Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q2 FY2020 Earnings Presentation
36 slides from Federal Bank Ltd. (india)'s earnings presentation, Oct 16, 2019
Slide 1: Cover letter to exchanges on investor presentation
FEDERAI. )r)l Flrl iir BANK ti.t i].1.\[i\iir:ri..i\Lit Secretarial Department sDF-24/ t2019-20 16th October 2019 Listing Department Department of Gorporate Services - Listing The National Stock Exchange of lndia Limited BSE Limited Exchange Plaza, Phiroze Jeeieebhoy Towers, Bandra-Kurla Complex, Fl
Slide 2: Investor Information Q2 FY 2020
Investor Information SEER ae Q2 FY 2020
Slide 3: Key Messages
Key Messages Strong Bottomline Performance Calibrated Credit Growth of 15% • Highest ever Net Profit @ 417cr, grows 57% Y- • Core Retail grew by 29% o-Y • Auto grew 59%, PL-131% & HL-24% • Q2 FY20 ROA at 1.03% and ROE @ 12.06% • Gold Loan including Agri GL grew by 23% • Operating Profit @ 719 Cr • N
Slide 4: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.06 11.86 11.44 10.48 8.50 3.17 3.15 3.01 0.98 1.03 3.15 3.17 1.02 0.91 0.76 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Cost to Income Ratio NNPA (%) PCR (%) 64.20 67.16 67.41 66
Slide 5: Key Revenue
Key Revenue ₹ in Cr Net Interest Income Other Income 1154 1124 1077 1097 421 412 1022 392 346 323 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Fee Income Net Profit 417 317 382 384 279 289 261 260 334 266 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 F
Slide 6: Rearview and the Road Ahead…
Rearview and the Road Ahead… Business initiatives To Sharpen high Quality Growth • Healthy growth in corporate CASA to cross 1000 crs – YTD growth of 64% over PY and 12.7% Q-o-Q growth. • Corporate Advances for the first time crossed the 50,000 Cr mark inspite of the sluggish external credit environ
Slide 7: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Net Profit 57 % Retail (inc Agri) 24% Operating Profit 3 % Agri 21% RoA @ 1.03% Business banking 15% RoE @ 12.06% Commercial Banking 9% Cost to Income Ratio @ 53.47% Corporate Business 8% GNPA @ 3.07% Total Advance 15% Core Fee Income 21% Other Income 30% CASA 12% NII 10
Slide 8: Comparison : Y-o-Y
Comparison : Y-o-Y RETAIL WHOLESALE Business Banking Commercial Total Advances Retail + Agri CIB (BuB)# Banking (CoB)# Advances 24% 15% 9% 8% 15% 37978 -> 47218 8625 -> 9939 10887 -> 11848 44809 -> 48617 102300 -> 117622 CASA CASA Ratio NRE Deposits Retail Deposits -184 Deposits bps 12% 13% 15% 3945
Slide 9: Comparison : Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Business Banking Commercial Total Advances Retail + Agri CIB (BuB)# Banking (CoB)# Advances 6% 7% 2% 1% 3% 44585 -> 47218 9296 -> 9939 11625 -> 11848 48211 -> 48617 113717 -> 117622 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 11 6% 4% 4% bps 41676
Slide 10: Key Indicators
Key Indicators Q2 FY20 Q1 FY20 Q4 FY19 Q3 FY19 Q2 FY19 Book Value 69.18 68.79 66.87 64.60 62.81 (Per Share in ₹) Shareholder Value EPS 8.32 7.76 7.68 6.68 5.33 (annualized) CASA + Deposits <2 Cr 89% 89% 88% 91% 92% Granularity (% of Total Deposits) ROA 1.03 0.98 1.02 0.91 0.76 Profitability RoRWA 1.
