Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q4 FY20 Earnings Presentation
77 slides from Idfc First Bank's earnings presentation, May 22, 2020
Slide 1: Cover letter to stock exchanges
IDFCFIRSTBANK/SD/049/2020-21 May 22, 2020 The Manager-Listing Department The Manager-Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (East) Dalal Street, Fort Mumbai 400 051. Mumbai – 400 001. Tel No.: 022
Slide 2: Q4 FY20 Profit after Tax at Rs. 72 crores
IDFC FIRST Bank Q4 FY20 Profit after Tax at Rs. 72 crores Strong growth in CASA deposits in Q4 20; Retail contributes 61% of Total Funded Book Mumbai, May 22, 2020 Financial results at a glance The Board of Directors of IDFC FIRST Bank, the bank created by the merger of IDFC Bank and Capital First r
Slide 3: Liabilities – Strong and Steady growth
Liabilities – Strong and Steady growth CASA Deposits posted strong growth, rising 162% YoY to Rs. 20,661 crores as on 31 March 2020 as compared to Rs. 7,893 crores as on 31 March 2019. CASA Ratio improved to 31.87% as on 31 March 2020 as compared to 11.40% as on 31 March 2019. Core Deposits (R
Slide 4: Asset Quality
Asset Quality Gross NPA of the Bank reduced to 2.60% as of March 31, 2020, as compared to 2.83% as of December 31, 2019. Net NPA was 0.94% as of March 31, 2020, as compared to 1.23% as of December 31, 2019. The Gross NPA and Net NPA for the Bank without considering the moratorium impact would
Slide 5: COVID-19 provisioning and capital position
The Bank was required to make COVID-19 related provision of Rs. 25 crore pertaining to accounts where asset classification benefit was given. The bank has provided the entire amount in Q4-FY20 itself and has additionally taken Rs. 200 crores of COVID-19 related provisioning proactively for over-du
Slide 6: About IDFC FIRST Bank
About IDFC FIRST Bank IDFC FIRST Bank was founded by the merger of IDFC Bank and Capital First in December 2018. The Bank provides a range of financial solutions to individuals, small businesses and corporates. The Bank offers savings and current accounts, NRI accounts, salary accounts, demat accoun
Slide 7: Corporate Presentation – Q4 FY20
Corporate Presentation – Q4 FY20
Slide 8: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of IDFC FIRST Bank (together with its subsidiaries, referred to as the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form
Slide 9: Results at a glance: Strong Strides across all the Strategic Priorities
Results at a glance: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities We are happy to report that we are making strong progress on the guidance given at the time of merger. 1. Strong Growth in Retail Assets: • Retail Book increased 40% YoY to Rs. 57,310 crores 31st March 2020 from
Slide 10: Results at a glance: Strong growth in Core Earnings
Results at a glance: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 3. Strong growth in Core Earnings: a. Strong NII Growth: NII grew by 40% (YOY) to Rs. 1,563 crores in Q4 FY20 as compared to Rs. 1,113 crores in Q4 FY19. b. Strong NIM improvement: NIM has improved to 4.24% in Q
Slide 11: Results Update: Asset Quality
Results Update: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 4. Asset Quality of the Bank remains high • Bank’s Gross NPA reduced sequentially from 2.83% as of 31 December 2019 to 2.60% as of 31 March 2020. The Gross NPA ratio without considering the impact of moratorium would
Slide 12: Results Update: Capital Adequacy and Franchise
Results Update: IDFC FIRST Bank: Strong Strides across all the Strategic Priorities 5. Strong Capital Adequacy: • Capital Adequacy Ratio is strong at 13.38% with CET-1 Ratio at 13.30% as of 31 March 2020. • The Bank is raising Rs. 2,000 crores of fresh equity capital during Q1 FY 21, process to comp
Slide 13: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK Table 16 SECTION 3: PRODUCT OFFERING of 19 SECTION 4: FINANCIAL PERFORMANCES Contents 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53
Slide 14: Section 1: The Founding of IDFC FIRST Bank
SECTION 1: The Founding of IDFC FIRST Bank • Events Leading to Merger – ✓ Erstwhile IDFC Bank - Origin & History ✓ Erstwhile Capital First - Origin & History ✓ Merger between Erstwhile IDFC Bank and Erstwhile Capital First Classification: Confidential - Non - Shareable
