Fino Payments Bank Ltd. · NSE:FINOPB
Fino Payments Bank — Q2 FY2024 Earnings Presentation
35 slides from Fino Payments Bank's earnings presentation, Nov 1, 2023
Slide 1: Exchange filing cover letter
November 01, 2023 BSE Limited National Stock Exchange of India Limited P.J. Towers, Exchange Plaza, 5th Floor, Plot No. C/1, G Dalal Street, Block, Bandra - Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai - 400 051 (Scrip Code: 543386) (Symbol: FINOPB) Dear Sir/Madam, Sub: Investor Presentation un
Slide 2: Q2 and H1'24 Investor Presentation
Classification: Confidential Fikar Not Fino Matlab FINO PAYMENTS BANK Q2 and H1’24 Investor Presentation #HarDinFino… Scan to open bank account Classification: Confidential
Slide 3: Table of Contents
Classification: Confidential Table of Contents 1 Strategic Update 2 Financial Highlights 3 Fino 2.0 – Digital Update 4 Product Performance Classification: Confidential 2
Slide 4: Strategic Update
Classification: Confidential Strategic Update Scan to open bank account Classification: Confidential 3
Slide 5: Journey So Far
Classification: Confidential Journey So Far #HarDinFino… Classification: Confidential 4
Slide 6: Three Phases of our Business
Classification: Confidential Three Phases of our Business Phase I: Phase II: Phase III: Transaction Acquisition Monetization Build Distribution Network: Customer Base at ~ 9 million Fino 2.0+ : Simplified digital Merchant base to 15.1 Lakh solutions for customer friendly 95% YOY growth in re
Slide 7: Business Snapshot – Q2'24
Classification: Confidential Business Snapshot – Q2’24 Customer acquisition momentum Reached milestone of 1 Lakh Digital continues 7.5 L + new accounts Savings Accounts Renewal income growing with every Contributed 1.25%+ to the UPI passing quarter transaction ecosystem volume Higher margin Own Prod
Slide 8: Performance At a Glance
Classification: Confidential Performance At a Glance Q2’24 YoY H1’24 YoY Revenue ₹ 358.6 Cr 18% ₹ 706.9 Cr 19% PAT ₹ 19.5 Cr 42% ₹ 38.2 Cr 60% Digital Throughput ₹ 23k Cr 120% ₹ 41k Cr 108% Throughput ₹ 87k Cr 43% ₹ 162k Cr 34% #HarDinFino… Classification: Confidential 7
Slide 9: Q2'24 Key Business Highlights (YoY)
Classification: Confidential Q2’24 Key Business Highlights (YoY) Revenue EBITDA PAT RoE ₹ 358.6 Crs ₹ 46.2 Crs ₹ 19.5 Crs 13.7% 18.2% 51.4% 41.5% 251 bps Accounts Txn. Count Throughput Opened Deposits 52.0 Crs ₹ 86.6k Crs 7.7 Lakhs ₹ 1,226 Crs 82.2% 43.0% 1.5% 45.1% Capital Adequacy Ratio 77.9% #Har
Slide 10: H1'24 Key Business Highlights (YoY)
Classification: Confidential H1’24 Key Business Highlights (YoY) Revenue EBITDA PAT RoE ₹ 706.9 Crs ₹ 86.7 Crs ₹ 38.2 Crs 13.6% 19.3% 60.3% 59.9% 384 bps Accounts Txn. Count Throughput Opened Deposits 92.5 Crs ₹ 162.4k Crs 15.4 Lakhs ₹ 1,226 Crs 73.1% 33.8% 11.8% 45.1% Capital Adequacy Ratio 77.9% #
Slide 11: Investing in Technology
Classification: Confidential Investing in Technology Architecture & AI, ML & Risk and DIY Journey & Infrastructure Builder Tools Security Digitalization AI based 40% incremental Perimeter security Digital Savings technology capacity build up layering Account opening solutions on FRM and othe
Slide 12: Geographical Presence
Classification: Confidential Geographical Presence (in 000’s) 3.0 5.1 37.1 2.1 8.6 38.6 28.5 31.6 2.6 Merchants Branches & 263.5 (‘000) CSPs 106.6 220.6 5.3 Merchant/ Mix Count/ Mix 47.7 138.8 1,512/ 100% 135 / 100% 110.6 0.4 34.8 59.3 119.9 East 514 / 34% 33 / 24% 34.0 44.5 1.7 North 495 / 33% 75 /
