Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q1 FY2021 Earnings Presentation
38 slides from Federal Bank Ltd. (india)'s earnings presentation, Jul 15, 2020
Slide 1: Stock exchange cover letter
Secretarial Department SC/58/2020-21 15.07.2020 Listing Department Department of Corporate Services – Listing The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Floor 25, Dalal Street, Bandra (E), MUMBAI – 400 001 Mumbai – 400 05
Slide 2: Investor Information Q1 FY 2021
Investor Information ee Q1 FY 2021
Slide 3: Key Messages
Key Messages Robust Operating Performance Credit Growth in Chosen Areas • Operating Profit @ 932 Cr for the Quarter, • Total Advances grew by 9% YoY grows 19% YoY • Retail grew by 16% YoY • Net Profit @ 401 Cr, grows 33% QoQ & 4% YoY • Gold loan grew by 10% QoQ & 36% YoY • Net Interest Margin @ 3.07
Slide 4: Quarter in a Nutshell
Quarter in a Nutshell Income Expense Provision • Net Interest Income at an all time • Employee expenses include • Beefed up Provision Coverage high, supported by strategic additional pension cost of 35 Cr Ratio to 58.54% design of asset mix and low cost of funds • Tight control on expenses • Carryin
Slide 5: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Operating Profit 19% Retail Banking 16% Other Income 25% Agri Banking 14% RoA @ 0.88% Business Banking (BuB) 14% RoE @ 10.92% Cost to Income Ratio @ 47.76% Commercial Banking (CoB) 3% Corporate Banking (CIB) 3% GNPA @ 2.96% NNPA @ 1.22% Total Advance 9% NII 12% CASA 19%
Slide 6: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.06 12.50 11.44 10.92 8.41 3.15 3.04 3.07 1.03 1.04 3.01 3.00 0.98 0.88 0.69 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Cost to Income Ratio Best in last NNPA (%) PCR (%) last 25
Slide 7: Key Revenue
Key Revenue ₹ in Cr Net Interest Income Other Income 1296 711 1216 1154 1155 1124 488 421 408 392 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Fee Income Net Profit 441 341 417 317 311 401 384 260 301 171 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 F
Slide 8: Key Indicators
Key Indicators Q1 FY21 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY20 Book Value 74.85 72.86 71.33 69.18 68.79 (Per Share in ₹) Shareholder Value EPS 8.07 6.06 8.78 8.32 7.76 (annualized) CASA + Deposits <2 Cr 89% 87% 88% 89% 89% Granularity (% of Total Deposits) ROA 0.88 0.69 1.04 1.03 0.98 Profitability RoRWA 1.
Slide 9: Covid 19 – Deep Dive into Moratorium Book
Covid 19 – Deep Dive into Moratorium Book Segment Book Size in Cr Moratorium Book (Gross)* Moratorium Book (Net)* Amt in Cr % Amt in Cr % Agri 13645 5275 39% 3169 23% Retail 37908 15105 40% 12336 33% Business Banking 10512 7915 75% 4448 42% Commercial Banking 11830 6124 52% 4134 35% CIB 49542 8840 1
Slide 10: Asset Quality Trends
Asset Quality Trends 4.30 4.29 4.37 Amt in Rs.Cr. Strengthened Provision 3.44 3.40 Coverage ratio to 58.54%, 3.33 3.01 2.92 2.86 2.84 an increase of 515 bps QoQ 2.74 2.28 2.01 2.01 1.96 3498 3537 3662 1.71 1.67 1.73 1.59 532 3139 3191 3197 3357 1.28 431 417 2955 2958 3139 2970 2890 1.14 775 2680 278
Slide 11: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q1 FY21 Q4 FY20 Q1 Q4 Q3 Q2 Q1 TYPE Of which Of which FY21 FY20 FY20 FY20 FY20 Balance Balance Bonds Bonds Retail 1 97 101 124 141 STANDARD 406 42 397 42 Agri 1 36 50 72 67 Net NPA 198 80 202 80 TOTAL 604 122 599 122 BuB 0 54 66 95 99 Security Re