Slide 15: IDFC FIRST Bank was founded by the merger of IDFC Bank and Capital First
Section 1: The Founding of IDFC FIRST Bank.. IDFC FIRST Bank was founded by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. 9 Classification: Confidential - Non - Shareable
Slide 16: The Founding of IDFC FIRST Bank
Section 1: The Founding of IDFC FIRST Bank.. Erstwhile IDFC BANK Erstwhile CAPITAL FIRST LIMITED IDFC Limited was set up in 1997 to finance infrastructure focusing Mr Vaidyanathan who had built ICICI Bank’s Retail Banking business primarily on project finance and mobilization of capital for private
Slide 17: The Founding of IDFC FIRST Bank (continued)
Section 1: The Founding of IDFC FIRST Bank.. Erstwhile IDFC BANK Erstwhile CAPITAL FIRST LIMITED Continued from page 6 Continued from page 6 The bank was launched through this demerger from IDFC Limited in .. Between March 31, 2010 to March 31, 2018, the Company’s Retail November 2015. During the su
Slide 18: The Founding of IDFC FIRST Bank: merger terms
Section 1: The Founding of IDFC FIRST Bank.. In January 2018, Erstwhile IDFC Bank and Erstwhile Capital First announced a merger. Shareholders of Erstwhile Capital First were to be issued 13.9 shares of the merged entity for every 1 share of Erstwhile Capital First. Thus, IDFC FIRST Bank was founded
Slide 19: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 16 SECTION 3: PRODUCT OFFERING 19 SECTION 4: FINANCIAL PERFORMANCES 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53 SECTION 7: CAPITA
Slide 20: Key Excerpts about Vision, Mission and Strategy from MD and CEO's letter
Section 2: Key Excerpts about Vision, Mission and Strategy from MD and CEO’s letter to Shareholders in Annual Report 2019 On Our founding philosophy: On the Vision of the New Bank: “ ” On Our Mission: “ ” On Strategy for the new Bank: On the Future Outlook: “ “ “ ” On Contribution to the Country: “
Slide 21: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 16 SECTION 3: PRODUCT OFFERING 19 SECTION 4: FINANCIAL PERFORMANCES 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53 SECTION 7: CAPITA
Slide 22: Product Offering (Assets)
Section 3: Product Offering (Assets) – IDFC FIRST Bank offers a bouquet of loan products.. .. across varied customer segments including MSMEs and Consumers in different parts of India Loan Against Property: Business Loans: Consumer Durable Loans: Two Wheeler Loans: Home Loans: Unsecured Loans to the
Slide 23: Product Offerings – Liabilities, Payments and other Services
Section 3: Product Offerings – Liabilities, Payments and other Services IDFC FIRST Bank provides wide range of Deposit facilities along with Wealth Management, Forex Services, Cash Management Services and Insurance services to its customers across different segments. Wealth Management Services, Paym
Slide 24: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 16 SECTION 3: PRODUCT OFFERING 19 SECTION 4: FINANCIAL PERFORMANCES 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53 SECTION 7: CAPITA
Slide 25: Section 4: Financial Performance of the Bank for FY20
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR FY20 • Assets Update • Update on Liabilities • Key Business & Financial Parameters ✓ COVID-19 Impact ✓ Income Statement ✓ Balance Sheet ✓ Capital Adequacy Classification: Confidential - Non - Shareable
Slide 26: Retail loans as a % of total loans has quickly improved
Section 4: Retail loans as a % of total loans has quickly improved The Bank proposes to follow the strategy guided earlier, where we advised we will improve the retail proportion of the overall loan assets by building the retail loan book going forward. The same strategy was followed by Capital Firs
Slide 27: Trend of Retail Loan book on a virtual merged basis
Section 4: Trend of Retail Loan book on a “virtual" merged basis over the last 10 years. This slide seeks to represent the trend of retail business of both entities. All amounts are in Rs. crore unless specified Though the new merged entity started in Dec 2018, the retail loan book of this entity ha
