State Bank Of India · NSE:SBIN
State Bank Of India — 9M FY2017 Earnings Presentation
36 slides from State Bank Of India's earnings presentation, Feb 10, 2017
Slide 1: Quarterly Results 9MFY17 Analyst Presentation
Quarterly Results 9MFY17 Analyst Presentation 10.02.2017
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking forward statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a va
Slide 3: Agenda
• Financial Performance • Business • Capital • Asset Quality • Digital • Associates & Subsidiaries • Balance Sheet 3
Slide 4: Sustained Operating Performance
Sustained Operating Performance Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Interest Income 43,926 40,644 8.07 1,28,126 1,21,057 5.84 Other Income 9,662 6,087 58.73 25,133 17,260 45.62 Total Income 53,588 46,731 14.67 1,53,259 1,38,317 10.80 Interest Expenses 29,174 26,947 8.26 84,337 79,2
Slide 5: Provisions and Net Result
Provisions and Net Result Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Operating Profit 12,543 9,598 30.69 34,821 29,066 19.80 Total Provisions 9,933 8,483 17.10 27,152 20,379 33.24 Loan Loss 7,245 7,645 -5.23 21,254 14,845 43.17 Standard Assets 1,364 175 2,211 1,162 90.23 Investment 100 26
Slide 6: Interest Income / Expenses
Interest Income / Expenses Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Interest on Loans 29,831 28,860 3.36 89,649 86,424 3.73 Interest on Resources 13,097 10,814 21.12 35,564 31,812 11.79 Other Interest income 997 970 2.78 2,913 2,821 3.26 Total Interest Income 43,926 40,644 8.07 1,28,126
Slide 7: Robust Growth in Non-Interest Income
Robust Growth in Non-Interest Non Income Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Fee Income 4,011 3,509 14.30 11,725 9,865 18.86 Profit/Loss on Sale of 3,969 1,235 221.29 8,983 3,602 149.42 Investments Forex Income 591 464 27.44 1,799 1,314 36.89 Dividend Income 0 1 295 81 Misc Income
Slide 8: Stable Fee Income
Stable Fee Income Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Fee Income 4,011 3,509 14.30 11,725 9,865 18.86 of which : 594 791 -24.84 1,577 1,764 -10.55 Loan Processing Charges Commission on Govt. 460 473 -2.65 1,545 1,509 2.36 Business Commission on LC/BG 863 808 6.82 2,296 2,303 -0.30
Slide 9: Investing in Our Future Growth
Investing in Our Future Growth Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Staff Expenses 7,137 6,123 16.57 20,247 18,171 11.42 Overheads 4,733 4,063 16.47 13,854 11,817 17.24 Operating Expenses 11,870 10,186 16.53 34,101 29,988 13.72 Cost to Income Ratio 49.48 50.78 -130 bps Past 12 Month
Slide 10: Containing Operating Expenses
Containing Operating Expenses Rs. In Crores Q3FY17 Q3FY16 YOY % 9MFY17 9MFY16 YOY % Staff Expenses 7,137 6,123 16.57 20,247 18,171 11.42 of which : Salary 5,483 4,924 11.35 15,879 14,294 11.09 Contribution for Employees 1,654 1,198 38.02 4,368 3,877 12.67 Overheads 4,733 4,063 16.47 13,854 11,817 17
Slide 11: Key Performance Indicators : Performance Ratios
Key Performance Indicators : Performance Ratios Yield & Costs (%) Net Interest Margin (%) YOA COF COD Domestic Whole Bank Foreign 10.33 10.32 10.12 10.00 3.29 3.32 3.22 3.27 3.09 3.05 3.03 6.44 9.55 6.39 9.54 2.99 3.01 2.96 9.46 2.93 2.83 6.34 2.80 2.78 6.31 6.35 6.30 6.26 1.30 1.33 1.34 1.29 1.37 1
Slide 12: Other Performance Ratios
Other Performance Ratios Earnings Per Share (Rs) Book Value per Share (Rs) 19.52 19.95 183.91 187.68 180.23 175.95 177.77 176.60 15.10 12.98 13.03 13.00 13.11 162.54 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 ROA (%) ROE (%) 0.72 0.73 0.55 12.30
Slide 13: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. In Crores Dec 16 Dec 15 YoY Growth (%) YoY Growth (%) Dec 16 Over Dec 15 Dec 15 Over Dec 14 Total Deposits 20,40,778 22.10* 16,71,416 10.68 Foreign Offices 89,053 -3.54 92,319 -0.03 Domestic 19,51,725 23.60 15,79,097 11.38 Market Share Domestic 1
