Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Q4 2024 Earnings Presentation
39 slides from Hdfc Bank's earnings presentation, Apr 20, 2024
Slide 1: Q4FY24 Earnings Presentation
Q4FY24 Earnings Presentation April 20, 2024
Slide 2: Key performance metrics for Q4 FY24
Key performance metrics for Q4 FY24 ➢ Deposits increased ₹ 1.66 tr in the quarter (↑7.5%) ✓ Retail deposits grew ₹ 1.29 tr in the quarter (↑6.9%) ✓ Deposits increase benefitted from March quarter seasonality ➢ Advances growth ₹ 0.39 tr in the quarter (↑1.6%) ➢ Asset quality continues to remain stabl
Slide 3: Key financial parameters for Q4 FY24
STANDALONE Key financial parameters for Q4 FY24 Gross advances at ₹ 25,078 bn, Profit after tax of ₹ 165 bn, EPS up by 1.6% QoQ for the quarter ₹ 21.7 Deposits at ₹ 23,798 bn, Gross NPA at 1.24% up by 7.5% QoQ ; CASA 38% Net interest margin of 3.4% Return on assets of 2.0% * Capital adequacy ratio a
Slide 4: Consolidated income statement
CONSOLIDATED Consolidated income statement P&L (₹ bn) Q4 FY23 Q3 FY24 Q4 FY24 QoQ YoY Net revenue 345.5 717.7 807.0 12.4% 133.6% Operating expenses 145.9 459.3 491.3 7.0% 236.7% Provisions 31.8 46.0 138.1 200.0% 334.4% Profit before tax 167.8 212.4 177.6 (16.4%) 5.8% Consolidated profit 125.9 172.6
Slide 5: Income statement
STANDALONE Income statement P&L (₹ bn) Q4 FY23 Q3 FY24 Q4 FY24 QoQ YoY Net interest income 233.5 284.7 290.8 2.1% 24.5% Non-interest income* 87.3 111.4 181.7 63.1% 108.1% Net revenue 320.8 396.1 472.5 19.3% 47.3% Operating expenses* 134.6 159.6 179.7 12.6% 33.5% Provisions* 26.9 42.2 135.1 220.4% 40
Slide 6: Abridged balance sheet
STANDALONE Abridged balance sheet Balance sheet (₹ bn) Q4FY23 Q3FY24 Q4FY24 QoQ Loans and advances 16,006 24,461 24,849 388 Investments 5,170 6,749 7,024 275 Government and debt securities 5,120 6,556 6,853 297 Equity and other securities 50 193 171 (22) Cash & equivalent 1,938 1,775 2,192 417 Fixed
Slide 7: Growth in deposits and advances
BUSINESS GROWTH Growth in deposits and advances Deposits Gross advances h 26.4% h 55.4% ₹ bn ₹ bn ex-merger h 18.4% ex-merger h 17.3% h 7.5% h 1.6% 23,798 24,693 25,078 21,729 22,140 16,300 23,546 19,131 18,834 16,142 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 7 HDFC Bank
Slide 8: Stable and granular deposits
HIGH QUALITY DEPOSIT FRANCHISE Stable and granular deposits Granular deposits Proportion of CASA deposits Pre-merger Post-merger Pre-merger Post-merger ₹ bn 44% 17% 17% 17% 16% 16% 42% 38% 38% 38% 83% 83% 83% 84% 84% 5,987 5,625 5,606 5,700 5,799 2,735 2,523 2,558 3,100 2,477 Mar'23 Jun'23 Sep'23 De
Slide 9: Mix across segments
LOAN BOOK Mix across segments Balancing growth Composition of retail loans Loans (₹ bn) Dec'23 Mar'24 QoQ Mar’24 Retail 12,189 12,611 3.5% 15% Retail Mortgages 7,432 7,728 4.0% 11% Retail Non-Mortgages 4,756 4,883 2.7% CRB 7,731 8,056 4.2% 8% Corporate and other wholesale 4,363 4,268 (2.2%) 5% Subto
Slide 10: Branch expansion and customer relationships
BUILDING FRANCHISE STRENGTH Branch expansion and customer relationships Branch network Customer base #s # mn Pre-merger Post-merger Pre-merger Post-merger 7,821 7,860 7,945 8,091 8,738 18% 18% 18% 18% 18% 34% 34% 34% 34% 34% 20% 20% 20% 20% 20% 92.6 93.2 90.4 28% 28% 28% 28% 28% 85.0 Mar'23 Jun'23 S
Slide 11: Capital and liquidity metrics
Capital and liquidity metrics Capital adequacy Liquidity coverage ratio Pre-merger Post-merger Pre-merger Post-merger 19.5% 19.3% 18.9% 18.9% 18.8% 18.4% 17.9% 17.8% 126% 121% 112% 116% 115% 110% 17.1% 16.9% 16.8% 16.8% Mar'22 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Q4 Mar'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'2
Slide 12: Net revenues
STANDALONE Net revenues Net revenue Net revenue mix ₹ bn Pre-merger Post-merger Pre-merger Post-merger 27% 28% 28% 28% 27% 473 381 396 321 328 73% 72% 72% 72% 73% Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24** YoY 21% 27% 33% 26% 48%* Net Intere
Slide 13: Net interest income
