Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Q1 2024 Earnings Presentation
25 slides from Hdfc Bank's earnings presentation, Jul 17, 2023
Slide 1: Q1FY24 Earnings Presentation
Q1FY24 Earnings Presentation July 17, 2023
Slide 2: Executive summary
HDFC BANK Executive summary • Delivering consistent, strong and sustainable performance ✓ Standalone RoA of 2.1% and RoE of 17.3% for Q1 Jun’23 (annualised) ✓ Consolidated EPS of Rs. 22.2 and book value per share of Rs. 542.7 • Continuing buoyant macroeconomic conditions provide tailwind for growth
Slide 3: HDFC Bank at a glance
LEADERSHIP HDFC Bank at a glance Prominence Market share Reach Social impact #1 ~11% 85 mn ₹8 bn Private sector bank in India* Advances^ Customer base CSR spend^^^ US$ 150+ bn ~10% 7.8K+ > ₹500 bn Market capitalization Deposits Banking branches Contribution to exchequer^^^ (post merger) 180K+ 47% 23
Slide 4: Consolidated Income Statement
CONSOLIDATED Consolidated Income Statement P&L ₹ bn Q1FY23 Q1FY24 YoY Net interest income 209.2 252.1 21% Non-interest income 69.3 98.5 42% Net revenue 278.5 350.6 26% Operating expenses 113.6 151.8 34% PPOP 164.9 198.8 21% Provisions 36.7 32.9 (10%) Profit before tax 128.2 165.9 29% Consolidated pr
Slide 5: Key Financial Parameters for Q1FY24
HDFC BANK STANDALONE Key Financial Parameters for Q1FY24 Total advances increased by Net profit up by 30% to 15.7% to ₹ 16,300 bn ₹ 120 bn Deposits up by 19.2% to Gross NPA 1.17% ₹ 19,131 bn; CASA 42% Net interest margin^ at 4.1% Return on Assets at 2.1% Cost-to-income ratio at 42.8% Capital adequac
Slide 6: Income Statement
STANDALONE Income Statement P&L (₹ bn) Q1FY23 Q1FY24 YoY Net interest income 194.8 236.0 21% Non-interest income 63.9 92.3 45% Net revenue 258.7 328.3 27% Operating expenses 105.0 140.6 34% PPOP 153.7 187.7 22% Provisions 31.9 28.6 (10%) Profit before tax 121.8 159.1 31% Profit after tax 92.0 119.5
Slide 7: Growth in advances and deposits
BUSINESS GROWTH Growth in advances and deposits Total advances* Deposits ₹ bn ₹ bn 16,142 16,300 18,834 19,131 14,082 16,048 Jun'22 Mar'23 Jun'23 Jun'22 Mar'23 Jun'23 YoY growth gross of IBPC/BRDS transfers 22% 21% 20% YoY growth 19% 21% 19% YoY growth 21% 17% 16% *Net of transfers through inter-ban
Slide 8: Sustained growth across segments
LOAN BOOK Sustained growth across segments Growth across all segments Diversified retail loan book Jun’23 Q1 FY’23 Q1 FY’24 Loans (₹ bn) Jun’22 Mar’23 Jun’23 2% YoY YoY 9% 2% Retail 5,579 6,346 6,578 22% 18% 27% CRB 4,981 6,292 6,428 29% 29% Wholesale 3,639 4,097 4,046 16% 11% 14% Subtotal 14,199 16
Slide 9: Stable and granular deposits
HIGH QUALITY DEPOSIT FRANCHISE Stable and granular deposits Granular deposits Proportion of CASA deposits 46% 44% 42% 18% 17% 17% 14% 14% 13% 82% 83% 83% 32% 30% 29% Jun'22 Mar'23 Jun'23 Jun'22 Mar'23 Jun'23 Retail Wholesale SA Mix CA Mix Retail anchoring deposit growth 9 Q1FY24 Earnings Presentatio
Slide 10: Long term consistent growth
BUSINESS GROWTH Long term consistent growth Advances ₹ bn 16,142 13,805 11,433 10,027 8,273 5,586 6,643 3,679 4,676 2,413 3,050 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Deposits ₹ bn 18,834 15,592 13,351 11,475 9,231 7,888 5,464 6,436 3,673 4,508 2,962 FY13 FY14 FY15 FY16 FY17 FY18 FY1
Slide 11: Stable NIM aided by low cost of funds
CONSISTENT PERFORMANCE Stable NIM aided by low cost of funds Yield and Cost of Funds Stable Core Net Interest Margin (NIM) 8.1% 4.3% 4.3% 4.3% 4.3% 7.7% 7.9% 4.2% 7.4% 4.1% 4.1% 7.0% 4.1% 4.1% 4.0% 3.7% 4.0% 3.3% 3.5% 3.1% Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q1 Jun'22 Q2 Sep'22 Q3 Dec'
Slide 12: RoA remains consistent over long term
BUSINESS MIX RoA remains consistent over long term Loan mix Covid19 Pandemic 57% 57% 54% 56% 54% 52% 53% 53% 52% 53% 50% 48% 48% 50% 47% 43% 46% 47% 47% 44% 43% 46% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Retail/Wholesale mix as per Basel classification Retail (%) Wholesale (%) NIM an
Slide 13: Granular and well diversified fee income