Slide 13: Financial Highlights
Classification: Confidential Financial Highlights Scan to open bank account Classification: Confidential 12
Slide 14: Bank Level Profit & Loss
Classification: Confidential Bank Level Profit & Loss Particulars Q2’24 Q1’24 Q2’23 QoQ (%) YoY (%) H1’24 H1’23 YoY (%) (₹ Crs) Revenue 358.6 348.3 303.3 2.9% 18.2% 706.9 592.4 19.3% Product Cost 240.2 238.2 209.5 0.8% 14.7% 478.5 411.0 16.4% Net Revenue 118.3 110.1 93.8 7.5% 26.1% 228.4 181.4 25.9%
Slide 15: Financial Highlights – Revenue & EBITDA
Classification: Confidential Financial Highlights – Revenue & EBITDA Revenue (₹ Crs) 26% CAGR 358.6 29% CAGR 707.0 303.3 592.4 242.2 448.4 330.5 179.2 Q2'21 Q2'22 Q2'23 Q2'24 H1'21 H1'22 H1'23 H1'24 EBITDA (₹ Crs) 53% CAGR 46.2 54% CAGR 86.7 30.5 54.1 17.9 13.0 29.0 23.5 7.2% 7.4% 10.1% 12.9% 7.1% 6
Slide 16: Financial Highlights – PAT & Cost to Income
Classification: Confidential Financial Highlights – PAT & Cost to Income PAT (₹ Crs) 63% CAGR 19.5 82% CAGR 38.2 13.8 23.9 7.9 11.0 4.5 6.4 2.5% 3.3% 4.6% 5.4% 1.9% 2.5% 4.0% 5.4% Q2'21 Q2'22 Q2'23 Q2'24 H1'21 H1'22 H1'23 H1'24 Cost to Income (%) 35.0% (7%) 36.1% (9%) 30.3% 31.5% 27.6% 26.4% 26.6% 2
Slide 17: Transaction And Subscription & others
Classification: Confidential Revenue Mix Across Parameters QoQ 35% Open Banking Own Banking 65% Own and Open Banking 35% 33% 35% 31% Channel Q3’23 Q4’23 Q1’24 Q2’24 65% 67% 65% 69% Subscription & others 36% Transaction And 31% 34% 34% Q3’23 Q4’23 Q1’24 Q2’24 69% 66% 66% 64% Transaction Income 27%Sub
Slide 18: Product Revenue Mix
Classification: Confidential Product Revenue Mix ( in ₹ Crores) Q2’23 v/s Q2’24 H1’23 v/s H1’24 706.9 358.6 592.4 11%, 75.7 303.3 7%, 43.2 4%, 26.5 11%, 40.6 9%, 63.8 8%, 23.0 5%, 18.8 0%, 2.5 0%, 1.4 9%, 31.7 11%, 64.4 10%, 31.4 32%, 223.1 30%, 107.0 36%, 211.8 35%, 104.9 8%, 60.3 8%, 28.2 11%, 33.
Slide 19: Product Portfolio – Growth & Margins
Classification: Confidential Product Portfolio – Growth & Margins Q2’24 Revenue H1’24 Revenue Q2’24 H1’24 Product Drivers (₹ Crs); (₹ Crs); Margins Margins YoY Growth YoY Growth High growth high margin; 75.2 142.1 CASA customer ownership; path to 54% 54% 38% 49% annuity CMS High growth high margin 3
Slide 20: Overall PAT & ROE
Classification: Confidential Overall PAT & ROE Profit After Tax (₹ Crs) PAT for Q2’24 at ₹ 19.5 Cr 6.5 7.6 7.9 14.1 17.6 10.1 13.8 19.1 22.1 18.7 19.5 4.5 3.1 42% growth over Q2’23 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Return on Equity 20.7% 20.0% 18.7% 17.7%
Slide 21: Fino 2.0 Digital Update
Classification: Confidential Fino 2.0 Digital Update Scan to open bank account Classification: Confidential 20
Slide 22: Digital Journey
Classification: Confidential Digital Journey ~50k Digital accounts opened in Q2’24 ~37 Cr UPI transactions in Q2’24; Contributing 1.25% of overall UPI volumes 37k bill pay and recharge transactions in Sep’23 36.1 Lakhs Digitally active users in Q2’24 #HarDinFino… Classification: Confidential 21
Slide 23: Digital – Building Momentum
Classification: Confidential Digital – Building Momentum Quarterly Throughput Mix Trend (YoY) Digitally Active Customers Physical Digital Throughput (in cr) 9.5 Customers (in million) 42% 1,00 ,000 1,00 ,000 Active 86,568 40% 90,0 00 90,0 00 80,0 00 80,0 00 8.5 39% 39% 40% 27% 38% 70,0 00 70,0 00 60
Slide 24: Digital – Cash to UPI Transition
