IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q3 FY18 Earnings Presentation
34 slides from IndusInd Bank's earnings presentation, Jan 11, 2018
Slide 1: Exchange filing cover letter for investor presentation
CIN: LESIOIPNISS4PLOoTEeDS Indusind Bank January 12, 2018 The Asst. Vice President The Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5" Floor 1° Floor, New Trading Ring Plot No. C/1, G Block Rotunda Building, P.
Slide 2: Investor Presentation
Investor Presentation January 11, 2018
Slide 3: Q3 – FY18 Performance Highlights
Key performance indicators remained stable Q3 – FY18 Performance Highlights NII up 20% ; Core Fee growth at 22 % YoY YoY PAT growth up by 25 % NIM remained steady at 3.99%; ROA up 6 bps sequentially to 1.96% Deposit and CASA growth above industry 23% and 42% YoY respectively Credit growt
Slide 4: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome Q3-FY18 Outcome Loan Growth 25% - 30% 25% CASA Ratio 40% 43% Revenue Exceed Balance Resulting in 19% Growth Sheet Growth RoRWA > 2.4% 2.37% Branch 2,000 1320 Network Customer Base Double to >20mn On track 3
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 1.88% 1.86% 1.90% 1.96% 16.96% 1.74% 4.00% 4.00% 4.00% 4.00% 3.99% 16.17% 16.48% 15.72% 15.12% Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 *on average equity Cost / Income
Slide 6: Ratings
Ratings CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND A1+ for Shor
Slide 7: Financial Performance
Financial Performance 6 IndusiInd Bank
Slide 8: Steady Headline Numbers for Q3-FY18
Steady Headline Numbers for Q3-FY18 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 1,895 crs 20% 4% Income Fee Income Rs 1,187 crs 17% - Revenue Rs 3,082 crs 19% 2% Operating Profit Rs 1,665 crs 22% 2% Net Profit Rs 936 crs 25% 6% 7
Slide 9: Steady Headline Numbers for 9M-FY18
Steady Headline Numbers for 9M-FY18 Y-o-Y Growth Net Interest Rs 5,490 crs 25% Income Fee Income Rs 3,542 crs 20% Revenue Rs 9,031 crs 23% Operating Profit Rs 4,887 crs 26% Net Profit Rs 2,653 crs 25% 8
Slide 10: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 1,28,542 crs 25% 4% Corporate Rs 75,418 crs 26% 2% Advances Consumer Finance Rs 53,124 crs 24% 7% Advances Deposits Rs 1,46,086 crs 23% 3% CASA Rs 62,616 crs 42% 5% SA Rs 42,246 crs 68% 5% Borrowings Rs 23,367 crs 15% (1%) 9
Slide 11: Balance Sheet
Balance Sheet (Rs Crs) * Q3FY18 Q3FY17 Y-o-Y (%) Q2FY18 Q-o-Q (%) Capital & Liabilities Capital 600 597 1% 599 - Reserves and Surplus 22,340 19,286 16% 21,373 5% Deposits 1,46,086 1,19,218 23% 1,41,441 3% Borrowings 23,367 20,303 15% 23,558 (1%) Other Liabilities and Provisions 8,309
Slide 12: Profit and Loss Account – Q3FY18
Profit and Loss Account – Q3FY18 (Rs Crs) Q3FY18 Q3FY17 Y-o-Y (%) Q2FY18 Q-o-Q (%) Net Interest Income 1,895 1,578 20% 1,821 4% Other Income 1,187 1,017 17% 1,188 - Total Income 3,082 2,595 19% 3,009 2% Operating Expenses 1,417 1,232 15% 1,375 3% Operating Profit 1,665 1,363 22% 1,
Slide 13: Profit and Loss Account – 9M FY18
Profit and Loss Account – 9M FY18 (Rs Crs) 9M-FY18 9M-FY17 Y-o-Y (%) Net Interest Income 5,490 4,395 25% Other Income 3,542 2,960 20% Total Income 9,032 7,355 23% Operating Expenses 4,145 3,477 19% Operating Profit 4,887 3,878 26% Provisions & Contingencies 840 661 27% Profit before Tax
Slide 14: Key Financial Indicators
Key Financial Indicators Q3FY18 Q3FY17 Q2FY18 Return on Assets 1.96% 1.88% 1.90% ROE (On average equity) 16.96% 15.72% 16.48% Cost / Income Ratio 45.98% 47.47% 45.70% Net Interest Margin 3.99% 4.00% 4.00% Net NPA 0.46% 0.39% 0.44% EPS (annualized, Rs. per share) 62.48 50.28 58.80 Capital + Reserves
Slide 15: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 123,181 128,542 128,542 113081 88419 59% 52% 68788 60% 60% 55102 59% 59% 55% 41% 48% 40% 40% 41% 41% 45% FY14 FY15 FY16 FY17 Sep-17 Dec-17 Dec-17 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) Small (Rs c
Slide 16: Diversified Corporate Loan Book
Diversified Corporate Loan Book Gems and Jewellery 5.39% Power Generation 3.36% Lease Rental 3.10% Real Estate 3.02% Services 2.07% Microfinance 2.04% Steel 1.90% Constn related to infra.- EPC 1.42% Food Beverages and Food processing 1.39% Contract Construction-Civil 1.37% Telecom- Cellular 1.18% Po
