Yes Bank Limited · NSE:YESBANK
Yes Bank — Q3 FY2020 Earnings Presentation
37 slides from Yes Bank's earnings presentation, Mar 15, 2020
Slide 1: Cover letter to stock exchanges
BANK YBL/CS/2019-20/188 March 14, 2020 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Exchange Plaza, P.J. Towers, Dalal Street Plot no. C/1, G Block, Mumbai - 400 001 Bandra - Kurla Complex, Bandra (E) BSE Scrip Code: 532648 Mumbai - 400 051 NSE Symbol: YESBANK
Slide 2: Press Release – Updates on Recent Developments and Q3FY20 Highlights
Press Release – March 14, 2020 Updates on Recent Developments • As per the “Yes Bank Limited Reconstruction Scheme, 2020” notified by the Government of India in its Gazette dated 13th March, 2020: o State Bank of India (SBI) shall hold up to 49% stake with a minimum of 26% over next 3 years o Morato
Slide 3: Financial Highlights from Q3FY20 Results
Financial Highlights from Q3FY20 Results: P & L Highlights Growth % Growth % (` in Crores) Q3FY20 Q3FY19 Q2FY20 (y-o-y) (q-o-q) Net Interest Income 1,065 2,666 -60.1% 2,186 -51.3% Non-Interest Income 626 891 -29.8% 946 -33.9% Total Net Income 1,690 3,557 -52.5% 3,132 -46.0% Operating Profit/ (Loss)
Slide 4: Investor Presentation: Update on Recent Developments & Q3FY20 Results
INVESTOR PRESENTATION Update on Recent Developments & Q3FY20 Results
Slide 5: Table of Contents
Table of Contents 1 Recent Developments 2 Financial and Business Performance 3 Capital Adequacy 4 Asset Quality 5 Human Capital Management 6 Digital Journey 7 Sustainability & Recognition 2
Slide 6: Recent Developments
Recent Developments 3
Slide 7: Updates on Recent Developments
Updates on Recent Developments As per the “Yes Bank Limited Reconstruction Scheme, 2020” notified by the Government of India in its Gazette dated 13th March, 2020: State Bank of India (SBI) shall hold up to 49% stake with a minimum of 26% over next 3 years Moratorium shall cease to have effect f
Slide 8: Key Themes in the Near Term
Key Themes in the Near Term Focus on deposit mobilization Focus on Retail Loans including MSME Resolution of Stressed Assets to be accelerated Cost optimization Maintaining Digital Leadership would remain a focus area 5
Slide 9: Financial & Business Performance
Financial & Business Performance 6
Slide 10: Financial Performance – At a Glance
Financial Performance – At a Glance In INR Crores Quarter Ended 9 Months Ended Growth Income Statement 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Net interest income 1,065* 2,186 2,666 5,532 7,303 -24.3% -51.3% -60.1% Non interest income 626 946 891 2
Slide 11: Non Interest Income Break Up
Non Interest Income Break Up In INR Crores 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Non Interest Income 626 946 889 2,844 4,043 -30% -34% -30% Corporate Trade & Cash Management 138 165 224 502 652 -23% -16% -38% Forex, Debt Capital Markets & Securit
Slide 12: Operating Expenses
Operating Expenses In INR Crores 9MFY20 Q3FY20 Q3FY20 31-Dec-19 30-Sep-19 31-Dec-18 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Payments to and provisions for 640 659 625 1,961 1,810 8.3% -2.9% 2.4% employees Rent, taxes and lighting 117 112 113 341 337 1.3% 4.8% 3.2% DSA expenses 110 115 131
Slide 13: Provisions and P&L
Provisions and P&L In INR Crores 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Operating Profit (6) 1,458 1,990 3,411 6,812 -49.9% NM NM Provision for taxation (6,212) 722 438 (5,428) 1,469 -469.6% NM NM Provision for investments 2,239 (202) (21) 3,146 4
Slide 14: Balance Sheet
Balance Sheet In INR Crores Growth % Growth % 31-Dec-19 30-Sep-19 31-Dec-18 (Y-o-Y) (Q-o-Q) Assets 290,985 346,576 373,981 -22% -16% Advances 186,099 224,505 243,885 -24% -17% Investments 61,319 67,340 83,018 -26% -9% Liabilities 290,985 346,576 373,981 -22% -16% Shareholders’ Funds 9,218 27,790 28,
Slide 15: Liabilities
Liabilities Headwinds on Deposits; however granularity improving Improvement in Retail TD and CASA mix In INR Crores YoY Growth of Retail TD's: 19% 33.3% 33.1% 32.1% 30.8% 800 35.0% 30.2% 100000 35.0% 700 30.0% 30.9% 90000 29.5% 28.0% 600 20.5% 20.0% 25.0% 80000 30.0% 25.7% 19.2% 18.9% 500 24.3% 700
Slide 16: Advances: Retail now contributes 20%+
Advances: Retail now contributes 20%+ In INR Crores Break up of Advances Advances Mix 37,117 Corporate 57.0% Banking 41,313 41,289 19,454 8.2% Medium 38,766 Enterprises 15,346 12.7% Small and Micro 146,001 Enterprises 90,695 22.2% Retail Banking 31-Dec-18 31-Dec-19 Domestic Corporate IBU MSME Retail
Slide 17: Sectoral Exposure Mix
Sectoral Exposure Mix Roadways Telecommunication 1.7% 2.9% Rubber, Plastic &Social & Travel, Tourism & All Engg Chemical Products Commercial Agri and 3.6% Products Hospitality Waterways Petroleum, Coal and Other 0.6% Infrastructure Allied Beverages (Dyes, Paints, 2.9% 1.4% Fuels 2.2% 0.9% 0.4% etc.)