Slide 28: Trend of Wholesale Loan Book
Section 4: Trend of Wholesale Loan Book for both institutions since the Bank’s inception All amounts are in Rs. crore unless specified 57,137 56,809 55,532 55,626 53,760 53,649 52,675 46,377 44,329 39,388 Mar-16 Mar-17 Mar-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Erstwhile CFL Erstwhile I
Slide 29: The Infrastructure Loan Book has been reduced steadily post the merger
Section 4: The Infrastructure Loan Book has been reduced steadily post the merger All amounts are in Rs. crore unless specified 26,832 26,553 23,637 22,710 21,459 20,322 17,211 15,601 14,840 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 23 Classification: Confidential - Non - Sharea
Slide 30: Loan Assets Breakup
Section 4: Loan Assets Breakup Growth% Growth% In Rs. Crores Mar-19 Jun-19 Sep-19 Dec-19* Mar-20* (QoQ) (YoY) Mortgage Loans 14,268 15,620 16,929 19,023 20,314 7% 42% MSME Loans 14,885 16,212 17,159 19,152 19,971 4% 34% Consumer Loans 7,122 7,925 8,491 9,559 10,338 8% 45% Rural Micro Finance 4,535 4
Slide 31: Sharp improvement in NIM to 4.24% in Q4 FY20
Section 4: Sharp improvement in NIM from 2.89% (merger quarter) to 4.24% in Q4 FY20. • Our NIM which was 1.56% pre merger, which grew to 2.89% at merger which moved to 4.24% in the Q4 FY20. • NIMs have increased every quarter due to gradual shift towards retail banking businesses. • As per our earli
Slide 32: Maintaining Strong Asset Quality
Section 4: Maintaining Strong Asset Quality overall, Retail Asset quality remains high In Rs. Crores Mar-19 Jun-19 Sep-19 Dec-19 Mar-19 GNPL 2,136 2,419 2,306 2,511 2,280 Provisions for GNPL 1,029 1,203 1,294 1,440 1,471 NNPL 1,107 1,216 1,012 1,071 809 GNPA (%) 2.43% 2.66% 2.62% 2.83% 2.60% NNPA (%
Slide 33: Gross and Net NPA over the last five quarters
Section 4: Gross and Net NPA of the Bank have broadly remained steady over the last five quarters GNPL NNPL 2.83% 2.66% 2.62% 2.60% 2.43% 1.27% 1.35% 1.17% 1.23% 0.94% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20* * This is after considering the impact of Moratorium. Without considering such impact the Gross
Slide 34: Asset quality trends at Capital First over 8 years
Section 4: Since Retail Loans model imported from Capital First is a large and growing part of the total loan book of the bank, we present asset quality trends over the last 8 years at Capital First as below Since most of the loan book in the merged entity has been built and seasoned in Capital Firs
Slide 35: Gross and Net NPA of Retail Loans
Section 4: Gross and Net NPA pertaining to Retail Loans have broadly remained steady over the last quarters on the banking platform. Gross NPA Net NPA 2.32% 2.31% 2.26% 2.18% 1.77% 1.24% 1.14% 1.08% 1.06% 0.67% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20* * This is after considering the impact of Moratorium.
Slide 36: Identified stressed accounts with provisions
Section 4: Apart from NPA accounts, Bank has proactively identified certain accounts, which are standard on the books but are assessed to be stressed, and taken provisions for the same O/S Provision Client Description (Rs. Crore) Provision Comments Exposure Coverage% Repayments are regular thus far
Slide 37: Exposure to identified Stressed Assets reduced
Section 4: Exposure to identified Stressed Assets (under watch), mentioned in previous slide, has reduced by Rs. 933 crores during the last one year All amounts are in Rs. crores unless specified O/s Exposure Provision Provision coverage 22% 47% 47% 50% 49% 4,138 3,804 3,544 3,518 3,205 1,786 1,663
Slide 38: Section 4: Financial Performance of the Bank for FY20
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR FY20 • Assets Update • Update on Liabilities • Key Business & Financial Parameters ✓ COVID-19 Impact ✓ Income Statement ✓ Balance Sheet ✓ Capital Adequacy Classification: Confidential - Non - Shareable
Slide 39: CASA Ratio has improved by more than 23%
Section 4: CASA Ratio has improved by more than 23% over last 6 quarters CASA Ratio is computed in terms of CASA as a percentage of Total deposits (CASA+ Certificate of Deposits+ Term Deposits). Consistent growth in CASA and decreasing dependency on Certificate of Deposits and Wholesale Term Deposit