STRONG NON-FUNDED REVENUE Granular and well diversified fee income Fee Income Mix Retail Fee Income Mix 8% 7% 7% 6% 7% 22% 20% 20% 17% 22% 35% 35% 33% 36% 37% 92% 93% 93% 94% 93% 20% 22% 22% 21% 21% 23% 23% 23% 28% 20% Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q
Slide 14: Efficiency in growth
CONTINUING INVESTMENTS Efficiency in growth Cost to Income Ratio New branches – investing for future 42.0% 42.8% 40.6% 39.2% 39.6% Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 684 638 121 41.0% 40.4% 39.7% 38.6% 36 39 36.3% 36.9% Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Net Branch Addi
Slide 15: Resilient asset quality
RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment 1.9% 1.8% 1.6% 1.3% 1.1% 1.2% 1.2% 1.2% 1.2% 1.1% 1.0% 0.9% 0.6% 0.5% 0.4% 0.4% 0.3% 0.3% Jun'22 Mar'23 Jun'23 Jun'22 Mar'23 Jun'23 GNPA NNPA Retail CRB CRB (ex-Agri) Wholesale Stable asset quality; high provision coverage
Slide 16: Consistent performance across cycles
PROFITABILITY Consistent performance across cycles Profit after tax ₹ bn Q1FY24 PAT of ₹ 120 bn (30% YoY) 441 370 263 311 175 211 102 123 145 67 85 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Earnings per share Book value per share 502 FY23 Consolidated EPS: ₹ 83 79 FY23 Consolidated BPS:
Slide 17: Strong returns and healthy capital ratios
BALANCE SHEET PRODUCTIVITY Strong returns and healthy capital ratios Return on Assets Capital adequacy 19.4% 19.3% 18.9% 18.1% 18.0% 17.1% 17.1% 17.2% 17.1% 16.9% 2.0% 2.2% 2.2% 2.1% 1.8% Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Total Capital Tier 1 Capita
Slide 18: Balance sheet and capital productivity
STRONG FRANCHISE Balance sheet and capital productivity Consistent growth in assets and RoA ₹ bn 2.1 25,000 1.9 2.0 2.0 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.1 20,000 15,000 10,000 5,000 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Assets RoA % Capital positioned for growth with consisten
Slide 19: Branch expansion and customer relationships driving growth
BUILDING FRANCHISE STRENGTH Branch expansion and customer relationships driving growth Branch network Customer base #s # mn 7,860 83 85 7,821 71 6,342 62 5,254 5,608 56 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 Distribution strength enables Large customer base with potent
Slide 20: Subsidiaries – Q1FY24 Update
GROUP COMPANIES Subsidiaries – Q1FY24 Update HDB Financial Services Limited • 12.8 million customers serviced through a network of 1,581 branches across 1,101 cities/towns • Healthy momentum in disbursements across all three business segments with growth of 42% YoY • Q1FY24 – Loan book: ₹ 736 bn up
Slide 21: ESG at HDFC Bank
ESG – A WAY OF LIFE ESG at HDFC Bank ESG Vision Governance Ratings • ESG Policy framework approved by the Board Best In class on ESG Standards • ESG governed by CSR & ESG committee of the Board and driven by Approach management committees and cross functional working groups As of August 2022 To make
Slide 22: Proforma merged financials (estimated)
APPENDIX – ADDITIONAL INFORMATION Proforma merged financials (estimated^) 22 Q1FY24 Earnings Presentation ^Estimated – subject to finalization and audit of the merged accounts Certain figures will not add-up due to rounding
Slide 23: Proforma merged standalone financials (estimated)
HDFC BANK + HDFC LIMITED Proforma merged standalone financials (estimated^) Proforma merged loans (estimated) Proforma merged deposits (estimated) Loans (₹ bn) Jun’22 Mar’23 Jun’23 YoY Deposits (₹ bn) Jun’22 Mar’23 Jun’23 YoY Retail 5,579 6,346 6,578 18% HDFCB deposits 16,048 18,834 19,131 19% (pre-
Slide 24: Safe Harbour Statement
SAFE HARBOUR STATEMENT Certain statements are included in this release proceedings in India and in other jurisdictions we and political conditions, instability or uncertainty which contain words or phrases, such as ‘will’, are or become a party to, the future impact of new in India and other countri
Slide 25: Thank You
THANK YOU 25 Q1FY24 Earnings Presentation Certain figures will not add-up due to rounding