Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q2 FY2023 Earnings Presentation
40 slides from Federal Bank Ltd. (india)'s earnings presentation, Oct 14, 2022
Slide 1: Secretarial Department cover letter
Secretarial Department SD/ F 24/ 171 /2022-23 October 14, 2022 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25,
Slide 2: Investor Information Q2 FY 2023
Investor Information ee Q2 FY 2023
Slide 3: 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 4: Broad based Loan Growth, Accelerated Fee Income and Strong Asset Quality
Broad based Loan Growth, Accelerated Fee Income and Strong Asset Quality results in ‘Highest Ever Net Profit’ Strong Momentum in Credit Growth Profitability Strong business • Highest ever Operating Profit at 1212 Cr, grew • All credit lines up by 5%+ sequentially • Net Advances grew by 20% YoY momen
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 14.36 12.70 11.62 11.93 10.73 1.21 3.22 3.30 1.10 3.20 3.27 3.16 1.02 1.03 0.92 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Cost to Income Ratio NNPA (%) PCR (%) 1.12 59.89 1.05 54.
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1762 610 1539 1605 1479 1525 492 484 465 453 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Fee Income 540 Net Profit 704 453 441 412 601 373 522 541 460 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q
Slide 7: Key Indicators
Key Indicators Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Book Value 83.52 86.05 88.75 91.59 93.00 (Per Share in ₹) Shareholder Value EPS 8.79 9.85 10.43 11.46 13.26 (annualized) CASA + Deposits <2 Cr 92% 92% 92% 92% 91% Granularity (% of Total Deposits) ROA 0.92 1.02 1.03 1.10 1.21 Profitability RoRWA
Slide 8: Asset Quality Trends
Asset Quality Trends Amt in Rs.Cr. Total stressed book steadily trending down 6000 2.9 2.8 2.8 2.6 2.6 2.3 and is at 1.98% of 2.2 2 2 1.9 1.7 1.7 1.7 2.2 2.2 1.9 5000 average total assets 1.6 1.5 1.2 1.1 0.9 1 4000 3000 Provision Coverage Ratio 2000 up by 238bps to 67.41% 1000 0 Q118 Q218 Q318 Q418
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q1 FY23 Q2 FY23 Q2 Q3 Q4 Q1 Q2 TYPE Of which Of which FY22 FY22 FY22 FY23 FY23 Balance Balance Bonds Bonds Retail 85 95 86 204 123 STANDARD 3366 17 3266 60 Agri 98 102 147 89 98 Net NPA 534 100 626 81 TOTAL 3900 117 3892 141 BuB 48 81 68 107 77 S
Slide 10: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q1 FY23 Q2 FY23 Q2 FY23 9% A & above 78% 79% 3% 9% BBB 10% 9% 3% 9% < BBB 3% 3% 10% Q1 FY23 Others 9% 9% 78% Internal Rating of ‘others’ (Externally unrated Cor
Slide 11: Asset Quality: Rating Distribution (Advances excluding Corporate advance)
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q1 FY23 Q2 FY23 5% Q2 FY23 5% 17% FBR1 5% 5% 32% 17% 33% FBR2/FBR3 17% 17% Q1 FY23 17% FBR4 17% 17% 17% 28% FBR5/FBR6 28% 29% 29% Staff 3% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance against 30
Slide 12: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# CV/CE COB CIB Advances 18% 18% 17% 64% 19% 21% 44296 -> 52439 17880 -> 21091 11619 -> 13617 1004 -> 1642 13692 -> 16240 48823 -> 58929 CASA CASA Ratio NRE Deposits Total Deposits Deposits 11% 25 4% 10% bps 62191 -> 68873 36.16 -> 36.41 65344
Slide 13: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# CV/CE COB CIB Advances 5% 6% 6% 15% 6% 7% 49872 -> 52439 19988 -> 21091 12799 -> 13617 1425 -> 1642 15349 -> 16240 54960 -> 58929 CASA CASA Ratio NRE Deposits Total Deposits -43 Deposits 2% bps 0% 3% 67540 -> 68873 36.84 -> 36.41 67753 -> 67
Slide 14: Digital Migration
Digital Migration Digital Migration 89% SHARE OF DIGITAL 213.3K CR WORTH MONTHLY MOBILE BANKING %28.7K ICR WORTH MONTHLY CORPORATE DIGITAL y, TRANSACTION TRANSACTIONS | |PRODUCTS VOLUME _4 § 3 (0) fe) =2|| 154% || 250 80% Sé& a5 YOY GROWTH ACCOUNTS ae IN UPI RPA PROCESSES OPENED S TRANSACTIONS RUNNI
Slide 15: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 3 Pine Labs mm. = Jupifer cointab UPI PSP ckout turt/efin Full stack for Neo Banks EMI on PG Checkout Inter-bank k EMI on payments rupee! Checkout using UPI Digitalisation of insurance No tension instant NEO BANKS Gane Gold Loans ACCOUNT Go
Slide 16: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships •We launched our first PL Partnership with PaisaBazaar (PB) on 28th September 2022 . Partnership with PB, one of India’s largest digital marketplace for consumer credits, is expected to enhance the unsecured portfolio. •This digital lending partnership is o
Slide 17: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 16
Slide 18: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 17
Slide 19: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 18
Slide 20: Digital Migration
