Idfc First Bank Ltd. · NSE:IDFCFIRSTB
Idfc First Bank — Q3 FY23 Earnings Presentation
91 slides from Idfc First Bank's earnings presentation, January 2023
Slide 1: Investor Presentation – Q3 FY23
Investor Presentation – Q3 FY23
Slide 2: Table of Contents
1 Our Vision 2 Key Financial Highlights of Q3 FY23 3 Our Approach to building IDFC FIRST Bank 4 Background of IDFC FIRST Bank 5 Products and Digital Innovation 6 Deposits and Borrowings TABLE 7 Funded Assets (incl. Loans and Advances) OF 8 Risk Management in Retail & Commercial Banking CONTENTS 9 Ri
Slide 3: Our Vision
Section 1 Our Vision Our Vision: “To build a world class bank in India, guided by ethics, powered by technology and to be a force for social good.” 2
Slide 4: Culture and Ethos @ IDFC FIRST Bank
Section 1 Our Vision Culture and Ethos @ IDFC FIRST Bank (Annual Report 2018-19) (Annual Report 2018-19) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2019-20) (Annual Report 2020-21) 3
Slide 5: Culture and Ethos @ IDFC FIRST Bank
Section 1 Our Vision Culture and Ethos @ IDFC FIRST Bank We are a universal bank with highly We know that we are on to a wonderful diversified sources of income. Apart model, and I am confident that if we from lending, we have launched stay the course and play with a straight several other new busin
Slide 6: Section 2: Key Financial Highlights of Q3-FY23
Section 2: Key Financial Highlights of Q3-FY23 55
Slide 7: Key Financial Highlights of Q3 FY23
Section 2. Key Financial Highlights of Q3 FY23 Key Financial Highlights of Q3 FY23 Area Key Parameters Q3 FY22 Q3 FY23 Growth (%/bps) Assets Total Funded Assets US$ 14,990 Mn US$ 18,784 Mn 25% Customer Deposits US$ 10,595 Mn US$ 15,257 Mn 44% Deposits CASA Ratio (%) 51.6% 50.0% -161 bps Bank Level G
Slide 8: Section 3: Our approach to building IDFC FIRST Bank
Section 3: Our approach to building IDFC FIRST Bank 77
Slide 9: Our approach to building IDFC FIRST Bank (1/4)
Section 3. Our Approach to building Our approach to building IDFC FIRST Bank (1/4) IDFC FIRST Bank • We think of safety first. • At merger, the bank had institutional deposits and borrowings of US$ 13,030 million and retail deposits of only US$ 1,284 million. • Hence under our Safety First approach,
Slide 10: Our approach to building IDFC FIRST Bank (2/4)
Section 3. Our Approach to building Our approach to building IDFC FIRST Bank (2/4) IDFC FIRST Bank • All Legacy Accounts of infrastructure and corporate loans are provided for, or are a part of reported NPA. • The share of Infrastructure book has further reduced to 3.7% of the total Funded Assets fr
Slide 11: Our approach to building IDFC FIRST Bank (3/4)
Section 3. Our Approach to building Our approach to building IDFC FIRST Bank (3/4) IDFC FIRST Bank • Our incremental unit economics of the bank are excellent. Incremental ROE on Retail lending is around 18-20% after adjusting for Opex, credit costs and tax. Unit Economics • The strength of the profi
Slide 12: Our approach to building IDFC FIRST Bank (4/4)
Section 3. Our Approach to building Our approach to building IDFC FIRST Bank (4/4) IDFC FIRST Bank • Our Bank has Eminent, qualified and experienced Board of Directors. All committees are headed by independent Corporate directors except CSR which is headed by the MD and CEO. Governance • We have tra
Slide 13: Section 4: Background of IDFC FIRST Bank
Section 4: Background of IDFC FIRST Bank 12 12
Slide 14: The IDFC Bank- Capital First Merger
Section 4. Background of The IDFC Bank- Capital First Merger IDFC FIRST Bank • IDFC FIRST Bank was created by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18, 2018. • Erstwhile IDFC Bank started its operation as a Bank after demerger from IDFC Ltd, a premier infrastructu
Slide 15: Background and history of erstwhile IDFC Bank
Section 4. Background of Background and history of erstwhile IDFC Bank IDFC FIRST Bank About IDFC Bank IDFC Limited was a leading and reputed infrastructure financing Domestic Finance Institution. The institution diversified into Asset Management, Institutional Broking and Investment Banking. It app
