State Bank Of India · NSE:SBIN
State Bank Of India — FY2017 Earnings Presentation
37 slides from State Bank Of India's earnings presentation, May 19, 2017
Slide 1: Annual Results FY17 Analyst Presentation
Annual Results FY17 Analyst Presentation 19.05.2017
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking 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 variety of
Slide 3: Contents
Contents Financial Performance Business Capital Asset Quality Digital Associates & Subsidiaries Balance Sheet 3
Slide 4: Sustained Operating Performance
Sustained Operating Performance Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Interest Income 47,393 42,942 10.36 175,518 163,998 7.02 Other Income 10,327 10,585 -2.43 35,461 27,845 27.35 Total Income 57,720 53,527 7.83 210,979 191,844 9.97 Interest Expenses 29,322 27,541 6.47 113,659 106,803 6.
Slide 5: Provisions and Net Result
Provisions and Net Result Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Operating Profit 16,026 14,192 12.93 50,848 43,258 17.55 Total Provisions 13,212 12,928 2.19 40,364 33,307 21.19 Loan Loss 10,993 12,139 -9.44 32,247 26,984 19.50 Standard Assets 289 996 -70.96 2,500 2,158 15.86 Investment 7
Slide 6: Interest Income / Expenses
Interest Income / Expenses Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Interest on Loans 29,861 29,242 2.12 1,19,510 1,15,666 3.32 Interest on Resources 14,395 11,113 29.53 49,959 42,925 16.39 Other Interest Income 3,137 2,586 21.28 6,049 5,407 11.88 Total Interest Income 47,393 42,942 10.36 1
Slide 7: Robust Growth in Non-Interest Income
Robust Growth in Non-Interest Income Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Fee Income 6,078 5,794 4.91 17,803 15,658 13.70 of which: 4749 4280 10.96 12189 10747 13.41 Retail fee Income Profit/Loss on Sale of 1,766 1,416 24.79 10,750 5,017 114.26 Investments Forex Income 589 485 21.51 2,3
Slide 8: Stable Fee Income
Stable Fee Income Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Fee Income 6,078 5,794 4.91 17,803 15,658 13.70 of which: Loan Processing Charges 1,078 1,175 -8.29 2,656 2,939 -9.65 Commission on Govt. Business 673 668 0.82 2,483 2,371 4.69 Commission on LC/BG 861 826 4.31 3,158 3,129 0.92 Trans
Slide 9: Investing in Our Future Growth
Investing in Our Future Growth Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Staff Expenses 6,242 6,943 -10.09 26,489 25,114 5.48 Overheads 6,130 4,852 26.34 19,983 16,669 19.89 Operating Expenses 12,372 11,794 4.89 46,473 41,782 11.23 Cost to Income Ratio 47.75 49.13 -138 bps Past 12 Months Bra
Slide 10: Containing Operating Expenses
Containing Operating Expenses Rs. in Crores Q4FY17 Q4FY16 YOY % FY17 FY16 YOY % Staff Expenses 6,242 6,943 -10.09 26,489 25,114 5.48 of which: Salary 4,540 4,913 -7.60 20,418 19,207 6.31 Contribution for Employees 1,703 2,030 -16.12 6,071 5,907 2.78 Overheads 6,130 4,852 26.34 19,983 16,669 19.89 of
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 3.27 3.22 6.44 3.09 3.05 3.03 3.11 6.39 6.34 6.31 9.55 9.54 9.46 9.42 2.99 3.01 2.93 2.96 6.35 2.83 2.80 2.78 2.84 6.30 6.26 6.07 6.22 6
Slide 12: Other Performance Ratios
Other Performance Ratios Earnings Per Share (Rs) Book Value per Share (Rs) 19.52 19.95 190.97 187.68 183.91 180.23 15.10 175.95 177.77 176.60 12.98 13.03 13.00 13.11 13.43 162.54 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 ROA (%) R
Slide 13: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. in Crores YoY Growth (%) YoY Growth (%) Mar 17 Mar 17 Over Mar 16 Mar 16 Mar16 Over Mar 15 Total Deposits 20,44,751 18.14 17,30,722 9.76 Foreign Offices 91,451 -3.02 94,298 5.29 Domestic 19,53,300 19.36 16,36,425 10.03 Market Share Domestic 18.05
