Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q1 FY2022 Earnings Presentation
36 slides from Pnb Housing Finance's earnings presentation, Aug 4, 2021
Slide 1: Exchange filing cover letter
August 04, 2021 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers , "Exchange Plaza" Dalal Street, Bandra Kurla Complex, Mumbai - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 540173 Symbol: PNBHOUSING Dear Sirs, Sub: Inves
Slide 2: Investor Presentation Quarter Ended June 2021
Investor Presentation Quarter Ended June 2021 04-August-2021
Slide 3: Contents
Contents A Progress on the New Agenda Strategy Monitorables Business & Financial Performance Digital Drive & Branch Network B Shareholding and ESG Snapshot Growth in Housing Finance Sector Key Takeaways 2
Slide 4: Agenda envisaged in January 2021
Agenda envisaged in January 2021 Strengthening the Core Drive Efficiency Accelerate Growth Capital Risk Cost Digital Retail Focused Grow Affordable Management Position Management Management Drive Lending Housing “Unnati” • Improve capital and • Leverage advance • Rationalize • Accelerate digital • L
Slide 5: Strengthening the Core – Key Monitorables
Strengthening the Core – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Q1FY22 Remarks Key roles hired at senior level Further strengthen the management 5 hires and 2 promotion 3 hires and 1 promotion team Management Incentive plan to retain talent Completed in March 2021 RSU Allotment do
Slide 6: Drive Efficiency – Key Monitorables
Drive Efficiency – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Q1FY22 Remarks Lower fee income due to lesser Cost to Income Ratio 16.9% 15.1% 16.6% disbursement ; business operations impacted due to lockdown Supported by NHB and capital market Incremental Cost of Borrowing 8.47% 6.80%
Slide 7: Accelerate Growth – Key Monitorables
Accelerate Growth – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Q1FY22 Remarks Retail disbursements grew by 145% in Retail Book (YoY) -6% -5% -7% Q1FY22(YoY) Building Granular book Focus on lower ticket asset sourcing; (disbursement of less than INR 2 87.2% 92.3% 92.9% reduction in ATS
Slide 8: Business and Financial Performance
Business and Financial Performance 7
Slide 9: Performance Highlights
Performance Highlights 6.0% on Loan Assets INR 1,759 Crore (2.8% YoY) Disbursement* GNPA (+153% YoY) 5.5% on AUM (2.3% YoY) INR 71,828 Crore Total Provision/ Asset Under Management 4.5% (-14% YoY) Total Assets (2.70% YoY) Retail Loans 85% of the AUM Write-offs since Inception** 15 bps (82% YoY) (10
Slide 10: Business Trends - Quarter on Quarter
Business Trends - Quarter on Quarter No. of Logins No. of Sanctions 25,473 19,201 22,943 16,232 17,063 • Increased digital 11,733 penetration; contributed 13,420 8,977 46% to total logins in Q1 5,071 FY22 3,288 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 • 94% of Q1 FY22 di
Slide 11: Business Update
Business Update (INR Crore) Asset AUM CAGR -6% • As on 30-Jun-21 84,722 83,346 o Focus on retail 74,469 71,828 segment; retail AUM is 85% of total AUM 74,023 compared to 82% as 67,571 62,255 60,438 on 30-Jun-20 o Retail AUM reduced by 31-Mar-19 31-Mar-20 31-Mar-21 30-Jun-21 11% YoY and AUM Loan Asse
Slide 12: Asset Under Management Mix
Asset Under Management Mix AUM Mix Product-wise Break-up Segment-wise Breakup Jun-21 Jun-21 15% 15% 4% 16% 15% 18% 45% 21% 22% 59% 40% Jun-20 Jun-20 18% 84% 85% 18% 82% 79% 4% 44% 58% 20% 38% 31-Mar-19 31-Mar-20 31-Mar-21 30-Jun-21 Individual Housing Loan Corporate Retail Retail Loan Against Propert