Slide 16: Background and history of Capital First
Section 4. Background of Background and history of Capital First IDFC FIRST Bank Background Strong growth in AUM 5 Yr PAT CAGR of 56% In US$ Mn Wholesale AUM Retail AUM Total AUM 4,028 40 3,333 29 Capital First was a successful NBFC, 25 2,447 21 growing its loan book and net profits at 1,980 14 1,47
Slide 17: Section 5: Products and Digital Innovations
Section 5: Products and Digital Innovations - Wide range of Fund and Non-Fund Based Products 16 16
Slide 18: Wide bouquet of fund based and non-fund based products
Section 5. The Bank has a wide bouquet of fund based and non-fund based products Product & Digital Innovations across urban and rural consumer, MSMEs and Corporates Personal Banking: For salaried & self-employed individuals, Business Banking: The bank provides a Corporate Banking: the Bank provides
Slide 19: Wide range of Current and Savings Account Offerings
Section 5. Product & Digital The Bank has a wide range of Current and Savings Account Offerings Innovations CURRENT ACCOUNTS: SAVINGS ACCOUNTS: The Bank has multiple current account offerings doorstep The Bank offers savings accounts with attractive interest rates and multiple features including hea
Slide 20: Our Digital Initiatives
Section 5. Our Digital Initiatives Product & Digital Significant traction on electronic platforms Innovations RTGS & NEFT 95% Ranked 5th UPI Transactions: Growth of payments through CMS Of the overall Bharat Bill Payment ~136% over the last year and solutions up by 32% YoY (vol.) transactions are Sy
Slide 21: India's FIRST FASTAG with Triple Benefits
Section 5. Product & Digital Innovations India’s FIRST FASTAG with Triple Benefits – Toll, Fuel and Parking IDFC FIRST Bank Credit Card customers can now link their card 11 Million with IDFC FIRST FASTAG and enjoy seamless auto recharge FASTag Issued IDFC FIRST Bank issuance business crossed 11 Mill
Slide 22: Building a strong Wealth Management Business
Section 5. Product & Digital Building a strong Wealth Management Business Innovations AUM of Wealth Management Business has grown 43% YoY to reach US$ 1,089 million as on December 31, 2022. 1 Assisted Transactions: Digitally assisted transaction execution for Mutual Funds Investment Dashboard: Asset
Slide 23: Section 6: Deposits and Borrowings
Section 6: Deposits and Borrowings a. CASA Deposits and CASA Ratio growth b. Customer Deposits Growth c. Composition of Customer Deposits d. Summary of Deposits and Borrowings e. Reducing Legacy High-Cost Borrowings 22 22
Slide 24: CASA Deposits growth
Section 6a. Deposits and CASA Deposits - Bank has a demonstrated capability to grow CASA deposits Borrowings In US$ Mn • The Bank provides high levels of customer service, attractive customer first products, and has an excellent brand with a reputation as a clean and ethical institution. 8,210 YoY –
Slide 25: Deposits: CASA Ratio stable at ~50%
Section 6a. Deposits and Borrowings Deposits: CASA Ratio stable at ~ 50% The CASA ratio has been stable at ~ 50% for nearly two years now, indicating that we have attained sustainability at around these levels. The CASA ratio has sustained despite reducing savings accounts interest rates. The CASA R
Slide 26: Strong growth in Total Customer Deposits
Section 6b. Deposits and Borrowings Deposits: Strong growth in Total Customer Deposits In US$ Mn Total Customer Deposits (Retail Deposits + Wholesale Deposits) has grown strongly by 4 Yr CAGR (Dec-18 to Dec-22) of 34%. YoY – Q3 FY23 vs Q3 FY22 ↑44% 15,257 QoQ – Q3 FY23 vs Q2 FY23 ↑ 8% 4 Yr CAGR (Dec
Slide 27: Transformed deposit base in favour of retail deposits
Section 6c. Deposits and Bank has transformed the deposit base in favour of sticky retail deposits Borrowings Thus reducing the dependency on Corporate Deposits Overall Customer Deposits Retail Deposits Wholesale Deposits 27% 23% 73% 77% Dec-18 Dec-22 $ 4,748 million $ 15,257 million • The Retail De
Slide 28: Summary of Deposits & Borrowings
