Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q4 FY19 Earnings Presentation
44 slides from Au Small Finance Bank's earnings presentation, April 2019
Slide 1: Investor Presentation FY19 / Q4FY19
Investor Presentation FY19 / Q4FY19 A SCHEDULED BANK I FORTUNE INDIA 500 COMPANY Retail Focused I Differentiated I Well Capitalized I Fast Growing I Customer Centric April, 2019
Slide 2: Yesterday, Today, Foreever
YESTERDAY, TODAY, FOREEVER 2
Slide 3: Banking Platform – Limitless Opportunities, Perpetual Journey
Banking Platform – Limitless Opportunities, Perpetual Journey Particulars 31-Mar-2017 31-Mar-2019 Growth 1. Transition from NBFC to Bank Branches, BO, BC, 2. IPO & Listing 301 558 1.9 Times Asset Centers Total Assets 3. Scheduled Commercial Bank 9,781 32,623 3.3 Times Net Worth 4. Preferential Equit
Slide 4: Table of Contents
Table of Contents 1. FY19 / Q4FY19 Performance Summary & Key Updates 2. Retail Assets & Small & Mid Corporate Assets 3. Branch Banking 4. Treasury 5. Distribution & Financial Inclusion 6. About AU Small Finance Bank 4
Slide 5: FY19 / Q4FY19 Performance Summary & Key Updates
1. FY19 / Q4FY19 Performance Summary & Key Updates 5
Slide 6: FY19 Highlights
FY19 Highlights 408 Branches1 , 83 Asset Centers 11 States 12 lakh Customers 12,623 employees 67 BCs, 14 Offices, 543 ATMs1 Loan Assets Under Total B/S Assets Disbursements2 Deposits4 CASA Ratio5 Management3 INR Crore INR Crore INR Crore INR Crore 32,623 24,246 19,422 18,833 16,077 16,188 21% 10,825
Slide 7: FY19 Key Highlights
FY19 Key Highlights Total Income Net Interest Income PAT Net-worth INR Crore INR Crore INR Crore INR Crore 3,411 1342 3,163 382 940 292 2,281 2,155 FY18 FY19 FY18 FY19 FY18 FY19 31-Mar-18 31-Mar-19 Net Interest Yield1 on AUM Cost of Funds ROA3 ROE4 Margin2 Vs. Vs. Vs. Vs. Vs. 14.7% 8.4% 7.0% 2.0% 13
Slide 8: Q4FY19 and FY19 Key Highlight – Another Year, Full of Execution
Q4FY19 and FY19 Key Highlight – Another Year, Full of Execution ❑ 24 Years of Trust Gets Further Strengthened; AU Bank completes 2nd Year of Banking on 19th April 2019 ❑ Another strong quarter with Disbursements crossing INR 5,000 Crore mark for the first time. FY19 Disbursements at 16,077 Crores, U
Slide 9: Consistent Profitability
Consistent Profitability RoA1 (%) RoE1 (%) 15.3% 14.8% 2.0% 2.0% 13.7% 14.0% 1.5% 1.6% 1.5% 12.8% Q4FY18 Q3FY19 Q4FY19 FY18 FY19 Q4FY18 Q3FY19 Q4FY19 FY18 FY19 ROA / ROE – Components NII1 (%) Other Income3 (%) Opex1 (%) 6.4% 7.0% 3.3% 5.3% 6.6% 2.7% 4.2% 4.2% 5.3% 5.1% 5.2% 4.0% 1.6% 1.7% 1.8% Q4FY1
Slide 10: NII & Other Income
NII & Other Income Stable NII excluding Securitization / Assignment Income (All Figures in INR Crore) Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Unaudited Unaudited Unaudited Audited Unaudited Unaudited Unaudited Audited Income Interest Earned (excluding 280 335 386 465 551 640 754 851
Slide 11: Vertical-wise ROA for FY19
Vertical-wise ROA for FY19 Small & Mid- Retail Total Loan Total Branch Regulatory Cost Business Segments Corporate Treasury Overall Assets Assets Assets Banking (CRR, SLR & LCR) Assets Loan AUM proportion 82% 17% 100% 100% - - - - Loan AUM Growth y-o-y 49% 51% 50% 50% - - - - PAT (INR Crore) 426 77
Slide 12: Stable Asset Quality