Slide 14: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. In Crores Dec 16 Mar 16 Dec 15 YTD Gr % YOY Gr % Domestic Advances 12,11,628 12,42,683 11,62,794 -2.50 4.20 Commercial Paper (CP) 45,056 13,094 33,170 244.10 35.83 Corporate Bonds (CB) 48,542 41,152 41,240 17.96 17.71 Domestic Total 13,05,226 12,96,929 12,37,204 0.64
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. In Crores Dec 16 YoY Growth (%) Dec 16 Over Dec 15 Dec 15 Total Advances 14,97,164 4.81 14,28,495 Foreign Offices 2,85,536 7.46 2,65,702 Domestic 12,11,628 4.20 11,62,794 Market Share Domestic 16.21% -4 bps 16.25% Large Corporate 3,08,283 2.36 3,01,166 Mid Corporate 2,
Slide 16: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. In Crores Dec 16 Mar 16 Dec 15 Dec 16 % % YTD Gr YOY Gr Level % Share Level Level Share Share % % Infrastructure 2,07,394 17.12 2,07,522 16.70 2,01,426 17.32 -0.06 2.96 of which: Power 1,43,075 11.81 1,36,455 10.98 1,28,970 11.09 4.8
Slide 17: Improving Risk profile
Improving Risk profile In percentages 90 79 80 72 70 65 61 60 50 50 51 49 50 39 40 35 30 28 21 20 10 0 Dec 16 Dec 15 Dec 14 A and above - New loans Below A - New loans A and above stock Below A stock 79% of New Connections are PSUs or rated A & above 17
Slide 18: Strong Retail Franchise
Strong Retail Franchise Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 18.32% 19.98% 14.89% 105083 212600 44536 179683 37119 91463 Dec 15 Dec 16 Dec 15 Dec 16 Dec 15 Dec 16 Market 25.52% 25.94% 26.36% 26.60% Share Total P-Segment Dec 15 Dec 16 Dec 15 Dec 16 Dec 15 Dec 16 (%) (%) (%) (%) (
Slide 19: We Remain Well Capitalized
We Remain Well Capitalized 13.73% 13.94% 13.12% AT1 Tier I 12.45% CET1 3.08% 3.09% 3.20% 2.81% 0.68% 0.57% 0.11% 0.04% 10.65% 10.85% 9.92% 9.64% 9.97% 10.28% 9.81% 9.60% Dec 16 Sep 16 Mar 16 Dec 15 Major Contribution to Capital AT1 Capital raised in Q3FY17: Rs. 2,500 Cr; in 9MFY17 17: Rs.9,100 Cr
Slide 20: Asset Quality : Gross NPAs: Segment wise (1/3)
Asset Quality : Gross NPAs: Segment wise (1/3) Rs. In Crores Dec 16 Sep 16 Dec 15 Sector NPA Ratio% NPA Ratio% NPA Ratio% Large Corporate 26,946 8.70 23,249 7.41 8,121 2.64 Mid Corporate 44,674 20.82 44,739 20.77 30,710 14.33 SME 17,194 8.63 17,743 9.20 17,785 8.41 Agri 7,407 5.93 8,399 6.53 10,329
Slide 21: Asset Quality : Movement of NPAs (2/3)
Asset Quality : Movement of NPAs (2/3) Rs. In Crores 9MFY17 Q3FY17 Q2FY17 FY16 9MFY16 Q3FY16 Opening Level of Gross NPAs 98,173 1,05,783 1,01,541 56,725 56,725 56,834 Less :Recovery 3,994 1,003 1,344 4,389 2,761 659 Less: Up gradation 2,434 1,059 206 2,598 2,501 378 Less :Transfer to AUCA 16,579 5,9
Slide 22: Asset Quality : Impaired Assets (3/3)
Asset Quality : Impaired Assets (3/3) Rs. In Crores Dec 16 Sep 16 June 16 Dec 15 Sep 15 Gross Advances 14,97,164 14,81,832 14,63,690 14,28,495 13,70,701 Restructured Standard 34,628 36,570 36,551 48,597 53,452 Total Gross NPAs plus Restructured 1,42,800 1,42,353 1,38,092 1,21,389 1,10,286 Std. Gross
Slide 23: Watch List declines by 31% in Q3FY17
Watch List declines by 31% in Q3FY17 Major Slippages are from Watch List Sectoral Composition 34,776 Total Corporate Slippages 1181 Watch list Slippages 3396 Recovery in Watch list 25,951 4299 913 20,634 4748 3396 (73%) 17,992 2686 15,141 776 8657 3682 1906 4130 2952 10,069 (73%) 1933 7,341 12495 11
Slide 24: Strong Momentum in Digital Transactions (1/2)
Strong Momentum in Digital Transactions (1/2) In thousands In thousands Registrations Transactions 6,000 70 14,000 140 5,274 12,012 62 125 60 12,000 120 50 10,000 100 B 4,000 U 40 8,000 57 80 27 D 1,909 30 6,000 43 60 3,885 D 2,000 20 4,000 28 40 12 11 Y 804 2,000 1,323 1,717 20 368 350 10 850 - 0 -