Section 6d. Deposits and Borrowings Summary of Deposits & Borrowings Particulars (In US$ Mn) Dec-21 Sep-22 Dec-22 YoY growth Legacy Long Term Bonds 903 803 804 -11% Legacy Infrastructure Bonds 1,155 956 931 -19% Refinance including Legacy Borrowings 2,045 2,483 2,497 22% Other legacy Bonds and other
Slide 29: Legacy High Cost Borrowing continues to run down
Section 6e. Deposits and Borrowings Legacy High Cost Borrowing continues to run down. Balance Maturity In US$ mn Beyond RoI (%) As on Dec-21 As on Dec-22 FY23 FY24 FY25 FY26 FY26 Infrastructure Bonds 1,155 931 59 129 638 105 - 8.89% Long Term Legacy Bonds 903 804 - 205 152 447 - 9.04% Other Bonds 43
Slide 30: Section 7: Breakup of Funded Assets
Section 7: Breakup of Funded Assets - Well diversified Credit Portfolio 29 29
Slide 31: The Bank's funded assets are highly diversified
Section 7. Funded Assets The Bank’s funded assets are highly diversified Composition of Funded Assets Infrastructure Loans, 4% Home Loan, 12% Corporate and Others, 20% Loan Against Property, 13% Commercial Finance, 9% Overall Funded Assets (as on December 31, 2022) Credit Card, 2% Wheels, 9% US$ 18,
Slide 32: Breakup of Funded Assets
Section 7. Funded Assets Breakup of Funded Assets Growth Growth Gross Funded Assets (In US$ Mn) Dec-21 Sep-22 Dec-22 YoY (%) QoQ (%) Growth driven by Prime Home Home Loan 1,479 2,090 2,195 48% 5% Loans launched in 2021 Loan Against Property 2,142 2,314 2,429 13% 5% Wheels 1,145 1,557 1,715 50% 10% C
Slide 33: Section 8: Risk Management - Retail & Commercial Book
Section 8: Risk Management - Retail & Commercial Book a. Key factors in risk management b. Underwriting Processes c. Ticket Size wise Distribution for key products d. Quality of incremental Sourcing e. Bounce Rate – Indicator of Incremental Booking Quality f. High Collection Efficiency 32 32
Slide 34: Risk Management in Retail & Commercial Finance
Section 8a. Risk Management Risk Management in Retail & Commercial Finance Retail & Commercial Book • Asset quality in retail and commercial finance lending is driven by the following factors: - Sourcing & Underwriting Quality (Refer Page 34-35) - Cheque /ECS bounce on presentation (Refer Page 38) -
Slide 35: 10 Steps of Stringent Underwriting Process (1/2)
Section 8b. Risk Management Retail & Commercial Book 10 Steps of Stringent Underwriting Process in Retail Business (1/2) The Bank evaluates certain quick no-go criteria such as deduplication against existing records, bank validation and minimum 1 No-Go Criteria credit parameter rules. The Bank pings
Slide 36: 10 Steps of Stringent Underwriting Process (2/2)
Section 8b. Risk Management Retail & Commercial Book 10 Steps of Stringent Underwriting Process in Retail Business (2/2) Based on inputs received, from our processes, a personal discussion is conducted with the customer which includes establishment of business credentials, understanding financials,
Slide 37: Ticket size analysis for key products
Section 8c. Risk Management Ticket size analysis for key products (based on 9M-FY23 bookings) Retail & Commercial Book Loan Against Property: Provided to customers Home Loan: Provided to primarily salaried and self- against property after bank statement/ cashflow employed individuals based on salary
Slide 38: High quality of sourcing
Section 8d. Risk Management Retail & Commercial Book High quality of sourcing • 89% of customers are credit tested before we onboard them, and this % has increased over the years, demonstrating migration to safer credit profiles. We are able to afford such migration because of cost of funds has redu
Slide 39: EMI Bounces on Incremental Booking improve
Section 8e. Risk Management EMI Bounces on Incremental Booking in Retail continues to improve Retail & Commercial Book Pre- Covid Period Post Covid Period Cheque Bounce on First EMI presentation is a direct indicator of the Quality of Booking. 10.0% First EMI cheque Bounce on Incremental Booking is
Slide 40: High collection efficiency in retail portfolio
