Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Q2 FY2025 Earnings Presentation
40 slides from Hdfc Bank's earnings presentation, Oct 19, 2024
Slide 1: Q2FY25 Earnings Presentation
Q2FY25 Earnings Presentation October 19, 2024
Slide 2: Key performance metrics for Q2 FY25
Key performance metrics for Q2 FY25 ➢ Deposits; average YoY ↑ ₹ 3.15 tn (15.5%) ; EOP YoY ↑ ₹ 3.27 tn (15.1%) ✓ Average deposits QoQ ↑ ₹ 0.71 tn (3.1%) ; EOP QoQ ↑ ₹ 1.21 tn (5.1%) ✓ Average CASA QoQ ↓ ₹ 0.02 tn (↓ 0.3%) ; EOP QoQ ↑ ₹ 0.20 tn (2.3%) ✓ Average time deposits QoQ ↑ ₹ 0.73 tn (5.0%) ; E
Slide 3: Key financial parameters for Q2 FY25
STANDALONE Key financial parameters for Q2 FY25 Average advances under Profit after tax of ₹ 168 bn, EPS management at ₹ 25,639 bn, for the quarter ₹ 22.1 ↑ 1.2% QoQ Average deposits at ₹ 23,540 bn, Gross NPA at 1.36%, ex-agri ↑ 3.1% QoQ ; average CASA 34% 1.19% Net interest margin of 3.46% Return o
Slide 4: Consolidated income statement
CONSOLIDATED Consolidated income statement P&L (₹ bn) Q2 FY24 Q1 FY25 Q2 FY25 QoQ YoY Net revenue 663.2 724.2 760.4 5.0% 14.7% Operating expenses 420.4 465.5 488.1 4.9% 16.1% Provisions 33.1 31.4 32.7 4.1% (1.2%) Profit before tax 209.7 227.3 239.6 5.4% 14.3% Consolidated profit 168.1 164.7 178.3 8.
Slide 5: Income statement
STANDALONE Income statement P&L (₹ bn) Q2 FY24 Q1 FY25 Q2 FY25 QoQ YoY Net interest income 273.8 298.4 301.1 0.9% 10.0% Non-interest income 107.1 106.7 114.8 7.6% 7.2% Net revenue 380.9 405.1 415.9 2.7% 9.2% Operating expenses 154.0 166.2 168.9 1.6% 9.7% Provisions 29.0 26.0 27.0 3.8% (6.9%) Profit
Slide 6: Abridged balance sheet
STANDALONE Abridged balance sheet Balance sheet (₹ bn) Q2FY24 Q1FY25 Q2FY25 QoQ YoY Net Advances 23,312 24,635 24,951 316 1,639 Investments 7,234 7,088 7,240 152 6 Government and debt securities 7,040 6,882 7,030 148 (10) Equity and other securities 194 206 210 5 16 Cash & equivalent 1,871 1,818 2,5
Slide 7: Growth in deposits
BUSINESS GROWTH Growth in deposits Average Deposits EOP Deposits ₹ bn h 15.1% ₹ bn h 15.5% h 3.1% h 5.1% 23,798 23,791 25,001 22,831 23,540 21,171 21,836 21,729 22,140 20,385 19,131 18,240 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 7 HDFC Ba
Slide 8: Growth in advances
BUSINESS GROWTH Growth in advances Average advances under management EOP advances under management ₹ bn h 10.2% h 8.0% ₹ bn h 1.2% h 2.3% 25,758 25,750 26,334 24,374 25,287 25,125 25,327 25,639 23,266 24,414 17,053 16,439 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 Jun'23 Sep'23 Dec'
Slide 9: Retail branch driving deposits
HIGH QUALITY DEPOSIT FRANCHISE Retail branch driving deposits Retail / Wholesale Proportion of CASA deposits ₹ bn 42% 38% 38% 38% 36% 35% 17% 17% 16% 16% 16% 16% 83% 83% 84% 84% 84% 84% 5,987 5,964 6,081 5,606 5,700 5,799 3,100 2,673 2,754 2,523 2,477 2,558 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24
Slide 10: Mix across segments
LOAN BOOK Mix across segments Balancing growth Composition of retail loans Sep’24 Loans (₹ bn) Sep'23 Jun'24 Sep'24 QoQ YoY Retail 11,821 12,817 13,156 2.6% 11.3% 15% 11% Retail Mortgages 7,189 7,880 8,028 1.9% 11.7% Retail Non-Mortgages 4,632 4,937 5,127 3.8% 10.7% 8% CRB 7,244 8,128 8,508 4.7% 17.