Slide 40: Strong growth in CASA and Retail Term Deposits
Section 4: The Bank continues to see strong growth in CASA and Retail Term Deposits In Rs. Crore Mar-19 Dec-19 Mar-20 QOQ% YOY % Legacy Long Term Bonds 15,752 12,705 12,013 -5% -24% Infra Bonds 10,434 10,434 10,434 0% 0% Refinance 4,047 13,478 14,738 9% 264% Other Borrowings 23,256 15,196 12,984 -15
Slide 41: Section 4: Financial Performance of the Bank for FY20
SECTION 4: FINANCIAL PERFORMANCE OF THE BANK FOR FY20 • Assets Update • Update on Liabilities • Key Business & Financial Parameters ✓ COVID-19 Impact ✓ Income Statement ✓ Balance Sheet ✓ Capital Adequacy Classification: Confidential - Non - Shareable
Slide 42: Update on COVID-19 Situation and Moratorium
Section 4: Update on COVID-19 Situation and Moratorium Operations • As essential services, the Bank continues to service its customers in all possible ways emphasizing on technology driven solutions. • The branches of the Bank have remained open during this emergency time and the employees have effi
Slide 43: CSR Initiatives to combat the COVID-19 situation in India
Section 4: CSR Initiatives to combat the COVID-19 situation in India 37 Classification: Confidential - Non - Shareable
Slide 44: Income Statement - Quarterly
Section 4: Income Statement - Quarterly Growth (%) Growth (%) In Rs. Crore Q4 FY19 Q3 FY20 Q4 FY20 Q-o-Q Y-o-Y Interest Income 3,629 4,100 3,956 -4% 9% Interest Expense 2,516 2,566 2,392 -7% -5% Net Interest Income 1,113 1,534 1,563 2% 40% Fee & Other Income 310 437 432 -1% 40% Trading Gain (36) 142
Slide 45: Balance Sheet
Section 4: Balance Sheet Growth (%) Growth (%) In Rs. Crore Mar-19 Dec-19 Mar-20 (Q-o-Q) (Y-o-Y) Shareholders' Funds 18,159 15,240 15,343 1% -16% Deposits 70,479 68,697 65,108 -5% -8% Borrowings 69,983 67,025 57,397 -14% -18% Other liabilities and provisions 8,563 9,722 11,353 17% 33% Total Liabilit
Slide 46: Capital Adequacy Ratio is 13.38% with CET-1 Ratio at 13.30%
Section 4: Capital Adequacy Ratio is 13.38% with CET-1 Ratio at 13.30% In Rs. Crore Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Common Equity 17,373 16,340 16,416 14,638 14,690 Tier 2 Capital Funds 219 156 158 6 90 Total Capital Funds 17,592 16,496 16,574 14,644 14,780 Total RWA 1,13,744 1,17,733 1,13,104 1,
Slide 47: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 16 SECTION 3: PRODUCT OFFERING 19 SECTION 4: FINANCIAL PERFORMANCES 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53 SECTION 7: CAPITA
Slide 48: Board of Directors
Section 5: Board of Directors Mr. V. Vaidyanathan is the first Managing Director and CEO of IDFC FIRST Bank, a bank founded by the merger of Erstwhile Capital First and Erstwhile IDFC Bank in December 2018. He is a banker turned entrepreneur turned banker by merging the NBFC he founded with an exist
Slide 49: Board of Directors
Section 5: Board of Directors DR. RAJIV B. LALL - PART-TIME NON-EXECUTIVE CHAIRMAN Dr. Rajiv Lall is the Non-Executive Chairman of IDFC Bank. He was the Founder MD & CEO of IDFC Bank from October 1, 2015 till December 18, 2018. Previously, he was the Executive Chairman of IDFC Limited. A veteran eco
Slide 50: Board of Directors
Section 5: Board of Directors DR.(MRS.) BRINDA JAGIRDAR - INDEPENDENT DIRECTOR Dr. (Mrs.) Brinda Jagirdar, is an independent consulting economist with specialization in areas relating to the Indian economy and financial intermediation. She is on the Governing Council of Treasury Elite, a knowledge s
Slide 51: Shareholding Pattern as of 31st March 2020
Section 5: Shareholding Pattern as of 31st March 2020 Scrip Name : IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Key Shareholders % Holding (through their respective various funds and affiliate companies wherever applicable) Other Body IDFC Financial Holding Company Limited 40.00 President of Corpor
Slide 52: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 16 SECTION 3: PRODUCT OFFERING 19 SECTION 4: FINANCIAL PERFORMANCES 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53 SECTION 7: CAPITA
Slide 53: Section 6: Strategy Going Forward for the Combined Entity
SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY • Key Strategies for the combine entity – ✓ Asset Strategy • Growth of Assets • Diversification of Assets • Gross Yield expansion ✓ Liability Strategy • CASA Growth • Diversification of Liability • Branch Expansion ✓ Profitability • Expand Ne
Slide 54: Asset Strategy for IDFC FIRST Bank
Section 6: Asset Strategy for IDFC FIRST Bank as guided at the time of merger in December 2018. • Growth of Assets: • The Bank plans to grow retail loan assets from Rs. 36,236 crores (December 31, 2018) to over Rs. 100,000 crores in the next 5 years • The Bank plans to wind down loans to infrastruct
Slide 55: Liability Strategy for IDFC FIRST Bank
Section 6: Liability Strategy for IDFC FIRST Bank as guided at the time of merger in December 2018. • CASA Growth: This is a key focus and growth area for the bank. We plan to increase the CASA Ratio from 8.68% as of December 31, 2018 on a continuous basis year on year and strive to reach 30% CASA r
Slide 56: Profitability
Section 6: Profitability • Net Interest Margin: The bank plans to expand the NIM to about 5.0% - 5.5% in the next 5 years based on better cost of funds and carefully selecting the product segments where we have strong proven capabilities over the years. • Asset Quality: Over 90% of the Retail Loan B
Slide 57: Table of Contents
8 SECTION 1: THE FOUNDING OF IDFC FIRST BANK 14 SECTION 2: VISION & MISSION OF IDFC FIRST BANK 16 SECTION 3: PRODUCT OFFERING 19 SECTION 4: FINANCIAL PERFORMANCES 43 SECTION 5: DIRECTORS & SHAREHOLDERS, CSR INITIATIVES 48 SECTION 6: STRATEGY GOING FORWARD FOR THE COMBINED ENTITY 53 SECTION 7: CAPITA
Slide 58: Section 7: Capital First Strategy, Loan Growth and Profitability Trends
SECTION 7: CAPITAL FIRST STRATEGY, LOAN GROWTH AND PROFITABILITY TRENDS FOR 8 YEARS (BEFORE MERGER WITH IDFC BANK) • History of Capital First Limited • Transformation into Retail Franchise • Business Areas of Focus • Past Financial Performances Classification: Confidential - Non - Shareable
Slide 59: Successful Trajectory of Growth and Profits at Capital First
Section 7: Successful Trajectory of Growth and Profits at Capital First Since the business model of Capital First is an important part of the business to be built in the merged bank, we present to you the business model, business lines, business and profitability trajectory, and financial trends of
Slide 60: History of Capital First Limited
Section 7: Successful Trajectory of Growth and Profits at Capital First History of Capital First Limited The Company was first listed on Stock Exchanges in January 2008. Between 2010 to 2012, Mr Vaidyanathan acquired a stake in the company and executed a Management Buyout (MBO) of the Company with e
Slide 61: History of Capital First Limited: transformation across key parameters
Section 7: Successful Trajectory of Growth and Profits at Capital First History of Capital First Limited From 31-March-2010 to 31-Mar-2018, the company has transformed across all key parameters including: • The total Capital has grown from Rs. 691 crore to Rs. 3,993 crore 8-Yr CAGR% %Growth – FY18 •
Slide 62: Transformation into Retail Franchise
Section 7: Successful Trajectory of Growth and Profits at Capital First Transformation into Retail Franchise * As per Ind - AS Since 2010, the company has consistently stayed with the founding theme of financing entrepreneurs, Rs. 32,622 Cr* MSMEs and consumers through the platform of technology & h
Slide 63: Transformation into Retail Franchise: Retail Loan Book
Section 7: Successful Trajectory of Growth and Profits at Capital First Transformation into Retail Franchise The company’s product launches had been highly successful in the marketplace and the company had emerged as a significant player in Indian retail financial services within eight years of ince
Slide 64: Business Area of Focus
Section 7: Successful Trajectory of Growth and Profits at Capital First Business Area of Focus LINES OF BUSINESS: Capital First provided financing to select segments that are traditionally underserved by the existing financing system • By staying focused on a specific niche (small entrepreneurs and