Section 8f. The Bank continues to maintain high collection efficiency in its retail Risk Management portfolio Retail & Commercial Book - The Bank has maintained collection efficiency at around 99% for close to a decade now. - Post COVID, this has increased to 99.5% because of tightened norms, moving
Slide 41: Section 9: Risk Management in Wholesale Banking
Section 9: Risk Management in Wholesale Banking a. Key factors in risk management b. Underwriting Processes c. Managing Concentration Risk in Wholesale book 40 40
Slide 42: Risk Management in Wholesale Banking
Section 9a. Risk Management in Wholesale Banking Risk Management in Wholesale Banking • The Bank has been replacing Infrastructure Finance with a well-diversified, mid-tier corporate exposure • More than 350 New-To-Bank clients added in the past 45 months (Rs. ~25,000 crore (US$ 3,100 Mn) of sanctio
Slide 43: Stringent Underwriting Process in Wholesale Business
Section 9b. Risk Management in Wholesale Banking Stringent Underwriting Process in Wholesale Business • All New-To-Bank potential borrowers (incl. promoter/ directors) are checked including CIBIL, Suit filed, CFR, CRILC, etc. 1 Customer Selection • Further, bank has also defined minimum internal rat
Slide 44: Bank continues to wind-down the Infrastructure Book
Section 9c. Risk Management Bank continues to wind-down the Infrastructure Book in Wholesale Banking Infrastructure Book (US$ million) 3,313 2,649 • The Infrastructure financing book currently is only 3.66% of the overall 1,767 funded Assets as of December 31, 2022. 1,334 • The bank would continue t
Slide 45: Risk Management in Wholesale Banking
Section 9c. Risk Management in Wholesale Banking Risk Management in Wholesale Banking The Bank has reduced its corporate (non-infra) book from 29% Similarly, the Bank has reduced its infrastructure financing portfolio from in Mar-19 to 17% in Dec-22 19% in Mar-19 to 4% in Dec-22 29% 19% 22% 14% 19%
Slide 46: Section 10: Asset Quality
Section 10: Asset Quality a. NPA Trend in Retail & Commercial Book b. NPA Trends in Overall Book for the Bank c. Increasing Provision Coverage d. Asset Quality Summary e. SMA (SMA1 & SMA2) composition in Retail & Commercial Book f. Trend of Net Stressed Assets of the Bank 45 45
Slide 47: Consistently high Retail asset quality
Section 10a. Consistently high Retail asset quality with GNPA of ~2% and NNPA ~1% for Asset Quality more than 10 years (FY11-FY22) Stress Test 1: Stress Test 2: Stress 3: Stress Test 4: Stress Test 5: Economic Slowdown Demonetization GST IL&FS Crisis COVID-19 4.01% 2.63% 2.02% 2.14% 1.98% 2.18% 2.12
Slide 48: Overall Asset quality continues to improve
Overall Asset quality of the Bank continues to improve and reflects the Section 10b. Asset Quality better incremental underwriting GNPA% NNPA% 4.61% 4.15% 4.27% 3.96% 3.70% 3.36% 3.18% 2.83% 2.96% 2.32% 2.09% 1.86% 1.74% 1.53% 1.23% 1.30% 1.09% 1.03% ← Impacted due to COVID-19 pandemic → Dec-19 Mar-
Slide 49: Increasing Provision Coverage Ratio of Retail & Commercial book
Section 10c. Increasing Provision Coverage Ratio of the Retail & Commercial book Asset Quality The Bank has continuously increased provision coverage ratio over the years on structural basis 77.21% 69.59% 65.08% 57.53% 44.56% Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Note: Provision Coverage Ratio as shown
Slide 50: Increasing Provision Coverage in Corporate Book
Section 10c. Asset Quality Increasing Provision Coverage in Corporate Book (Non-infra) Provision Coverage in Corporate Book (Non-infra) has improved from 50% to 99% in the last 3 years 98.57% 94.50% 72.32% 58.51% 45.95% Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 *PCR is including technical write-offs 49
Slide 51: Improved provision coverage ratio from 49% to 77%
Section 10c. The Bank has improved its provision coverage ratio from 49% to 77% Asset Quality over the years Provision Coverage Ratio at the Bank level* (%) 76.60% 70.29% 66.40% 63.57% 48.67% Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 The Provision Coverage Ratio of the Bank after excluding the infrastructu
