Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q4 FY2021 Earnings Presentation
46 slides from Federal Bank Ltd. (india)'s earnings presentation, May 17, 2021
Slide 1: Letter to stock exchanges on results presentation
Secretarial Department SEC/28/2021-22 May17, 2021 Listing Department Department of Corporate Services – Listing The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Floor 25, Dalal Street, Bandra (E), MUMBAI – 400 001 Mumbai – 400
Slide 2: Investor Information Q4 FY 2021
Investor Information ee Q4 FY 2021
Slide 3: Sanjeevani – India's Biggest Vaccination Drive
Sanjeevani – India’s Biggest Vaccination Drive On World Health Day, Federal Bank, as part of its CSR initiative, flagged off Sanjeevani, India’s biggest vaccination drive in association with Network 18, at Attari Border, Amritsar. As part of this initiative, the Bank would adopt 5 districts namely A
Slide 4: Awards & Accolades
Awards & Accolades * Among Mid Size Banks # Kerala State Forum 3
Slide 5: Key Messages
Key Messages Strong Bottomline Performance Credit Growth in Chosen Areas • Highest ever quarterly Net Profit @ 478 Cr, • Total Advances grew by 9% YoY up by 59% YoY • Retail Advances grew by 19% YoY • Q4 FY21 ROA @ 1.02%, increase of 33 bps • Gold loans grew by 70% YoY YoY and ROE @ 12.20%, increase
Slide 6: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Retail Banking 19% Net Profit 59% Agri Banking 23% RoA @ 1.02 % Business Banking (BuB) 13% RoE @12.20 % Cost to Income Ratio @53.06 % Commercial Banking (CoB) 11% GNPA @ 3.41% NNPA @ 1.19% Total Advance 9% NII 17% CASA 26% NIM @ 3.23% NRE Deposit 12% Capital Adequacy (CR
Slide 7: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.20 10.92 10.38 3.22 3.23 1.02 8.41 8.09 3.04 3.07 3.13 0.88 0.84 0.69 0.65 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Cost to Income Ratio NNPA (%) PCR (%) 77.10 65.14 53.06 66.
Slide 8: Strong progress on NII & Core Fee
Strong progress on NII & Core Fee ₹ in Cr Net Interest Income Other Income 711 1437 1420 1380 1296 1216 488 509 482 465 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Fee Income Net Profit 478 357 363 341 401 404 288 301 308 171 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY2
Slide 9: Key Indicators
Key Indicators Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Book Value 80.77 78.39 76.38 74.85 72.86 (Per Share in ₹) Shareholder Value EPS 9.71 8.04 6.12 8.07 6.06 (annualized) CASA + Deposits <2 Cr 88% 90% 90% 89% 87% Granularity (% of Total Deposits) ROA 1.02 0.84 0.65 0.88 0.69 Profitability RoRWA 1.
Slide 10: Asset Quality - Covid Specific Restructuring
Asset Quality - Covid Specific Restructuring Covid Specific Restructuring Details Amt in Cr Covid Specific Restructuring Amt in Cr Business Wise Restructuring done in Q2 FY21 28 Retail 959 BB 236 Restructuring done in Q3 FY21 663 CoB 209 Restructuring done in Q4 FY21 718 Agri 5 Total Restructuring 1
Slide 11: Asset Quality Trends
Asset Quality Trends Amt in Rs.Cr. 4.30 4.29 4.37 PCR increased from 53% to 3.40 3.33 3.44 3.01 2.74 2.92 2.86 2.84 65% on a YoY basis 2.28 2.01 2.01 1.96 1.71 1.67 1.73 1.76 1.59 1.28 1.14 1.00 1.08 3498 3537 3662 3347 3357 431 417 532 31393139 3191 3197 160 2955 2958 2970 2890 2855 2624 2771 2690
Slide 12: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q4 FY21 Q3 FY21 Q4 Q3* Q4 FY21 FY20 TYPE FY21 FY20 Of which Of which FY21 Balance Balance Bonds Bonds Retail 301 314 97 617 463 STANDARD 1618 7 1129 42 Agri 89 159 36 250 225 Net NPA 299 115 196 80 TOTAL 1917 122 1325 122 BuB 73 196 54 270 314 Se
Slide 13: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q4 FY-21 Q3 FY-21 Q4 FY21 8% A & above 76% 76% 4% 7% BBB 12% 12% 5% 12% < BBB 4% 5% 12% Q3 FY21 Others 8% 7% 76% Internal Rating of ‘others’ (Externally unrated
