State Bank Of India · NSE:SBIN
State Bank Of India — Q2 FY2018 Earnings Presentation
45 slides from State Bank Of India's earnings presentation, Nov 10, 2017
Slide 1: Quarterly Results Q2FY18 Analyst Presentation
Quarterly Results Q2FY18 Analyst Presentation 10.11.2017
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 outcomes may differ materially from those included in these statements due to a variety o
Slide 3: Contents
Contents Financial Performance Digital Banking & Financial Inclusion Subsidiaries Balance Sheet 3
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Operating Performance
Operating Performance Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Interest Income 54,850 54,905 54,820 1,09,755 1,09,314 0.40 -0.10 0.05 Other Income 16,016 8,006 10,146 24,022 18,908 27.05 100.06
Slide 6: Provisions and Net Result
Provisions and Net Result Rs. in Crores Quarter ended Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Operating Profit including Exceptional Item & one 19,999 11,874 13,989 31,873 27,751 14.86 68.43 42.97 time items Total Provisions 1
Slide 7: Details of Provisions
Details of Provisions Rs. in Crores Q2FY18 1. Loan Loss Provision: 16715 of which: a. As per IRAC Classification 9872 b. NCLT (1st List) Additional Provision as per RBI Norms 3835 c. NCLT (2nd List) Additional Provision as per RBI Norms 2141 d. Accelerated provision on other NPAs 867 2. Standard Ass
Slide 8: Interest Income / Expenses
Interest Income / Expenses Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Interest on Loans 35,801 36,142 39,054 71,943 78,509 -8.36 -0.94 -8.33 Interest on Resources 18,088 17,543 14,581 35,631 28,51
Slide 9: Non-Interest Income
Non-Interest Income Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Fee Income 5,357 4,870 5,054 10,227 9,245 10.62 10.01 5.99 Profit/Loss on Sale of 8,566 1,770 3,276 10,336 6,713 53.96 383.90 161.46
Slide 10: Stable Fee Income
Stable Fee Income Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Fee Income 5,357 4,870 5,054 10,227 9,245 10.62 10.01 5.99 of which: 637 654 664 1,291 1,225 5.34 -2.69 -4.19 Loan Processing Charges C
Slide 11: Contained Operating Expenses (1/2)
Contained Operating Expenses (1/2) Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Staff Expenses 7,703 7,724 8,300 15,428 16,082 -4.07 -0.27 -7.19 Overheads 6,900 6,013 5,977 12,913 11,439 12.88 14.74
Slide 12: Contained Operating Expenses (2/2)
Contained Operating Expenses (2/2) Rs. in Crores Quarter ended Half Year Ended Growth (%) H1FY18 Q2FY18 Q2FY18 Q2FY18 Q1FY18 Q2FY17 H1FY18 H1FY17 over over over H1FY17 Q1FY18 Q2FY17 Staff Expenses 7,703 7,724 8,300 15,428 16,082 -4.07 -0.27 -7.19 of which: Salary 6,597 6,806 6,475 13,403 12,966 3.37
Slide 13: Key Performance Indicators : Performance Ratios
Key Performance Indicators : Performance Ratios Net Interest Margin (%) Yield & Costs (%) Yield on Advances Yield on Investments Domestic Merged Whole Bank Merged Foreign Cost of Funds Cost of Deposits 2.98 9.54 2.59 2.79 2.50 8.49 8.46 2.43 7.83 2.36 7.38 7.33 1.37 6.18 1.16 1.17 5.63 6.07 5.50 5.5