Slide 13: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes INR Lakhs Average Ticket Size Weighted Average Loan to Value 51 47 71% 71% 72% 71% 44 43 31 49% 49% 49% 48% 29 27 27 31-Mar-19 31-Mar-20 31-Mar-21 30-Jun-21 31-Mar-19 31-Mar-20 31-Mar-21 30-Jun-21 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Compl
Slide 14: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 0.4% 1.4% 0.3% 1.1% 0.2% 1.0% 0.2% 1.9% 1.6% 1.2% 1.6% 2.5% 2.6% 4.6% 4.5% 3.3% 2.5% 6.2% 5.0% 4.5% 12.0% 11.6% 12.0% 11.9% 13.9% 12.9% 15.1% 15.8% • Focus on granular 17.5% 17.3% 18
Slide 15: Corporate Book Exposure Continues to Scale Down
Corporate Book Exposure Continues to Scale Down % of Total 21.1% 17.5% 15.8% 15.3% AUM -39% (INR Crore) 17,922 14,614 11,152 11,786 10,989 10,356 8,637 8,136 3,678 3,052 2,243 3,092 1,951 1,206 906 902 Mar-19 Mar-20 Mar-21 Jun-21 Construction Finance Corporate Term Loan Lease Rental Discounting Aver
Slide 16: Corporate Book Performance
Corporate Book Performance • 77% of the book is good which continues to be in Stage 1; majority backed by Tier 1 Developers 40% of the Construction Finance Book comprises completed and near 63% of the book is with Zero DPD on a declining base completion projects • Down Sell / Accelerated pre payme
Slide 17: Corporate Book Remedial Actions
Corporate Book Remedial Actions Resolutions Underway on few Resolutions Achieved Final Stages of Resolution NPA Accounts • IREO Pvt Ltd with O/s of INR 150 crore • Vipul Ltd with O/s of INR 353 crore is in • Supertech Ltd. with O/s of INR 244 crore; the final stages of resolution Company has started
Slide 18: Gross Non-Performing Assets
Gross Non-Performing Assets % of Loan Asset Gross NPA 2.76% 2.59% 4.47%* 4.44% 6.00% Net NPA 1.67% 1.46% 2.69% 2.43% 3.61% As on 30-Jun-21 INR Crore (INR Crore) 4.5% 4,500 5.0 4,000 4.1% 4.5 3,500 4.0 Gross NPA 3,625.0 3.5% 3.0% 3.5 3,000 2.7% 1,752.0 3.0 2,500 1,390.0 2.5 ECL Provision 2,700.2 2,00
Slide 19: Expected Credit Loss (ECL) Provisions – Overall
Expected Credit Loss (ECL) Provisions – Overall Classification of the Assets based on the ECL computation under Ind AS: Particulars (INR Crore) 30-June-21 31-Mar-21 30-June-20 Gross Stage 1 52,914 55,753 63,779 % portfolio in stage 1 87.55% 89.6% 93.8% ECL Provision Stage 1 601 648 652 Net Stage 1 5
Slide 20: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 8.5% 7.4% 10.9% 11.3% 18.2% 24.4% • ~71% of the total resource is 22.2% 22.4% floating; giving opportunity 5.7% 6.7% for replacement & repricing 8.3% 8.6% 17.2% 19.6% 9.6% 23.7% 24.6% 0.5% 1.6% 0.2% 22.5% 28.0% 16.5% 16.5% Credit Rating 18.8% 16.9% 16.3%
Slide 21: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 2,022 1,468 1,447 1,872 1,896 1,834 1,346 1,295 1,693 1,218 1,364 1,340 1,246 1,150 1,103 104 107 100 145 115 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Finance Cost Operating Expense Pre-provision Opera
Slide 22: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.42% 11.30% 10.62% 10.31% 8.13% 8.01% 10.39% 7.72% 10.19% 7.60% 7.49% 10.32% 10.69% 10.43% 10.03% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Yield Yield (Excl. Securitisation income)
Slide 23: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.7% 10.7% 10.3% 8.0% 8.2% 2.8% 3.2% 3.2% 10.4% 7.9% 2.8% 2.7% 2.9% 3.0% 10.2% 7.5% 2.5% 2.4% 9.9% 10.4% 10.4% 2.5% 2.2% 1.9% FY19 FY20 FY21 Q1FY22 FY19 FY20 FY21 Q1FY22 FY19 FY20 FY21 Q1FY22 FY19 FY20 FY21
