Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q3 FY2023 Earnings Presentation
40 slides from Federal Bank Ltd. (india)'s earnings presentation, Jan 16, 2023
Slide 1: Intimation to stock exchanges on investor presentation
Secretarial Department SEC/263/2022-23 16.01.2023 The Manager The Manager The National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra-Kurla Complex, BSE Limited, Bandra (E), Mumbai - 400 051 Phiroze Jeejeebhoy Towers, Floor 25, Dalal Street, Mumbai- 400 001 R
Slide 2: Investor Information Q3 FY 2023
Investor Information ee Q3 FY 2023
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: All round strong operating performance helps deliver Highest Ever Quarterly Profits
All round strong operating performance helps deliver Highest Ever Quarterly Profits Profitability Strong Momentum in Credit Growth Highest Ever • Highest ever Operating Profit at 1274.21Cr, • SME book grew by 20% YoY ➢ NII grew 39% YoY • Retail book up by 18% YoY ➢ Core Fee Income • Highest ever Net
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 15.91 14.36 12.70 1.33 11.62 11.93 1.21 3.49 3.30 1.10 3.27 3.16 3.22 1.02 1.03 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Cost to Income Ratio 1.05 NNPA (%) PCR (%) 59.89 0.96 0.9
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1957 610 1762 534 1605 484 465 1539 1525 453 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Fee Income 540 543 Net Profit 804 453 441 704 412 601 522 541 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q
Slide 7: Key Indicators
Key Indicators Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Book Value 86.05 88.75 91.59 93.00 96.74 (Per Share in ₹) Shareholder Value EPS 9.85 10.43 11.46 13.26 15.09 (annualized) CASA + Deposits <2 Cr 92% 92% 92% 91% 88% Granularity (% of Total Deposits) ROA 1.02 1.03 1.10 1.21 1.33 Profitability RoRW
Slide 8: Asset Quality Trends
Asset Quality Trends 2.84 Amt in Rs. Cr. 2.62 2.61 Stressed Asset downtrend 2.28 2.24 116 2.48 2.01 2.01 139 1.96 69 2.22 continues. At 1.78% of 1.71 1.67 1.73 1.59 1.76 66 60 1.98 1.78 average total assets 1.28 1471 1.14 161 1502 1,393 0 1.00 1.08 1420 1262 1229 160 1593 775 545 411 394 315 286 479
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q2 FY23 Q3 FY23 Q3 Q4 Q1 Q2 Q3 TYPE Of which Of which FY22 FY22 FY23 FY23 FY23 Balance Balance Bonds Bonds Retail 95 86 204 123 181 STANDARD 3266 60 3040 60 Agri 102 147 89 98 66 Net NPA 626 81 695 81 TOTAL 3892 141 3735 141 BuB 81 68 107 77 55 S
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 Q2 FY23 Q3 FY23 Q3 FY23 9% A & above 79% 79% 3% 9% BBB 9% 9% 9% 3% < BBB 3% 3% 9% Q2 FY23 Others 9% 9% 79% Internal Rating of ‘others’ (Externally unrated Corpo
Slide 11: Asset Quality : Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q2 FY23 Q3 FY23 5% Q3 FY23 5% 18% FBR1 5% 5% 30% 17% 32% FBR2/FBR3 17% 18% Q2 FY23 17% FBR4 17% 17% 17% 29% FBR5/FBR6 29% 30% 30% 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 CVCE COB CIB Advances 18% 20% 18% 65% 18% 19% 45658 -> 53936 18421 -> 22050 12063 -> 14238 1114 -> 1841 14185 -> 16795 52198 -> 62183 CASA CASA Ratio NRE Deposits Total Deposits -244 Deposits 7% bps 5% 15% 64343 -> 68967 36.68 -> 34.24 65530
Slide 13: Comparison : Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB CVCE COB CIB Advances 3% 5% 5% 12% 3% 6% 52439 -> 53936 21091 -> 22050 13617 -> 14238 1642 -> 1841 16240 -> 16795 58929 -> 62183 CASA CASA Ratio NRE Deposits Total Deposits -217 Deposits 0.14% bps 2% 6% 68873 -> 68967 36.41 -> 34.24 67754 ->
Slide 14: Digital Migration
Digital Migration FEDERAL BANK 89% | %13.6K) %29.5K ‘CR WORTH MONTHLY| |CR WORTH MONTHLY MOBILE BANKING CORPORATE DIGITAL TRANSACTIONS PRODUCTS VOLUME SHARE OF DIGITAL TRANSACTION Digital Migration =|) 1189 9 ge | 18% | 260 || 80% | | curure oF viciTaL is 6a IN UPI RPA PROCESSES OPENED & TRANSACTION
Slide 15: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 3 Pine Labs mmm. = Jupifer cointab UPI PSP ckout turt/efin Full stack for Neo Banks EMI on PG Checkout Inter-bank k EMI on payments rupee! Checkout using UPI Digitalisation of insurance No tension instant NEO BANKS Gane Gold Loans ACCOUNT G
Slide 16: Major Initiatives
Major Initiatives Cross Border BBPS Launch of Digital Banking Unit In Salt Lake, Kolkata - inaugurated by Launched in Global Fintech Fest – First our Hon’ble Prime Minister via Bank to launch this service. Video Conference on 16th October 2022. This will facilitate NRIs to undertake utility, educa
Slide 17: Innovation and Growth through Partnerships: Co-Branded Credit Cards
Innovation and Growth through Partnerships Co-Branded Credit Cards 16
Slide 18: Innovation and Growth through Partnerships: Savings Accounts
Innovation and Growth through Partnerships Savings Accounts Launched X-sell of PL on Fi-Platform. 17
Slide 19: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships Strengthening the rural GDP (Savings, Payments and Loans) 18
Slide 20: Innovation and Growth through Partnerships: Digital Personal Loans