Slide 11: Branch expansion and vintage
BUILDING FRANCHISE STRENGTH Branch expansion and vintage Branch network Branch vintage mix #s Sep’24 7,860 7,945 8,091 8,738 8,851 9,092 18% 18% 18% 18% 18% 17% 34% 34% 34% 34% 34% 34% 20% 20% 20% 20% 20% 21% 38% 28% 28% 28% 28% 28% 28% 24% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 17% 15% Metro Urb
Slide 12: Capital and liquidity metrics
Capital and liquidity metrics Capital adequacy Liquidity coverage ratio 19.8% 19.5% 19.3% 18.9% 18.8% 18.4% 126% 128% 17.8% 17.8% 121% 123% 115% 17.3% 110% 16.9% 16.8% 16.8% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Total Capital Tier 1 Capital 12 HDFC Bank
Slide 13: Net revenues
STANDALONE Net revenues Net revenue Net revenue mix ₹ bn 28% 28% 28% 27% 26% 28% 473 396 405 416 381 328 73% 74% 72% 72% 72% 72% * Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24** Q1 Jun'24 Q2 Sep'24 YoY 27% 33% 26% 48% 23% 9% QoQ 2% 16% 4% 20% (1
Slide 14: Net interest income
STANDALONE Net interest income Net interest income Net interest margin (NIM) ₹ bn 3.46% 4.3% 4.1% 3.6% 3.6% 3.6% 3.7% 3.7% 3.4% 3.4% 3.4% 3.5% 3.5% 285 291 298 301 274 236 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 YoY 21%
Slide 15: Yield on assets and cost of funds
STANDALONE Yield on assets and cost of funds Yield on assets and cost of funds Key balance sheet mix Particulars Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 8.2% 8.3% 8.4% 8.4% 8.3% 8.1% AUM mix Retail 38% 48% 48% 49% 50% 50% Mortgage 11% 29% 29% 30% 31% 31% 4.8% 4.9% 4.9% 4.9% 4.9% Non-Mortgages 27%
Slide 16: Other income
STANDALONE Other income Other income Fee income mix ₹ bn 182 7% 8% 6% 6% 7% 6% 15 18% 17% 15% 18% 18% 20% 111 76 115 107 107 34% 16 33% 35% 33% 34% 92 15 34% 15 20 3 11 10 15 11 2 15 6 12 12 14 13 19% 21% 20% 19% 18% 20% 80 70 81 63 69 69 21% 22% 26% 23% 24% 19% Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'
Slide 17: Operating expenses
STANDALONE Operating expenses Operating expenses Cost efficiency ₹ bn 42.8% ^ 180 40.4% 40.3% 41.3% 41.0% 40.6% 166 169 160 154 141 111 109 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 108 102 106 93 Cost to income ratio * 69* 60 2.4% 2.0% ^ 1.9% 1.9% 52 54 58 1.9% 1.9% 48 Q1 Jun'23 Q
Slide 18: Resilient asset quality
RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment 1.8% 1.8% 1.8% 1.8% 1.3% 1.3% 1.4% 1.3% 1.2% 1.2% 1.2% 0.8% 0.8% 0.4% 0.4% 0.3% 0.3% 0.3% Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 GNPA NNPA Jun'24 Sep'24 GNPA (ex-agri) Retail CRB CRB (ex-Agri) Corporate and other wholesale 1.2
Slide 19: Movement of NPAs
RISK MANAGEMENT Movement of NPAs ₹ bn 133 bps 36 136 bps (Ex-agri 119 bps) (Ex-agri 116 bps) 78 29 - 330 343 GNPA as on Jun'24 Slippages Upgrades & Recoveries Write offs GNPA as on Sep'24 ₹ bn 35 - 124 bps 79 26 133 bps - (Ex-agri 112 bps) (Ex-agri 116 bps) 312 330 GNPA as on Mar'24 Slippages Upgrad
Slide 20: Credit cost and stock of provisions
RISK MANAGEMENT Credit cost and stock of provisions Credit cost Stock of provisions ₹ bn 610 608 606 49 bps 49 bps 43 bps 492 501 106 104 105 42 bps 42 bps 34 bps 35 bps 101 104 124 124 124 29 bps 29 bps 15 15 27 bps 142 150 149 145 138 235 233 231 235 239 Q2 Sep'23 Q3 Dec'23 * Q4 Mar'24 * Q1 Jun'24
