Federal Bank Ltd. (india) · NSE:FEDERALBNK

Federal Bank Ltd. (india) — The Federal Bank — Q3 FY2019 Earnings Presentation

33 slides from Federal Bank Ltd. (india)'s earnings presentation, Jan 17, 2019

  1. Slide 1: Federal Bank - Presentation to Investors/Analysts cover letter

    FEDERAL BANK ,OU!\ i-'clcl l CT 3 \',Kl'-:G ?,\i\Tc-.1:r{ Secretarial Department SDF-24/ /2018-19 1ith January 2019 Listing Department Department of Corporate Services - Listing The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex,

  2. Slide 2: Investor Information Q3 FY 2019

    Investor Information ee Q3 FY 2019

  3. Slide 3: Key Messages

    Key Messages Robust Operating Momentum Strong, balanced Credit Growth of 25% • Highest ever Operating Profit @ • Core Retail grew by 31% & CIB by 31% Operating 708cr, grows 26% Y-o-Y • Auto grew 60%, PL-130% & HL-35% Momentum • Highest ever Net Profit @ 334Cr, • Smarter churning of advances book gro

  4. Slide 4: Fueling Growth

    Fueling Growth Business initiatives To Sharpen high Quality Growth Corporate & • Selective sell down of Assets to ensure better yield & Asset quality management. Institutional Banking • Focus on Deeper Geographies; Mid Corporate Clients and manufacturing entities. • Initiated Retail Finance for medi

  5. Slide 5: Performance Highlights Y-o-Y

    Performance Highlights Y-o-Y NII 13% Retail (inc Agri) 23% NIM @3.17 SME Advance 15% Core Fee Income 45% Business banking 20% Operating Profit 26% Net Profit 28% Corporate Business 31% Cost to Income Ratio @ 50.25% GNPA @ 3.14% Total Advance 25% RoA @ 0.91% RoE @ 10.48% CASA 24% CA 40% Capital Adequ

  6. Slide 6: Comparison : Y-o-Y (3 M)

    Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Business Commercial Retail+Agri Banking Total Advances Banking(CoB) # CIB (BuB)# Advances 23% 11% 31% 25% 20% 3280340343 74508906 1011211253 3555746563 85922107065 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 24% 22 22% 20% bps 3330441172 33.1

  7. Slide 7: Comparison : Q-o-Q (Sequential)

    Comparison : Q-o-Q (Sequential) RETAIL WHOLESALE Business Commercial Retail +Agri Total Advances Banking(BuB) Banking(CoB) CIB Advances 6% 3% 3% 4% 5% 3798940343 8614 8906 1090911253 4478846563 102300107065 CASA CASA Ratio NRE Deposits Retail Deposits Deposits -4 4% bps 2% 3% 3946541172 33.39

  8. Slide 8: Key Indicators

    Key Indicators Q3 FY19 Q2 FY19 Q1 FY19 Q4 FY18 Q3 FY18 Book Value 64.60 62.81 62.62 61.55 60.80 (Per Share in ₹) Shareholder Value EPS 6.68 5.33 5.32 2.98 5.32 (annualized) CASA + Deposits <1 Cr 88% 89% 91% 88% 92% Granularity (% of Total Deposits) ROA 0.91 0.76 0.79 0.46 0.87 Profitability RoRWA 1.

  9. Slide 9: Asset Quality Drill-Down

    Asset Quality Drill-Down 4.30 4.29 4.37 3.40 3.33 3.44 Total Stressed Book at 3.01 2.74 2.92 2.86 2.84 2875Cr. Reduced to 1.96% 3498 3537 3662 2.28 2.01 2.01 1.96 3357 of Average Total Assets. 431 417 532 2955 2958 3139 3139 3191 3197 2970 2890 2784 2855 606 584 775 2680 484 675 804 788 876 623 615

  10. Slide 10: Fresh Slippages Break up

    Fresh Slippages Break up Fresh Slippages Restructured Q3 Q2 Q1 Q4 Q3 FY19 FY19 FY19 FY18 FY18 Q3 FY19 Q2 FY19 TYPE Retail 108 120 109 70 150 Of which Of which Balance Balance Bonds Bonds Agri 71 65 54 56 42 STANDARD 644 80 577 84 SME 192 169 90 142 122 BuB 107 94 39 Gross NPA 630 73 705 72 CoB 85 75

