State Bank Of India · NSE:SBIN
State Bank Of India — FY22 Earnings Presentation
55 slides from State Bank Of India's earnings presentation, May 13, 2022
Slide 1: FY22 Analyst Presentation
ANNUAL FY22 Analyst Presentation 13.05.2022
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety o
Slide 3: Contents
Contents 1 Macro Economic Indicators 2 Performance Highlights 3 Financial Performance 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 4: Macro-Economic Indicators
Macro-Economic Indicators Trends in Deposits, Credit Growth of ASCB High Frequency Activity Indicators vis-s-vis Repo rate Deposit (YoY %) Credit (YoY%) Repo Rate_LHS ➢ Petroleum consumption, electricity demand, two-wheeler and tractor 6.5 13 sales, non-oil non-gold imports, capital imports, cement
Slide 5: Performance Highlights
Performance Highlights
Slide 6: Key trends in FY22
Key trends in FY22 Credit growth back on track – 11% YoY Led by strong growth in Retail Per advances and Corporate advances Retail Personal Portfolio crosses Rs 10 lakh crore Improving profit metrics – Net profit up by 55.19% YoY ROE at 13.92%, up by 398 bps YoY Net Interest Income growth at 9.03% Y
Slide 7: Key Indicators
Key Indicators Rs. in Crores CASA Term Deposits Year Ended YoY Rs. in Crores 7.78% 11.54% Growth FY21 FY22 21,45,117 19,23,191 Net Interest Income 1,10,710 1,20,708 9.03% 16,46,974 17,75,084 Profit & Net Interest Margin – 3.26 3.36 10 bps Domestic (%) Loss (in Rs. Mar 21 Mar 22 Mar 21 Mar 22 Operati
Slide 8: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Mar 2021 Mar 2022 • Retail Personal Portfolio crosses Rs 10 lakh crore Retail Pers., • Strong growth in Retail Personal, driven by Retail Pers., 39.9% Home Loans, Xpress Credit and other
Slide 9: Credit Growth: Retail Personal Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Retail Personal Banking As on Mar 2022 Leadership across all segments Retail Personal Portfolio of Rs 10 lakh crore 3 - year CAGR at ~16% As a % of Dom. Adv. Mar 21: 39.9 Mar 22: 41.6 Per
Slide 10: Credit Growth: Diversified Loan Portfolio
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Diversified Loan Portfolio Rs. in Crores High quality asset book Industry mix Corporate Rating mix Outstanding as on 31st Mar 22 Fund Based O/S Sectors Amount % Share YOY Gr % Infrastruct
Slide 11: Credit Growth: International Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions International Banking (Rs. in Crores) Gross Advances: Healthy Credit Growth Loan Portfolio across Geographies 4,11,910 9% USA 4,00,385 3% UK 4% 25% HongKong 3,56,877 4% Singapore 5% Bahra
Slide 12: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Mar 2021 Mar 2022 CA, CA, 7.7% 6.7% 63% of new savings accounts opened through YONO in FY22 SA, TD, SA, TD, 38.4% 53.9% 38.6% 54.7% CASA: 46.13% CASA: 45.28% Rs. in crores Particulars Mar
Slide 13: Asset Quality: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Provisions Growth Growth Asset Quality Income Income Expenses Slippages and Restructuring Rs. in Crores 9MFY22 slippages 22,176 Q4FY22 slippages 2,845 Restructuring 2.0 - FY22 20,094 Retail Restructuring details at end of FY22 Corporate SME Total O/
Slide 14: Net Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Net Interest Margins Yield on Investments in % 3.33 3.35 3.36 3.26 3.15 6.32 3.04 3.09 3.11 3.12 6.10 6.05 6.05 6.07 2.92 1.10 1.06 1.06 1.06 1.07 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-2
Slide 15: Non-Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses FY21 FY22 Misc.income, Misc.income, 22.9% 26.5% Fee Income, Forex 54.1% Income, Forex Fee Income, 8.6% Income, 60.6% 5.5% Profit/ Loss on sale of Profit/ Loss investments, on sale of 7.9%