Slide 65: Speciality: MSME Financing
Section 7: Successful Trajectory of Growth and Profits at Capital First Business Area of Focus SPECIALITY: MSME Financing – A key area of focus for Capital First Capital First has emerged as a Specialized Player in financing MSMEs by offering different products for their various financing needs Typi
Slide 66: Credit Framework
Section 7: Successful Trajectory of Growth and Profits at Capital First Credit Framework STRONG RISK MANAGEMENT PROCEDURES: Capital First is structured with inherent checks and balances for effective risk management Credit Policy Credit Portfolio Business Loan Booking & (For defining Underwriting Mo
Slide 67: Rigorous Credit Underwriting Process
Section 7: Successful Trajectory of Growth and Profits at Capital First Credit Framework Rigorous Credit Underwriting Process helped in maintaining high asset quality 2-3 ✘ In the Mortgages business at Capital First, about 38% of 38-40 ✘ the total applications were disbursed after passing through se
Slide 68: Asset Quality
Section 7: Successful Trajectory of Growth and Profits at Capital First Asset Quality STABLE ASSET QUALITY: The Company’s asset quality consistently remained high consistently over 8 years. Over 8 years, the GNPA was ~1.7% and NNPA was ~1.0% which came down from 5.28% and 3.78% respectively (31-Marc
Slide 69: Financial Performance: Asset Under Management
Section 7: Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at a 8 year CAGR of 52%, FY18 – 37% FY18: YoY Growth 32,622 Asset Under Management (In Rs. Crore) 37% 26,997 19,824 16,041 11,975 9,679 7,510 6,186 2,751 9
Slide 70: Financial Performance: Return on Equity
Section 7: Successful Trajectory of Growth and Profits at Capital First Financial Performance: the ROE of the Company increased over the years as a result of transformation Yearly Return on Equity (%) Note: RoE for Q4-FY18 (quarterly annualized) was ~ 15% and trending consistently upwards. 14.51% 13
Slide 71: Financial Performance: Yearly Trend of Profit After Tax
Section 7: Successful Trajectory of Growth and Profits at Capital First Financial Performance: Yearly Trend of Profit After Tax In FY 08 and 09, the Company had made losses. Even after the new leadership took over, for two years the company continued to post losses as the building blocks for new age
Slide 72: Financial Performance: Yearly EPS Trend
Section 7: Successful Trajectory of Growth and Profits at Capital First Financial Performance: Yearly Earning per Share (EPS) Trend Earning per Share (EPS) has consistently grown at CAGR of 46% in the last 5 years, this created value for all shareholders. Earning Per Share (Rs.) 33.04 24.52 18.22 12
Slide 73: Financial Performance: Cost to Income Ratio
Section 7: Successful Trajectory of Growth and Profits at Capital First Financial Performance: Trend of Cost of Income Ratio (yearly) The Cost to Income ratio, which was high at ~130% in the early stages of the company, reduced to <50% once the business model stabilized over the years. Cost to Incom
Slide 74: The Market Cap of the Company has grown 800% since inception
Section 7: Successful Trajectory of Growth and Profits at Capital First The Market Cap of the Company has grown 800% since inception and 1,000% since the Management Buyout in 2012 Market Capitalization (Rs. 8,282# crore) 7,628 During this phase, the Company - • built the Retail Platform, technologie
Slide 75: Financial Performance: Trend of Dividend Payouts
Section 7: Successful Trajectory of Growth and Profits at Capital First Financial Performance: Trend of Dividend Payouts The Company has been steadily increasing dividend pay-out every year starting from 10% in FY10 to 28% in FY18. Dividend (as % of face value per share) 28% 26% 24% 22% 20% 18% 15%
Slide 76: Summary – Strategy for IDFC FIRST Bank
Section 7: Summary – Strategy for IDFC FIRST Bank In summary, under our stated strategy for the combined entity, IDFC FIRST Bank, the same successful model of Capital First lending business is now being built on a Bank platform from IDFC Bank, thus the business becomes more profitable, robust and su
Slide 77: Thank You
THANK YOU Classification: Confidential - Non - Shareable