STANDALONE Net interest income Net interest income Net interest margin (NIM) ₹ bn Pre-merger Post-merger Pre-merger Post-merger +4 bps 4.3% 4.3% 4.1% 4.1% (3.44%) 3.6% 3.6% 3.6% 3.4% 3.4% 3.4% 274 285 291 234 236 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'
Slide 14: 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 Pre-merger Post-merger Particulars Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 + 4 bps Advances mix 8.2% 8.3% 8.4% 7.9% 8.1% Retail 37% 38% 48% 48% 49% Mortgage 11% 11% 29% 29% 30% Non-Mortgages 26% 27% 19% 1
Slide 15: Other income
STANDALONE Other income Other income Fee income mix Pre-merger Post-merger ₹ bn Pre-merger Post-merger 182 6% 7% 8% 6% 6% 15 16% 18% 17% 15% 20% 111 76 107 33% 34% 33% 35% 92 15 34% 87 15 11 10 15 11 11 6 10 12 12 13 19% 19% 21% 20% 20% 69 69 80 66 63 27% 21% 22% 26% 19% Q4 Mar'23 Q1 Jun'23 Q2 Sep'2
Slide 16: Operating expenses
STANDALONE Operating expenses Operating expenses Cost efficiency Pre-merger ₹ bn Pre-merger Post-merger Post-merger 42.8% 180 42.0% 40.4% 40.3% 41.3% ^ 160 154 141 135 111 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 102 106 93 Cost to income ratio 91 Pre-merger Post-merger 69 * 2.4% 2.4% 2.0%
Slide 17: Resilient asset quality
RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment Pre-merger Post-merger 1.7% 1.7% 1.3% 1.6% 1.6% 1.3% 1.2% 1.2% 1.1% 1.2% 1.1% 0.8% 0.8% 0.3% 0.3% 0.3% 0.3% 0.3% Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Dec'23 Mar'24 GNPA NNPA Retail CRB CRB (ex-Agri) Corporate and other whole
Slide 18: Movement of NPAs
RISK MANAGEMENT Movement of NPAs 29 bps 14 bps 15 bps ₹ bn 126 bps 73 45 124 bps 26 310 312 GNPA as on Dec'23 Slippages Upgrades & Recoveries Write offs GNPA as on Mar'24 17 bps 32 bps 22 bps ₹ bn 134 bps 126 bps 70 45 31 316 310 GNPA as on Sep'23 Slippages Upgrades & Recoveries Write offs GNPA as o
Slide 19: Credit cost and stock of provisions
RISK MANAGEMENT Credit cost and stock of provisions Credit cost Stock of provisions Pre-merger Post-merger Pre-merger Post-merger ₹ bn 70 bps 610 67 bps 106 492 501 51 bps 49 bps 49 bps 42 bps 101 104 124 44 bps 15 15 35 bps 318 326 34 bps 150 27 bps 71 142 149 70 15 15 97 97 235 233 231 137 143 Q4
Slide 20: Profitability
Profitability Standalone profit after tax Earnings per share* ₹ bn ₹ Pre-merger Post-merger 21.6 21.4 21.1 21.6 21.7 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 EPS Standalone ₹ 160 164 165 22.6 22.2 22.2 22.7 23.2 120 120 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 EPS Consolidated # bn
Slide 21: Certain transaction gains & provisions - Q4 FY24
Certain transaction gains & provisions - Q4 FY24 Reported PAT (₹ in bn) 165 Description of items (₹ in bn) Transaction gains (pre tax) 73 Staff ex gratia provision (pre tax) (15) Floating provisions (pre tax) (109) Tax credit 44 Total PAT impact (Post Tax) 7 Adjusted for above items CTI 41.3% ROA 1.
Slide 22: Stake held in key subsidiary entities – March 31, 2024
GROUP COMPANIES Stake held in key subsidiary entities – March 31, 2024 Investment No. of shares % Stake PAT of the Book value EPS (FTQ) Entity Amount outstanding held by company per share (₹) (₹ bn) by entity (mn) HDFC Bank (FTQ) (₹ bn) (₹) HDB Financial Services 35 793.1 94.64% 6.6 173.3 8.3 HDFC L
Slide 23: Subsidiaries – Q4FY24 update – HDB Financial Services
GROUP COMPANIES Subsidiaries – Q4FY24 update – HDB Financial Services • 94.64% stake held by the Bank as of March 31, 2024 • 15.5 million customers serviced through a network of 1,682 branches across 1,144 cities/towns ‒ 0.9 million customers and 64 branches added during Q4 FY24 • Disbursement momen
Slide 24: Subsidiaries – Q4FY24 update – HDFC Life Insurance
GROUP COMPANIES Subsidiaries – Q4FY24 update – HDFC Life Insurance • 50.37% stake held by the Bank as of March 31, 2024 • 401k individual policies sold during the quarter up 14% from prior year; overall 16 mn lives insured during the quarter • Individual weighted received premium market share of 16.
