National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — H1 2017 Earnings Presentation
24 slides from National Development Bank's earnings presentation, Jul 27, 2017
Slide 1: Investor Update – H1 2017
Investor Update – H1 2017 National Development Bank PLC 27 July 2017 : 1030 hrs : Colombo Sri Lanka December - 2016
Slide 2: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Director/ Chief Executive Officer Panelists Buwaneka Perera - Vice President -Corporate Banking Niran Mahawatte – Vice President-Treasury Sanjaya Perera - Vice President -Branch Network Management Ms. Suvendrini Muthukumarana - Assistant Vice
Slide 3: Forward Looking Statements
Forward Looking Statements This document has been prepared by National Development Bank PLC (“NDB”, “Bank” or the “Group”) solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos
Slide 4: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic & Industry Analysis 4. Financial Performance 5. Q&A 4
Slide 5: Business Overview
Business Overview A unique banking and capital markets group structure 58.7% Property management Licensed commercial banking* 100% 77.8% 99.9% Investment banking 100% Investment banking (Bangladeshi arm) Wealth management Full service investment banking 100% Investment advisory & securities trading
Slide 6: Business Overview – Channels
Business Overview – Channels Strong presence in both physical and digital channels Physical channels 106 branches – 118 ATMs 106th branch opened in May 2017 LKR 1 Billion mark crossed in April 2017 for value of transactions routed via the NDB Mobile Banking App (For the financial year 2017). Digital
Slide 7: Recognition
Recognition Awards that the Bank & the Group Companies have won (April – June 2017) Global Awards Local Awards Asian Banking & Finance Magazine of SLT ZeroOne Awards 2017 • 'Best use of Mobile’ under Financial Singapore – Retail Banking Awards 2017 Sector category • Domestic Retail Bank Sri Lanka 20
Slide 8: Recognition
Recognition Awards that the Bank & the Group Companies have won (Jan – Mar 2017) Global Banking & Finance Review of UK • Best Mobile Banking Application – Sri Lanka 2017 • Best SME Bank – Sri Lanka 2017 • Best Investor Relations Bank – Sri Lanka 2017 Bank CMO Golden Globe Brand Excellence Awards hel
Slide 9: Macro Economic & Industry Analysis
Macro Economic & Industry Analysis Global economy • The pickup in global growth anticipated remains on track, with global output projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018 • Monetary policy normalization in some advanced economies, notably the United States, could trigger a fas
Slide 10: Financial Performance – H1 2017
Financial Performance – H1 2017
Slide 11: H1 2017 Performance Summary
H1 2017 Performance Summary H1-17 H1-16 Growth Net Operating Income 7,157 5,424 32% Profitability Operating Expenses 3,343 3,184 5% (LKR Mn) Profit after Tax 2,313 1,275 81% H1-17 FY2016 Growth Total Assets 365 335 9% Financial Position Total Loans 252 228 11% (LKR Bn) Total Deposits 239 204 17% Cos
Slide 12: Income Statement
Income Statement LKR Mn H1-2017 H1-2016 Change LKR % Net Interest Income 4,746 4,039 706 17 Other Income 1,851 1,140 711 62 Operating Income 7,738 6,253 1,485 24 Impairment 581 829 (248) (30) Operating Expenses 3,343 3,184 159 5 Operating Profit 3,814 2,240 1,574 70 Tax 1,500 965 535 55 PAT 2,314 1,
Slide 13: Revenue Analysis – Net Interest Income
Revenue Analysis – Net Interest Income LKR Mn H1 2017 H1 2016 % Composition of NII within Total Interest Income 17,703 13,037 36 operating Income* Interest Expenses 12,958 8,998 44 H1 2017 vs. H1 2016 Net Interest Income (NII) 4,746 4,039 17 30% • Interest income growth of 36% supported by high mark
