Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q1 FY2022 Earnings Presentation
46 slides from Federal Bank Ltd. (india)'s earnings presentation, Jul 23, 2021
Slide 1: Cover letter to stock exchanges
Secretarial Department SD/ F24/77/2021-22 July 23, 2021 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, Dalal
Slide 2: Investor Information Q1 FY 2022
Investor Information ee Q1 FY 2022
Slide 3: Snapshot of the Quarter
Snapshot of the Quarter More than 92% of the employees vaccinated Supplied COVID relief materials across the country Future of Digital is Human NEO Banking partnership Partnership with with epiFi and Jupiter Amul and DGV Launched Credit Cards, to ETB customers The largest vaccination drive in associ
Slide 4: Key Messages
Key Messages • Highest ever Operating Profit at 1135 Cr, Credit Growth in Chosen Areas Stable Financial grew by 22% YoY • Total Advances grew by 8% YoY Performance; • Net Profit @ 367 Cr, impacted by higher • Retail Advances grew by 15% YoY Despite Challenging provisions during the quarter • Agri Bu
Slide 5: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Operating Profit 22% Retail Banking 15% Net Profit -8% Agri Banking 24% RoA @0.76 % Business Banking (BuB) 9% RoE @9.03 % Cost to Income Ratio @45.12 % Commercial Banking (CoB) 10% GNPA @ 3.50% NNPA @ 1.23% Total Advance 8% NII 9% CASA 19% NIM @ 3.15% NRE Deposit 10% Cap
Slide 6: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.20 10.92 10.38 9.03 3.23 3.15 1.02 3.13 3.22 8.09 3.07 0.88 0.84 0.76 0.65 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Cost to Income Ratio NNPA (%) PCR (%) 53.06 65.14 65.00 77.
Slide 7: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1437 1420 1418 1380 650 1296 488 509 482 465 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Fee Income Net Profit 478 357 363 401 404 288 367 255 308 171 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q
Slide 8: Key Indicators
Key Indicators Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Book Value 82.60 80.77 78.39 76.38 74.85 (Per Share in ₹) Shareholder Value EPS 7.38 9.71 8.04 6.12 8.07 (annualized) CASA + Deposits <2 Cr 88% 88% 90% 90% 89% Granularity (% of Total Deposits) ROA 0.76 1.02 0.84 0.65 0.88 Profitability RoRWA 1.
Slide 9: Asset Quality Trends
Asset Quality Trends 3.33 3.44 Amt in Rs.Cr. Collection Efficiency 3.01 2.92 2.86 2.84 maintained at 95%, despite 2.74 the challenging 2.28 2.01 2.01 1.96 2.24 environment 1.71 1.67 1.73 1.59 1.76 4328 1.28 161 1.14 1.08 1.00 3347 3357 3139 3139 2970 3191 3197 1593 2958 2890 160 584 775 2680 2784 28
Slide 10: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q1 FY22 Q4 FY21 Q1 Q4 Q3* Q2 Q1 TYPE Of which Of which FY22 FY21 FY21 FY21 FY21 Balance Balance Bonds Bonds Retail 127 301 314 1 1 STANDARD 2574 17 1618 7 Agri 157 89 159 1 1 Net NPA 341 115 299 115 TOTAL 2915 132 1917 122 BuB 169 73 196 1 0 Secu
Slide 11: Covid Specific Restructuring
Covid Specific Restructuring Balance Outstanding of Covid Specific Restructuring Amt in Cr Retail 1422 BB 339 Agri* 204 CV/CE 32 CoB 275 CIB 142 Total Restructuring 2414 *Includes 200 Cr of Gold Loan Balance Outstanding of Covid Specific Restructuring in Retail Amt in Cr Housing Loan 736 Loan agains
Slide 12: Asset Quality : Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q1 FY-22 Q4 FY-21 Q1 FY22 8% A & above 77% 76% 3% 8% BBB 12% 12% 4% 12% < BBB 3% 4% 12% Q4 FY21 Others 8% 8% 76% Internal Rating of ‘others’ (Externally unrated
Slide 13: Asset Quality : Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q1 FY-22 Q4 FY-21 17% Q1 FY22 20% 18% 20% FBR1 20% 20% FBR2/FBR3 18% 17% Q4 FY21 17% 18% FBR4 16% 16% 29% 29% 16% FBR5/FBR6 29% 29% 16% Staff 2% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance agai
Slide 14: Comparison : Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances -4% Advances 15% 24% 9% 10% 8% 37864 -> 43599 13610 -> 16837 10653 -> 11576 11744 -> 12963 49566 -> 47812 123437 -> 132787 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 279 11% 19% 10% bps 49616 -> 58959 32.