Stable Asset Quality Credit Cost - Net Impact on P/L Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 FY18 FY19 (All Figures in INR Crore) Audited Unaudited Unaudited Unaudited Audited Audited Audited Charges Write off 18 - - - - 18 - Repossession Loss -0 5 5 5 7 23 22 POS Loss -0 0 1 2 4 2 6 Less: Bad Debt Recov
Slide 13: Well Capitalized
Well Capitalized (INR Crore) Mar-18 Jun-18^ Sep-18^ Dec-18^ Mar-19 Audited Unaudited Unaudited Unaudited Audited Total Risk Weighted Assets 11,833 13,212 15,459 17,141 19,133 Tier I Capital 2,179 2,653 2,660 2,660 3,053 Tier II Capital 105 85 87 599 641 Total Capital 2,285 2,738 2,747 3,260 3,695 CR
Slide 14: Profit & Loss Statement – FY19 PAT grew 31% y-o-y
Profit & Loss Statement – FY19 PAT grew 31% y-o-y (All Figures in INR Crore) Q4FY19 Q4FY18 Y-o-Y FY19 FY18 Y-o-Y Q3FY19 Q-o-Q Audited Audited Audited Audited Unaudited Income Interest Earned (excluding Securitization & 851 464 83% 2,796 1,464 91% 754 13% Assignment Income) Interest Expended 490 245
Slide 15: Balance Sheet – Total Assets grew 73% y-o-y
Balance Sheet – Total Assets grew 73% y-o-y (All Figures in INR Crore) Mar 31, 2019 Mar 31, 2018 Y-o-Y Dec 31, 2018 Q-o-Q Audited Audited Unaudited Liabilities Capital 292 286 2% 292 0% Money received against Share Warrants 175 - N.A. 175 - Employees stock options outstanding 43 17 145% 41 4% Reserv
Slide 16: Marquee Shareholders Base – As on 31st Mar 2019
Marquee Shareholders Base – As on 31st Mar 2019 Shareholding Pattern Key Non-Promoter Shareholders (Holding above 1%) Holding Redwood Investment (Warburg Pincus) 6.93% Other - Domestic, 5.44% Temasek Holdings 4.77% Individual - Domestic, 8.92% Nomura 4.58% Kotak Mahindra MF (through its various MF s
Slide 17: Retail Assets & Small & Mid-Corporate Assets - Snapshot
2. Retail Assets & Small & Mid- Corporate Assets - Snapshot 17
Slide 18: Retail and Small & Mid-Corporate Assets Snapshot – I
Retail and Small & Mid-Corporate Assets Snapshot – I Retail Assets comprise ~82% of Gross AUM of INR Retail Assets continues to exhibit strong growth 24,246 Crore INR Crore 1% 24,246 21,765 AUM Growth Y-o-Y Q-o-Q 17% Retail Assets 19,792 17,521 Total 49.8% 11.4% 16,188 Small & Mid- Corporate Assets
Slide 19: Retail and Small & Mid-Corporate Assets Snapshot – II
Retail and Small & Mid-Corporate Assets Snapshot – II Consistent growth in Disbursements Incremental Yield2 on Disbursements INR Crore 16,077 Q4 Disbursement FY19 Disbursement 15.2% 12,313 growth growth 14.5% Y-o-Y Q-o-Q Y-o-Y 10,825 14.7% 13.6% 7,949 Total 19.6% 24.2% 48.5% 14.2% 5,030 4,206 4,049
Slide 20: Retail Assets Snapshot – I
Retail Assets Snapshot – I Retail Assets AUM 1 Break-up AUM (INR Cr) Mar-19 Growth (%) Retail Assets 31-Mar-18 31-Dec-18 31-Mar-19 Y-o-Y Q-o-Q Wheels 7,135 9,352 10,224 43.3% 9.3% SBL - MSME1 5,007 6,769 7,708 53.9% 13.9% SBL - SME 871 861 891 2.2% 3.4% GL + Agri SME+ HL+ CD 62 239 417 576.7% 74.9%
Slide 21: Retail Assets Snapshot - II
Retail Assets Snapshot - II Strong Disbursement Momentum maintained in Retail Assets Retail Assets Disbursement IRR Disbursements (INR Cr) Q4FY19 Growth (%) Disbursements (INR Cr) FY19 Growth 15.8% Retail Assets Q4FY18 Q3FY19 Q4FY19 Y-o-Y Q-o-Q FY18 FY19 Y-o-Y 15.0% Wheels 1,627 1,908 1,909 17.3% 0.
