Fino Payments Bank Ltd. · NSE:FINOPB
Fino Payments Bank — Q1 FY2024 Earnings Presentation
37 slides from Fino Payments Bank's earnings presentation, Jul 28, 2023
Slide 1: Regulation 30 cover letter to stock exchanges
July 28, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra - Kurla Complex, Dalal Street, Mumbai- 400 001 Bandra (E), Mumbai - 400 051 (Scri
Slide 2: Q1'24 Investor Presentation
Classification: Confidential Har Din Fino… FINO PAYMENTS BANK Q1’24 Investor Presentation Classification: Confidential
Slide 3: Table of Contents
Classification: Confidential Table of Contents 1 Strategic Update 2 Q1’24 Financial Highlights 3 Product Strategy and Performance Trends 4 Fino Bank’s Business Model Classification: Confidential
Slide 4: Strategic Update
Classification: Confidential Strategic Update Fino Matlab #Fikar Not Classification: Confidential 3
Slide 5: Journey So Far
Classification: Confidential Journey So Far Launches various Direct Receives Payments Set-Up as a Payments Benefit Transfer Services Bank License Technology Company (DBT) 2006 2007 2008 2014 2015 Financial inclusion Launches Domestic becomes the core of Money Transfer the business Services Crossed r
Slide 6: Three Phases of our Business
Classification: Confidential Three Phases of our Business Phase I: Phase II: Phase III: Transaction Acquisition Monetization Build Distribution Network: 2.5 Lakh+ New CASA accounts Significant trust equity build: Merchant base of 14.4 Lakh added every month in Q1’24 Strong opportunity for cros
Slide 7: Performance At a Glance
Classification: Confidential Performance At a Glance Growth Growth Q1’24 QoQ YoY Total Revenue ₹ 348.3 Cr 7.7% 20.5% Total Throughput ₹ 75.8k Cr 11.9% 24.7% Digital Throughput ₹ 18.3k Cr 17.5% 94.4% PAT ₹ 18.7 Cr (15.4%) 85.1% #HarDinFino… Classification: Confidential 6
Slide 8: P&L Highlight
Classification: Confidential P&L Highlight Revenue (₹ Crs) PAT (₹ Crs) 18.7 32% CAGR 348 116% CAGR 289 10.1 206 151 3.1 1.9 1.2% 1.5% 3.5% 5.4% Q1'21 Q1'22 Q1'23 Q1'24 Q1'21 Q1'22 Q1'23 Q1'24 EBITDA (₹ Crs) Cost to Income (%) 56% CAGR 40.5 38% (12%) 33% 23.6 27% 26% 10.6 11.2 7.0% 5.4% 8.2% 11.6% Q1
Slide 9: CASA Momentum Continues
Classification: Confidential CASA Momentum Continues No. of CASA Accounts Quarterly Average Deposits Accounts Opened per Day (in Lakhs) 8,460 (₹ Crs) 75% CAGR 82.9 88% CAGR 1,221 6,800 1,082 934 52.0 830 3,714 29.0 15.5 1,265 Q1'21 Q1'22 Q1'23 Q1'24 Q1'21 Q1'22 Q1'23 Q1'24 Q2'23 Q3'23 Q4'23 Q1'24 In
Slide 10: Customer Stickiness
Classification: Confidential Customer Stickiness Renewal Income (₹ Crs) CASA Average Balance (₹) 206% CAGR 1,116 1,138 26.2 866 831 13.4 2.8 - Q1'21 Q1'22 Q1'23 Q1'24 Q1'21 Q1'22 Q1'23 Q1'24 Debit Card Spends (₹ Crs) Debit Card Spends Per Transaction (₹) 114% CAGR 2,208 13% CAGR 2,966 3,218 1,521 2,
Slide 11: CMS – High Margin Product
Classification: Confidential CMS – High Margin Product CMS Clients Throughput in ₹ Crs Avg Revenue per Txn in ₹ 189 163% CAGR 15,668 48% CAGR 154 152 109 96 9,171 97 52 4,558 47 866 Q1'21 Q1'22 Q1'23 Q1'24 Q1'21 Q1'22 Q1'23 Q1'24 Q1'21 Q1'22 Q1'23 Q1'24 Diversified cliental to e-Commerce, retail, Co
Slide 12: CMS: Transition through Sector Diversification
Classification: Confidential CMS: Transition through Sector Diversification Accelerated growth path helped by aggressive partner on-boarding from various sectors 15% 13% 16% 16% 8% 1% 3% 2% 5% 5% 3% 1% Q1’22 Q1’23 Q1’24 94% 60% 56% Total ₹4,558 cr ₹9,171 cr ₹15,668 cr Throughput NBFC & MFI E-com (Lo
Slide 13: Digital Journey
Classification: Confidential Digital Journey 34k+ Digital Accounts were opened in 9.7 Cr UPI transactions Q1’24 in June’23 – Contributing 1% of Issuing Bank Ecosystem 7.8 Lakh average quarterly users on FinoPay 26.3 Lakh unique UPI users in June’23 54k Bill Pay and recharge transactions in June’23 *
