National Development Bank Plc · CSELK:NDB.N0000

National Development Bank — Q3 2022 Earnings Presentation

16 slides from National Development Bank's earnings presentation, Nov 22, 2022

  1. Slide 1: Investor Update – Q3 2022

    Investor Update – Q3 2022 National Development Bank PLC NDB.N0000 National Long-term Rating: A(lka), Fitch Ratings Lanka Limited 22 November 2022 11.00 am (GMT +0:530) Hosted from Colombo, Sri Lanka

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This document has been prepared by National Development Bank PLC [“NDB”, “Bank” or the “Group”] solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos

  3. Slide 3: Corporate Participants

    Corporate Participants PRESENTED BY Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Vice President – Finance Niran Mahawatte – Vi

  4. Slide 4: Agenda

    AGENDA PART I - CORPORATE PROFILE PART II – OPERATING ENVIRONMENT PART III – FINANCIAL PERFORMANCE – Q3 2022 PART IV – WAY FORWARD PART V – Q&A 4

  5. Slide 5: Part I - Corporate Profile

    PART I - CORPORATE PROFILE Our Vision Our Values Our Legacy Our Team Our Profile The driving Integrity Over 40 years Over 3,000 Credit rating force for a Creativity of service to NDBers across affirmed at financially Excellence the nation the NDB A(lka) empowered Sincerity Group Sri Lanka Accountabi

  6. Slide 6: Part II – Operating Environment

    PART II – OPERATING ENVIRONMENT Context to operating landscape in 9 months of 2022 • Policy rates remain unchanged since 07 July 2022 • Over 80% Rupee depreciation against USD for 2022 • Power crisis managed, taking off the hit on nation-wide productivity • Inflationary pressures continued over the

  7. Slide 7: Part III – Financial Performance Overview

    PART III – FINANCIAL PERFORMANCE OVERVIEW Income/ Profitability Total operating income LKR 31.5 Bn – YoY 35% • Growth in gross income 62%, NII 39% & Fee & Impairment charges LKR 22.2 Bn – YoY 234% Commission income 10% Pre-tax profitability LKR 790 Mn - YoY (91%) • Profitability moderated due to imp

  8. Slide 8: Financial Performance: Income

    PART III – FINANCIAL PERFORMANCE INCOME LKR Mn Q3 2022 Q3 2021 Variance % Gross Income 74,503 46,060 28,443 62 Interest Income 65,172 38,712 26,460 68 Interest Expense 42,985 22,780 20,205 89 Net Interest Income 22,187 15,932 6,255 39 LKR Mn Q3 2022 Q3 2021 Variance % Net fee & comm income 4,395 3,9

  9. Slide 9: Financial Performance: Impairment Charges

    PART III – FINANCIAL PERFORMANCE IMPAIRMENT CHARGES LKR Mn Q3 2022 Q3 2021 Variance % Impairment charges 22,225 6,653 15,572 234 • Impairment charges inclusive of provisions made for foreign currency denominated government securities and loans to customers – Former comprising the greater portion • P

  10. Slide 10: Financial Performance: Operating Expenses

    PART III – FINANCIAL PERFORMANCE OPERATING EXPENSES Cost composition % LKR Mn Q3 2022 Q3 2021 % Q3 2022 Q3 2021 Personnel expenses 4,335 4,206 3 51 55 Depreciation & amortization 624 631 -1 7 8 Other expenses 3,528 2,864 23 42 37 Total operating expenses 8,487 7,701 10 100 100 • Cost curtailment at

  11. Slide 11: Financial Performance: Balance Sheet

    PART III – FINANCIAL PERFORMANCE BALANCE SHEET Variance LKR Bn Q3 2022 FY 2021 YTD LKR YTD % Total assets 819 705 114 16 Investments 176 146 30 21 Gross loans 600 526 74 14 Total deposits 649 552 97 18 Borrowings 94 79 15 19 Total equity 62 59 3 5 • Balance sheet growth inclusive of inflationary pre

  12. Slide 12: Financial Performance: Investor Ratios

    PART III – FINANCIAL PERFORMANCE INVESTOR RATIOS Bank Group Q3 2022 FY 2021 Q3 2022 FY 2021 Closing price per share [LKR] 43.00 68.90 - - EPS [LKR] [Annualized] 1.97 20.68 2.26 22.44 ROE [%] [Annualized] 1.24 12.27 1.34 12.47 ROA [%] [Pre-tax] [Annualized] 0.14 1.55 0.20 1.67 Book value per Share [L

  13. Slide 13: Capital & Liquidity Position

    PART III – FINANCIAL PERFORMANCE CAPITAL & LIQUIDITY POSITION Bank Group Q3 2022 FY 2021 Q3 2022 FY 2021 Common Equity Tier 1 Capital Ratio % [Minimum Requirement - 9.42 10.01 9.92 10.53 7% - 2021-6.5% ] Tier 1 Capital Ratio % [Minimum Requirement – Q3 2022-8.5% - 9.42 10.01 9.92 10.53 2021-8%] Tota

  14. Slide 14: Part IV – Way Forward

    PART IV – WAY FORWARD • The industry awaits direction on debt restructuring alongside IMF Relief Package • Impairment provision building critical at this stage to brace for potential loss scenario on exposure to ISBs • Cost rationalizations and revenue management pursued to preserve profitability fr

  15. Slide 15: Part V – Q&A

    PART V – Q&A Please use the chat option to pose your questions to the CEO and Panel. Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumaran

  16. Slide 16: NDB Investor Relations

    ANALYSTS SUPPORT NDB Investor Relations  Clearly defined Quarterly Results Calendar released at the end of each quarter  Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written transcript forms  Dedicated communication channels made available for any queries

National Development Bank — Q3 2022 Earnings Presentation on 6ix