Slide 21: Profitability
Profitability Standalone profit after tax Earnings per share* ₹ bn ₹ 21.4 21.1 21.6 21.7 21.3 22.1 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 EPS Standalone ₹ 22.2 22.2 22.7 23.2 21.7 23.4 164 165 168 160 162 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 EPS Consolidat
Slide 22: Stake held in key subsidiary entities – September 30, 2024
GROUP COMPANIES Stake held in key subsidiary entities – September 30, 2024 Subs Book Investment No. of shares % Stake PAT of the value per EPS (FTQ) Entity Amount outstanding held by company share (₹) (₹ bn) by entity (mn) HDFC Bank (FTQ) (₹ bn) (₹) HDB Financial Services 35 794.0 94.54% 5.9 187.4 7
Slide 23: Subsidiaries – Q2FY25 update – HDB Financial Services
GROUP COMPANIES Subsidiaries – Q2FY25 update – HDB Financial Services • 94.54% stake held by the Bank as of September 30, 2024 • 17.3 million customers serviced through a network of 1,771 branches across 1,162 cities/towns ‒ 0.8 million customers and 44 branches added during Q2 FY25 • Disbursement m
Slide 24: Subsidiaries – Q2FY25 update – HDFC Life Insurance
GROUP COMPANIES Subsidiaries – Q2FY25 update – HDFC Life Insurance • 50.34% stake held by the Bank as of September 30, 2024 • 329k individual policies sold during the quarter up 22% from prior year; overall 12 mn lives insured during the quarter • Individual weighted received premium market share of
Slide 25: Subsidiaries – Q2FY25 update – HDFC AMC
GROUP COMPANIES Subsidiaries – Q2FY25 update – HDFC AMC • 52.51% stake held by the Bank as of September 30, 2024 • Quarterly average AUM of ₹ 7.6 trillion; 11.5% market share • 66% of quarterly average AUM is equity oriented with 62% in actively managed equities • 11.8 million unique investors; 24%
Slide 26: Subsidiaries – Q2FY25 update – HDFC ERGO General Insurance
GROUP COMPANIES Subsidiaries – Q2FY25 update – HDFC ERGO General Insurance • 50.48% stake held by the Bank as of September 30, 2024 • Q2FY25 Gross direct premium market share of 6.3% in overall industry and 9.5% amongst private sector insurers • Retail mix in business 50% for the quarter ended Septe
Slide 27: Subsidiaries – Q2FY25 update – HDFC Securities
GROUP COMPANIES Subsidiaries – Q2FY25 update – HDFC Securities • 94.89% stake held by the Bank as of September 30, 2024 • 6.1 million customers serviced through a network of 142 branches across 111 cities • Around 96% of the active clients utilized the services offered through company’s digital plat
Slide 28: ESG at HDFC Bank
ESG INITIATIVES ESG at HDFC Bank Environmental Social Governance Ratings • Target to be carbon neutral by • Leading responsibly • Commitment to principles of FY32 • Taking banking to the independence, accountability, unbanked; responsibility, transparency • Board approved ESG Risk and fair & timely
Slide 29: Balance sheet and capital productivity
COMPOUNDING VALUE Balance sheet and capital productivity Growth in assets and RoA 40,000 2.0 2.0 1.9 2.0 2.0 2.0 2.1 2.0 1.9 1.9 1.9 1.9 1.9 1.9 30,000 20,000 10,000 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1 Jun'24 Q2 Sep'24 Assets RoA % Healthy capital position and RoE 25.0 2
Slide 30: Book value performance
