National Development Bank Plc · CSELK:NDB.N0000

National Development Bank — FY2020 Earnings Presentation

22 slides from National Development Bank's earnings presentation, Feb 19, 2021

  1. Slide 1: Earnings Call FY 2020

    Earnings Call FY 2020 National Development Bank PLC NDB.N0000 19 February 2021 10.00 am Colombo – Sri Lanka National Long Term Rating: A+(lka) Stable Outlook by Fitch Ratings Lanka Limited

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This document has been prepared by National Development Bank PLC [“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 disclos

  3. Slide 3: Corporate Participants

    Corporate Participants PRESENTED BY Dimantha Seneviratne Director/ Group Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Branch Network Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Vice President – Finance Niran Mahawatte – V

  4. Slide 4: Agenda

    AGENDA Part I – CORPORATE PROFILE PART II - OPERATING ENVIRONMENT OUTLOOK PART III – NDB FINANCIAL PERFORMANCE – FY 2020 PART IV –COVID-19 AND NDB’S RESPONSE PART V – OVERALL PERFORMANCE PART VI – WAY FORWARD PART VII – Q&A

  5. Slide 5: Part I – Corporate Profile

    PART I – CORPORATE PROFILE • Over forty years of banking supremacy since 1979 • Fourth largest listed commercial bank in Sri Lanka • Credit rating of A+ LKA with a Stable Outlook by Fitch Ratings Lanka Limited • Over 3,000 NDBers • 113 branches and a strong digital banking platform • Only financial

  6. Slide 6: Corporate Profile – Shareholder Milestones

    Corporate Profile PROFILE PART I – CORPORATE Contd. – SHAREHOLDER MILESTONES 1979 2001 2019 National Development Bank of NDBSL incorporated a In 2019 NDB crossed the LKR Sri Lanka established under commercial bank under the 500bn mark in total asset Act No. 2. of 1979 of Companies Act No. 17 of 1982

  7. Slide 7: Part II – Operating Environment Outlook

    PART II - OPERATING ENVIRONMENT OUTLOOK Easing monetary policy by the Central Bank of Sri Lanka in stimulating economic activities during 2020 • Policy rates reduced by 250 bps (in addition to 100 bps in 2019) Bank SDFR SLFR SRR • SRR reduced by 300 bps (in addition to 100 bps in 2019) Rate 4.5% 5.5

  8. Slide 8: FY2020 Financial Performance Highlights

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 • Total assets • Operating income • NIM 3.1% (2019: LKR 627 Bn - 18% LKR 25 Bn – up by 3.5%) growth (2019: LKR 7% • ROE 13.13% (2019: 530 Bn) • Total operating 13.73%) Income Statement • Gross Loans expenses – LKR • ROA 1.6% (2019: LKR 444 Bn – 8% 9.4 B

  9. Slide 9: Income Statement – Fund Based Income

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Income Statement – Fund Based Income LKR Mn FY 2020 FY 2019 Variance % Highlight: Interest Income 53,004 53,175 (171) (0.3) Dip in NIM by 46 bps vs. Interest Expense 35,255 35,467 (212) (0.6) 2019 Net interest income 17,748 17,708 41 0.2 Movement in Mar

  10. Slide 10: Income Statement – Non-Fund Based Income

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Income Statement – Non - Fund Based Income LKR Mn FY 2020 FY 2019 Variance % Net fee and commission income 4,250 3,909 341 9 Other non-fund based income 3,404 2,029 1,374 68 Total non-fund based income 7,654 5,939 1,695 29 Fund to Non-fund Based* Income

  11. Slide 11: Income Statement – Impairment

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Income Statement – Impairment LKR Mn FY 2020 FY 2019 Variance % Individual Impairment 3,841 2,722 1,119 41 NPL Collective Impairment 2,391 1,124 1,266 113 2020: 5.35% Other 565 312 253 81 2019: 4.77% Total impairment charges 6,796 4,158 2,639 63 NPL Rat