  11. Slide 11: Asset Quality : Rating Distribution

    Asset Quality : Rating Distribution Risk Rating Q3 FY19 1% Q3 FY19 17% 20% A & Above FBR1/FB1 1% 17% 20% BBB FBR2/FBR3/FB2 31% 31% <BBB FBR4/FB3 11% 12% Q2 FY19 FBR5/FBR6/FB4 Q2 FY19 71% OTHERS 23% 23% 72% 25% 25% Wholesale Assets Other Assets Rating Q3 FY-19 Q2 FY-19 Rating Q3 FY-19 Q2 FY-19 FBR1 F

  12. Slide 12: Digital Journey

    Digital Journey Increase in the Number of Active Digital Users (In Lakhs) FedMobile Transaction Volume (per month in Cr) 15.30 2,941 YoY growth : 45% YoY growth : 92% 2,428 12.72 12.73 11.82 2,098 1,929 10.56 9.74 1,535 9.11 9.30 1,214 1,069 1,097 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec

  13. Slide 13: Business Parameters

    FEDERAL BANK YOUR PERFECT BANKING PARTNER Business Parameters

  14. Slide 14: Liability : Trends

    Liability : Trends ₹ in Cr Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 74175 72018 69480 67241 CASA Ratio 62795 33.13% 33.47% 33.39% 33.35% 33.26% 18% 41622 39900 37671 37542 33781 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 23% CASA + Demand Dep Other Retail Deposit 13

  15. Slide 15: Customer Exposures

    Customer Exposures ₹ in Cr RETAIL WHOLESALE Y-o-Y growth : 20% Y-o-Y growth : 11% Q-o-Q growth: 3% Commercial Banking Q-o-Q growth: 3% Business banking 10715 10909 11253 10112 10443 8614 8906 8130 8238 7450 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Y-o-Y growth

  16. Slide 16: Credit Portfolio Distribution

    Credit Portfolio Distribution ₹ in Cr Total Loan Book Retail Loan Book (Excl Agri) Housing Gold Mortgage Others 8162 28% 7387 43% 7292 7229 6957 5373 5110 4773 4864 10% 4426 1631 1734 1965 1831 8% 1890 11% 13582 14560 11648 12209 10758 Retail Agri BuB CB CIB Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 1

  17. Slide 17: Fee Income/Other income

    Fee Income/Other income ₹ in Cr Q3 FY19 Q2 FY19 Q1 FY19 Q4 FY18 Q3 FY18 Y-o-Y % Loan Processing Fee 50 53 31 46 34 46% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 156 147 129 136 120 30% Income 279 Net Profit on Forex 74 61 47 56 39 91% Transactions 45% 193 Fee Income 279 261 208 2

  18. Slide 18: Distribution : Deriving Efficiency from Foot Print

    Distribution : Deriving Efficiency from Foot Print 1 Q3 FY19 Q2 FY19 Q1 FY19 30 Branches 1251 1252 1252 3 1 27 22 ATMs 1669 1683 1684 23 2 8 12 8 2 1 45 1 12% 16% 8 31 1 11 12% 16% 1 3 25 102 Q2 FY19 17% 17% Q3 FY19 16 22 6 55% 101 55% 2 137 Metro Urban Semi Urban Rural 599

  19. Slide 19: Distribution Bank's Market Share

    Distribution ₹ in Cr Kerala : Continuing Dominance Outside Kerala: Gaining share 7132 35713 Corporate 6887 4% Q3 FY 19 Q3 FY 18 23994 49% Commercial 4963 5981 Banking (CoB) 4552 9% 5559 8% Business 4352 4489 Banking (BuB) 3779 15% 3669 22% Retail ex-gold 17770 17487 (inc Agri) 14692 21% 12831 36% 46

  20. Slide 20: CRAR – How strong is your Bank?

    CRAR – How strong is your Bank? ₹ in Cr Dec-18 Sep-18 Risk Weighted Assets Credit Risk 84747 81987 Market Risk 2977 3058 Operational Risk 7326 7326 Total RWA 95049 92370 Tier-1 Capital Funds 11822 11815 Tier-II Capital Funds 509 459 Total Capital Funds 12332 12274 CRAR 12.97% 13.29% Tier-I 12.44% 12