Slide 14: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. in Crores Mar 17 Mar 16 YOY Gr % Domestic Advances 13,41,054 12,42,683 7.92 Food Credit 4,554 21,555 -78.87 Domestic Advances (Excluding Food Credit) 13,36,500 12,21,128 9.45 Comm. Paper (CP) 58,651 13,094 347.92 Corp. Bonds (CB) 59,636 41,152 44.92 Domestic Total (in
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. in Crores YoY Growth (%) Mar 17 Mar 17 Over Mar 16 Mar 16 Total Advances 16,27,273 7.80 15,09,500 Foreign Offices 2,86,219 7.27 2,66,817 Domestic 13,41,054 7.92 12,42,683 Market Share Domestic 17.02% 65 bps 16.37% Large Corporate 3,41,990 3.59 3,30,136 Mid Corporate 2,
Slide 16: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Mar 17 Mar 16 Mar 17 Level % Share Level % Share YOY Gr % Infrastructure 2,08,915 15.58 2,07,522 16.70 0.67 of which: Power 1,46,223 10.90 1,36,455 10.98 7.16 Telecommunication 18,821 1.40 21,445 1.73 -12.23 Roads & Ports 1
Slide 17: Improving Risk profile
Improving Risk profile In percentages 84 79 72 65 61 55 Mar 17 Mar 16 Mar 15 A and above - New loans A and above stock 84% of New Connections are PSUs or rated A & above • Early Sanction Review, Loan Review Mechanism, Early Warning System, Dynamic Rating Review, Legal Audit etc. implemented for SME
Slide 18: Personal Segment now 30% of Domestic Loan Book
Personal Segment now 30% of Domestic Loan Book Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 17% 21% 34% 222,605 46,736 38,549 111,143 82,708 190,552 Mar 16 Mar 17 Mar 16 Mar 17 Mar 16 Mar 17 25.52% 25.88% 25.21% 27.16% 52.91% 52.95% Total P-Segment Mar 16 Mar 17 Mar 16 Mar 17 Mar 16 Mar
Slide 19: We Remain Well Capitalized
We Remain Well Capitalized 13.73% 13.11% 13.12% Tier II 12.00% 3.08% AT1 2.76% 3.20% Tier I 2.40% 0.53% 0.68% CET1 0.11% 0.29% 10.65% 10.35% 9.97% 9.82% 9.81% 9.92% 9.31% 9.60% Mar 17 Dec 16 Mar 16 Mar 15 Major Contributors to Capital Retained Earnings Rs 8,379 Cr Capital infusion from GoI Rs. 5
Slide 20: Asset Quality : Gross NPAs- Segment wise (1/3)
Asset Quality : Gross NPAs- Segment wise (1/3) Mar 17 Dec 16 Mar 16 Sector NPA Ratio% NPA Ratio% NPA Ratio% Large Corporate 33,070 9.67 26,946 8.70 20,696 6.27 Mid Corporate 47,009 19.35 44,674 20.82 41,515 17.12 SME 15,850 7.04 17,194 8.63 17,032 7.82 Agri 7,455 5.53 7,407 5.93 8,687 6.93 Retail 2,
Slide 21: Asset Quality : Movement of NPAs (2/3)
Asset Quality : Movement of NPAs (2/3) FY17 Q4FY17 Q3FY17 FY16 Q4FY16 Opening Level of Gross NPAs 98,173 1,08,172 1,05,783 56,725 72,792 Less :Recovery 5,197 1,203 1,003 4,389 1,627 Less: Up gradation 3,437 1,002 1,059 2,598 97 Less :Transfer to AUCA 20,570 3,992 5,906 15,763 3,208 Add: Increase in
Slide 22: Asset Quality : Impaired Assets (3/3)
Asset Quality : Impaired Assets (3/3) Mar 17 Dec 16 Sep 16 June 16 Mar 16 Gross Advances 16,27,273 14,97,164 14,81,832 14,63,690 15,09,500 Restructured Standard 36,634 34,628 36,570 36,551 39,055 Total Gross NPAs plus Restructured Std. 1,48,977 1,42,800 1,42,353 1,38,092 1,37,228 Gross NPA + Restruc
Slide 23: Corporate Watch List
Corporate Watch List Fund based Outstandings Rs. In Crores Total Corporate Slippages Post Watch list Slippages Merger 34,776 Watch 2.3% List 1.6% 28,419 32,427 3,396 - 818 807 1,181 3152 (72%) 4,299 3,503 20,576 3,137 17,992 8,657 776 807 13,310 11,075 1,906 4,748 397 1,933 807 2,952 131 1,794 2,791
Slide 24: Strong Momentum in Digital Transactions (1/2)
Strong Momentum in Digital Transactions (1/2) In thousands In thousands Registered Users No. of Transactions 25,000 120 12,000 97 20,765 10,252 20,000 100 10,000 75 80 B 8,000 7,175 15,000 57 60 U 6,000 8,753 10,000 34 D 6,925 40 4,000 2,660 3,065 4,817 22 D 1,610 1,901 5,000 600 3,087 20 Y 2,000 21
Slide 25: Strong Momentum in Digital Transactions (2/2)