Slide 22: Wheels Segment-wise
Wheels Segment-wise Wheels AUM break up – New vs Old Wheels AUM break up – Vehicle types 2% 3% 2% Cars 10% 1% 1% 5% Multi-Utility Vehicle 4% 27% Small Commercial Vehcile 6% Sports Utility Vehicle 18% Light Commercial Vehcile Tractor 10% Heavy Commercial Vehcile 70% Three Wheeler Construction Equipme
Slide 23: Small & Mid-Corporate Assets Snapshot
Small & Mid-Corporate Assets Snapshot Small & Mid-Corporate Assets AUM Break-up Continued Momentum in Business Banking INR Crore 4,129 3,789 AUM Growth Y-o-Y Q-o-Q 20% 2,739 Small & Mid-Corporate 50.8% 9.0% 2,511 2,357 NBFC 64.6% 6.5% 1,525 Gross AUM 68.1% 46.4% 19% 61% Real Estate Group 2.7% 5.0% 7
Slide 24: Small & Mid-Corporate Assets Snapshot
Small & Mid-Corporate Assets Snapshot Small & Mid Corporate1 Assets – Disbursement Break Up INR Crore 3,764 Q4FY19 FY19 2,877 Disbursement Growth Y-o-Y Q-o-Q Y-o-Y Increasing presence in Non- 2,399 Small & Mid-Corporate -6.1% 7.7% 30.8% Fun Based Credit Facilities, 1,887 Trade & Remittances - NBFC -
Slide 25: Branch Banking - Snapshot
3. Branch Banking - Snapshot 25
Slide 26: Branch Banking - Snapshot
Branch Banking - Snapshot Growing Deposit Franchise; CASA Ratio of 24% 41% of the Term Deposits are non- callable [Bulk TD – Current Account Saving Account Term Deposits* Total 58% non-callable] CASA RATIO (%) CASA RATIO (%) CASA RATIO (%) Total Deposit Growth 17,079 32% 24% 21% Y-o-Y Q-o-Q 12,573 1
Slide 27: Focused on Building A Granular Retail Deposit Franchise
Focused on Building A Granular Retail Deposit Franchise Increasing Share of Retail in Savings Account (SA) Retail SA Bulk SA 2,508 2,402 2,441 16% 11% 1,911 25% SA Growth in FY19 1,742 INR 26% % 27% Crore Retail SA1 967 77% 1 Bulk SA -207 -43% 73% 74% 75% 84% 89% Total 760 44% 31-Mar-18 30-Jun-18 30
Slide 28: Branch Banking – Deposit profile
Branch Banking – Deposit profile 1 1 Area-wise Deposit Distribution Diversified Deposit Build-up across States Based on Deposit Punjab Delhi Amount 11% 9% 13% Himachal Pradesh 23% Maharashtra 7% 31% 38% Based on No. of Deposit A/c’s Haryana 4% 31% 56% Gujarat 5% 39% Madhya Pradesh 5% Rajasthan Uttar
Slide 29: Treasury - Snapshot
AU SMALL FINANCE BANK 4. Treasury - Snapshot 29
Slide 30: Diversified Liabilities Portfolio
Diversified Liabilities Portfolio Increasing proportion of Deposits further diversifying the funding profile Funding Source 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 Deposits + Borrowings (INR Crore) 15,562 16,874 20,699 23,508 28,036 Deposits 50.9% 59.3% 62.2% 62.4% 69.3% Refinance from FIs
Slide 31: Declining Cost of Funds & Treasury Updates
Declining Cost of Funds & Treasury Updates Stable cost of funds1 Incremental Funds2 raised & its Cost INR Crore 7.65% Increment Avg. Cost of funds 20,000 7.00%al Funds 15,000 7.10% Raised 8.0% 8.0% 19,696 6.00% 7.9% 7.9% 10,000 11,568 Increment 7.8% 5.00% 5,000 al Cost of 0 4.00%Funds Q4FY18 Q1FY19
Slide 32: Distribution & Financial Inclusion
5. Distribution & Financial Inclusion 32
Slide 33: Well entrenched contiguous distribution franchise
Well entrenched contiguous distribution franchise 408 Branches1, 67 BCs, 12 lakh 4,95,209 Active Loan A/c’s & 12,623 21% CASA 11 States 543 ATMs1 83 Asset Centers Customers 10,28,726 Deposit A/c’s employees Ratio2 Deep Penetration into Core States and Expansion into other States Metro- Rural Urban S