Slide 14: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q4 FY-21 Q3 FY-21 18% Q4 FY21 20% 17% 19% FBR1 20% 19% FBR2/FBR3 17% 17% Q3 FY21 17% 17% 30% FBR4 16% 17% 29% 17% FBR5/FBR6 29% 30% 16% Staff 3% 2% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance agai
Slide 15: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE (Amount In Crs) Retail Agri BuB# (CoB)# CIB Total Advances Advances -4% 19% 23% 13% 11% 9% 37878 -> 44910 13051 -> 16076 10529 -> 11890 11970 -> 13262 50725 -> 48738 124153 -> 134877 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 331 26% 12% 14% bps 4
Slide 16: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE (Amount In Crs) Retail Agri BuB# (CoB)# CIB Total Advances Advances 6% 3% 2% 3% 7% 5% 42247 -> 44910 15661 -> 16076 11652 -> 11890 12932 -> 13262 45689 -> 48738 128180 -> 134877 CASA CASA Ratio NRE Deposits Retail Deposits -67 Deposits bps 5% 2% 4% 55740 ->
Slide 17: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER 86% | 10.6K || 167% CR IN TERMS OF YOY GROWTH MONTHLY MOBILE IN UPI BANKING VOLUME TRANSACTIONS SHARE OF DIGITAL TRANSACTION Digital Migration 200+ |, 84% Digital Transformation ACCOUNTS RPA PROCESSES SoENED RUNNING DIGITALLY 300+!) 50+ 5 N
Slide 18: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER FEDASTuDIO Digital Kiosk © Fed-e-Studio is our fully digital self-service digital kiosk available for our customers. e Customers can perform transactions like Fund Transfer, Cheque deposit directly to CTS, Open Deposits, Request for stateme
Slide 19: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Number of Merchants (In Lakhs) © BharatPe 0 35 r 30 Merchant Network 2s ° Ek Bharat @ Bharat Pe now serves more than 65 lakh customers. #0 5 e Federal Bank now processes the é || highest number of transactions sep-20 Dec-20 Jan-21 Feb-21 Ma
Slide 20: Open Banking and Partnerships
Open Banking and Partnerships 19
Slide 21: Future Readiness
Future Readiness FEDERAL BANK YOUR PERFECT BANKING PARTNER Feddy on Google Business Messaging | e We have become First bank in the country to go live on Google Business Messaging. e The functionality allows our customers to chat with our Al based Personal Feddy & queries instantly without a phone ca
Slide 22: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Branch vs Digital Transactions (In Lakhs) 100 19, 87.00% BO 85.36% 86.00% Bo 85.00% ’ 81.90% ston Frame 82.64% — Lae aera 3.00% 20 10.65 50.7 11.19 50.64 10.12 g 12D 13.16 81.00% 80.00% . —_— Ea — — || 7900% Mar-20 Jun-20 Sep-20 Dec-20 Mar-
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 33.68% 34.48% 33.81% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 30.50% 32.02% 97265 93241 92630 91984 89967 58713 56037 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 53152 49915 46774 CA & SA CASA + Demand Dep Other Retail Deposit 44318 46582 47686 39195 42059 7255 7557
Slide 26: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 9% 10% 12% 54% 36% 33% 46% Retail Agri BuB CB CIB Retail Wholesale Yield on Advances 8.73 8.40 62000 62695 59510 58621 61372 Q3 FY21 61458 62065 65699 69560 72877 Q4 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 YOA 25
Slide 27: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 11626 10659 7801 8013 9106 60% 1492 1551 1645 1710 1809 3603 3231 3195 3346 3134 7489 7852 7125 7009 7206 17% 18229 18201 18497 19043 20020 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Retail Agri BuB RETAIL BA
Slide 28: Wholesale Banking
Wholesale Banking CoB Corporate ₹ in Cr 21% 79% 50725 48738 49542 47093 45689 11970 11830 12416 12932 13262 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 WHOLESALE BANKING ➢ Focus on New name acquisition continues to yield result with 148 NTB clients in CIB and 164 NTB clients in CoB during the FY, higher
Slide 29: Fee Income: Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise (In Cr) 1000 711 700 800 509 9 488 482 465 500 600 0 0 369 0 3 400 165 141 95 300 84 319 86 84 123 200 100 249 50 221 255 284 119 0 -100 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Retail Wholesale Treasury Others Total Fee Income Di
