Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q1 FY2025 Earnings Presentation
44 slides from Au Small Finance Bank's earnings presentation, Jul 25, 2024
Slide 1: Investor Presentation Q1'FY25
Investor Presentation Q4’FY2425 July 2024 24th April’24 th Sustainable and Inclusive | Retail Focused | Tech-Led | Pan India| Customer Centric | Well Governed
Slide 2: Agenda and notes
1 MANAGEMENT UPDATE 2 OPERATING & FINANCIAL HIGHLIGHTS 3 LIABILITIES UPDATE 4 ASSETS PERFORMANCE 5 OTHER KEY INFORMATION Note for complete presentation: 1. Fincare SFB merged with AU SFB effective April 1, 2024. Throughout the presentation, prior period numbers may not be comparable. 2. For computat
Slide 3: Management Update
1 MANAGEMENT UPDATE
Slide 4: Executive summary
Executive summary Universal Bank – Board approves application process ❑ Board has considered and approved for making an application to RBI for transition to a Universal Bank pursuant to RBI circular on voluntary transition of SFB to Universal Bank ❑ Board has constituted a Committee of Directors und
Slide 5: Executive summary
Executive summary Deposits – focus on reducing cost of funds ❑ Pursuant to strong deposit growth of 9% in Q4’FY24, the Bank carried surplus liquidity into the quarter. Thus, our primary focus in Q1 was to utilize this excess liquidity and optimize our Cost of Funds (CoF) ❑ Deposit book ▪ Bank focuse
Slide 6: Executive summary
Executive summary Treasury – optimize liquidity ❑ There was a negligible impact (+₹10 Cr) from implementation of Master Direction on classification of Investments by the Bank ❑ Liquidity ▪ Average LCR for the quarter remained stable at 117%, inline with average LCR of 117% in Q4’FY24 - Bank continue
Slide 7: Executive summary
Executive summary Asset – calibrate portfolio mix to enhance margins ❑ Advances and Loan portfolio ▪ Advances growth remained strong with Loan portfolio at ₹99,792 Cr, growing by 3.4% QoQ on proforma merged basis ▪ Bank securitized loans/Issued IBPC certificates worth ₹725 Cr during Q1’FY25 taking t
Slide 8: Executive summary
Executive summary Digital Banking AU0101 ❑ We continue to build our digital outlook and new products in a calibrated way ▪ We have rolled out AU0101 Business App for Bank’s small merchant segment ▪ AU0101 - we have rolled out new features on UPI, Bill Payment, CC on UPI etc ▪ AD-I suite of products
Slide 9: Executive summary
Executive summary Financial Performance and Outlook Balance Sheet ₹125,942 Cr ❑ NIM for Q1’FY25 expanded to 6.0% aided by 7bps reduction in cost of funds, increase in portfolio yield and margin expansion due to merger; For FY25, we expect margins to moderate from here Deposits ₹97,290 Cr and remain
Slide 10: Incremental spreads have started to move up
Incremental spreads have started to move up Incremental Spreads Gross Advance Spreads 15.8% 13.7% 14.4% 13.4% 13.5% 13.6% 13.4% 13.3% 13.2% 13.2% 8.7% 7.8% 7.6% 7.8% 7.7% 6.8% 6.6% 6.9% 7.0% 7.0% 7.1% 7.4% 6.1% 5.8% 6.6% 6.7% 6.3% 6.2% 5.6% 5.7% Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q1'FY24 Q2'FY2
Slide 11: Pan-India geographic presence