Slide 14: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. in Crores Sep 17 YoY Growth (%) Sep 16 Sep 17 Over Sep 16 (SBI+e-ABs+BMB) Total Deposits 26,23,180 10.27 23,78,956 Foreign Offices 96,217 6.48 90,362 Domestic 25,26,963 10.42 22,88,593 Market Share Domestic 23.06% 28 bps 22.78% TD 13,92,980 2.99
Slide 15: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. in Crores Sep 17 Sep 16 YOY Gr % Domestic Advances 16,00,546 15,94,633 0.37 Comm. Paper(CP) 54,129 38,421 40.88 Corp. Bonds(CB) 63,494 43,659 45.43 Domestic Total (incl. CP & CB) 17,18,169 16,76,713 2.47 Advances in Foreign Offices (A) 2,91,894 2,80,082 4.22 FCNR-B Ad
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. in Crores YoY Growth (%) Sep 16 Sep 17 Sep 17 Over Sep 16 (SBI+e-ABs+BMB) Total Advances 18,92,440 0.95 18,74,715 Foreign Offices 2,91,894 4.22 2,80,082 Domestic 16,00,546 0.37 15,94,633 Market Share Domestic 19.94% -124 bps 21.18% Large Corporate 3,63,309 -5.91* Mid C
Slide 17: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Sep 17 Jun 17 Sep 16 Sep 17 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 2,52,764 15.79 2,54,219 15.81 2,55,067 16.00 -0.90 of which: Power 1,66,893 10.43 1,71,645 10.68 1,66,624 10.45 0.16 Telecommunic
Slide 18: Personal Segment Continues to drive Loan Growth
Personal Segment Continues to drive Loan Growth Market Share Avg. LTV Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 12.71% 20.17% 11.02% 2,90,450 1,52,472 61,855 51,475 1,37,343 2,57,699 Sep 16 Sep 17 Sep 16 Sep 17 Sep 16 Sep 17 31.98% 31.97% 31.49% 34.64% 53.25% Total P-Segment Sep 17 S
Slide 19: We Remain Well Capitalized
We Remain Well Capitalized 13.56% 13.94% Tier II 13.31% AT1 2.60% 3.09% 2.64% Tier I 0.72% CET1 0.61% 0.57% 10.96% 10.67% 10.85% 10.24% 10.06% 10.28% * SBI Solo Sep 17 Jun 17 Sep 16 * H1FY18 • Equity raised through QIP - Rs 15,000 cr in H1FY18 • AT1 bonds raised- Rs 2,000 crores in H1FY18 19
Slide 20: Asset Quality : Gross NPAs - Segment wise (1/3)
Asset Quality : Gross NPAs - Segment wise (1/3) Rs. in Crores 01-04-2017 30-09-2016 Sep 17 Jun 17 Sector Merged Merged NPA Ratio % NPA Ratio % NPA Ratio % NPA Ratio % Agri 18982 9.93 17988 9.51 12191 6.37 12041 6.45 Per Segment 7096 1.41 7632 1.56 3717 0.77 4819 1.08 SME 27540 10.91 30426 11.86 Larg
Slide 21: Asset Quality : Movement of NPAs (2/3)
Asset Quality : Movement of NPAs (2/3) Rs. in Crores H1FY18 Q2FY18 Q1FY18 FY17 H1FY17 Opening Level of Gross NPAs 177866 188068 177866 121973 121970 Less :Recovery 6856 2210 4646 10302 5131 Less: Up gradation 3147 1113 2034 21981 12809 Less :Transfer to AUCA 22434 9258 13176 27757 12461 Add: Increas
Slide 22: Asset Quality : Impaired Assets (3/3)
Asset Quality : Impaired Assets (3/3) Rs. in Crores Sep 17 June 17 Gross Advances 1892440 1886666 Gross NPAs 186115 188068 Restructured Standard 34024 39337 Total Gross NPAs plus Restructured Std. 220139 227406 Gross NPA + Restructured Standard to Gross Advances (%) 11.63 12.05 Net NPA + Net Standar
Slide 23: Corporate Watch List
Corporate Watch List Fund based Outstandings Rs. In Crores • 81% of Corporate Slippages in H1FY18 are from the Post Watch List (54% in Q2FY18) Merger Watch List • Remaining slippages across 55 smaller value accounts (36 in Q2FY18) 32,427 12,901 818 3152 24,444 10,424 3,503 602 21,288 3,137 2548 312