Digital Migration *MONTH WISE DATA 19
Slide 21: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 20
Slide 22: Business Parameters
aheeeerataetieor Business Parameters 21
Slide 23: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio 36.16% 36.68% 36.94% 36.84% 36.41% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 107073 104594 104086 99615 98598 69238 67913 67471 64725 62562 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 CA & SA CASA + Demand Dep Other Retail Dep 51381 53014 54510 56242 55803 Remittance
Slide 24: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 1% 8% 10% 13% 54% 36% 32% 46% Retail Wholesale Retail Agri BuB CV/CE CoB CIB Yield on Advances 70308 75169 7.94 8.29 66383 66744 62514 Q1 FY23 84083 88789 74799 77256 80895 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 23
Slide 25: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri, BuB & CV/CE) Housing LAP Gold Auto Personal Other 6124 6833 5975 24% 5818 5764 1751 1727 1832 59% 1736 1746 4229 4448 4850 4035 5167 5260 3840 4526 15% 4106 4164 8263 8453 8762 9176 7973 2% 20824 21685 22929 23644 24488 Q2 FY22 Q3 FY22 Q4 FY22 Q1 F
Slide 26: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio No of outstanding Accounts (in Lakhs) 13.18 18469 19299 17316 12.61 15976 16378 12.10 11.82 11.62 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Tonnage 56.71 55.16 52.87 50.82 49.51 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY
Slide 27: Wholesale Banking
Wholesale Banking WHOLESALE BANKING 75% 21% • Corporate Banking book hit the milestone of 60000+ Crs and grew by 22% YoY with 4% Transaction Banking and Trade mandates leading the way. 60 CIB clients added during the quarter and 104 clients added during the CoB H1 as granular NTB focus continues to
Slide 28: Other Income: Distribution
Other Income : Distribution Other Income Distribution : Vertical Wise (In Cr) 1000 610 700 800 492 484 465 453 2 500 600 1 2 5 0 80 88 47 4 25 117 300 400 116 100 100 124 200 410 100 279 319 356 327 0 -100 Q2 FY22 Q3 FY22 Q4 FY 22 Q1 FY 23 Q2 FY 23 Retail Wholesale Treasury Others Total Other Income
Slide 29: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Loan Processing Fee 96 104 105 103 125 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 227 258 280 275 321 Income 540 Net Profit on Forex 50 50 68 63 94 Transactions 45% 373 Fee Income 373 412 453 441 540 Profit on
Slide 30: Select Segments: September 2022
Select Segments : September 2022 Select Segments MSME CV/CE Credit Cards Micro Finance Bank‘s select high yielding portfolio share in total advance grew to 20% in Sep’22. Revenue share from these select segments increased to 18%. MSME credit lines (BuB + CoB) registered a growth of 18% (YoY), CV/ CE
Slide 31: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint Q4 Q1 Q2 1 FY22 FY23 FY23 Branches Digital Branches 1282 1291 1305 29 ATM/ 3 1 1885 1860 1876 Recyclers Customers 22 @ 27 Sales /Relationship Core BC led 23 Channel Distribution 12 8 2 (Bank owned) 8 2 1 48 9 31 11 1 Direct Sales 2 3 Agents /Connecto
Slide 32: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Q1 FY23 Q2 FY23 Risk Weighted Assets Credit Risk 115456 121844 Market Risk 3747 4587 Operational Risk 13136 13136 Total RWA 132339 139567 Tier-1 Capital Funds 17620 17616 Tier-II Capital Funds 1666 1704 Total Capital Funds 19285 19320 CRAR 14.57% 13.84% Tier-I
Slide 33: Annexures
FEDERAL BANK Annexures 32
Slide 34: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q1 FY23 Q2 FY23 LIABILITIES Capital 421 422 Share Holding Pattern Reserves & Surplus 18972 19327 Deposits 183355 189146 Borrowings 15834 20413 30% Other Liabilities & Provisions 6771 7804 34% TOTAL 225353 237112 ASSETS 9% Cash & Balance with RBI 13157 126
Slide 35: Financials
Financials ₹ in Cr Q2 FY22 Q1 FY23 Q2 FY23 Q-o-Q Y-o-Y Interest Income 3379 3629 4021 10.8% 19.0% Interest Expenses 1900 2024 2259 11.6% 18.9% Net Interest Income 1479 1605 1762 9.8% 19.1% Other Income 492 453 610 34.7% 24.0% Operating Expense 1059 1084 1159 6.9% 9.4% Total Income 3871 4081 4630 13.
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 TRANSPORT VEHICLES & PARTS 1.33% ITEMS FOR CONSUMPTION/ PERSONAL/ 1.34% 30.09.2022 HOUSEHOLD USE CHEMICALS 1.56% BANKS 1.80% POWER GENERATION & TRANSMISSION 1.93% TEXTILES INCLUDING JUTE & COIR 2.16% FO
Slide 37: Driving Positive Purposes
Driving Positive Purposes Cross-Segment Appeal, Scale & Sustenance… Society, Moments and Culture…
Slide 38: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 73.22% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.79% Subsidiaries & JVs Ageas Federal Life Insuranc
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: Thank You
Thank You AE A aA og