Slide 25: Strong Momentum in Digital Transactions (2/2)
Strong Momentum in Digital Transactions (2/2) POS Machines Added and Merchants Acquired POS Monthly transactions (Rs cr) (in thousands) 100 89 70 36,071 60 80 60 50 60 40 40 32 30 20 16 24 20 9,878 6 7 10 4,209 5,917 0 12 0 2,678 4 6 Avg Apr 16 Oct-16 Nov-16 Dec-16 Apr- Dec 16 - Sep 16 Avg Apr 16 -
Slide 26: Dominant Player in the Digital Space
Dominant Player in the Digital Space Channel SBI Actuals Market Share (%) Number of Group ATMs 59,108 28.94 Group ATMs : Amt of Txns (Cr) 83,000 37.39 (During Sep 16) Number of Debit Cards (Cr) 21.22 29.15 Mobile Banking: Number of Txns (Cr) 1.88 25.98 (During Sep 16) Mobile Banking: Value of Txns (
Slide 27: Moving away from Cash to Digital
Moving away from Cash to Digital Share of Transactions (%) Dec 16 Sep 16 Dec 15 Internet 18.65 18.63 16.49 Banking POS 7.89 30 6.13 28 4.76 24 Mobile Banking 3.28 77 3.26 79 2.28 73 Kiosk 8.07 8.15 5.52 ATM / CDM 39.43 42.99 43.75 Branch 22.68 20.84 27.19 27
Slide 28: Social Media Leadership
Social Media Leadership SBI Online is India’s most and the world’s 5th most visited banking site Platform Status Rank Comments Highest number of likes across all 84.92 Lakhs 1 banks in the world YouTube Subscribers - 37K 30.69 Mio Views 1 YouTube Views - 346.85 Lakhs 3.72 Lakhs 1 Highest number of f
Slide 29: Financial Inclusion (1/2)
Financial Inclusion ….(1/2) Financial Inclusion Accounts ( No. in Crs) Transactions through BC Channel (No. in Crores) PMJDY Others 21.69 10.81 16.53 8.85 9.28 15.50 4.79 5.32 7.53 4.06 3.96 3.28 Dec 15 Mar 16 Dec 16 Out of PMJDY A/cs: 9MFY16 FY 16 9MFY17 Aadhar seeded A/cs Dec 15: 1.99 crs Dec 16:
Slide 30: Financial Inclusion (2/2)
Financial Inclusion ….(2/2) Average Balance (Rs.) Zero Bal. A/cs (%) F.I A/cs 69 PMJDY A/cs 1507 54 53 47 909 44 42 37 618 606 34 26 Mar 14 Mar 15 Mar 16 Dec 16 Mar 14 Mar 15 Mar 16 Dec 15 Dec 16 Financial Literacy Social Security Schemes Rural Self Employment Training Institute (Enrolment up to 31.
Slide 31: Subsidiaries (1/3): SBI Life
Subsidiaries (1/3) : SBI Life In crores Premium 3.54x Price to Embedded Value during the recent 3.9% 15,825 12,867 P/EV stake sale to Institutional Investors 5,528 7,107 5,263 2,298 FY 15 FY 16 Q3FY17 ‘Life Insurance Company of the Year’ and ‘Bancassurance Leader Life Insurance (Large New Business P
Slide 32: Subsidiaries (2/3): Others
Subsidiaries (2/3) : Others SBI Capital Markets Limited • Ranked No. 1 in FY16 in Offer For Sale deals by 9M 9M YoY (in number of issues FY15 FY16 FY16 FY17 %) • Ranks No. 1 in Asia Pacific Project Finance Financial Adviser by Dealogic • Ranked No. 3 (by number of issues) and 3rd (by PAT (Rs. Cr) 33
Slide 33: Subsidiaries (3/3): Others
Subsidiaries (3/3) : Others SBI CARDS • Consistent business performance leading to PBT of Rs. 9M 9M YoY FY15 FY16 440 Cr for 16-17 @ YOY Growth of 33%. FY16 FY17 (in %) • 4Mio + Cards base with Industry Ranking of 2nd in Card CIF market share, % 15.0% 14.8% 15.2% 14.9% # -30 bps base as on Oct’16 (i
Slide 34: Balance Sheet : SBI Solo
Balance Sheet : SBI Solo Rs. In Crores Liabilities Rs. In Crores Dec 16 Dec 15 YOY Growth (%) Capital 776 776 0.00 Reserves and Surplus 1,82,300 1,45,781 25.05 Deposits 20,40,778 16,71,416 22.10 Borrowings 2,61,304 2,75,824 -5.26 Other Liabilities & Provisions 1,00,546 1,10,635 -9.12 Total Liabiliti
Slide 35: Balance Sheet : SBI Consolidated
Balance Sheet : SBI Consolidated Rs. In Crores Liabilities Rs. In Crores YOY Growth Dec 16 Dec 15 (%) Capital 776 776 0.00 Reserves and Surplus 2,17,315 1,81,075 20.01 Minority Interest 6,976 6,170 13.06 Deposits 26,17,495 21,72,261 20.50 Borrowings 2,87,606 3,12,083 -7.84 Other Liabilities & Provis
Slide 36: Thank You
Thank You 36
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