Slide 24: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion 24
Slide 25: Moving away from Cash to Digital
Moving away from Cash to Digital Share of Transactions (%) Sep 17 Sep 16 Internet Banking 20 18 POS 13 36 6 26 Mobile Banking 3 78 2 77 ATM / CDM 33 44 Kiosk (FI) 9 7 Branch 22 23 Channel SBI Market Share (%) Number of ATMs (as on Sep 17) 58,916 28.41 ATMs: Value of Txns (Cr) (During April 17 – Sep
Slide 26: Debit Cards Spend Market Share YoY Comparison
Debit Cards Spend Market Share YoY Comparison FY 2016-17 (Cumulative As on Sep 16) FY 2017-18 (Cumulative As on Sep 17) SBI All Others 26.03% All Others SBI 30.41% 30.86% 33.36% Bank-4 3.75% Bank-2 Bank-4 15.85% Bank-1 3.74% 12.74% Bank-3 8.06% Bank-3 7.10% Bank-2 Bank-1 12.20% 15.90% • Market share
Slide 27: Merchant Acquiring Business
Merchant Acquiring Business Pos Terminals Number of Transactions Value of Transactions (in lakhs) (in crs) (Rs. in crs) 6.42 20.92 47825 78% 197% 165% 3.60 2.57 18067 7.05 3.92 9995 Apr to Sep Apr to Sep Apr to Sep Apr to Sep Apr to Sep Apr to Sep Sep 15 Sep 16 Sep 17 15 16 17 15 16 17 • Only Bank t
Slide 28: Digital & e-Commerce (1/2)
Digital & e-Commerce (1/2) Buddy Users Vol. of Buddy Value of Buddy (Nos. in lakhs) Transactions Transactions (Rs. in Crs.) (Nos. in Crs.) 1.42 311 119.23 • 1 Crore plus users 229 • 75-80K daily Txns. 48.70 0.51 • 10-15K daily registrations Sep 16 Sep 17 Apr-Sep 16 Apr-Sep 17 Apr-Sep 16 Apr-Sep 17 M
Slide 29: Digital & e-Commerce (2/2)
Digital & e-Commerce (2/2) INB Users Vol. of INB Transactions Value of INB (Nos. in lakhs) (Nos. in Crs.) Transactions (Rs. in Crs) • 5th most 429.55 45,31,493 popular online 35,98,891 336.94 global 72.10 76.25 27,26,434 282.26 financial site. 62.68 • 4 Crore Users • 76 Crore txns. during Apr-Sep 15
Slide 30: Unlocking the Digital Potential
Unlocking the Digital Subsidiaries Potential (3/3) : Others 10,89,506 merchant payments acceptance touch points BHARAT QR BHIM-Aadhaar-SBI PoS 43,703 2,56,062 6,41,938 SBI PAY BHIM MERCHANTS 1,07,233 40,570 30
Slide 31: Social Media Leadership
Social Media Leadership SBI Continues to be the leading player in Social Media Banking Platform Status Rank Comments Highest number of followers across all banks 136 Lakhs 1 in the world 819 Lakh Views 1 Ranked number 1 Globally among Banks 77 K Subscribers 5.29 Lakhs 1 Highest number of followers a
Slide 32: Financial Inclusion (1/2)
Financial Inclusion ….(1/2) Financial Inclusion Accounts (No. in Crs) Average Balance (Rs.) 1490 PMJDY Others 1345 11% 13.20 11.90 1111 7.76 9.76 4.14 3.44 Sep 16 Sep 17 Out of PMJDY A/cs: Sep 16 Jun 17 Sep 17 Aadhar seeded A/cs as on Sep 17: 7.16 crs Rupay Cards issued as on Sep 17: 6.46 crs Financ
Slide 33: Financial Inclusion (2/2)
Financial Inclusion ….(2/2) Transactions Amount (Rs. in Crores) Social Security Schemes 58,182 (Enrolment up to 30.09.2017) 35% (in Lakhs) 42,979 Pradhan Mantri Suraksha 168.85 Bima Yojana H1FY17 H1FY18 Financial Literacy Rural Self Employment Training Institute Cumulative Pradhan Mantri Jeevan RSET
Slide 34: Subsidiaries
Subsidiaries 34
