cr) Book Value SLR 4,884 Non SLR 39 Total 4,923 During the quarter, the Bank participated in equity primary market. Profits realized in those equity IPO
Slide 27: Digital Banking
Digital Banking 27
Slide 28: Digital Banking Key Quarterly Highlights
Digital Banking Key Quarterly Highlights NeoBanking Prepaid Engagements • NiyoX Program: • 17 lakh+ cards issued (Physical + Virtual) o 10.35 lac Accounts Opened • 4.71 Crs+ Transactions o CASA Balance EoP – Rs. 316 Crs • 2,242 Crs+ transaction value processed o 670 Fixed Deposits valuing Rs. 8 Crs
Slide 29: Financials
> equibas Financials
Slide 30: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Dec-21 Dec-20 YoY % Sep-21 QoQ% Capital & Liabilities Capital 1,148 1,138 1% 1,145 0% Reserves & Surplus 2,435 2,143 14% 2,321 5% Networth 3,583 3,281 9% 3,466 3% Deposits 17,884 15,862 13% 18,094 -1% Borrowings 2,785 5,266 -47% 3,130 -11% Other Liabilities & Pro
Slide 31: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q3FY22 Q3FY21 YoY% Q2FY22 QoQ% 9MFY22 9MFY21 YoY% Interest Income from Loans 819 773 6% 767 7% 2328 2164 8% Income on Investments 64 60 6% 60 7% 180 161 12% Interest on balances with Reserve Bank of India and 18 24 -25% 17 4% 55 51 9% other inter bank f
Slide 32: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q3FY22 Q3FY21 YoY% Q2FY22 QoQ% 9MFY22 9MFY21 YoY% Net Income 675 638 6% 636 6% 1875 1589 18% Employee Cost 240 205 17% 228 6% 690 587 17% Opex 210 150 40% 209 0% 598 365 64% Total Operating Expenditure 450 355 27% 437 2% 1288 952 35% PBT before provisio
Slide 33: Financial Performance – Yearly trends
Financial Performance – Yearly trends 33
Slide 34: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 10.00% 9.52% 7.84% 8.33% 7.83% 1.60% 1.70% 6.96% 6.75% 1.45% 1.39% 8.36% 8.13% 7.97% 9.11% 7.34% 9.02% 8.55% 8.44% 0.30% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Credit Co
Slide 35: Thank You
Thank You Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu
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