Slide 11: Asset Quality Drill-Down
Asset Quality Drill-Down 4.30 4.29 4.37 Total Stressed Book @ 2770Cr. 1.72% of Average 3.40 3.33 3.44 3.01 Total Assets, marginally 2.74 2.92 2.86 2.84 higher on account of 3498 3537 3662 2.28 2.01 2.01 1.96 slippage of a large 532 3357 1.71 1.67 1.72 Corporate account.. 431 417 2955 2958 3139 3139
Slide 12: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q2 Q1 Q4 Q3 Q2 FY20 FY20 FY19 FY19 FY19 Q2 FY20 Q1 FY20 TYPE Retail 124 141 67 108 120 Of which Of which Balance Balance Bonds Bonds Agri 72 67 92 71 65 STANDARD 612 66 619 66 SME 146 119 97 192 169 BuB 95 99 67 107 94 Gross NPA 530 58 596 58 CoB
Slide 13: Asset Quality : Rating Distribution (Corporate Assets)
Asset Quality : Rating Distribution (Corporate Assets) External Rating of Corporate Assets External Rating of Corporate Assets Rating Q2 FY-20 Q1 FY-20 Q2 FY20 8% A & above 77% 76% 5% 9% 5% BBB 10% 10% 10% 10% < BBB 5% 5% Q1 FY20 Others 8% 9% 76% Internal Rating of ‘Others’ Rating Q2 FY-20 Q1 FY-20
Slide 14: Asset Quality : Rating Distribution (Other Assets)
Asset Quality : Rating Distribution (Other Assets) Rating Q2 FY-20 Q1 FY-20 13% 17% Q2 FY20 FBR1 FB1 17% 17% 13% 17% FBR2/FBR3 FB2 19% 19% Q1 FY20 FBR4 FB3 19% 19% 19% 19% 31% 32% FBR5/FBR6 FB4 32% 31% Gold, Advance against 19% 5% 5% Deposit/Securities, etc. 19% Staff 3% 3% 1) FB1_FBR1 2) FB2_FBR2_F
Slide 15: Digital Migration
Digital Migration Digital vs Branch : Transaction count with bifurcation on various Digital channels(In lakhs) 45 78 76.84 40 76.15 76 35 73.77 74 30 73.5 25 72 68.47 40.82 20 39.06 39.12 70 35.48 14.09 15 13.07 12.62 12.25 12.29 28.39 68 10 66 5 0 64 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Transactions
Slide 16: Digital Migration : Performance highlights
Digital Migration : Performance highlights BYOM Digital Personal Loans : Loan book progress 60000 1000 947 900 50000 48127 755 800 41461 700 40000 33776 31082 600 • BYOM enables Instant online loan 30000 27429 515 500 pre approved loan disbursal 452 400 . 3… • Option to convert debit card 20000 300
Slide 17: Business Parameters
FEDERAL BANK YOUR PERFECT BANKING PARTNER Business Parameters
Slide 18: Liability : Trends
Liability : Trends ₹ in Cr Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 CASA Ratio 83631 80991 79032 33.39% 33.35% 32.15% 74175 31.44% 31.55% 72018 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 44535 43731 42018 41622 39900 Cost of Deposits 5.97 5.93 Q1 FY20 Q2 FY20 CASA + Demand Dep Other Retail Deposit COD 1
Slide 19: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing Mortgage Auto Personal Others Total Loan Book 7462 7144 7246 30% 7135 1126 6815 929 2872 773 42% 602 2323 2565 488 2041 1804 6581 5990 6121 5373 5110 10% 15394 16038 16822 13582 14560 10% 8% Q2 FY19 Q3 FY19 Q4 FY19 Q1 F
Slide 20: Credit Portfolio Distribution
Credit Portfolio Distribution Retail Wholesale ₹ in Cr Total Loan Book 49% 59094 59837 60465 51% 55696 57815 46604 49251 52735 53880 57157 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Retail Book Retail AGRI BuB 22% 9939 9564 9296 61% 8625 8918 11788 12355 10621 11444 10180 17% 29712 31727 32797 34863 27
Slide 21: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q2 FY20 Q1 FY20 Q4 FY19 Q3 FY19 Q2 FY19 Y-o-Y % Loan Processing Fee 61 49 50 50 53 16% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 191 169 185 156 147 30% Income 317 Net Profit on Forex 64 43 54 74 61 5% Transactions 261 21% Fee Income 317 260 289 27