Slide 35: SBI Group Financials : Net Profit H1FY18
SBI Group Financials : Net Profit H1FY18 Rs. In crores Half Year Ended Major Non Banking Subsidiaries H1FY18 H1FY17 SBI Life 539 428 SBI Capital Markets Ltd (Consolidated) 149.28 55.60 SBI Funds Management Pvt Ltd 156.85 98.40 SBI Cards & Payment Services Pvt Ltd 259.15 176.74 SBI DFHI Ltd 41.36 101
Slide 36: Subsidiaries (1/3)
Subsidiaries (2/3)(1/3) Subsidiaries : Others SBI CARDS YoY H1FY18 H1FY17 Performance Highlights: (in %) • Robust business performance PAT 47% YOY. #CIF market share (%) 15.59 14.93 66 bps • 2nd Highest base in terms of cards & spends: #Spends market share (%) 16.26 12.16 411 bps Market share steadi
Slide 37: Subsidiaries (2/3)
Subsidiaries (3/3)(2/3) Subsidiaries : Others • Large Mandates in Infra Space: SBI Capital Markets Limited • CMG DCM: Masala bond issue of NHAI, First Municipal Bond issue of Pune Muncipal Corporation, FCB issue of HMEL, APSEZ, Samwardhana YoY H1 FY18 H1 FY17 Motherson Automotive and HPCL. (in %) •
Slide 38: Subsidiaries (3/3)
Subsidiaries (3/3)(3/3) Subsidiaries : Others SBI Life In crores ‘Life Insurance Company of the Year’ and Premium 28.8% ‘Banc assurance Leader Life Insurance 27.8% 8,358 9,248 (Large Category)’ Awards at Fintelekt 4,644 4,289 5,572 2,626 Insurance Award 2017. New Business Premium Gross Written Premi
Slide 39: Balance Sheet
Balance Sheet 39
Slide 40: Balance Sheet : SBI
Balance Sheet : SBI Rs. in Crores Liabilities YOY Growth Sep 17 Sep 16 (%) Capital 863 790 9.28 Reserves and Surpluses 2,30,428 2,10,053 9.70 Deposits 26,23,180 23,78,956 10.27 Borrowings 2,47,766 2,59,437 -4.50 Other Liabilities & Provisions 1,33,275 1,27,330 4.67 Total Liabilities 32,35,512 29,76,
Slide 41: Balance Sheet : SBI Consolidated
Balance Sheet : SBI Consolidated Rs. in Crores Liabilities YOY Growth Sep 17 Sep 16 (%) Capital 863 776 11.20 Reserves and Surplus 2,41,107 2,14,863 12.21 Minority Interest 4,526 6,546 -30.86 Deposits 26,40,032 23,92,965 10.32 Borrowings 2,54,906 2,66,289 -4.27 Other Liabilities & Provisions 2,42,58
Slide 42: SBI Group Financials – H1FY18
SBI Group Financials – H1FY18 Rs. In crores Half Year Ended Growth (%) H1FY18 H1FY17 Rs. In crores YoY Interest Earned 1,13,746 1,12,466 1.14 Non-Interest Income 37,015* 29,867 23.93 Total Income 1,50,761 1,42,333 5.92 Interest Expended 73,972 73,173 1.09 Operating Expenses(i+ii) 42,623 39,789 7.12
Slide 43: SBI Solo and Group Financials – H1FY18
SBI Solo and Group Financials – H1FY18 SBI SBI Standalone SBI Consolidated Sep 17 Mar 17 Sep 16 Mar 17 Sep 16 Sep 17 Mar 17 Sep 16 ROA (%) 0.22 -0.06 -0.01 0.41 0.44 0.29 0.01 0.07 ROE (%) 4.23 -1.07 -0.22 7.25 7.38 5.71 0.14 1.27 Earning Per Share 8.49 -2.23 -0.46 13.43 13.00 11.53 0.31 2.74 (Rs.)
Slide 44: Awards & Accolades
Awards & Accolades Golden Peacock Award for Excellence in Corporate Governance, 2017 SBI among Top 3 best places to work in India (Source: Global #1 job site ‘Indeed.com’), continue to deliver value to employees SBI ranked top disclosure champion by FTI Consulting ‘Best Bank Award for ‘Electronic Pa
Slide 45: Thank You
Thank You
State Bank of India — Q2 FY2018 Earnings Presentation on 6ix