Slide 25: Subsidiaries – Q4FY24 update – HDFC AMC
GROUP COMPANIES Subsidiaries – Q4FY24 update – HDFC AMC • 52.55% stake held by the Bank as of March 31, 2024 • Quarterly average AUM of ₹ 6.1 trillion; 11.3% market share • 63% of quarterly average AUM is equity oriented with 60% in actively managed equities • 9.6 million unique investors; 22% penet
Slide 26: Subsidiaries – Q4FY24 update – HDFC ERGO General Insurance
GROUP COMPANIES Subsidiaries – Q4FY24 update – HDFC ERGO General Insurance • 50.48% stake held by the Bank as of March 31, 2024 • Q4FY24 Gross direct premium market share of 6.8% in overall industry and 10.2% amongst private sector insurers • Retail mix in business 71% for the quarter ended March 31
Slide 27: Subsidiaries – Q4FY24 update – HDFC Securities
GROUP COMPANIES Subsidiaries – Q4FY24 update – HDFC Securities • 95.13% stake held by the Bank as of March 31, 2024 • 5.4 million customers serviced through a network of 184 branches across 139 cities • Around 95% of the active clients utilized the services offered through company’s digital platform
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 unbanked; independence, • Supporting businesses; accountability, responsibility, • Commitment to have all new tra
Slide 29: Balance sheet and capital productivity
COMPOUNDING VALUE Balance sheet and capital productivity Growth in assets and RoA ₹ bn 40,000 2.1 2.0 2.0 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.0 30,000 20,000 10,000 - FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Assets RoA % Healthy capital position and RoE 25.0 20.9 20.4 18.0 18.0 18.2 16.8 16.
Slide 30: Book value performance
COMPOUNDING VALUE Book value performance Standalone book value per share h 16% ₹ ₹ 590* h 16% 556 580 525 534 480 502 433 451 456 414 Q3 Dec'21 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 Consolidated book value per share h 16% ₹ ₹ 612* h 16% 576 601 543
Slide 31: Appendix
APPENDIX 31 HDFC Bank Presentation Q4 FY2024 HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.
Slide 32: Consolidated income statement FY24
CONSOLIDATED Consolidated income statement FY24 P&L (₹ bn) FY23 FY24 YoY Net revenue 1,268.9 2,538.6 100.1% Operating expenses 515.3 1,522.7 195.5% Provisions 138.5 250.2 80.6% Profit before tax 615.0 765.7 24.5% Consolidated profit 460.0 640.6 39.3% 32 HDFC Bank Presentation Q4 FY2024 HDFC Limited
Slide 33: Income statement FY24
STANDALONE Income statement FY24 P&L (₹ bn) FY23 FY24 YoY Net interest income 868.4 1,085.3 25.0% Non-interest income 312.1 492.4 57.7% Net revenue 1,180.6 1,577.7 33.6% Operating expenses 476.5 633.9 33.0% Provisions 119.2 234.9 97.1% Profit before tax 584.9 709.0 21.2% Profit after tax 441.1 608.1
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 10,027 33.2% Telecom 376 1.2% NBFC 1,767 5.8% Coal & Petroleum Products 304 1.0% Financial Institutions 1,159 3.8% Financial Intermediari
Slide 35: Top borrower exposure as a % of total exposure
Top 20 borrower exposure as a % of total exposure 14.3% 13.5% 11.0% 11.0% 11.0% Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 35 HDFC Bank Presentation Q4 FY2024 HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.
Slide 36: Risk Weighted Assets
Risk Weighted Assets RWA to Total Assets Risk Weight Density* 67% 68% 68% 64% 64% 65% 64% 63% 60% 60% Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 Mar'23 Jun'23 Sep'23 Dec'23 Mar'24 36 HDFC Bank Presentation Q4 FY2024 * Risk Weight Density = RWA / (FB + NFB (post CCF)) HDFC Limited merged with HDFC Bank effec
Slide 37: Corporate rating mix
Corporate rating mix Rating mix % of externally rated wholesale book (corporate & mid corporate) Dec’23 Mar’24 75.7% 76.5% 4.7% 4.7% 6.9% 7.1% 12.7% 11.7% AA and above A BBB BB and below AA and above A BBB BB and below 37 HDFC Bank Presentation Q4 FY2024 HDFC Limited merged with HDFC Bank effective
Slide 38: Shareholding Pattern
HDFC BANK Shareholding Pattern Mar’24 Others, 2.6% Other FIs, 2.0% Insurance cos, 7.0% Number of shares outstanding : 7,597 mn Individuals, Number of individual shareholders : 4.06 mn 13.0% FIIs/FPIs, 41.7% Foreign limit utilized : 55.54% Foreign headroom : 18.46% Mutual Funds, 20.0% ADR, 13.5% 38 H
Slide 39: 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