Pan-India geographic presence 21 States and 4 UTs 2,414 Touchpoints 464 Districts 695 ATMs AU Asset Mirco Finance Center Centre 637 Branches 251 Asset Centres 783 MFI Centres 2,414 Touchpoints AU + BANK AU BO 79 Unbanked 649 BOs 13 BCs + Branches 2 DBU Region Touchpoints South 668 North 663 West 471
Slide 12: Diversified Advances & Deposits franchise
Diversified Advances & Deposits franchise Gross Advances Deposits 1% Rajasthan 2% 3% 1% 4% 2% 1% Rajasthan Madhya Pradesh 3% 2% 3% Maharashtra Maharashtra 3% 24% 27% 3% 3% Delhi Gujarat 3% (78%) Punjab Haryana 4% Gujarat Punjab 5% Haryana Delhi Madhya Pradesh Andhra Pradesh 5% Uttar Pradesh 7% Uttar
Slide 13: Operating & Financial Highlights
2 OPERATING & FINANCIAL HIGHLIGHTS
Slide 14: Profitability ratios
Profitability ratios NII (%) Other Income (%) 5.5% 6.1% 1.7% 1.4% Q1'FY24 Q1'FY25 Q1'FY24 Q1'FY25 RoA Components Opex (%) Provision & Contingencies (%) 4.5% 4.7% 1.0% 0.1% * Q1'FY24 Q1'FY25 Q1'FY24 Q1'FY25 RoA (%) Cost to Income (%) RoE (%) 65.0% 13.8% 1.7% 1.6% 59.9% 13.2% Q1'FY24 Q1'FY25 Q1'FY24 Q
Slide 15: Financial highlights
Financial highlights ₹ in Crores Net Interest Income Total Income PAT 1,921 4,315 503 387 1,246 2,773 Q1'FY24 Q1'FY25 Q1'FY24 Q1'FY25 Q1'FY24 Q1'FY25 Yield on Advance Cost of Fund Net Interest Margin RoA RoE Vs Vs Vs Vs Vs 13.4% 6.58% 5.7% 1.7% 13.8% (Q1’FY24) (Q1’FY24) (Q1’FY24) (Q1’FY24) (Q1’FY24)
Slide 16: Quarterly trends of key parameters (1 of 2)
Quarterly trends of key parameters (1 of 2) ₹ in Crores Customers Employees Shareholders’ Funds Total B/S Assets (in Lacs) (in 000s) 108.5 46.6 15,516 1,25,942 11,763 12,167 12,560 1,09,426 28.4 28.5 28.9 29.7 11,379 95,977 1,01,176 91,583 44.3 46.8 49.4 41.3 Q2'FY24 Q4'FY24 Q1'FY24 Q1'FY25 Q3'FY24
Slide 17: Quarterly trends of key parameters (2 of 2)
Quarterly trends of key parameters (2 of 2) ₹ in Crores Net Interest Income Total Income PAT Gross Advance Yield 503 14.4% 1,921 4,315 428 * 13.4% 13.3% 13.2% 13.2% 1,325 1,337 3,385 387 402 1,246 1,249 3,186 375 2,773 2,957 Q1'FY24 Q1'FY25 Q1'FY24 Q1'FY25 Q1'FY24 Q1'FY25 Q3'FY24 Q3'FY24 Q2'FY24 Q3'
Slide 18: Profit & Loss statement
Profit & Loss statement (All Figures in ₹ Crore) Q1’FY25 Q1’FY24 YoY Q4’FY24 QoQ ❑ Q1’FY25 PPoP grew at 81% YoY Income supported by expanded NIM, merger Interest Earned impact and calibrated opex 3,769 2,458 53% 2,829 33% Interest Expended 1,848 1,212 52% 1,492 24% ❑ Provisions & Contingencies - Ban
Slide 19: Balance sheet
Balance sheet 1st Apr’24 (All Figures in ₹ Crore) 30th Jun’24 30th Jun’23 YoY 31st Mar’24 QoQ (Merged QoQ Opening B/S) Liabilities Shareholders Fund 15,516 11,379 36% 12,560 24% 14,985 4% Deposits 97,290 69,315 40% 87,182 12% 97,704 0% Borrowings 8,931 7,637 17% 5,479 63% 9,240 -3% Other Liabilities
Slide 20: Other Income
Other Income (All Figures in ₹ Crore) Q1’FY25 Q1’FY24 YoY Q4'FY24 QoQ Loan Assets Processing & Other Fees 230 165 39% 235 -2% General Banking, Cross Sell & Deposits related fees 142 55 157% 188 -25% PSLC Fees 0 0 N.A 2 -100% Credit Card 101 55 84% 88 15% Miscellaneous 54 23 140% 35 55% Core Other In
Slide 21: Liabilities Update
3 LIABILITIES UPDATE
Slide 22: Evolution of the Branch Banking charter
Evolution of the Branch Banking charter ₹ in Crores Deposits Liability Branches Varied liability Complete product sources suite Mar'18 7,923 7,923 41% 27% Mar'18 125 181 • Branch Banking • iRP Savings • Swadesh Banking accounts 12,989 • Govt Banking • Royal / Platinum Current accounts + Mar'20 13,17