Slide 16: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Mar 21 Mar 22 Treasury Operations Corporate SDLs, Corporate Bonds, 13.4% Bonds, SDLs, 25.9% 24.0% 10.8% Others, Others, 11.5% 9.0% CP, 4.4% CP, 9.8% G-Sec and G-Sec and T Bill, T Bill, 43
Slide 17: Cost to Assets – among the best in the industry
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses FY22 • Focus continues on improving income streams with Overheads, 41.7% control on costs • Increase in Overheads mainly due to Business-related Retiral benefits & other Expenses provisio
Slide 18: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.55% for FY22 • PCR at 75.04%, legacy book well provided • Non NPA provisions at Rs 30,629 crores, ~110% of Net NPA at end of FY22 Available Buffer, In Rs crs Provision
Slide 19: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoE (FY00 – FY15) – 15.2 ROE (in %) At variance to long term trends 18.2 18.1 18.2 18.1 17.8 15.9 13.9 16.0 15.5 16.1 14.2 15.1 11.2 9.9 14.0 12.8 7.7 11.9 10.5 7.7 0.5 -1.1 -3.8 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Slide 20: Financial Performance
Financial Performance
Slide 21: Financials – At a Glance
Financials – At a Glance Quarter ended Year Ended Growth (%) Q4FY22 Q4FY22 FY22 Particulars, In Rs crs Q4FY21 Q3FY22 Q4FY22 FY21 FY22 over over over Q3FY22 Q4FY21 FY21 Interest Income 65,102 69,678 70,733 2,65,151 2,75,457 1.51 8.65 3.89 Interest Expenses 38,035 38,991 39,535 1,54,441 1,54,750 1.40
Slide 22: Total Income
Total Income Quarter ended Year Ended Growth (%) Q4FY22 Q4FY22 FY22 Particulars, In Rs crs Q4FY21 Q3FY22 Q4FY22 FY21 FY22 over over over Q3FY22 Q4FY21 FY21 Interest on Loans 40,214 43,753 44,611 1,71,429 1,71,824 1.96 10.93 0.23 Interest on Resources 21,743 22,781 22,763 84,126 89,255 -0.08 4.69 6.1
Slide 23: Fee Income Break Up
Fee Income Break Up Quarter ended Year Ended Growth (%) Q4FY22 Q4FY22 FY22 Particulars, In Rs crs Q4FY21 Q3FY22 Q4FY22 FY21 FY22 over over over Q3FY22 Q4FY21 FY21 Loan Processing Charges 2,085 917 1,526 5,348 4,281 66.37 -26.77 -19.94 Commission on Govt. Business 972 1,043 847 3,618 3,713 -18.75 -12
Slide 24: Total Expenses
Total Expenses Quarter ended Year Ended Growth (%) Q4FY22 Q4FY22 FY22 Particulars, In Rs crs Q4FY21 Q3FY22 Q4FY22 FY21 FY22 over over over Q3FY22 Q4FY21 FY21 Interest on Deposits 34,626 35,510 35,762 1,42,435 1,41,247 0.71 3.28 -0.83 Interest on Borrowings 1,860 2,058 2,297 6,130 7,779 11.62 23.49 2
Slide 25: Overheads
Overheads Quarter ended Year Ended Growth (%) Q4FY22 Q4FY22 FY22 Particulars, In Rs crs Q4FY21 Q3FY22 Q4FY22 FY21 FY22 over over over Q3FY22 Q4FY21 FY21 Rent, Taxes and Lighting 1,539 1,357 1,567 5,253 5,362 15.48 1.78 2.07 Depreciation 832 820 822 3,318 3,249 0.30 -1.18 -2.08 Printing and Stationer
Slide 26: Provisions & Profit
Provisions & Profit Quarter ended Year Ended Growth (%) Q4FY22 Q4FY22 FY22 Particulars, In Rs crs Q4FY21 Q3FY22 Q4FY22 FY21 FY22 over over over Q3FY22 Q4FY21 FY21 Operating Profit 19,700 18,522 19,717 71,554 75,292 6.45 0.08 5.22 Loan Loss 9,914 3,096 3,262 27,244 14,087 5.35 -67.10 -48.29 Standard
Slide 27: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 28: Well-Capitalized Bank with Adequate Liquidity
Well-Capitalized Bank with Adequate Liquidity Capital Ratios (%) 13.74 13.83 13.06 2.30 2.41 2.06 12.1 1.23 1.42 1.48 8.6 11.44 11.42 11.00 9.77 10.02 9.94 Mar-20 Mar-21 Mar 22 Min regulatory Total CET-1 AT-1 Tier-2 Min regulatory CET1 ratio Capital ratio RWA to Total Assets (%) 53.12 Mar 20 Mar 21
Slide 29: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, in Rs crs Net NPA, in Rs crs 1,49,092 1,34,259 1,26,389 1,23,942 1,20,029 1,12,023 51,871 43,153 36,810 37,119 34,540 27,966 Mar 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Mar 20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Cumulative for the Period (%) Mar 21 Jun 21 Sep 21 Dec 21 Ma