COMPOUNDING VALUE Book value performance Standalone book value per share ₹ 580 603 607 534 556 502 525 451 456 480 433 Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q2 Sep'24 Consolidated book value per share ₹ 625 631 576 601 543 553 495 519 446
Slide 31: Appendix
APPENDIX 31 HDFC Bank Presentation Q2 FY2025
Slide 32: Consolidated income statement H1 FY25
CONSOLIDATED Consolidated income statement H1 FY25 P&L (₹ bn) H1FY24 H1FY25 YoY Net revenue 1,013.8 1,484.6 46.4% Operating expenses 572.2 953.6 66.7% Provisions 66.0 64.1 (2.9%) Profit before tax 375.6 466.9 24.3% Consolidated profit 291.8 343.0 17.5% 32 HDFC Bank Presentation Q2 FY2025 HDFC Limite
Slide 33: Income statement H1FY25
STANDALONE Income statement H1FY25 P&L (₹ bn) H1FY24 H1FY25 YoY Net interest income 509.8 599.5 17.6% Non-interest income 199.4 221.5 11.1% Net revenue 709.2 821.0 15.8% Operating expenses 294.6 335.1 13.7% Provisions 57.6 53.0 (8.0%) Profit before tax 357.0 432.9 21.3% Profit after tax 279.3 330.0
Slide 34: Industry-wise distribution
CONSOLIDATED Industry-wise distribution Total Total Industry (₹ bn) Outstanding As a (%) Industry (₹ bn) Outstanding As a (%) (FB + NFB) (FB + NFB) Consumer Loans 10,136 33.2% Telecom 328 1.1% NBFC 1,662 5.4% Consumer Durables 291 1.0% Financial Institutions 1,138 3.7% Financial Intermediaries 275 0
Slide 35: Top 20 borrower exposure as a % of total exposure
Top 20 borrower exposure as a % of total exposure 13.5% 11.0% 11.0% 11.0% 10.5% 10.3% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 35 HDFC Bank Presentation Q2 FY2025 Jun’23 is pre-merger and subsequent quarters are post merger
Slide 36: Risk Weighted Assets
Risk Weighted Assets RWA to Total Assets Risk Weight Density* 68% 68% 69% 67% 67% 64% 65% 65% 64% 63% 63% 60% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 36 HDFC Bank Presentation Q2 FY2025 * Risk Weight Density = RWA / (FB + NFB (post CCF)) Jun’23 is pre-merg
Slide 37: Corporate rating mix
Corporate rating mix Rating mix % of externally rated wholesale book (corporate & mid corporate) Jun’24 Sep’24 76.3% 75.6% 4.5% 4.9% 7.4% 7.5% 11.8% 12.0% AA and above A BBB BB and below AA and above A BBB BB and below 37 HDFC Bank Presentation Q2 FY2025 Certain figures reported above will not add-u
Slide 38: Shareholding Pattern
HDFC BANK Shareholding Pattern Other Domestic Sep’24 Others, 3.0% FIs, 2.2% Insurance cos, 7.2% Number of shares outstanding : 7,631 mn Resident Individuals, Number of resident individual shareholders : 3.80 mn 11.4% FIIs/FPIs, 41.5% Foreign limit utilized : 55.51% Foreign headroom : 18.49% Mutual F
Slide 39: Deposits and advances trend
STANDALONE Deposits and advances trend ₹ tn ₹ tn 28% 29% 27% 25% 15% 30% 28% 26% 24% 15% 19% 19% 20% 21% 19% 19% 21% 14% 14% 17% 17% 18% 17% 14% 14% 13% 21.2 21.8 22.8 23.5 25.0 18.2 20.4 18.8 19.1 21.7 22.1 23.8 23.8 16.4 17.2 17.3 13.5 14.0 14.5 15.1 15.9 14.1 14.5 15.6 16.0 16.7 Average Deposits
Slide 40: Safe harbour statement
Safe harbour statement Certain statements are included in this release accounting standards, our ability to pay dividends, attacks by the United States, a United States-led which contain words or phrases, such as ‘will’, the impact of changes in banking regulations and coalition or any other country