Strong Momentum in Digital Transactions (2/2) POS Machines Added and Merchants Acquired POS Transaction Value (Rs cr) 600 (in thousands) 416 450 400 500 58,965 350 400 300 250 300 163 509 200 200 96 150 82 22,933 20,003 22,894 42 100 100 207 11 14 118 50 101 8,397 - 56 0 7,671 Apr 15 - Mar 15 Q1 19
Slide 26: Moving away from Cash to Digital
Moving away from Cash to Digital Share of Transactions (%) Mar 17 Dec 16 Mar 16 Internet Banking 27 27 23 9 40 38 30 POS 8 5 77 77 74 Mobile Banking 3 3 3 ATM / CDM 38 39 43 Branch 23 23 26 Channel SBI Actuals Market Share (%) Number of Group ATMs (as on Mar 17) 59,263 28.44 Group ATMs : Value of Tx
Slide 27: 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 followers across all banks in 115 Lakhs 1 the world 4.98 lakh views. Ranked number 1 Globally 51.6K Subscribers 1 among Banks 4.41 Lakhs 1 Highest number o
Slide 28: Financial Inclusion (1/2)
Financial Inclusion ….(1/2) Financial Inclusion Accounts (No. in Crs) Transactions through BC Channel (No. in Crores) PMJDY Others 11.73 9.28 10.81 22.79 21.69 7.53 8.57 16.53 5.32 3.96 3.28 3.16 Mar 16 Dec 16 Mar 17 FY 16 9MFY17 FY 17 Out of PMJDY A/cs: Aadhar seeded A/cs Mar 16: 2.31 crs Mar 17: 5
Slide 29: Financial Inclusion (2/2)
Financial Inclusion ….(2/2) Average Balance (Rs.) Zero Bal. A/cs (%) F.I A/cs 69 1307 PMJDY A/cs 54 53 909 44 618 37 606 31 25 Mar 14 Mar 15 Mar 16 Mar 17 Mar 14 Mar 15 Mar 16 Mar 17 Financial Literacy Social Security Schemes Rural Self Employment Training Cumulative (Enrolment up to 31.03.2017) (in
Slide 30: Awards & Accolades
Awards & Accolades Bank of the Year (Public Sector) award by Business Today (Money Today) Chairman of SBI won the India Business Leader Award for the Year 2017 by CNBC Best Trade Finance Bank by Global Finance Magazine IDRBT Banking Technology Excellence Award (2 awards) for Innovative use of Tech a
Slide 31: Subsidiaries (1/3) : SBI Life
Subsidiaries (1/3) : SBI Life In crores Premium 27.8% 35.5% 3.54x Price to Embedded Value during the recent 21,015 12,867 15,825 P/EV 3.9% stake sale to Institutional Investors 10,144 5,528 7,107 New Business Premium Gross Written Premium „Life Insurance Company of the Year‟ and FY 15 FY 16 FY 17 CA
Slide 32: Subsidiaries (2/3) : Others
Subsidiaries (2/3) Subsidiaries (2/3) :: Others Others SBI CARDS • Consistent business performance leading to PBT of YoY FY15 FY16 FY17 Rs. 598 Cr for FY17 @ YOY Growth of 37%. (in %) • 4Mio + Cards base with Industry Ranking of 2nd in CIF market share, % 15.0% 14.8% 15.3% 5 bps Card base as on Feb
Slide 33: Subsidiaries (3/3) : Others
Subsidiaries (3/3) Subsidiaries (3/3) :: Others Others SBI Capital Markets Limited • Ranked 1st (by no. of issues) and 2nd (by issue YoY FY15 FY16 FY17 amount) for FY 2016-17 for overall equity deals as (in %) per prime database PAT (Rs. Cr) 334 279 252 -9.7 • Ranked 6th in FY17 in case of Private P
Slide 34: Balance Sheet : SBI Solo
Balance Sheet : SBI Solo Rs. in Crores Liabilities YOY Mar 17 Mar 16 Growth (%) Capital 797 776 2.71 Reserves and Surpluses 187,489 143,498 30.66 Deposits 2,044,751 1,730,722 18.14 Borrowings 317,694 323,345 -1.75 Other Liabilities & Provisions 155,235 159,276 -2.54 Total Liabilities 2,705,966 2,357
Slide 35: Balance Sheet : SBI Consolidated
Balance Sheet : SBI Consolidated Rs. in Crores Liabilities YOY Growth Mar 17 Mar 16 (%) Capital 797 776 2.71 Reserves and Surplus 216,395 179,816 20.34 Minority Interest 6,481 6,267 3.40 Deposits 2,599,811 2,253,858 15.35 Borrowings 336,366 361,399 -6.93 Other Liabilities & Provisions 285,272 271,36
Slide 36: Disclaimer
Disclaimer This presentation has been prepared by State Bank of India (the “Bank”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any off
Slide 37: Thank You
Thank You