  12. Slide 12: Income Statement – Operating Expenses

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Income Statement – Operating Expenses Cost composition % LKR Mn FY 2020 FY 2019 % FY 2020 FY 2019 Highlight: Personnel expenses 5,172 4,958 4 55 53 CIR - 37% Depreciation & amortization 819 761 8 9 8 (2019: 40%) Other expenses 3,409 3,716 (8) 36 39 Tota

  13. Slide 13: Income Statement – Taxation & Profitability

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Income Statement – Taxation & Profitability Effective Tax Rate Taxation - LKR Mn FY 2020 FY 2019 % VAT on Financial services 1,819 1,838 (1) 49 NBT on Financial services - 231 (100) % 42 42 Debt repayment Levy - 1,003 (100) 41 40 Income tax 1,857 1,871

  14. Slide 14: Balance Sheet

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Balance Sheet LKR Bn FY 2020 FY 2019 YoY Quantum growth YOY % growth Total assets 627 530 97 18 Enhanced indicators Investments 159 95 63 66  ADR – 90% Gross loans 444 409 34 8  CASA – 25% Total deposits 490 405 85 21 Borrowings 80 72 8 11 Total equit

  15. Slide 15: Balance Sheet Indicators – 4 Year CAGR

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Balance Sheet Indicators – 4 year CAGR Customer Deposits 25% Gross Loans and Receivables 17% Total Assets 17% Equity 16% 4 year CAGR • Consistent and solid growth maintained over the years • Enabled the Bank to become the 4th largest listed commercial b

  16. Slide 16: Capital & Liquidity

    PART III – NDB FINANCIAL PERFORMANCE – FY 2020 Capital & Liquidity BASEL III – FY 2020 Bank Group Common Equity Tier 1 Capital Ratio % [Minimum Requirement -6.5%] 9.17% 9.73% Tier 1 Capital Ratio % [Minimum Requirement – 8.0%] 9.17% 9.73% Total Capital Ratio % [Minimum Requirement – 12.0%] 14.32% 14

  17. Slide 17: Part IV – Covid-19 and NDB's Response: Banking Services

    PART IV – COVID-19 AND NDB’S RESPONSE Offering banking services at customer convenience and safety  Digital financial services functional in full force to ensure access to safe banking 80% of the transactions via digital modes  3 mobile ATM trucks deployed across the country during the peak of the

  18. Slide 18: Covid-19 Response: Support to Affected Customers

    PART IV – COVID-19 AND NDB’S RESPONSE Support extended to affected customers  Extension of financial assistance through Government refinancing scheme – Saubhagya COVID-19 Renaissance Loan Facility - Over LKR 18 Bn approved - the fourth highest amount approved by a bank in the country  Close to 30%

  19. Slide 19: Part V – Overall Performance

    PART V – OVERALL PERFORMANCE • A year marked by many challenges • NDB continued an equilibrium in performance without compromising on any aspect • Value generated to all stakeholders alike – Sound financial results to shareholders – Customer-centric solutions – Considerable strides made in digital s

  20. Slide 20: Part VI – Way Forward

    PART VI – WAY FORWARD Mid-Tem Strategy Voyage guiding the NDB Group 2025 towards “The Banking Group of Choice” Committed to Customer- support national centric economic solutions prosperity Continued Digital innovation for drive industry leader initiatives

  21. Slide 21: Part VII – Q&A

    PART VII – Q&A Please use the chat option in the MS Teams window to pose your questions to the GCEO and Panel.

  22. Slide 22: NDB Investor Relations

    Analysts Support  Clearly defined Quarterly Results Calendar released at the end of each quarter  Webinar transcripts hosted to the NDB NDB Investor Relations Corporate website/ IR page in playback video and written transcript forms  Dedicated communication channels made available for any queries

National Development Bank — FY2020 Earnings Presentation on 6ix