Slide 52: Asset quality by business components
Break- down of asset quality by business components. Retail has least Section 10d. Asset Quality Gross NPA and Net NPA, sustained over time. Segment Gross Advances Breakup (US$ Mn) Gross NPA Net NPA PCR% Retail and Commercial Finance 14,405 1.87% 0.70% 77.21% Corporate (Non-Infrastructure) 2,867 3.3
Slide 53: SMA1 + SMA2 proportion in Retail & Commercial portfolio
(SMA1 + SMA2) proportion as % of overall portfolio in Retail & Commercial Section 10e. Asset Quality loan portfolio continues to remain low SMA 1 is the overdue portfolio in Bucket 31-60 days, and SMA 2 is the overdue portfolio in 61-90 days. SMA 1 (31-60 days overdue) and SMA 2 (61-90 days overdue)
Slide 54: Net Stressed Assets reduced to 1.1% of total Assets
Section 10f. Asset Quality Net Stressed Assets reduced significantly to only 1.1% of total Assets 8,000 4.0% Net stressed Assets = Net NPA + Net SRs + Net Restructured Assets (OTR) 7,000 3.5% 6,000 2.9% 3.0% 5,000 2.5% 2.0% The Bank has reduced the net stressed 4,000 2.0% assets, both in absolute va
Slide 55: Section 11: Financial Performance
Section 11: Financial Performance a. Trend of Net Interest Income b. Trend of Fee and Other Income c. Composition of Fee and Other Income d. Trend of Core Operating Profit e. Trend of Profitability and Return Ratios f. Financial Statements g. Capital Adequacy 54 54
Slide 56: 28% YoY growth in Net Interest Income during 9M FY23
Section 11a. Financial Performance 28% YoY growth in Net Interest Income during 9M FY23 Net Interest Income (In US$ Mn) 1,198 32% 28% 1,116 3Y CAGR: 26% 21% 911 869 750 25% 598 FY19* FY20 FY21 FY22 9M FY22 9M FY23 For Q3 FY23, the Net Interest Income grew by 27% YoY. Also, the NIM% (annualized) for
Slide 57: 60% YoY growth in Fee & Other Income during 9M FY23
Section 11b. Financial Performance 60% YoY growth in Fee & Other Income during 9M FY23 Fee and Other Income (In US$ Mn) 366 332 60% 66% 3Y CAGR: 32% 228 5% 200 191 33% 144 FY19* FY20 FY21 FY22 9M FY22 9M FY23 * H2-FY19 actual annualized 56
Slide 58: Breakup of Fee & Other Income
Section 11c. Financial Performance Breakup of Fee & Other Income Fee Income Break up for 9M-FY23 Others, 5% Loan Origination fees, 33% General Banking Fees, 25% Wealth Management & Third Party Products, 11% Credit Card & Toll, 15% Trade & Client Fx, 11% • During 9M FY23, the Fee and Other Income of
Slide 59: 70% YoY growth in Core Operating Profit during 9M FY23
Section 11d. Financial Performance 70% YoY growth in Core Operating Profit during 9M FY23 Core Pre-Provisioning Operating Profit (In US$ Mn) 70% 403 44% 340 3Y CAGR: 36% 8% 236 237 60% 218 136 49 H1 FY19 H2 FY19 FY20 FY21 FY22 9M FY22 9M FY23 (Annualized) (Annualized) (Pre-merger (Post-merger) stand
Slide 60: Core Operating Profit as % of Total Assets
Section 11d. The Steady growth of Core Operating Profit as of Total Assets has Financial Performance improved the overall profitability ratios of the Bank Core Pre-Provisioning Operating Profit (PPOP) as a % of Average Total Assets 2.11% 1.56% 1.51% 1.22% 1.11% 0.76% 0.32% H1 FY19 H2 FY19 FY20 FY21
Slide 61: Consistent growth in profitability; ROA reaches 1.11%
Consistent growth in profitability with strong asset quality; Profitability Section 11e. ratios continue to improve as ROA reaches 1.11%. Financial Performance Profit After Tax (In US$ Mn) Return on Average Total Assets 75 1.07% 1.11% 69 0.97% 59 0.76% 42 0.64% 35 0.35% 19 Q2 FY22 Q3 FY22 Q4 FY22 Q1
Slide 62: Quarterly Income Statement
Section 11f. Financial Performance Quarterly Income Statement Growth (%) In US $ Million Q3 FY22 Q2 FY23 Q3 FY23 YoY Interest Income 547 675 730 33% Interest Expense 228 305 324 42% Net Interest Income 319 371 406 27% Fee & Other Income 92 117 138 50% Trading Gain 3 14 4 45% Operating Income 413 502
Slide 63: Nine Months - Income Statement