Slide 30: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Opening Level of Gross NPAs 1,17,244 1,49,092 1,26,389 1,34,259 1,23,942 1,20,029 1,26,389 Total Reductions 12,905 52,035 8,428 14,609 6,493 11,612 41,142 of which : Recovery + Upgradation 4,329 17,632 4
Slide 31: Movement of NPAs and AUCA (3/4)
Movement of NPAs and AUCA (3/4) Rs. in Crores Movement of NPAs (incl. Advances under Collection) Mar 19 Mar 20 Mar 21 Mar 22 Opening Level of GNPA + AUCA 3,27,653 3,09,755 3,16,684 3,00,496 Gross Addition (Increase in O/s + Slippages) 39,740 54,510 29,332 26,776 Total GNPA + AUCA + Additions 3,67,39
Slide 32: Asset Quality (4/4)
Asset Quality (4/4) Rs. in Crores Slippages SMA 1 & SMA 2 Accounts with exposure above Rs. 5 cr: CRILC data 28,564 11,519 11,303 25,021 3,326 6,843 15,666 6,690 2,351 4,167 3,544 7,977 1,599 555 4,176 4,676 4,339 2,334 2,845 2,568 2,989 FY21 FY22 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Mar-21 Jun-21 Sep-21 Dec-
Slide 33: Digital Journey
Digital Journey
Slide 34: Accelerating digital agenda (1/8)
Accelerating digital agenda (1/8) YONO – Our flagship digital offering Digital bank Financial superstore Journey digitization “Create seamless “Enable higher cross- “Improve productivity omni-channel sell of JV/subsidiary and reduce cost” customer experience” products” 0.96 Cr. ~Rs. 1,548 Cr ~2.35 L
Slide 35: Accelerating digital agenda (2/8)
Accelerating digital agenda (2/8) YONO – Key Trends 1. YONO Registration (Cumulative) 2. Average daily logins 3. New SB accounts onboarded 4. YONO Cash Transactions 6,00,00,000 1,20,00,000 70,00,000 4,00,00,000 60,00,000 3,50,00,000 5,00,00,000 1,00,00,000 3,00,00,000 50,00,000 4,00,00,000 80,00,000
Slide 36: Accelerating digital agenda (3/8)
Accelerating digital agenda (3/8) YONO – New capabilities added during FY 21-22 Digital bank “Seamless Omni-channel Automated SIM Vulnerable Option for Extension customer experience” Assistance on Binding App App Rating of PPF A/C first Login Detection Financial Super Store “Providing cross-selling
Slide 37: Accelerating digital agenda (4/8)
Accelerating digital agenda (4/8) Through YONO Krishi Way forward – Improvements Proposed Satellite Imagery for loans processing & ▪ Coverage to New To Bank customers monitoring ▪ Using Fintech for replacing physical land survey with satellite imagery based Agri solutions Eco System ▪ e-Signing & e-
Slide 38: Accelerating digital agenda (5/8)
Accelerating digital agenda (5/8) YONO Business has re-imagined key customer journeys to provide a superior user experience Corporate Internet 1. Unified URL https://yonobusiness.sbi to access 5 Banking application viz CINB, eTrade, eForex, SCF and CMP 2. Single-sign-on across business banking appli
Slide 39: 'Only YONO' – The New Digital Bank (6/8)
‘Only YONO’ – The New Digital Bank (6/8) Vision FSS Create ‘Only YONO’ to maintain Regain Payments space by providing competitive edge and leadership in the YFEI - Yono For Every Indian – (the Digital Banking space in next 5 years with payment container of YONO 2.0 with continuous innovation & new j
Slide 40: Key Deliverables & Capabilities for 'Only YONO' (7/8)
Key Deliverables & Capabilities for ‘Only YONO’ (7/8) Innovative Partnership enhanced Customer Centric Modern Tech Offerings Design Stack proposition Benchmarking with Hyper personalized global and Indian digital Digital Marketing banking propositions Experience and best practices 40
Slide 41: Accelerating digital agenda (8/8)
Accelerating digital agenda (8/8) Digital Leadership across channels Leadership across channels - Market share (As per latest available data) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 27.58% 15.15% 29.79% 22.90% 21.80% Presence across mu
Slide 42: Increasing Business Impact
