National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — FY2018 Earnings Presentation
20 slides from National Development Bank's earnings presentation, Mar 6, 2019
Slide 1: Investor Forum FY 2018
INVESTOR FORUM FY 2018 National Development Bank PLC [CSE Stock Code - NDB.N0000] 06 March 2019 Colombo Sri Lanka
Slide 2: Forward Looking Statements
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 regard
Slide 3: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Director/ Group Chief Executive Officer Suvendrini Muthukumarana Acting Group Chief Financial Officer/ Assistant Vice President -Finance & Planning Other Panelists Ananda Atukorala - Chairman Buwaneka Perera – Senior Vice President - Corporate
Slide 4: Agenda
Agenda • Business Overview • Investment Case • Financial Performance • Q&A 4
Slide 5: Agenda
Agenda • Business Overview • Investment Case • Financial Performance • Q&A 5
Slide 6: Business Overview – Fast Facts
Business Overview – Fast Facts • 4 decades of banking excellence with 14 years of commercial banking specialization • Approximately 2,500 competent NDBers delivering excellent services • 109 branches, 114 ATMS and 35 Cash Recycle Machines as physical touch-points • LKR 473 Bn in total assets with a
Slide 7: Agenda
Agenda • Business Overview • Investment Case • Financial Performance • Q&A 7
Slide 8: Investment Case
Investment Case NDB’s performance is characterized by strong KPIs demonstrating persistent growth. KPI 2018 2017 2016 PAT – LKR Bn 5.5 4.4 3.2 Total assets – LKR Bn 473 383 335 ROE - % 17.41 16.27 13.36 ROA - % 1.30 1.21 0.99 EPS – LKR [Group] 27.98 19.66 15.69 NAVPS – LKR [Group] 185.49 192.51 181.
Slide 9: FY 2018 – NDB Performance vs. Industry
FY 2018 – NDB Performance vs. Industry Key performance indicators of the Bank improved during the year, some well ahead of the industry, whilst others were close to the industry average. KPI Bank Industry Average Total assets growth 23.5% 14.6% Loans and receivables growth 26.7% 19.6% Deposits growt
Slide 10: Capital Augmentation
Capital Augmentation • The Bank is in the eve of attaining D-SIB [Domestic – Systemically Important Bank] status • Capital augmentation plans are well underway to ensure adherence to new Basel III capital requirements and empower the Bank’s growth • The Bank raised LKR 3.4 Bn via a Rights Issue in 2
Slide 11: Agenda
Agenda • Business Overview • Investment Case • Financial Performance • Q&A 11
Slide 12: Note on the adoption of SLFRS 9
Note on the adoption of SLFRS 9 The financial statements of the Bank and the Group have been prepared based on the new accounting policies and methods which have been revised in line with the requirements of the SLFRS 9 -Financial Instruments. The Bank complied with LKAS -39, Financial Instruments:
Slide 13: Revenue and Profitability
Revenue and Profitability LKR Mn FY 2018 FY 2017 Variance % Gross Income 51,103 42,521 8,583 20 Net Interest Income* 38 14,805 10,750 4,055 Net Fee and Commission Income 24 3,136 2,521 616 Other income 25 3,613 2,881 731 Total Operating Income 33 21,554 16,152 5,402 Impairment charges for loans and
Slide 14: Impairment Charges & Asset Quality
Impairment Charges & Asset Quality Impairment analysis LKR mn FY 2018 FY 2017 The increase in impairment charges for loans Individual impairment 2,827 586 and other losses – Due to precautionary provisions made for selective individually Collective impairment 770 662 significant facilities, on a pru
Slide 15: Operating Expenses [Bank]
Operating Expenses [Bank] LKR Mn FY 2018 FY2017 % growth Cost to Income Ratio Personnel expenses 4,444 3,611 23 50 39.3 45.5 Depreciation & amortization 442 417 6 Other expenses 3,593 3,317 8 FY 2018 40 % FY 2017 Total operating expenses 8,479 7,346 15 30 Cost to Income Ratio well managed at 39.3% F
Slide 16: Balance Sheet [Bank]
Balance Sheet [Bank] LKR Bn FY 2018 FY 2017 Quantum growth Percentage growth 2018 2018 Total assets 473 383 90 23 Gross loans and receivables from 353 279 76 27 customers Total deposits from customers 348 273 75 27 Total equity 35 29 6 22 • Exceptional growth in total assets, loans and receivables a
Slide 17: Loans & Receivables & Customer Deposits
Loans & Receivables & Customer Deposits Total gross loans growth Customer deposits 400 400 350 350 300 75.7 78 300 250 58.0 250 CASA LKR Bn 68 200 LKR Bn FCY Other 200 LCY 150 271.8 150 275 100 215 100 210 50 50 0 0 2017 2018 2017 2018 • Enhanced performance across all loan products and CASA segment
Slide 18: Capital Management & Liquidity
Capital Management & Liquidity BASEL III – FY 2018 Bank Group Common Equity Tier 1 Capital Ratio % (Minimum Requirement - 9.17 10.39 6.375%) Tier 1 Capital Ratio % (Minimum Requirement - 7.875%) 9.17 10.39 Total Capital Ratio % (Minimum Requirement - 11.875%) 12.63 13.62 Liquidity Coverage Ratio (%)
Slide 19: Agenda
Agenda • Business Overview • Investment Case • Financial Performance • Q&A 19
Slide 20: NDB Investor Relations
NDB Investor Relations NDB’s Investor Relations is the recipient of the Gold Award for Best Investor Relations at the coveted CFA Sri Lanka Capital Market Awards, for three consecutive years in 2018, 2017 & 2016. Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the
National Development Bank — FY2018 Earnings Presentation on 6ix