National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — H1 2023 Earnings Presentation
22 slides from National Development Bank's earnings presentation, Aug 18, 2023
Slide 1: Investor Update – H1 2023
Investor Update – H1 2023 National Development Bank PLC NDB.N0000 National Long-term Rating: A- (lka), Fitch Ratings Lanka Limited 18 Aug 2023 11.30 am (GMT +0:530) Hosted from Colombo, Sri Lanka
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
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/ Chief Financial Officer Niran
Slide 4: Agenda
AGENDA PART I OPERATING ENVIRONMENT PART II FINANCIAL PERFORMANCE – H1 2023 PART III WAY FORWARD PART IV Q&A ANNEXURE NDB PROFILE ANALYST SUPPORT
Slide 5: Part I - Operating Environment: Navigating Turbulences
PART I - OPERATING ENVIRONMENT Navigating Turbulences
Slide 6: Operating Environment
OPERATING ENVIRONMENT Economic conditions on a slow but gradual and steady improvement due to External sector performance • Relaxed monetary policy • Resilient amidst challenges • Improvement in domestic supply conditions • Total worker remittances – YTD June • Certain relaxations of restrictions on
Slide 7: Part II - Financial Performance Review: A Transformative Journey
PART II - FINANCIAL PERFORMANCE REVIEW A Transformative Journey
Slide 8: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW PBT Gross income Rs. 4.2 Bn, Rs. 66.7 Bn YoY 55% Income/ YoY 50% PAT Profitability Rs. 2.3 Bn, YoY 37% Loans & Rec Total assets Rs. 470 Bn Balance Sheet Rs. 793 Bn YTD (14%) YTD (5%) Deposits Rs. 628 Bn YTD (7%) NIM: 3.7% ROE: 7.2% Tier I CAR CIR: 35% 11.04% Impaired l
Slide 9: Financial Performance - Income
FINANCIAL PERFORMANCE - INCOME LKR Mn Fund based income H1 2023 H1 2022 Variance % Gross Income 66,720 44,540 22,180 50 Interest Income 63,205 37,156 26,050 70 Interest Expenses 48,177 22,167 26,010 117 Net Interest Income 15,028 14,989 40 0.3 Non-fund based income H1 2023 H1 2022 Variance % Net Fee
Slide 10: Financial Performance – Impairment Charges
FINANCIAL PERFORMANCE – IMPAIRMENT CHARGES LKR Mn H1 2023 H1 2022 Variance % Impairment Charges 7,871 13,928 (6,057) (43) • On a prudent basis, impairment charge for loans and advances increased over the corresponding period, given the heightened economic uncertainty • In line with such uncertainty,
Slide 11: Financial Performance – Operating Expenses
FINANCIAL PERFORMANCE – OPERATING EXPENSES LKR Mn H1 2023 H1 2022 % Personnel expenses 3,127 2,938 6 Depreciation & amortization 507 410 24 Other expenses 2,883 2,405 20 Total operating expenses 6,517 5,753 13 Composition of Operating Expenses • Total operating expenses increase stemmed at 13% amids
Slide 12: Financial Performance – Taxes and Profitability
FINANCIAL PERFORMANCE – TAXES AND PROFITABILITY LKR Mn H1 2023 H1 2022 % Operating Profit Before Tax on Financial Services 4,153 2,678 55 Taxes on Financial services 1,203 841 43 Profit Before Taxation 2,950 1,837 61 Income tax expenses 613 132 366 Profit for the period 2,337 1,705 37 Total tax char
Slide 13: Financial Performance – Balance Sheet
FINANCIAL PERFORMANCE – BALANCE SHEET Variance • Balance sheet movement largely in line with industry-wide trends LKR Bn H1 2023 FY 2022 LKR % • Total assets reduction – due to deflation Total assets 793 833 (40) (5) of the foreign currency denominated asset book with the appreciation of the Investm
Slide 14: Financial Performance – Investor Ratios
FINANCIAL PERFORMANCE – INVESTOR RATIOS Bank Group H1 2023 FY 2022 H1 2023 FY 2022 Closing Price per Share [LKR] 50.00 32.00 NA N/A EPS [LKR] 11.80 7.65 12.07 7.92 ROE [%] 7.20 4.75 6.94 4.62 ROA [%] [Pre-tax] 1.03 0.26 1.07 0.34 Book Value per Share [LKR] 168.69 167.16 178.60 177.60 P/E [times] 4.2
Slide 15: Financial Performance – Capital & Liquidity Position
FINANCIAL PERFORMANCE – CAPITAL & LIQUIDITY POSITION Bank Group Ratio H1 2023 FY 2022 H1 2023 FY 2022 Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7% ] 11.04 9.34 11.57 9.87 Tier 1 Capital Ratio % [Minimum Requirement – 8.5%] 11.04 9.34 11.57 9.87 Total Capital Ratio % [Minimum Require
Slide 16: Part III - Way Forward: Responsive and Agile
PART III - WAY FORWARD Responsive and Agile
Slide 17: Way Forward
WAY FORWARD • Our strategic priorities • Managing NIMs in a low interest rate environment • Maximizing fee based income and enhancing revenue mix • Driving cost rationalizations to preserve profitability and enhance shareholder returns • Preserving asset quality • Cautious loan book growth with risk
Slide 18: Part IV - Q & A
PARTIV- Q&A ve eae
Slide 19: Q & A
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 Muthukumarana - Vice P
Slide 20: Annex - Part I Corporate Profile
ANNEX PART I - CORPORATE PROFILE 20
Slide 21: Corporate Profile
CORPORATE PROFILE Our Legacy Our Team Over 40 years of Over 3,000 NDBers across the Our Values service to the nation NDB Group Integrity Our Vision Creativity Our Presence 113 branches, 150+ CRM cum The driving force for a Excellence ATMs , Global access through financially empowered Sincerity NDB N
Slide 22: Analysts Support
ANALYSTS SUPPORT Clearly defined Quarterly Results Calendar released at the end of each quarter NDB Investor Webinar transcriptsRelations hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for any queries
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