Slide 23: Focus on granular deposits and retail customer profile
Focus on granular deposits and retail customer profile ₹ in Crores Deposit Mix Deposit Customer Profile Total Deposits 69,315 75,743 80,120 87,182 97,290 % Share Certificate 684 993 1,117 2,463 2,110 2% of Deposits 4% 4% 4% 4% 5% TASC 4,736 5% 7% 7% 6% 7% 7% 5,338 10% 9% 10% 9% 10% 3,831 Govt 4,636
Slide 24: Deepening engagement digitally via AU0101
Deepening engagement digitally via AU0101 7x growth on AU 0101 since launch Registered users 29.5 31.2 26.3 23.7 19.2 21.2 63% 31.2 Lacs 7.8 10.5 11.9 14.3 16.3 4.5 5.8 customers registered registered users on AU 0101 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Mar'2
Slide 25: AU wealth – enhancing value proposition for deposit customers
AU wealth – enhancing value proposition for our deposit customers Our Wealth proposition across customer segments Customer Segment Wealth Solutions Services/Platform Alternative Investment Funds1, Debt PMS, Bonds & other wealth services Dedicated Wealth Specialist IVY + PMS referral & Risk profile b
Slide 26: Assets Performance
4 ASSETS PERFORMANCE
Slide 27: Well diversified, predominantly retail asset book
Well diversified, predominantly retail asset book Credit Cards ₹ 99,792 Cr 3.2% Gold Loans Microfinance 1.8% Personal Loans 8.0% 0.9% Total Loan Portfolio as of Q1’FY25 Others* 2.8% Mortgage backed Loans 33.9% EEFI (MBL – 25.2%, Agri Banking 3.2% HL – 8.7%) 6.3% Commercial Banking 19.1% REG 2.1% Bus
Slide 28: Asset book snapshot
Asset book snapshot ₹ in Crores Q1'FY25 Q4'FY24 Segments Assigned/ Total Gross Gross Assigned/ Total Gross Gross Gross Gross Gross Securitised Loan Advance NPA Securitised Loan Advance NPA Advances NPA Advances loans Portfolio Yield (%) (%) loans Portfolio Yield (%) (%) Retail Assets 65,598 9,085 74
Slide 29: Credit cards update – Key Metrics
Credit cards update – Key Metrics Adoption Growing Portfolio Engagement Key Updates 9.9 lacs+ ₹3,209 Cr ₹17,942 Cards Live Credit Card Avg. Spend per Card Receivables In Q1’FY25 ❑ Business Rule engine recalibrated, early trends positive: ▪ Sourcing in 780+ bureau score Expanding & Strengthening Port
Slide 30: Provisioning summary
Provisioning summary ₹ in Crores Credit Cost Q1’FY25 Q1’FY24 Q4’FY24 Provision on NPA and Write off* 267 77 90 Repossession loss & POS loss 21 18 30 Standard & other provision 21 15 25 Covid restructuring provision (6) (15) (7) Provision expenses for the quarter 302 95 138 Contingency provision crea
Slide 31: NPA movement
NPA movement ₹ in Crores NPA Movement Q1’FY25 Q1’FY24 Q4'FY24 Opening GNPA 1,437# 981 1,340 Additions during the period* 543 317 296 Less: Recoveries & Write Offs during the period 367 177 399 Closing GNPA 1,613 1,121 1,237 # including opening GNPA from Fincare SFB NPA Summary Q1’FY25 Q1’FY24 Q4'FY2
Slide 32: Overview of total provisions
Overview of total provisions ₹ in Crores Jun’24 Mar’24 Particulars Loan Loan Provisions Coverage Provisions Coverage Amount Amount GNPA 1,613 1,010 63% 1,237 795 64% Covid related restructuring (Standard) 390 64 17% 426 70 16% Contingency provisions 17 0 Floating provisions 41 41 Stressed and contin
Slide 33: Other Key Information