  21. Slide 21: Annexures

    FEDERAL BANK YOUR PERFECT BANKING PARTNER Annexures

  22. Slide 22: Core Performance Indicators

    Core Performance Indicators NII Movement (in Cr) Cost to Income ratio (in %) 1077 1022 980 52.37 52.82 51.80 50.25 950 48.15 933 Highest Ever NII Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 21

  23. Slide 23: Balance Sheet & Shareholding Pattern

    Balance Sheet & Shareholding Pattern ₹ in Cr Q3 FY19 Q3 FY18 LIABILITIES Capital 397 393 Share Holding Pattern Reserves & Surplus 12490 11648 Deposits 123457 100537 Borrowings 8409 10840 31% 22% Other Liabilities & Provisions 5026 4803 TOTAL 149779 128221 2% 7% Cash & Balance with RBI 6397 4637 38%

  24. Slide 24: Financials

    Financials ₹ in Cr Q3 FY19 Q2 FY19 Q-o-Q Q3 FY18 Y-o-Y Interest Income 2954 2765 7% 2501 18% Interest Expenses 1877 1742 8% 1551 21% Net Interest Income 1077 1022 5% 950 13% Other Income 346 323 7% 229 51% Total Income 3300 3088 7% 2730 21% Total Expenditure 715 648 10% 617 16% Operating Profit 708

  25. Slide 25: Incomes and Margins

    Incomes and Margins ₹ in Cr Net Interest Income Net Interest Margin (%) 1077 1022 980 950 933 3.33 3.12 3.15 3.17 3.11 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Yield on Advances Cost of Deposits 9.17 9.31 5.85 5.66 Q2 FY19 Q2 FY19 Q3 FY19 Q3 FY19 YOA COD 24

  26. Slide 26: Sector wise Wholesale Advance Portfolio

    Sector wise Wholesale Advance Portfolio Commercial Portfolio Corporate Portfolio VEHICLES,SPARES & WHOLESALE TRADE, AUTOMOTIVE FUEL, 5% 5% NBFC, 2% ITEMS FOR CONSUMPTION/ PERSONAL/ NBFC, 18% HOUSEHOLD USE, 6% TEXTILES HOUSING FINANCE INCLUDING JUTE & COMPANIES, 13% COIR, 6% BASIC METALS, 2% REAL EST

  27. Slide 27: Investments / Subsidiaries & JVs

    Investments / Subsidiaries & JVs Major Investments Entity % Equity Fedbank Financial Services Limited 82.40% IDBI Federal Life Insurance Company of India Limited 26.00% Equirus Capital Private Ltd 19.90% Subsidiaries & JVs IDBI Federal Life Insurance Co. Ltd. •Bank’s Joint Venture Life Insurance Com

  28. Slide 28: External Ratings

    External Ratings Fixed Deposit A1+ 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. 27

  29. Slide 29: 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

  30. Slide 30: Thank You

    Thank You AE A aA og

  31. Slide 31: Press Release: Quarterly Net Profit at Rs. 334 Crores

    Marketing Department ______________________________________________________________________________ January 17, 2019 PRESS RELEASE Federal Bank Quarterly Net Profit at Rs. 334 Crores, Grows 28% Y-o-Y Federal Bank announced the Unaudited Financial Results for the quarter ended 31st December 2018. The

  32. Slide 32: Press release: Advances, Profit, Margins and Asset Quality

    On the Asset side, Retail Advances including Agri Advances registered a Y-o-Y growth of 22.99% to reach Rs.40343.49 Cr as on 31st Dec 2018. Business Banking advances grew by 19.54% to reach Rs. 8906.38 Cr. Commercial Banking registered a growth of 11.28% to reach Rs. 11253.00 Cr. Corporate and Insti

  33. Slide 33: Press release: Advances, Capital and Contacts

    Commercial Banking Advances 11253.00 10112.40 11.28% Corporate and Institutional Banking 46563.84 35556.52 30.95% Advances Capital Equity Capital 396.78 393.27 Net Worth 12815.13 11955.18 7.19% Capital Adequacy (%) 12.97% 14.41% Tier I (%) 12.44% 13.84% Tier II (%) 0.53% 0.57% RAJANARAYANAN N Vic

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