Slide 30: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Loan Processing Fee 97 101 82 44 56 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 226 211 174 103 209 Income 363 Net Profit on Forex 341 40 45 32 24 76 Transactions 6% Fee Income 363 357 288 171 341 Profit on sal
Slide 31: 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% Q4 FY21 6 12% 16% 24 Q4 FY21 Q3 FY21 Q2 FY21 104 2 Q3 FY2
Slide 32: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Mar-21 Dec-20 Risk Weighted Assets Credit Risk 97762 93847 Market Risk 3763 3808 Operational Risk 10095 10095 Total RWA 111621 107751 Tier-1 Capital Funds 15455 14003 Tier-II Capital Funds 868 1416 Total Capital Funds 16323 15419 CRAR 14.62% 14.31% Tier-I 13.8
Slide 33: Annexures
FEDERAL BANK Annexures
Slide 34: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q4 FY21 Q3 FY21 LIABILITIES Capital 399 399 Share Holding Pattern Reserves & Surplus 15724 15246 Deposits 172644 161670 Borrowings 9069 12474 33% Other Liabilities & Provisions 3531 7058 30% TOTAL 201367 196847 1% ASSETS Cash & Balance with RBI 7647 6410
Slide 35: Financials
Financials ₹ in Cr Q4 FY21 Q3 FY21 Q-o-Q Q4 FY20 Y-o-Y Interest Income 3366 3460 -3% 3397 -1% Interest Expenses 1946 2022 -4% 2181 -11% Net Interest Income 1420 1437 -1% 1216 17% Other Income 465 482 -3% 711 -35% Operating Expense 1001 956 5% 968 3% Total Income 3832 3941 -3% 4108 -7% Total Expense
Slide 36: 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/ 1.18% HOUSEHOLD USE 1.27% 31.03.2021 TRANSPORT VEHICLES & PARTS TEXTILES INCLUDING JUTE & COIR 1.37% CHEMICALS 1.56% CONTRACTORS 1.75% FOOD PRODUCTS 1.92% POWER GENERATI
Slide 37: 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 38: FedBank Financial Services Ltd. (FEDFINA)
FedBank Financial Services Ltd. (FEDFINA) Federal Bank Stake in Fedfina ₹ in Cr Q4 FY21 Q4 FY20 Y-o-Y FY21 FY20 Y-o-Y 100% 82.6% 74% 74% 4,752 Net Worth 831 694 20% 831 694 20% AUM Total Revenue 190 150 26% 674 449 50% 3,780 1,846 NII 94 69 36% 337 206 64% 1,015 PPOP 42 27 57% 149 71 109% 281 2,004
Slide 39: 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. 38
Slide 40: Accolades
Accolades Chosen as Banker of the Year” by Business Standard as a recognition for Bank’s Consistent Performance” 39
Slide 41: 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 42: Thank You
Thank You AE A aA og
Slide 43: Press Release: highest ever quarterly net profit
May 17, 2021 PRESS RELEASE Federal Bank delivers highest ever quarterly net profit at ₹ 477.81 Cr Federal Bank announced its audited financial results for the quarter and year ended 31st March 2021 today. Highlights • Recorded highest ever Quarterly Net Profit of ₹ 477.81 Cr, up by 58.60% on a YoY b
Slide 44: Working Results at a Glance
Working Results at a Glance (₹ in Crore) Particulars Quarter Ended On Year Ended On 31-03-21 31-03-20 Growth % 31-03-21 31-03-20 Growth % Net Profit 477.81 301.23 58.62% 1,590.30 1,542.78 03.08% Operating Profit 885.09 959.31 07.74% 3,786.90 3,204.69 18.17% Net Interest Income 1,420.37 1,216.02
Slide 45: Asset Quality, Capital Adequacy and Dividend
Asset Quality The Gross NPA of the Bank as on 31st March 2021 stood at ₹ 4,602.39 Cr. Gross NPA as a percentage to Gross Advances is 3.41% as on 31st March 2021. The Net NPA stood at ₹ 1,569.28 Cr and Net NPA percentage is at 1.19% as on 31st March 2021. The Provision Coverage Ratio stood at 65.14%
Slide 46: Major Financial Indicators (Standalone)
• Retail Advances grew by 18.57% to reach ₹ 44,910.14 Cr from ₹ 37,877.97 Cr • Agri advances reached ₹ 16,076.43 Cr from ₹ 13,051.26 Cr registering a growth of 23.18 % • Business Banking advances grew by 12.93% to reach ₹ 11,890.05 Cr from ₹ 10,528.75 Cr Major Financial Indicators (Standalone Nos.)