Section 11f. Financial Performance Nine Months - Income Statement Growth (%) In US $ Million 9M FY22 9M FY23 YoY Interest Income 1,558 2,013 29% Interest Expense 689 897 30% Net Interest Income 869 1,116 28% Fee & Other Income 229 366 60% Trading Gain 67 13 -80% Operating Income 1,164 1,495 28% Oper
Slide 64: Balance Sheet
Section 11f. Financial Performance Balance Sheet Growth (%) In US $ Million Dec-21 Sep-22 Dec-22 (YoY) Shareholders' Funds 2,549 2,722 2,802 10% Deposits 11,452 15,240 16,424 43% - CASA Deposits 5,909 7,815 8,210 39% - Term Deposits 5,544 7,424 8,215 48% Borrowings 6,271 6,993 6,717 7% Other liabili
Slide 65: Capital Adequacy Ratio is strong at 16.06%
Section 11g. Financial Performance Capital Adequacy Ratio is strong at 16.06% as on December 31, 2022 In US $ Million Dec-21 Sep-22 Dec-22 Common Equity 2,459 2,652 2,733 Tier 2 Capital Funds 91 326 521 Total Capital Funds 2,551 2,978 3,254 Total Risk Weighted Assets 16,580 19,398 20,259 CET 1 Ratio
Slide 66: Section 12: Board of Directors
Section 12: Board of Directors 65 65
Slide 67: Board of Directors: MD & CEO Profile
Section 12. Board of Directors Board of Directors: MD & CEO Profile Vaidyanathan aspires to create “a world-class bank Indian Bank which offers high-quality affordable and ethical banking for India”. He left a Board level position at ICICI group in 2010 and acquired stakes in a small listed, loss ma
Slide 68: Board of Directors
Section 12. Board of Directors Board of Directors MR. SANJEEB CHAUDHURI – PART-TIME NON-EXECUTIVE CHAIRPERSON (INDEPENDENT DIRECTOR) Mr. Sanjeeb Chaudhuri is a Board member and Advisor to global organizations across Europe, the US and Asia. He has most recently been Regional Business Head for India
Slide 69: Board of Directors
Section 12. Board of Directors Board of Directors MR. HEMANG RAJA - INDEPENDENT DIRECTOR Mr. Hemang Raja, is an MBA from Abilene Christian University, Texas, with a major in finance. He has also completed an Advanced Management Programme (AMP) from Oxford University, UK. He has vast experience in th
Slide 70: Board of Directors
Section 12. Board of Directors Board of Directors MR. AJAY SONDHI - NON-EXECUTIVE NON INDEPENDENT DIRECTOR Mr. Ajay Sondhi, is a 2017 Fellow, Harvard Advanced Leadership Initiative, MBA - Finance from JBIMS, Mumbai University, and B.A. in Economics (Honors) from St. Stephens College, Delhi Universit
Slide 71: Section 13: Shareholding Pattern
Section 13: Shareholding Pattern 70 70
Slide 72: Shareholding Pattern as of December 31, 2022
Section 13. Shareholding Pattern Shareholding Pattern as of December 31, 2022 Scrip Name : IDFC FIRST Bank (BSE: 539437, NSE:IDFCFIRSTB) Other Body Others (0.03%) Corporate (1.2%) Trusts and Clearing Members (0.1%) President of India Total # of shares as of Dec 31, 2022 6236.7 Mn (4.2%) Book Value /
Slide 73: Section 14: FIRST Compass (ESG)
Section 14: FIRST Compass (ESG) 72 72
Slide 74: Our FIRST Compass ESG Priorities Align with our Corporate Vision
Section 14. FIRST Compass (ESG) Our FIRST Compass ESG Priorities Align with our Corporate Vision Our Vision: To Build A World-Class Bank in India Guided by Ethics powered by Technology and be a force for Social Good FIRST Priorities (immediate and continuing) • Highest standards of corporate governa
Slide 75: FIRST Compass 2022 Highlights
FIRST Compass at IDFC FIRST Bank Section 14. FIRST Compass (ESG) 2022 Highlights Environmental Social Governance ✓ Strong and experienced Board : ✓ IGBC certification & LEED Certified Gold ✓Focus on Employee Learning & Upskilling: 11+ lakh • Independence: 60% Independent Directors Standard for multi
Slide 76: ESG Governance, Commitments and Ratings
Section 14. FIRST Compass (ESG) ESG Governance, Commitments and Ratings ESG Governance Structure ESG Commitments Board Level Committee • Letter of commitment submitted and confirmed as a participant for • Board Committee: Stakeholder, ESG and Customer United Nations Global Compact (UNGC) Relationshi
Slide 77: ESG Awards