Classification: Confidential Digital – Cash to UPI Transition India Retail Payments Statistics* Fino’s Retail Payments Statistics Cash Withdrawal UPI 68% Cash Withdrawal UPI 66% 65% 63% 56% 62% 64% 59% 54% 52% 60% 56% 41% 36% 48% 46% 44% 34% 44% 38% 37% 35% 32% 40% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'2
Slide 25: Digital – Product Evolution
Classification: Confidential Digital – Product Evolution Introduction of Digital First savings account open Six new partners to Account Opening banking partner integrate our UPI stack More partners integrate with Revamp of FinoPay Introduction of UPI our UPI stack App Lite and Credit Car
Slide 26: Product Performance
Classification: Confidential Product Performance Scan to open bank account Classification: Confidential 25
Slide 27: CASA Momentum Continues
Classification: Confidential CASA Momentum Continues No. of CASA Accounts Average Deposits Accounts Opened per Day (in Lakhs) (₹ Crs) 70% CAGR 90.6 37% CAGR 8,341 56% CAGR 1,267 8,174 59.5 830 5,316 33.9 510 3,210 332 18.4 Q2'21 Q2'22 Q2'23 Q2'24 Q2'21 Q2'22 Q2'23 Q2'24 Q2'21 Q2'22 Q2'23 Q2'24 CASA
Slide 28: Customer Stickiness
Classification: Confidential Customer Stickiness Renewal Income (₹ Crs) Customer Average Balance (₹) 152% CAGR 30.3 14% CAGR 1,109 1,065 15.5 889 757 6.2 1.9 Q2'21 Q2'22 Q2'23 Q2'24 Q2'21 Q2'22 Q2'23 Q2'24 Debit Card Spends (₹ Crs) Debit Card Spends Per Transaction (₹) 87% CAGR 2,185 9% CAGR 2,874 3
Slide 29: CMS – High Margin Product
Classification: Confidential CMS – High Margin Product CMS Clients Throughput (₹ Crs) Avg. Revenue per Txn (₹) 189 149 78% CAGR 14,685 33% CAGR 161 116 10,464 110 85 63 67 5,389 2,622 Q2'21 Q2'22 Q2'23 Q2'24 Q2'21 Q2'22 Q2'23 Q2'24 Q2'21 Q2'22 Q2'23 Q2'24 Diversified clientele across BSFI, e- 36 Cli
Slide 30: CMS: Sector Diversification
Classification: Confidential CMS: Sector Diversification 19% 18% 15% 10% 5% 3% 2% 2% 6% 5% 3% Q2’22 Q2’23 Q2’24 92% 65% 55% Throughput ₹5,389 Cr ₹10,464 Cr ₹14,685 Cr NBFC & MFI E-com (Logistic) CRA Retail Banks Accelerated growth path helped by 14 states with Average monthly throughput aggressive p
Slide 31: AEPS
Classification: Confidential AEPS Revenue (₹ Crs) Take Rate 33.1 28.2 67.2 60.3 0.31 0.33 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 Throughput (₹ Crs) Average Ticket Size (₹) 10,732 21,945 8,445 18,664 2,592 2,598 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 Average Ticket Size increased marginally Decline in reve
Slide 32: Micro-ATM
Classification: Confidential Micro-ATM Revenue (₹ Crs) Take Rate 31.2 62.7 23.6 46.1 0.35 0.35 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 Throughput (₹ Crs) Average Ticket Size (₹) 4,329 9,609 3,575 3,495 3,179 7,118 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 Continue to be the one of the dominant players in the
Slide 33: Remittance
Classification: Confidential Remittance Revenue (₹ Crs) Take Rate 107.0 223.1 104.9 0.87 0.87 211.8 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 Throughput (₹ Crs) Average Ticket Size (₹) 12,302 25,746 2,720 12,099 24,444 2,554 Q2'23 Q2'24 H1'23 H1'24 Q2'23 Q2'24 One of the pioneers in the remittance industr
Slide 34: Key Business Partners
Classification: Confidential Key Business Partners #HarDinFino… Classification: Confidential 33
Slide 35: Thank You
Classification: Confidential Scan to locate Mindspace Juinagar, Plot No Gen 2/1/F, Tower 1, 8th Floor, TTC Industrial Area, MIDC Shirwane, Juinagar, Navi Mumbai - 400 706 Tel: 022-7104 7000 Thank You Classification: Confidential 34