National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — FY2023 Earnings Presentation
19 slides from National Development Bank's earnings presentation, Mar 20, 2024
Slide 1: The Power to Simplify - Investor Update FY 2023
The Power to Simplify Investor Update – FY 2023 National Development Bank PLC NDB.N0000 National Long-term Rating: A- (lka) / Stable Outlook, Fitch Ratings Lanka Limited 20 Mar 2024 2.30 pm (GMT +0:530) Hosted from Colombo, Sri Lanka
Slide 2: 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. The information contained in this document should be considered in the context of the circumstances prevaili
Slide 3: Corporate Participants
Corporate Participants PRESENTED BY Kelum Edirisinghe, Director/ Chief Executive Officer Panelists K V Vinoj - Deputy Chief Executive Officer Sanjaya Perera - Senior Vice President - Personal Banking & Customer Experience Hasitha Athapattu - Vice President – Finance Niran Mahawatte - Vice President
Slide 4: Agenda
AGENDA PART I OPERATING ENVIRONMENT PART II FINANCIAL PERFORMANCE - Q1 2024 PART III WAY FORWARD PART IV Q&A ANNEXURE NDB PROFILE ANALYST SUPPORT 4
Slide 5: Part I - Operating Environment
PART I - OPERATING ENVIRONMENT Continued improvement in key economic indicators Annual Real GDP Growth Headline Inflation YoY % Change 2023 sector growth rates 6 4.2 Agriculture +2.6% 55 Industry (9.2%) 45 CCPI: April 2024 - 1.5% 4 Services (0.2%) 35 2 -0.2 25 % 0 15 1.5 % 2019 2020 2021 2022 2023 5
Slide 6: Operating Environment contd. - Banking sector developments Q1 2024
PART I - OPERATING ENVIRONMENT contd. Banking sector developments – Q1 2024 • Additional 50 bps rate cut by CBSL in Q1 2024 SDFR – 8.50% SLFR – 9.50% SRR – 2.00% (static since August 2023) • 0.6% YTD sector assets de-growth • Marginal YTD growth in sector loans • 0.3% marginal YTD decline in deposit
Slide 7: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW Bank PBT Gross income Profitability Rs. 132.3 Bn Financial position Rs. 10.1 Bn, Key ratios YoY 396% YoY 20% PAT Rs. 5.4 Bn, Gross income Total assets YoY 85% EPS - LKR 7.92 LKR 26.07 Bn LKR 757 Bn Loans & Rec ROE – 4.51% (22%) (3%) Rs. 453 Bn YTD (17%) PBT Gross loans
Slide 8: Financial Performance - Income
FINANCIAL PERFORMANCE - INCOME LKR Mn Q1 2024 Q1 2023 Variance % Fund based income Gross Income 26,074 33,534 (7,460) (22) Interest Income 24,066 32,774 (8,708) (27) • Net interest income reduction due to reduced loan book and lower interest rates Interest Expenses 15,990 24,229 (8,239) (34) • Net f
Slide 9: Financial Performance - Impairment Charges
FINANCIAL PERFORMANCE – IMPAIRMENT CHARGES LKR Mn Q1 2024 Q1 2023 Variance % Impairment Charges 4,356 4,811 (455) (9) KPIs Denoting Asset Quality of the loan book Ratio - % Q1 2024 FY 2023 Total Impairment Cover on the Loan Book 9.47 8.75 Impaired Loans (Stage 3) Ratio 8.27 8.58 Impairment (Stage 3)
Slide 10: Financial Performance - Operating Expenses
FINANCIAL PERFORMANCE – OPERATING EXPENSES LKR Mn Q1 2024 Q1 2023 % Personnel expenses 2,078 1,454 43 Depreciation & amortization 258 242 7 Other expenses 1,560 1,399 11 Total operating expenses 3,896 3,095 26 Composition of Operating Expenses • Other expenses category susceptible to general price Q
Slide 11: Financial Performance - Profitability and Taxes
FINANCIAL PERFORMANCE – PROFITABILITY AND TAXES LKR Mn - Bank Q1 2024 Q1 2023 % Operating Profit Before Tax on Financial Services 1,829 1,400 31 Taxes on Financial services 646 478 35 Profit Before Taxation 1,184 921 29 Income tax expenses 464 116 300 Profit for the quarter 720 805 (11) Total tax ch
Slide 12: Financial Performance - Balance Sheet
FINANCIAL PERFORMANCE – BALANCE SHEET Variance LKR Bn Q1 2024 FY 2023 LKR % Total assets 757 780 (23) (3) Investments 248 233 15 6 Gross loans 486 496 (10) (2) Total deposits 614 616 (2) - Borrowings 56 77 (21) (27) Total equity 70 70 - - 12
Slide 13: Financial Performance - Investor Ratios
FINANCIAL PERFORMANCE – INVESTOR RATIOS Bank Group Q1 2024 FY 2023 Q1 2024 FY 2023 Closing Price per Share [LKR]* 68.00 64.90 N/A N/A EPS [LKR] [Annualised] 7.92 13.44 9.11 14.42 ROE [%] 4.51 8.03 4.88 8.11 ROA [%] [Pre-tax] 1.03 1.25 1.13 1.34 Book Value per Share [LKR] 175.69 175.60 186.86 186.43
Slide 14: Financial Performance - Capital & Liquidity Position
FINANCIAL PERFORMANCE – CAPITAL & LIQUIDITY POSITION Bank Group Ratio Q1 2024 FY 2023 Q1 2024 FY 2023 Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7% ] 11.93 11.67 12.49 12.22 Tier 1 Capital Ratio % [Minimum Requirement – 8.5%] 11.93 11.67 12.49 12.22 Total Capital Ratio % [Minimum Req
Slide 15: Way Forward
WAY FORWARD Our strategic priorities in 2024 Three key focus areas Enhancing fee based income Optimizing cost Enhancing through of funds portfolio quality transaction banking 15
Slide 16: Q&A
Q&A Please use the Chat Option to pose your questions to the CEO and Panel Kelum Edirisinghe, Director/ Chief Executive Officer Panelists K V Vinoj - Deputy Chief Executive Officer Sanjaya Perera - Senior Vice President - Personal Banking & Customer Experience Hasitha Athapattu - Vice President – Fi
Slide 17: Annex - Part I Corporate Profile
ANNEX PART I - CORPORATE PROFILE 17
Slide 18: Corporate Profile and ESG Performance
CORPORATE PROFILE Inception in 1979 as a DFI, conversion to a fully-fledged commercial banking entity in 2005 Vision - The driving force for a financially empowered Sri Lanka Values - Integrity, Creativity, Excellence, Sincerity, Accountability, Dependability Credit profile - Credit rating of A- (lk
Slide 19: NDB Investor Relations - Analysts Support
ANALYSTS SUPPORT NDB Investor Relations Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for any queries and clarifications Write to us on us; investor.relations@ndbbank.com+ 94 Visit u
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