Innovation and Growth through Partnerships Digital Personal Loans Number of Accounts opened ❖ Bank is live with Paisa Bazaar for NTB personal Loans. ❖ Launched Cross Sell of Personal Loans on the Fi platform. Growth in PL Balance( Amount in Cr) ❖ The proposition is positioned for providing personal
Slide 21: Digital Migration
Digital Migration *MONTH WISE DATA 20
Slide 22: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 21
Slide 23: Business Parameters
aheeeerataetieor Business Parameters 22
Slide 24: Liability : Trends
Liability : Trends ₹ in Cr CASA Ratio 36.68% 36.94% 36.84% 36.41% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 34.24% 112363 107073 104594 104086 99615 69351 69238 67913 67471 64725 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CA & SA CASA + Demand Dep Other Retail Dep 53014 54510 56242 55803 55936 Remittance
Slide 25: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 1% 8% 10% 13% 54% 36% 32% 46% Retail Wholesale Retail Agri BuB CV/CE CoB CIB Yield on Advances 75169 78977 8.29 8.78 66744 70308 66383 Q2 FY23 84083 88789 92066 77256 80895 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 24
Slide 26: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri, BuB & CV/CE) Housing LAP Gold Auto Personal Other 6833 7064 5975 6124 1957 24% 5764 1751 1727 1832 59% 1746 4229 4448 4850 5129 4035 5260 4760 4526 5167 15% 4164 8263 8453 8762 9176 9573 2% 21685 22929 23644 24488 25454 Q3 FY22 Q4 FY22 Q1 FY23 Q2 F
Slide 27: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio Number of outstanding accounts (Lakh) 19299 19520 13.39 18469 13.18 17316 12.61 12.10 16378 11.82 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Tonnage 56.71 55.82 55.16 52.87 50.82 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY
Slide 28: Wholesale Banking
Wholesale Banking CoB Corporate (CIB) Credit Substitutes ₹ in Cr 4105 3439 2707 2350 2241 75% 20% 58929 62182 52198 52094 54960 5% 14185 14651 15349 16240 16795 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 WHOLESALE BANKING • Corporate Banking book grew by 21% YoY. • Fee income grew by 27% YoY. • Commerc
Slide 29: Other Income : Distribution
Other Income : Distribution Other Income Distribution : Vertical Wise (In Cr) 1000 610 700 800 534 484 465 453 2 500 600 1 2 5 0 80 6 47 4 25 117 118 300 400 116 100 100 200 410 409 100 319 356 327 0 -100 Q3 FY22 Q4 FY 22 Q1 FY 23 Q2 FY 23 Q3 FY 23 Retail Wholesale Treasury Others Total Other Income
Slide 30: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Fee Income (Y-o-Y) Loan Processing Fee 104 105 103 125 129 543 Exchange, Commission, 32% Brokerage& Other Fee 258 280 275 321 334 412 Income Net Profit on Forex 50 68 63 94 80 Transactions Fee Income 412 453 441 540 543 Q3 FY22
Slide 31: Select Segments : December 2022
Select Segments : December 2022 Select Segments MSME CV/CE Credit Cards Micro Finance Bank‘s select high yielding portfolio share in total advance grew to 20.5% in Dec’22 from 19.4% in Dec’21. Revenue share from these select segments increased to 18.2% from 16.6% as of Dec’21. MSME (BuB + CoB) regis
Slide 32: Distribution : Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 29 3 1 22 27 Customers @ 25 8 12 Core BC led 2 Sales /Relationship 8 2 Channel Distribution 1 (Bank owned) 52 9 32 13 1 2 3 24 101 26 Direct Sales Agents /Connectors 13% 17% Q3 FY23 6 13% 16% 31 Q1 FY23 Q2 FY23 Q3 FY23 110 3 Q2 FY2
Slide 33: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Q2 FY23 Q3 FY23 Risk Weighted Assets Credit Risk 121844 126668 Market Risk 4587 5219 Operational Risk 13136 13136 Total RWA 139567 145023 Tier-1 Capital Funds 17616 17590 Tier-II Capital Funds 1704 1775 Total Capital Funds 19320 19365 CRAR 13.84% 13.35% Tier-I
Slide 34: Annexures
FEDERAL BANK Annexures 33
Slide 35: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q2 FY23 Q3 FY23 LIABILITIES Capital 422 423 Share Holding Pattern Reserves & Surplus 19327 20165 Deposits 189146 201408 Borrowings 20413 19676 31% Other Liabilities & Provisions 7804 8801 32% TOTAL 237112 250472 ASSETS 8% Cash & Balance with RBI 12654 139
Slide 36: Financials
Financials ₹ in Cr Q3 FY22 Q2 FY23 Q3 FY23 Q-o-Q Y-o-Y Interest Income 3443 4021 4433 10.3% 28.8% Interest Expenses 1904 2259 2477 9.6% 30.1% Net Interest Income 1539 1762 1957 11.1% 27.1% Other Income 484 610 534 -12.4% 10.3% Operating Expense 1109 1159 1216 4.9% 9.7% Total Income 3927 4630 4967 7.
Slide 37: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance CONTRACTORS 1.27% ITEMS FOR CONSUMPTION/ PERSONAL/ 1.29% 31.12.2022 HOUSEHOLD USE COAL/PETROLEUM/NUCLEAR FUEL 1.50% CHEMICALS 1.73% BANKS 1.85% TEXTILES INCLUDING JUTE & COIR 2.07% FOOD PRODUCTS 2.25% R
Slide 38: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 73.22% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.79% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 39: 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. 38
Slide 40: Thank You
Thank You AE A aA og