Slide 12: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q1 FY-21 Q4 FY-20 Q1 FY21 7% 4% A & above 79% 78% 7% 4% BBB 10% 11% 10% 11% < BBB 4% 4% Q4 FY20 Others 7% 7% 78% Internal Rating of ‘others’ (Externally unrated
Slide 13: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q1 FY-21 Q4 FY-20 16% 17% Q1 FY21 14% 17% FBR1 FB1 17% 17% FBR2/FBR3 FB2 18% 19% Q4 FY20 19% 18% 32% FBR4 FB3 18% 18% 31% 18% FBR5/FBR6 FB4 31% 32% 18% Staff 3% 3% 1) FB1_FBR1 2) FB2_FBR2_FBR3 3) FB3_FBR4 4) FB4_FBR5_F
Slide 14: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances 16% 14% 14% 3% 3% 9% 32797 -> 37908 11965 -> 13645 9215 -> 10512 11529 -> 11830 48211 -> 49542 113717 -> 123437 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 58 19% 19% 15% bps 41676 -> 49616 31.44
Slide 15: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances - Advances -1% -2% -1% 0.1% 0.2% 5% 37878 -> 37908 13051 -> 13645 10529 -> 10512 11970 -> 11830 50725 -> 49542 124153 -> 123437 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 152 7% 5% 4% bps 46450 -> 49616 3
Slide 16: Digital Migration
Digital Migration Digital vs Branch : Transaction count with bifurcation on various Digital channels(In lakhs) 60 84.00% 82.64% 81.90% 50 82.00% 40 79.69% 80.00% 30 76.84% 78.00% 76.15% 48.22 50.7 50.64 20 39.12 40.82 76.00% 10 74.00% 12.25 12.29 12.28 10.65 11.19 0 72.00% Jun-19 Sep-19 Dec-19 Mar-2
Slide 17: Digital Migration: Performance highlights
Digital Migration : Performance highlights BYOM Digital Personal Loans : Loan book progress 90000 1354 1600 80000 1255 1400 70000 1104 1200 60000 947 • BYOM enables digital instant personal 50000 755 1000 loans through Web, Google Pay & 40000 82953 800 Paisa Bazaar clubbed with HDFC Ergo 30000 62500
Slide 18: Business Parameters
aheeeerataetieor Business Parameters
Slide 19: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 31.44% 31.55% 31.46% 32.02% 30.50% 91984 89967 85751 83631 80991 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 CA & SA 37268 38019 39195 42059 34743 6933 6755 7465 7255 7557 49915 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 46774 45
Slide 20: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 8% 10% 11% 50% 40% 50% 31% Retail Agri BuB CB CIB Retail Wholesale Yield on Advances 9.18 8.98 61311 62695 61372 59741 60369 Q4 FY20 53976 57253 59551 61458 62065 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 YOA 19
Slide 21: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 7801 8013 7694 22% 7595 1492 7144 1294 1551 1126 3231 61% 929 2872 3115 3134 2565 6884 7125 7009 6121 6581 17% 16038 16822 17564 18229 18201 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Retail Agri BuB RETAIL BANKI
Slide 22: Wholesale Banking
Wholesale Banking CoB Corporate 48617 49313 50725 49542 48211 19% 81% 11529 11752 11998 11970 11830 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 WHOLESALE BANKING 25 New corporate clients onboarded during the quarter consisting of marquee names in Media, Pharma and other sectors Bagged mandate for Ba
Slide 23: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q1 FY21 Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY20 Y-o-Y % Loan Processing Fee 44 56 63 61 49 -10% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 103 209 191 191 169 -39% Income 260 Net Profit on Forex 24 76 56 64 43 -44% Transactions -34% Fee Income 171 341 311 3
Slide 24: Fee Income: Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise (In Cr) 1000 711 700 800 9 488 421 408 500 600 392 0 369 25 3 7 300 400 111 96 319 104 84 65 91 82 100 200 216 223 249 50 197 119 0 -100 Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Retail Wholesale Treasury Others Total Fee Income Di