Slide 14: Digital – Building Momentum (1/2)
Classification: Confidential Digital – Building Momentum (1/2) Digital Throughput as a Total Throughput (₹ Cr) Digital Throughput (₹ Cr) % of Total Throughput Year-on-Year 245% CAGR 18,351 24% 45% CAGR 75,806 +22% 60,784 16% 41,490 9,441 24,915 6% 2,453 2% 447 Q1'21 Q1'22 Q1'23 Q1'24 Q1'21 Q1'22 Q1'
Slide 15: Digital – Building Momentum (2/2)
Classification: Confidential Digital – Building Momentum (2/2) Count of Transactions (in Crs) Unique UPI Users (in Lakhs) Value of UPI transactions (in Cr) 6,337 26.3 9.7 23.9 5,470 8.1 20.7 4,724 7.0 17.6 3,660 14.6 5.6 2,820 4.1 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23
Slide 16: Q1'24 Financial Highlights
Classification: Confidential Q1’24 Financial Highlights परं परा, प्रतिष्ठा और अनुशासन | ये है Fino Point के िीन स्तंभ || Classification: Confidential 15
Slide 17: Bank Level Profit & Loss
Classification: Confidential Bank Level Profit & Loss Particulars QoQ YoY Q1’24 Q4’23 Q1’23 FY’23 (₹ Crs) (%) (%) Revenue 348.3 323.4 289.1 7.7% 20.5% 1,229.9 Product Cost 238.2 217.7 201.5 9.5% 18.2% 841.9 Net Revenue 110.1 105.8 87.5 4.1% 25.7% 388.0 Operating Cost 69.6 62.7 64.0 10.9% 8.7% 251.9
Slide 18: Q1'24 Key Business Highlights (YoY)
Classification: Confidential Q1’24 Key Business Highlights (YoY) Revenue EBITDA PAT RoE ₹ 348.3 Crs ₹ 40.5 Crs ₹ 18.7 Crs 13.6% 20.5% 71.9% 85.1% 518 bps Txn. On Fino Total Number of Accounts Platform Throughput Merchants Opened 40.6 Crs ₹ 75.8k Crs 14.4 Lakhs 7.7 Lakhs 62.6% 24.7% 26.3% 24.4% #HarD
Slide 19: Transaction And Subscription & others
Classification: Confidential Revenue Mix Across Parameters (QoQ) 35% Open Banking Own Banking 65% Own and Open Banking 36% 35% 33% 35% Channel Q2’23 Q3’23 Q4’23 Q1’24 64% 65% 67% 65% Subscription & others Transaction And 30% 31% 34% 34% Q2’23 Q3’23 Q4’23 Q1’24 70% 69% 66% 66% Transaction Income 27%S
Slide 20: Product Revenue Mix: Q1'24
Classification: Confidential Product Revenue Mix : Q1’24 (QoQ & YoY) ( in ₹ Crores) Q4’23 v/s Q1’24 Q1’23 v/s Q1’24 348 348 323 12%, 43 12%, 43 289 12%, 36 9%, 32 9%, 32 7%, 21 9%, 30 11%, 33 33%, 116 33%, 116 32%, 103 37%, 107 9%, 32 9%, 32 9%, 29 6%, 23 12%, 34 6%, 23 9%, 29 9%, 30 10%, 36 11%, 32
Slide 21: Product Portfolio
Classification: Confidential Product Portfolio Q1’24 Revenue QoQ YoY Q1’24 Product Drivers (₹ Crs) Margins Growth Growth High growth high margin; CASA customer ownership; path to 67 0.2% 63% 54% annuity High growth high margin CMS business 36 21% 71% 40% DMT Hook product 116 12% 9% 4% Cash withdrawa
Slide 22: Overall PAT & ROE
Classification: Confidential Overall PAT & ROE Profit After Tax (₹ Crs) PAT for Q1’24 at ₹ 18.7 Cr 6.5 7.6 7.9 14.1 17.6 10.1 13.8 19.1 22.1 18.7 4.5 3.1 85% growth over Q1’23 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Return on Equity 20.7% 20.0% 18.7% 17.7% 16.7% Annua
Slide 23: Fino SFB Strategy
Classification: Confidential Fino SFB Strategy ASSET LIGHT SFB Classification: Confidential 22
Slide 24: Fino Core Strategy
Classification: Confidential Fino Core Strategy Phase I: PB Phase II: PB Phase III: PB + SFB Transaction (2017 – 2021) Acquisition (2022 – 2026) Monetization (2026……) Build Distribution Network: 2.5 Lakh+ New CASA CASA dominant Liability Merchant base @ 14.4 Lakh accounts added every franchise
Slide 25: What does SFB transition mean for FINO
Classification: Confidential What does SFB transition mean for FINO • Payments Bank ++ Model - Operating as Banking Services Provider – fee based income Continues to be as key source of revenue • E2E customer lifecycle – providing comprehensive banking services • CASA Balance Limit ₹ 2 Lakh removal
Slide 26: Will FINO Function like traditional SFB?