Slide 15: Comparison : Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances -3% -4% -2% -2% -2% 5% 44866 -> 43599 16041 -> 16837 12030 -> 11576 13176 -> 12963 48762 -> 47812 134877 -> 132787 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 100 1% 3% 1% bps 58370 -> 58959 33.81
Slide 16: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Digital Migration 89% SHARE OF DIGITAL TRANSACTION 8.6K CR WORTH MONTHLY MOBILE BANKING TRANSACTIONS 136% YOY GROWTH IN UPI TRANSACTIONS IN OPEN BANKING PARTNERS § s % =| | 200+ || 84% SS as ACCOUNTS at RPA PROCESSES. GRENED = £ RENIN DIGIT
Slide 17: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 31 Pine Labs eof. rz egy duper AT as sro cross border remittances Cross Border remittances %p Lulu (GROUP INTERNATIONAL, EMI on P& Checkout EMI on PG Checkout Full stack for Neo Banks No tension instant EMI on Checkout Cross border inward r
Slide 18: Innovation through Growth & Partnerships
Innovation through Growth & Partnerships 17
Slide 19: Innovation through Growth & Partnerships
Innovation through Growth & Partnerships 18
Slide 20: Innovation through Growth & Partnerships
Innovation through Growth & Partnerships 19
Slide 21: Innovation through Growth & Partnerships
Innovation through Growth & Partnerships 20
Slide 22: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Branch vs Digital Transactions (In Lakhs) 100 88.42% 90.00% 80 85.52% 88.00% 86.00% 60 84.00% 40 81.90% al eae 69.36 346 76.76 64.12 82.00% 20 11.19 504 10.12 11.22 13.1 8.39 80.00% . = = || Zz = seth Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Mm T
Slide 23: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 22
Slide 24: Business Parameters
aheeeerataetieor Business Parameters
Slide 25: Liability : Trends
Liability : Trends ₹ in Cr CASA Ratio 34.48% 33.81% 34.81% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 32.02% 33.68% 97719 97265 93241 92630 91984 59336 58713 56037 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 53152 49915 CA & SA CASA + Demand Dep Other Retail Deposit 44318 46582 47686 49996 42059 7557 8467
Slide 26: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 9% 10% 13% 54% 36% 33% 46% Retail Agri BuB CB CIB Retail Wholesale Yield on Advances 8.40 8.15 58559 61938 60775 61310 59448 Q4 FY21 62127 65760 69621 72938 72012 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 YOA 25
Slide 27: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 10615 11582 10343 7969 9062 61% 1551 1645 1710 1809 1766 3603 3583 3195 3346 3134 7489 7852 7783 7009 7206 16% 18201 18497 19043 20020 20124 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Retail Agri BuB RETAIL B
Slide 28: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio No of outstanding Accounts (in Lakhs) 11.20 11.32 15816 15764 10.46 14692 9.78 8.89 12691 10243 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Tonnage 48.41 48.73 46.48 42.25 39.26 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Slide 29: Wholesale Banking
Wholesale Banking CoB Corporate ₹ in Cr 21% 79% 48762 49566 47117 45713 47812 11744 12331 12846 13176 12963 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 WHOLESALE BANKING ➢ Onboarded 45 new clients in CIB and 28 new clients in CoB, across business groups, geographies and sectors during the quarter. ➢ Dig
Slide 30: Fee Income : Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise (In Cr) 1000 650 700 800 482 488 509 465 27 500 600 0 0 0 3 297 400 165 141 95 300 319 86 84 123 143 200 100 50 221 255 284 119 184 0 -100 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Retail Wholesale Treasury Others Total Fee Income
Slide 31: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q1 FY22 Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Loan Processing Fee 53 97 101 82 44 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 161 226 211 174 102 Income 255 Net Profit on Forex 41 40 45 32 24 Transactions 50% Fee Income 255 363 357 288 170 170 Profit on sa