Slide 24: Capital Position
Capital Position (INR Crore) Provisions Capital to Risk Asset Ratio 18.7%** 21.4% Stage 3 20.9% 36.2% 45.2% 39.7% 18.0% Coverage ratio (%) 3.2% 3.0% 4,000 4.5% 5 2.8% 4.1% 3,500 4 14.0% 3,000 2,700 2.6% 2,544 3 2,500 3.0% 2,000 1,766 2 1,500 0.8% 1 1,000 594 0 500 15.2% 15.5% 18.4% 0 -1 31-Mar-19 31
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q1 FY22 Q1 FY21 YoY Q4 FY21 QoQ FY21 FY20 FY19 Interest Income 1,611 1,802 1,670 7,190 7,688 6,793 Add: Net gain on fair value changes 42 50 39 162 159 129 Add: Income on derecognized (assigned) loans 0 0 35 71 336 308 Less: Finance Cost 1
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-21 31-Mar-20 31-Mar-19 Particulars (INR Crore) 31-Mar-21 31-Mar-20 31-Mar-19 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 51 - 211 11,461 17,837 29,605 (a) Cash and cash equivalents 6,969
Slide 27: Digital Interventions across the Value Chain
Digital Interventions across the Value Chain Tools & Collaborations Interventions • Implemented cloud based Virtual System interface to ensure secure working from any location • Integration of ACE (A Digital Onboarding Platform) with Loan Origination System (LOS) made live in Q1 for smooth flow of d
Slide 28: Strong Distribution Network
Strong Distribution Network AUM – Geographical Breakup Disbursement Origination (Q1FY22) 29% 39% 42% 61% 29% In-House DSA North South West Network 94 branches with 17 outreach 22 decision Over 21,000 presence in 64 centers making hubs channel partners unique cities Central Support Office Data as on
Slide 29: ESG Snapshot
ESG Snapshot Environment Social Human Capital Governance • 99% EMI collections through digital • Covid-19: Set up 70 bedded ICU • Team of 1,364 employees as on 30th • Diversified & highly experienced mode Facility, provided oxygen June 2021 Board of 12 members with 6 concentrators, establish PSA bas
Slide 30: Experienced Management Team
Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 1 CHIEF CENTRALIZED COMPANY SECRETARY CHIEF FINANCIAL OFFICER OPERATIONS & TECHNOLOGY & COMPLIANCE HEAD BUSINESS HEAD – RETAIL • Years of Experience: 24+ • Years of Experience: 35+ • Years of Experienc
Slide 31: Shareholding
Shareholding Shareholding as on 30-Jun-21 Top Shareholders 2.7% 0.2% 5.0% 1.5% 32.6% SSG Capital, General Atlantic Singapore Fund, GIC, Franklin Templeton MF, Vanguard, Malabar Investments, Blackrock (ETFs), 25.9% United India Insurance, Dimensional Fund Advisors, Edelweiss Trusteeship MF Inclusions
Slide 32: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 31% 32% 19% 26% 25% 25% 21% 22% 21% 20% 20% 20% 22% 15% 19% 21% 12% 11% 15% 8% 11% 3% 9% 16% 3% 6% 4% 63% 3% 3% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Other Loans Overall Portfolio H
Slide 33: Key Takeaways
Key Takeaways Robust and scalable Continue to operate in Hub and Spoke model Remedial mass housing and Improve collection Strengthening digital merchant segment management Improve Cost to efficiencies through presence across the Leverage advance Group to focus on Income Ratio by predictive analytics
Slide 34: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Cost to Income (%) Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost) / (Net Revenue-Acquisition Cost) NIM (%) Net Interest
Slide 35: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 36: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 35
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