Slide 17: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P E 22% R C E 20% Investment Grade Sub Investment Grade N T 18% O 16% F Unsecured Non Fund Based % R 14% A Secured Non Fund Based % T 12% Unsecured Fund Based % E Secured Fund Based % D 10% P 8% O R T 6% F O 4% L I 2% O 0% IB1 IB2+ IB2 IB2- IB3+ IB3 IB3- IB4+ IB4 I
Slide 18: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick 70,000 50% Expanding branch network 42.3% 42.9% 60,000 44% Focus on target market segments 36.5% 37.1% 36.9% 37.8% 50,000 38% 62,616 Government business 40,000 59,776 33% 50,501 Capital market flows 30,000 46,646 27% 41,034 44,162 K
Slide 19: Other Income
Other Income (Rs Crs) Q3FY18 Q3FY17 Y-o-Y (%) Q2FY18 Q-o-Q (%) Core Fee 1,077 885 22% 1013 6% Securities/MM/FX 110 132 (17%) 175 (37%) Trading/Others Total 1,187 1,017 17% 1,188 - 18
Slide 20: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q3FY18 Q3FY17 Y-o-Y(%) Q2FY18 Q-o-Q(%) Trade and Remittances 127 106 20% 128 (1%) Foreign Exchange Income 202 179 13% 183 10% Distribution Fees 256 181 41% 237 8% (Insurance, MF, Cards) General Banking Fees 70 64 9% 65 8% Loan Processing
Slide 21: Yield / Cost Movement
Yield / Cost Movement 11.04% 11.27% Yield on Assets 9.02% 9.13% Yield on Advances 5.93% 5.90% Cost of Deposits 5.03% 5.13% Cost of Funds Q3FY18 Q2FY18 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q3FY18 Q2FY18 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 22: Credit Cost
Credit Cost (Rs crs) FY15 FY16 FY17 Q1FY18 Q2FY18 Q3FY18 9MFY18 Corporate Bank 144 258 401 107 140 74 321 Consumer Finance 195 244 303 103 82 113 298 Gross Credit Costs 339 502 704 210 222 187 619 Gross Credit Costs 49 57 62 18 18 15 48 (Basis Points on Advances) Net Credit Cost 323 468 672 198 214
Slide 23: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q3FY18 Q2FY18 Corporate Consumer Total Corporate Consumer Total Opening Balance 823 523 1,346 682 590 1,272 Additions 142 266 408 285 213 498 Deductions 51 204 255 144 280 424 Gross NPA 914 585 1,499* 823 523 1,346* Net NPA 592 537
Slide 24: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs crs) Com. Const. Small LAP/HL/ Q3-FY18 Utility TW Cars Tractor Cards Total Vehicle Equip. CV PL Gross NPA 168 34 53 30 135 33 64 29 39 585 Gross NPA % 0.93% 1.25% 1.06% 1.22% 3.78% 0.62% 0.56% 1.15% 1.65% 1.10% Com. Const. Small LAP/HL/ Q2-FY18 Utility TW Cars
Slide 25: CRAR
CRAR (Rs Crs) 31 Dec 17 30 Sept 17 Basel – III Basel – III Credit Risk, CVA and UFCE 1,34,957 1,32,915 Market Risk 9,603 8,314 Operational Risk 14,824 14,824 Total Risk Weighted Assets 1,59,384 1,56,053 Core Equity Tier 1 Capital Funds 22,423 21,554 Additional Tier 1 Capital Funds 2,000 2,000 Tier 2
Slide 26: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Mar 31, June 30, Sept. 30, Dec. 31, Particulars 2017 2017 2017 2017 Branch 1,200 1,210 1,250 1,320* Network ATMs 2,036 2,090 2,146 2,162 *includes 162 specialized branches Note: Numbers given above are total • Branch/Re
Slide 27: Shareholding Pattern
Shareholding Pattern December 31, 2017 NRIs/ Director/ Others, 2.06% GDR issue, 10.79% Promoters, Individuals, 6.62% 14.98% MFs / Banks/ Private Insurance Co, Corporates, 11.53% 9.47% *FIIs, 44.55% *includes FPIs 26
Slide 28: Accolades
Accolades wy IndusiInd Bank
Slide 29: Accolades
Accolades IT Excellence Awards 2017, by VMWare Innovative Company Award 28
Slide 30: Accolades
Accolades Infosys Finacle Client Innovation Awards 2017 1) For API Based Innovation 2) For Development of Innovative Custom Component 29
Slide 31: Accolades
Accolades CMO ASIA Retail Excellence Awards 2017, Singapore Retailer of the Year (BFSI) Award for IndusForex.com 30
Slide 32: Accolades
Accolades CSR JOURNAL THE EXCELLENCE AWARD 2017 Excellence Award 2017 in the 'Sports' category for the Para Champions Programme', in association with GoSports Foundation 31
Slide 33: Thank you
Thank you “2 IndusiInd Bank
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No in