Slide 32: Distribution : Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 29 3 1 22 27 Customers @ 23 8 12 Core BC led 2 Sales /Relationship 8 2 Channel Distribution 1 (Bank owned) 44 9 31 11 1 2 3 25 101 20 Direct Sales Agents /Connectors 12% 16% Q1 FY22 6 12% 16% 24 Q1 FY22 Q4 FY21 Q3 FY21 104 2 Q4 FY2
Slide 33: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Jun-21 Mar-21 Risk Weighted Assets Credit Risk 94757 97762 Market Risk 3885 3763 Operational Risk 11695 10095 Total RWA 110337 111621 Tier-1 Capital Funds 15305 15455 Tier-II Capital Funds 851 868 Total Capital Funds 16156 16323 CRAR 14.64% 14.62% Tier-I 13.87
Slide 34: Annexures
FEDERAL BANK Annexures
Slide 35: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q1 FY22 Q4 FY21 LIABILITIES Capital 399 399 Share Holding Pattern Reserves & Surplus 16089 15724 Deposits 169393 172644 Borrowings 9350 9069 31% Other Liabilities & Provisions 4807 3531 32% TOTAL 200038 201367 2% ASSETS Cash & Balance with RBI 8284 7647 2
Slide 36: Financials
Financials ₹ in Cr Q1 FY22 Q4 FY21 Q-o-Q Q1 FY21 Y-o-Y Interest Income 3356 3366 -0.3% 3444 -3% Interest Expenses 1937 1946 -0.4% 2148 -10% Net Interest Income 1418 1420 -0.2% 1296 9% Other Income 650 465 40% 488 33% Operating Expense 933 1001 -7% 852 10% Total Income 4006 3832 5% 3932 2% Total Expe
Slide 37: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance ITEMS FOR CONSUMPTION/ PERSONAL/ 1.24% HOUSEHOLD USE 30.06.2021 TRANSPORT VEHICLES & PARTS 1.28% TEXTILES INCLUDING JUTE & COIR 1.31% CHEMICALS 1.43% CONTRACTORS 1.81% POWER GENERATION & TRANSMISSION 1.
Slide 38: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 74.00% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.90% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 39: FedBank Financial Services Ltd. (FEDFINA)
FedBank Financial Services Ltd. (FEDFINA) Federal Bank Stake in Fedfina ₹ in Cr Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q 100% 82.6% 74% 74% 74% Net Worth 1047 708 48% 832 26% 4,752 4,712 AUM Total Revenue 197 150 32% 190 4% 3,780 1,846 NII 99 73 35% 94 5% 1,876 1,015 PPOP 49 30 63% 42 16% 281 219 2,004 5
Slide 40: External Ratings
External Ratings Fixed Deposit A1+ (Short term) Certificate of Deposit A1+ India Ratings IND AA Tier 2 (Capital) Bonds & Research CARE AA Pvt Ltd, CARE • Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 39
Slide 41: Awards & Accolades
Awards & Accolades Declared Winner in the Private Sector Banks in India, for improvement in financial performance, good asset quality and Recognized as one among India’s Best 50 Companies to work for product diversification with technology and digital experience for in 2021 by Great Place to Work In
Slide 42: Disclaimer
Disclaimer This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from th
Slide 43: Thank You
Thank You AE A aA og
Slide 44: Press Release: highest ever operating profit of Rs.1135 Cr
Marketing &Investor Relations MKT//2021-22 July 23, 2021 PRESS RELEASE Federal Bank records highest ever operating profit of Rs.1135 Cr (Grows by 22% Y-o-Y) Federal Bank announced the Unaudited Financial Results for the quarter ended 30th June 2021. The key highlights of the results on a Y-o-Y basis
Slide 45: Press Release: Operating Profit, Income, Key Ratios
Operating Profit & Net Profit The Operating Profit of the Bank as on 30th June 2021 stood at Rs. 1135.18 Cr up from Rs. 932.38 Cr. Total Income reached Rs.4005.86 Cr as on 30th June 2021. Net Profit of the Bank for the quarter ended June 2021 stood at Rs. 367.29 Cr. Income Net Interest Income grew 9
Slide 46: Major Financial Indicators (Standalone)
MAJOR FINANCIAL INDICATORS (Standalone Nos) (Rs. in Cr) Business Figures As on 30.06.2021 As on 30.6.2020 Growth (%) Total Deposits 169393.30 154937.74 9.33% CASA Deposits 58958.79 49615.50 18.83% Net Advances 129765.06 121296.96 6.98% Retail Advances 43599.03 37864.25 15.15% Bus. Banking Advanc