5 OTHER KEY INFORMATION
Slide 34: Sustained focus on ESG initiatives
Sustained focus on ESG initiatives Environment Social Governance COE for Skills Development Independent and diversified Board – Till Q1’FY25, 21,962 youth were trained, of - 7 of 10 directors are independent and non- which 78% were linked to employment executive across 16 centers of Rajasthan. 3 tra
Slide 35: World Environment Day
World Environment Day Every year, the World Environment Day is observed on 5th June to spread awareness and promote environmental protection across the globe. Established by the UN, this year's theme focuses on land restoration, desertification, and drought resilience under the slogan "Our land. Our
Slide 36: Financial & Digital Inclusion
Financial & Digital Inclusion Universal Access to Financial Services ➢ 31.8% of our total touchpoints/branches – 764 are in unbanked rural centres (Tier-VI, population less than 5,000 & Tier-V, population less than 10,000) ➢ Present in 96 Special Focus Districts* with 330 touchpoints covering 44 Asp
Slide 37: Awards & Ratings
Awards & Ratings “Employee Engagement” & “HR Business Partnership Function “ PeopleFirst HR Excellence Awards 2024 Secured 56th Rank in “Great Place to Work for 2024” among over 2000 participants ESG Ratings Credit Ratings Fixed Deposits AA+/Stable CRISIL Improved from "Medium" to "Low" rating Impro
Slide 38: Board of Directors
Board of Directors Mr. H R Khan Executive Directors Part time Chairman & Independent Director 46+ years of experience Masters in Arts & Philosophy, Diploma in Mr. Sanjay Agarwal Business Mgt., CAIIB MD & CEO 29+ years of experience Ex-Deputy Governor of RBI Served on Boards of Several Banks & regula
Slide 39: Shareholding pattern
Shareholding pattern Fincare Business KMP, Director & Solutions Limited their relatives (Excluding 8.0% Others Independent Director) Promoter & Promoter Group 2.4% 1.9% 22.9% Individuals 5.7% Foreign holding 40.6% Domestic holding 59.4% Mutual Fund 12.5% Foreign Holding 40.6% AIF 3.2% Insurance 2.8%
Slide 40: For further information about the bank
For further information about the bank - Scan to Download Analyst day Q4’FY24 Annual Report FY24 Investor Presentation AU Insights presentation - Mar’24 40
Slide 41: Abbreviations
Abbreviations BSBDA Basic Saving Bank Deposits Account NII Net Interest Income CASA Current Account Deposits and Savings Account Deposit NPA Non-Performing Assets CoF Cost of Fund OPEX Operating Expenses CRAR Capital Adequacy Ratio P&L Profit & Loss Statement DII Domestic Institutional Investors PAT
Slide 42: Definitions
Definitions a. Market Share Market share calculated as per the data reported by RBI for Scheduled Commercial Banks b. CASA Ratio Calculation for CASA Ratio is (Current account + Savings account)/Total Deposits including CDs Calculated as the weighted average yield on Gross Advances on a daily basis.
Slide 43: Disclaimer
Disclaimer This presentation has been prepared by AU SMALL FINANCE BANK LIMITED (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Ban
Slide 44: For Investor queries contact
For Investor queries contact (details in QR Code): Prince Tiwari Email: investorrelations@aubank.in
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