Slide 18: Treasury Operations - Investments
Treasury Operations - Investments DEC 2018 DEC 2019 INR 83,018 Crores INR 61,319 Crores 46%, AFS 60%, HTM 39%, AFS 53%, HTM 1%, HFT 1%, HFT Breakup of AFS DEC 2018 Modified Duration: 1.98 AFS DEC 2019 Modified Duration: 2.03 Corporate Bonds*- Gross exposure AAA 7%, 5%, 0%, 6%, 7%, 1%, 3% PTC ARC Oth
Slide 19: Capital Adequacy
Capital Adequacy 16
Slide 20: Capital Adequacy
Capital Adequacy CRAR 17.4% 16.3% 4.1% 13.6% Tier - II AT 1 5.4% Tier I 4.8% CET 1 2.9% 5.8% 2.8% 0.2% 12.0% 11.5% 7.8% 9.1% 8.7% 7.6% 2.0% 1.5% 2.1% 0.6% 31-Dec-18 30-Sep-19 31-Dec-19 Proforma * RWA 306,213 Crs 313,228 Crs 252,243 Crs Total Risk Weighted Assets to Total Assets Ratio for Dec ’18:
Slide 21: Asset Quality
Asset Quality 18
Slide 22: Asset Quality Highlights
Asset Quality Highlights In INR Crores Dec-18 Sep-19 Dec-19 Gross NPA (%) 2.10% 7.39% 18.87% Net NPA (%) 1.18% 4.35% 5.97% Provision Coverage Ratio (%) 44.24% 43.05% 72.70% Slippages Ratio (%)* 0.95% 2.58% 11.98% * Non Annualized Dec-18 Sep-19 Dec-19 Segmental NPAs: NPA Ratio % NPA Ratio % NPA Ratio
Slide 23: Summary of Labeled exposures
Summary of Labeled exposures PART A Q2FY20 Q3FY20 In INR Crores Gross Provisions Gross Provisions GNPA* 17,134 7,377 40,709 29,594 Non fund based exposure of NPA accounts 333 1,618 NPI 660 102 4,256 740 ARC 2,180 540 2,178 622 Std. Restructured 221 184 Grand Total 20,529 8,019 48,945 30,956 * Gross
Slide 24: PCR at 72.7%: Now in line with the Best in Class
PCR at 72.7%: Now in line with the Best in Class The Provision Coverage Ratio (PCR) increased to 72.7% from 43.1% last quarter in line with peer Banks Higher PCR also enhances the ability to off load these assets from the balance sheet to further release Capital Slippage Guidance of up to 5% for FY2
Slide 25: Human Capital
Human Capital 22
Slide 26: Human Capital Management
Human Capital Management Making YES BANK a Great Place to Work Flat Organization Structure (5 levels) First and only Bank to partner with “Kaizala Full Digital ONLY – Average Age Customer & Colleagues self-service channel”, powered by Microsoft. 77 49 Top Senior 224 44 University & Schools Relatio
Slide 27: Digital Journey
Digital Journey 24
Slide 28: YES Online - Retail Net Banking
YES Online - Retail Net Banking State-of-the-art internet banking facilities! Salient Features • 24x7 online access that allow banking transactions conveniently and comfortably from anywhere, anytime • Wide range of banking products and services for retail customers • Simplified transaction processi
Slide 29: YES MOBILE app
YES MOBILE app Truly mobile – banking on the go! Salient Features • Ease of use and navigation; higher customer stickiness and loyalty • Convenience of 100+ banking services; increased operational efficiency • Safe and secure banking experience for customers building more trust Key offerings • NEFT
Slide 30: YES Robot Chat bot
YES Robot Chat bot Your 24*7 Personal Banking Assistant! Salient Features • Industry first AI enabled banking bot – the bot is equipped to answer a host of YES BANK products & services related queries. • No need to download any app, with 30+ banking services Key offerings • Send Money to Reg. Benefi
Slide 31: YES BANK API: A differentiated strategy
YES BANK API A differentiated strategy Salient Features First Bank in the country • To launch API Based transaction processing to corporates at scale • To be certified ready for API Based mandate registration for NACH • To conduct a Supply Chain Transaction (Vendor financing) using Blockchain • To p
Slide 32: YES BANK Debit Card
YES BANK Debit Card Convenience is the second name Salient Features • Enabled for usage at 2 Lakh ATMs and 40 Lakh POS machines across the country. • Ease of usage for various Online transactions such as travel, utility payments etc… Key offerings • Enjoy various joining benefits as Welcome Onboard
Slide 33: Leadership in Digital Payments
Leadership in Digital Payments Ranked #2 in MEITY SCORE CARD as on Dec 31,2019 Domestic UPI Acquiring AEPS Acquiring IMPS UPI Overall Remittance 35% 39% 10% 16% 38% Market Share as on Dec 31,2019 Assisted Digital Services through BC Digital Payments Platform for Next Network Gen Customers Network of
Slide 34: Sustainability & Recognition
SUSTAINABILITY & RECOGNITION 31
Slide 35: Sustainable & Responsible Banking Leadership
Sustainable & Responsible Banking Leadership VISION: Be the Benchmark Financial Institution for Inclusivity and Sustainability Environmental Social Governance Rated A- (Leadership Band) by CDP for Launched India’s 1st Green Retail First & only Indian Bank to be listed on DJSI 2019 Climate Change dis
Slide 36: Progress Widely Recognized By Leading Agencies
Progress Widely Recognized By Leading Agencies Global Finance Magazine The Asset Triple A Country Awards The Banker The Asset Magazine 'Bank of the Year in Best Bank in India The Innovators in Trade Best Bond Adviser (India) Featured amongst top 5 banks Institutional India' for SMEs Finance
Slide 37: Thank You
Thank You 34