Slide 14: Revenue Analysis – Non Interest Income
Revenue Analysis – Non Interest Income LKR Mn H1 2017 H1 2016 % Net Fee and Commission Income 1,141 1,073 6 Net gain/(loss) from trading 533 456 17 Net gain/(loss) from financial 122 128 investments (5) Other operating income 1,197 556 115 Total non interest income 2,993 2,213 35% • Non interest inc
Slide 15: Operating Expenses
Operating Expenses CIR movement (%) H12017 43.2 LKR Mn H1 2017 H1 2016 % Q12017 45.64 Personnel expenses 1,703 1,735 (2) Depreciation & FY2016 49.04 amortization 206 213 (3) H12016 50.91 Other expenses 1,433 1,236 16 Target CIR 50 Total operating expenses 3,343 3,184 5 38 40 42 44 46 48 50 52 • Focu
Slide 16: Balance Sheet
Balance Sheet LKR Mn H1 2017 FY 2016 % YTD Balance Sheet growth Cash & Cash Equivalents 19,754 20,130 -2% LKR millions Investments 85,529 80,599 6% Total assets 30,267 Net Loans & Investments 252,500 227,677 11% Loans to customers 24,834 Fixed Assets 2,434 2,447 -1% Customer deposits 35,479 Other As
Slide 17: Loans & Advances
Loans & Advances 300 5 year CAGR - 20% YTD - 11% 250 Composition of the Loan portfolio 200 3% LKR billion 150 195 LCY 36% 180 160 FCY 39% 136 100 108 91 50 73 22% 23 28 33 45 55 54 62 0 2011 2012 2013 2014 2015 2016 H1 2017 Corporate PF Retail & SME Other • LKR:FCY mix of loans at 76:24 with the tar
Slide 18: Asset Quality
Asset Quality Potfolio composition well diversified Sector-wise NPL ratio Agriculture & Fishing Manufacturing 5.0% Manufacturing Agriculture & Fishing 4.7% 11% Traders 3.7% 18% Tourism Transport 3.4% Transport Tourism 2.9% 22% Construction Other 1.9% 11% Construction 1.6% Traders New Economy 0.8% Ne
Slide 19: Customer Deposits
Customer Deposits 300 5 year CAGR - 20% YTD - 17% 250 200 LKR billion 150 LCY 194 134 159 FCY 100 115 100 79 50 76 37 51 45 46 6 28 30 0 2011 2012 2013 2014 2015 2016 H12017 Deposits Mix - H1 2017 0.2% 8% • YTD growth of deposits ahead of industry deposits rate (as at May 2017) 14% Demand Savings •
Slide 20: Capital Adequacy
Capital Adequacy Capital Adequacy Trend Tier I Tier I + II 17.9% Minimum Requirement (Tier I+II) 14.7% 12.8% 13.0% 12.6% 12.4% 11.3% 12.1% 11.1% 10.1% 10.0% 9.4% 9.3% 8.5% 2011 2012 2013 2014 2015 2016 H1 2017 • The Bank is well capitalized as per the current Basel regulations which were in effect a
Slide 21: Investor Ratios
Investor Ratios H1 2017 2016 Price per share (LKR) 144.0 156.0 EPS (LKR) 22.82 19.19 ROE (%) 14.63 13.36 ROA (%) 1.09 0.99 Book value per Share (LKR) 159. 53 149.8 P/E (times) 6.3 8.1 Price to Book value (times) 0.9 1.0 Share Price Movement Latest share price (26/07) – LKR 144.20 250 Volume 8,000 Pr
Slide 22: Questions & Answers Session
Questions & Answers Session YA NDB bank UNLOCKING OUR POTENTIAL TO UNLEASH YOURS
Slide 23: Post Investor Webinar..
Post Investor Webinar.. Edited transcript of this Investor Webinar to be emailed to our Investor Contact database hosted on the Bank’s corporate website/ Investor Relations page Edited video file of the Webinar to be hosted on Bank’s corporate website/ Investor Relations page Bank’s official
Slide 24: Investor Relations Team
Investor Relations Team Reach us; investor.relations@ndbbank.com T: +94112 448448 (Extn: 3838) www.ndbbank.com/InvestorRelations www.facebook.com/ndbbankplc www.twitter.com/NDBBank www.linkedin.com/ndbbank www.youtube.com/user/NDBBankSL instagram.com/ndbbank
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