Section 14. FIRST Compass (ESG) ESG Awards Navabharat BFSI Award Awarded as Social Best Corporate Governance, 2022 - Best Sustainable Impact Bank of the Year, India - Received from World Bank Strategy, Oct 2022 Sept 2022 Finance Organisation: June 2022 Won Breaking Ground in Best Sustainable Water.o
Slide 78: Section 15: Awards and Recognition
Section 15: Awards and Recognition 77 77
Slide 79: Awards and Recognition
Section 15. Awards & Recognition Awards and Recognition Best Payments & Collections Solution Award 2021 - Asset Asian Awards Best Innovative Payment Solution - Phi Commerce Best Consumer Digital Bank in India – 2021 - Global Finance Magazine Best Wealth management provider for Digital CX - Digital C
Slide 80: IDFC FIRST Bank
IDFC FIRST Bank We are building a world class bank with: - Highest levels of corporate governance - Stable balance sheet growth of ~20-25%, - Robust asset quality of GNPA less than 2% and net NPA of < 1% - High teens ROE - Contemporary technology and - High levels of Customer Centricity. 79
Slide 81: 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 82: Thank You
Thank You IDFC FIRST Bank
Slide 83: Performing well on guidances given at the time of merger
We are happy to say that the Bank is performing well on the guidances given at Annexure 1 the time of the merger. Dec-18 Dec-22 Particulars Guidance for FY24-FY25 Status (At Merger) Latest quarter C Net-worth (Share Capital and Reserves & Surplus) US$ 2,269 Mn -- US$ 2,802 Mn - A P I CET – 1 Ratio 1
Slide 84: Performing well on guidances given at the time of merger
We are happy to say that the Bank is performing well on the guidances given at Annexure 1 the time of the merger. Dec-18 Dec-22 Particulars Guidance for FY24-FY25 Status (At merger) Latest quarter Retail and Commercial Finance (Net of IBPC) US$ 4,559 Mn US$ 12,346 Mn US$ 14,405 Mn Achieved Retail an
Slide 85: Annexure 2
Annexure 2 Since the business model of Capital First is an important part of the business being built in the merged bank, the brief history and the progress of Capital First is being provided for ready reference to investors. 84
Slide 86: Successful Trajectory of Growth and Profits at Capital First
Successful Trajectory of Growth and Profits at Capital First Financial Performance: The Asset Under Management has consistently grown at 5-Year CAGR of Annexure 2 29% Asset Under Management (In US$ Mn) 4,028 3,333 2,447 1,980 1,478 1,195 927 764 340 115 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 H
Slide 87: Successful Trajectory of Growth and Profits at Capital First
Successful Trajectory of Growth and Profits at Capital First Annexure 2 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 88: Successful Trajectory of Growth and Profits at Capital First
Successful Trajectory of Growth and Profits at Capital First This page is an extract from Capital First investor Presentation of September 2018, which is the last quarter prior to merger. Presented Annexure 2 here to demonstrate the capability of the core loan book and the track record of growth and
Slide 89: Capital First: Return on Equity continuously improved
Capital First: the Return on Equity continuously improved over the quarters… Annexure 2 This page is an extract from Capital First investor Presentation of September 2018, which is the last quarter prior to merger. Presented here to demonstrate the capability of the core loan book and the track reco
Slide 90: Capital First Market Capitalization
Successful Trajectory of Growth and Profits at Capital First This page is an extract from Capital First investor Presentation of September 2018, which is the last quarter prior to merger. Presented Annexure 2 here to demonstrate the capability of the core loan book and the track record of growth and
Slide 91: Capital First Stock Price increased 7x
Successful Trajectory of Growth and Profits at Capital First This page is an extract from Capital First investor Presentation of September 2018, which is the last quarter prior to merger. Presented Annexure 2 here to demonstrate the capability of the core loan book and the track record of growth and