Slide 25: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 30 3 1 28 22 Customers 2 23 @ 8 12 Core BC led 8 Sales /Relationship 2 Distribution 1 Channel (Bank owned) 45 9 30 1 1 11 1 3 26 104 18 Direct Sales 13% Agents /Connectors 16% 22 13% 16% Q1 FY21 6 Q1 FY21 Q4 FY20 Q3 FY20 107 2 Q4 F
Slide 26: Distribution and Bank's Market Share
Distribution ₹ in Cr Network I Network II 6271 30-Jun-20 39253 11% Corporate 7150 0% 36593 30-Jun-19 Commercial Banking 4994 6598 8% 5082 0% 6330 (CoB) Business Banking 4992 5316 4704 9% (BuB) 4442 13% 7085 6523 Agri 9% 5446 17% 6519 14788 19507 Retail 14% 15857 27% 13403 58247 5434 NR Business 14%
Slide 27: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Jun-20 Mar-20 Risk Weighted Assets Credit Risk 92139 90889 Market Risk 5890 6182 Operational Risk 10095 8715 Total RWA 108124 105786 Tier-1 Capital Funds 14062 14057 Tier-II Capital Funds 1262 1118 Total Capital Funds 15324 15175 CRAR 14.17% 14.35% Tier-I 13.0
Slide 28: Annexures
FEDERAL BANK Annexures
Slide 29: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q1 FY21 Q1 FY20 LIABILITIES Capital 399 397 Share Holding Pattern Reserves & Surplus 14524 13264 Deposits 154938 132537 Borrowings 11237 9951 33% 25% Other Liabilities & Provisions 4723 4188 TOTAL 185820 160338 1% ASSETS Cash & Balance with RBI 5887 6449
Slide 30: Financials
Financials ₹ in Cr Q1 FY21 Q4 FY20 Q-o-Q Q1 FY20 Y-o-Y Interest Income 3444 3397 1% 3229 7% Interest Expenses 2148 2181 -2% 2075 3% Net Interest Income 1296 1216 7% 1154 12% Other Income 488 711 -31% 392 25% Operating Expense 852 968 -12% 763 12% Total Income 3933 4108 -4% 3621 9% Total Expense 3000
Slide 31: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance CHEMICALS 1.47% 30.06.2020 BASIC METALS 1.50% TEXTILES INCLUDING JUTE & COIR 1.62% CONTRACTORS 1.79% FOOD PRODUCTS 2.01% BANKS 2.76% REAL ESTATE BUSINESS 3.22% POWER GENERATION & TRANSMISSION 3.33% HFC
Slide 32: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 74.00% IDBI Federal Life Insurance Company of India Limited 26.00% Equirus Capital Private Ltd 19.90% Subsidiaries & JVs * Includes CCPS(Com
Slide 33: 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. 32
Slide 34: 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 35: Thank You
Thank You AE A aA og
Slide 36: Press Release: Federal Bank delivers 19% growth in operating profit
Marketing &Investor Relations MKT//2020-21 July 15, 2020 PRESS RELEASE Federal Bank delivers 19% growth in operating profit Federal Bank announced the Unaudited Financial Results for the quarter ended 30 th June 2020. The key highlights of the results on a Y-o-Y basis are as follows: ➢ Operating pro
Slide 37: Press release: income, key ratios, asset quality
Income Net Interest Income grew 12.33% on a Y-o-Y basis from Rs.1154.18 Cr to Rs.1296.44 Cr as on 30th June 2020. Other income grew by 24.74% to reach Rs.488.37 Cr, compared to Rs.391.52 Cr as on 30th June 2019. Net total income of the Bank grew 15.47% to reach Rs.1784.81 Cr. Key Ratios • ROA & ROE
Slide 38: Major Financial Indicators (Standalone Nos)
MAJOR FINANCIAL INDICATORS (Standalone Nos) (Rs. in Cr) Business Figures As on 30.6.2020 As on 30.6.2019 Growth (%) Total Deposits 154937.74 132537.46 16.90% CASA Deposits 49616.00 41676.00 19.05% Net Advances 121296.96 112032.33 8.27% Retail Advances 37908.25 32797.10 15.58% Bus. Banking Advanc