Analytics – Growth Story FY19 to FY22 Initiatives FY22 FY21 • Focus on SME & Agri lending, e.g. NTB/NTC FY20 • End to End digital Pre- model, CC Limit Enhancement, SHG Loans • Recommendation Engine Approved Business • End to End digital Two-wheeler Loan • Agri & P segment Gold loan Loan (PABL) • Pre
Slide 43: Analytics – Capabilities
Analytics – Capabilities Governance Data Tooling Technique Outcomes Cutting Edge Comprehensive Data Robust Data Robust, scalable Techniques e.g. & Model Governance Warehouse with 80+ compute via Private 60+ AI/ML Models Deep Learning & Frameworks in place Sources Cloud Auto/Adaptive ML Attained High
Slide 44: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 45: Financial Inclusion
Financial Inclusion As on Mar 2022 No. of BC outlets Transactions in BC Channel Deposits in FI Channel 58.78 3,134 54.44 57,000 2,842 49.29 3,000 3,00,000 50 47,000 2,449 2,500 2,40,000 40 37,000 2,000 30 1,80,000 52,164 27,000 71,968 1,500 2,87,857 20 46,331 68,016 1,20,000 2,52,470 38,033 2,27,469
Slide 46: Contributing to Society
Contributing to Society Through Pan India Presence under CSR SBI has implemented Gram Seva Capacity building of more than program in 100 villages. 2.50 lakh teachers in Govt. schools 50% of the villages are from NITI Ayog’s aspirational districts. Initiated Watershed conservation, improved agricultu
Slide 47: SBI's ESG Snapshot
SBI’s ESG Snapshot ✓ Responsible finance at the core. Lines of credits availed from World Bank, KfW Leadership in : ESG – an etc. being used to fund projects with positive environmental & social impacts. ▪ ▪ Access to Finance Privacy & Data Security A integral part of Bank’s ✓ A “Climate Change Risk
Slide 48: SBI's Sustainability Framework
SBI’s Sustainability Framework Financial Inclusion Responsible Digital Agenda People Practices & Carbon Neutrality Journey Investment Community Building SHG Bank Linkage Internal Commitment Green Bonds & Loan YONO Fighting the Pandemic SBI adjudged as one of the Best To achieve carbon neutral status
Slide 49: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 50: SBI and its Subsidiaries - Leveraging Synergies (1/2)
SBI and its Subsidiaries - Leveraging Synergies (1/2) As on Mar 2022 FY21 FY22 FY21# FY22# PAT (in Rs. cr) 1,456 1,506 PAT (in Rs. cr) 985 1,616 ROE (in %) 15.2 13.7 ROE (in %) 16.6 22.8 Business Performance Profitable Operations • Total New Business Premium (NBP) increased by 23% YoY. ▪ PAT ₹1,616
Slide 51: SBI and its Subsidiaries - Leveraging Synergies (2/2)
SBI and its Subsidiaries - Leveraging Synergies (2/2) As on Mar 2022 FY21 FY22 FY21# FY22# PAT (in Rs. cr) 544 131 PAT (in Rs. cr) 863 1,071 ROE (in %) 22.0 4.7 ROE (in %) 33.5 30.0 Performance Highlights • Ranked at 7th position amongst private insurers • Market share amongst private players stood
Slide 52: Regional Rural Banks
Regional Rural Banks Sponsored by SBI Rs. In crores Performance Highlights for FY22 14 RRBs operating in 14 States / UTs Network of 4,725 branches in 217 districts • Deposits at Rs.1,13,502 Crs 7.46% YoY • Net Profit of Rs.1,660 cr 65% YoY • CASA improved from 53.03% to 54.28% • ROA 40 bps YoY
Slide 53: SBI Group Financials – FY22
SBI Group Financials – FY22 Rs. In crores Growth Rs. In crores Year Ended Year Ended (%) FY21 FY22 YoY FY21 FY22 Interest Earned 2,78,115 2,89,973 4.26 ROA (%) 0.50 0.69 Non-Interest Income 1,07,222 1,17,000 9.12 Total Income 3,85,338 4,06,973 5.61 Interest Expended 1,56,010 1,56,194 0.12 ROE (%) 10
Slide 54: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Mar 21 Mar 22 Mar 21 Mar 22 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,52,983 2,79,196 10.36 2,74,669 3,04,696 10.93 Minority Interest 9,626 11,207 16.43 Deposits 36,81,277 40,51,534 10.06 37,15,33
Slide 55: Thank You
Thank You