Classification: Confidential Will FINO Function like traditional SFB ? NO • Asset light model continues – Leveraging existing distribution network – digital / merchants • Anticipation of only 30 incremental branches in first 3 years of operations • Low cost funds – sustainable CASA YOY growth • Cost
Slide 27: FINO – Liability Strategy
Classification: Confidential FINO – LIABILITY STRATEGY FY’28 Unit FY’23 Comments (Aspiration) Adding 4 million customers year on year - trust build up with the CASA Accounts Million 7.5 ~27.5 target customer segment Double the average balance, by enhancing the customer experience, more digitally act
Slide 28: FINO Lending Model
Classification: Confidential FINO Lending Model • Credit to “Known Merchant & Customer” • Banking relationship with existing merchant / customers > 2 to 3 years • Data driven conservative credit disbursement model – Robust Data Analytics tools • MSME / Retail focused lending slowly transitioning int
Slide 29: Transaction / Service Focus Asset Light SFB
Classification: Confidential FINO new avatar “TRANSACTION / SERVICE FOCUS ASSET LIGHT SFB” opportunity to grow by converting to SFB by optimum utilisation of our already built infrastructure to meet the unmet demand of credit for the common people and also making deeper inroads into payments product
Slide 30: Product Strategy & Performance Trends
Classification: Confidential Product Strategy & Performance Trends Fino platform pe #आइए तो सही Classification: Confidential 29
Slide 31: AEPS
Classification: Confidential AEPS Q-o-Q Y-o-Y Take Rate Revenue (₹ Crs) 32.1 34.1 32.1 0.30 0.31 29.5 Q4'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Throughput (₹ Crs) Average Ticket Size (₹) 11,213 9,609 10,219 10,219 2,808 2,816 Q4'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Overall eco-system declined due to enhance T
Slide 32: Micro-ATM
Classification: Confidential Micro-ATM Q-o-Q Y-o-Y Take Rate Revenue (₹ Crs) 31.5 28.6 22.5 0.37 0.35 22.5 Q4'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Throughput (₹ Crs) Average Ticket Size (₹) 3,939 3,771 3,761 3,850 5,280 3,939 Q4'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Continue to be the one of the dominant pla
Slide 33: Remittance
Classification: Confidential Remittance Q-o-Q Y-o-Y Take Rate Revenue (₹ Crs) 116.1 116.1 107.0 103.3 0.87 0.86 Q4'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Throughput (₹ Crs) Average Ticket Size (₹) 13,445 2,764 2,748 12,023 13,445 12,345 Q4'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 One of the pioneers in the remitt
Slide 34: Fino Bank's Business Model
Classification: Confidential Fino Bank’s Business Model Fino platform pe #Har Din Fino Classification: Confidential 33
Slide 35: Business Model of Fino Payments Bank
Business Model of Fino Payments Bank Classification: Confidential Moving Customers up the Fintech Value Chain Level 4 o Significant trust equity built Engagement o Digital native customers have better renewal prospects and a strong future potential for upsell and cross sell Online Payments o Commenc
Slide 36: Strong Progress Over Last 6 Years
Strong Progress Over Last 6 Years Classification: Confidential Momentum Continues Products Launched Combined Merchant Network (In Lakhs) New Payments vertical, LITE Portal for BC 2023 Merchant, e-Mandate Services, Cash out module Q1'24 14.4 2022 Aadhar-Pay, Go Digit shopkeeper’s policy, Physical Pas
Slide 37: Thank You
Classification: Confidential Har Din Fino… Thank You Classification: Confidential 36