Slide 22: Fee Income : Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise 412 (In Cr) 421 500 392 346 400 323 25 3 400 7 300 107 111 104 300 95 102 200 78 91 59 65 200 63 100 100 182 219 197 216 0 164 0 -100 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 Q2 FY 20 Retail Wholesale Treasury Others Total Fee Income Distr
Slide 23: Distribution : Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Q2 FY20 Q1 FY20 Q4 FY19 30 Branches 1251 1251 1251 3 1 27 22 ATM/Recyclers 1942 1934 1937 23 2 8 12 8 2 1 45 1 12% 16% 9 30 1 11 12% 16% 1 3 25 102 Q1 FY20 17% 17% Q2 FY20 16 22 6 55% 101 55% 2 137 Metro Urban Semi Urban Rural 599
Slide 24: Distribution Bank's Market Share
Distribution ₹ in Cr Kerala : Prominence to Dominance Outside Kerala: Presence to Prominence 7380 30-Sep-19 37440 Corporate 11% 33500 12% 6651 30-Sep-18 Commercial Banking 5149 6579 5% 5875 12% (CoB) 4891 4723 5146 Business Banking (BuB) 12% 4301 4209 20% 20270 21615 Retail ex-gold (inc Agri) 19% 16
Slide 25: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Sep-19 Jun-19 Risk Weighted Assets Credit Risk 85828 84084 Market Risk 3024 3458 Operational Risk 8715 8715 Total RWA 97566 96257 Tier-1 Capital Funds 12561 12550 Tier-II Capital Funds 1081 1019 Total Capital Funds 13642 13569 CRAR 13.98% 14.10% Tier-I 12.87%
Slide 26: Annexures
FEDERAL BANK YOUR PERFECT BANKING PARTNER Annexures
Slide 27: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q2 FY20 Q2 FY19 LIABILITIES Capital 398 396 Share Holding Pattern Reserves & Surplus 13357 12323 Deposits 139547 118182 Borrowings 7764 9710 36% 24% Other Liabilities & Provisions 5360 5042 TOTAL 166424 145654 ASSETS 5% 2% Cash & Balance with RBI 7733 572
Slide 28: Financials
Financials ₹ in Cr Q2 FY20 Q1 FY20 Q-o-Q Q2 FY19 Y-o-Y Interest Income 3254 3229 1% 2765 18% Interest Expenses 2130 2075 3% 1742 22% Net Interest Income 1124 1154 -3% 1022 10% Other Income 421 392 8% 323 30% Operating Expense 826 763 8% 648 27% Total Income 3675 3621 1% 3088 19% Total Expense 2956 2
Slide 29: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance BASIC METALS 1.38% 30.09.2019 POWER GENERATION & TRANSMISSION 1.60% CHEMICALS 1.60% BANKS 1.62% POST & TELECOMMUNICATIONS 1.76% CONTRACTORS 2.02% FOOD PRODUCTS 2.43% REAL ESTATE BUSINESS 3.26% HOUSING F
Slide 30: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 74.00% IDBI Federal Life Insurance Company of India Limited 26.00% Equirus Capital Private Ltd 19.90% Subsidiaries & JVs * Includes CCPS(Com
Slide 31: 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. 30
Slide 32: 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 33: Thank You
Thank You PERE ae sat
Slide 34: Press Release: Federal Bank Net Profit Grows 57%
Marketing Department _______________________________________________________________________________ October 16, 2019 PRESS RELEASE Federal Bank Net Profit Grows 57% to Reach Rs.416.70 Cr Federal Bank announced the Unaudited Financial Results for the quarter ended 30th September 2019. The key highli
Slide 35: Press release continued: advances, deposits and profit
NRE Deposits of the Bank grow from Rs. 46787.05 Cr to Rs. 52690.21 Cr registering a growth of 12.62%. CASA Deposits clock a growth of 11.57 % Y-o-Y to reach Rs. 44023.39 Cr. On the Asset side, Retail Advances clock a growth of 25.41% to reach Rs. 34862.97 Cr. Business Banking advances grow by 15.23%
Slide 36: Major Financial Indicators
MAJOR FINANCIAL INDICATORS (Standalone nos.) (Rs. in Crore) Business Figures As on 30.9.2019 As on 30.9.2018 Growth (%) Total Deposits 139546.53 118182.41 18.08% SB & Demand Deposits 44534.81 39899.60 11.62% Gross Advances 117622.36 102300.37 14.98% Retail Advances 34862.97 27798.22 25.41% Busin