Slide 34: Digital Channels
Digital Channels TAB based paperless onboarding – SA opened Increasing Digital Channel Usage; More than 1 lakh Internet & Mobile Banking Users In FY19, focusing on value 100% 87% 87% 91% in addition to volume 82% 1,40,000 3,50,000 10,000 90% 3,02,943 1,20,000 110,958 80% 3,00,000 9,000 1,600 1,522 1
Slide 35: Financial Inclusion
Financial Inclusion Meeting Key Objectives of Small Finance Bank ❖Serving customers with limited or no access to organized finance; Deep understanding and strong relationship enabled by local manpower ~79% ❖ 1.2+ million customer base; More than 80% Self-employed 75% PSL ❖Paperless hassle-free banki
Slide 36: About AU Small Finance Bank
6. About AU Small Finance Bank 36
Slide 37: AU BANK – tapping the unreached and unbanked segments
AU BANK – tapping the unreached and unbanked segments Overview Focused on Retail Financing with Diversified Portfolio • AU SMALL FINANCE BANK (“AU BANK” or “Company”) is a scheduled commercial bank Gross AUM of INR 24,246 crore which successfully transited from an Asset Financing NBFC to a SFB; star
Slide 38: Vision & Mission
Vision & Mission AU Vision AU Mission • To be the world’s most trusted retail bank and To build one of India’s largest retail franchise that is coveted employer admired for: • That is admired as the epitome of financial • Making every customer feel supreme while being inclusion and economic success,
Slide 39: AU Journey - natural progression to Bank
AU Journey - natural progression to Bank FY96 to FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 INR 1000 Crore Fund Manager Investment by Channel Partner Temasek Holdings NBFC – Asset Finance Company Small Finance Bank CA, SA, Deposits, Lockers, Payments & Only
Slide 40: Experienced Board of Directors
Experienced Board of Directors Board of Directors Mr. Mannil Venugopalan Ms. Jyoti Ishwar Chandra Mr. Raj Vikash Verma Mr. Krishan Kant Rathi Independent Director Chairman and Narang Independent Director 35+ years of experience Independent Director Independent Director 29+ years of experience Master
Slide 41: Diversified Bouquet of Products with focus on Retail
Diversified Bouquet of Products with focus on Retail Small & Mid-Corporate – Vintage Retail Assets – Vintage Products Products Secured Business Loans - Secured Business Loans – Parameter Wheels (Vehicle Loans) NBFC Real Estate Group MSME SME Commenced • 1996 • 2007 • 2012 • 2012 • 2012 Clientele • F
Slide 42: 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 43: Thank You
THANK YOU Contact for Investor queries: Sunil Parnami / Hemant Sethia AU Small Finance Bank Ltd Tel: +91 22 6249 0607 / +91 22 6249 0614 Email: investorrelations@aubank.in 43
Slide 44: Abbreviations
Abbreviations ADC Alternate Delivery Channels NII Net Interest Income AFS Available for Sale NPA Non Performing Assets ALM Asset Liability Management NSE National Stock Exchange AUM Asset Under Management OPEX Operating Expenses BSBDA Basic Savings Bank Deposit A/C P/L Profit & Loss Statement BSE Bo
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