Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q3 FY2025 Earnings Presentation
48 slides from Au Small Finance Bank's earnings presentation, Jan 24, 2025
Slide 1: Exchange filing cover letter for investor presentation
Ref. No.: AUSFB/SEC/2024-25/388 Date: January 24, 2025 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai 400051, Mumbai 400001, Maharashtra. Maharashtra. NSE Symbol: AUBANK Scrip Co
Slide 2: Earnings presentation, 24th January 2025
24th January 2025 Earnings presentation
Slide 3: MANAGEMENT UPDATE OPERATING & FINANCIAL HIGHLIGHTS LIABILITIES UPDATE
1 MANAGEMENT UPDATE 2 OPERATING & FINANCIAL HIGHLIGHTS 3 LIABILITIES UPDATE 4 ASSETS PERFORMANCE 5 OTHER KEY INFORMATION
Slide 4: Management Update
1 MANAGEMENT UPDATE
Slide 5: Executive summary (1/4)
Executive summary (1/4) ❑ After seeing some pick-up during festive season, the economic momentum was subdued during the latter part of Q3 but overall environment is relatively better than H1’FY25 Operating Environment ❑ Liquidity remained in deficit for most part of Q3 leading to consistent pressure
Slide 6: Executive summary (2/4)
Executive summary (2/4) Deposit and Liquidity – Q3’FY25 Deposits & Cost of Funds ₹1,12,260 Cr Total Deposits ❑ Total Deposits grew 14.9% YTD and 2.3% QoQ; with CASA ratio of 30.6% as on Dec’24 vs 32.4% as on Sep’24 (₹1,09,693 Cr) ❑ CA/SA deposits have grown by 4% / 11% YTD; Q3 saw some outflow from
Slide 7: Executive summary (3/4)
Executive summary (3/4) Advances and Asset Quality – Q3’FY25 Gross Loan ₹1,08,921 Cr Loan Portfolio Portfolio (₹1,05,031 Cr) ❑ Gross loan portfolio (GLP) stood at ₹108,921 Cr, registering a QoQ growth of 3.7% and YTD growth of 12.9% ▪ Secured businesses grew by 5.1% QoQ, and 16% YTD Gross Advances ₹
Slide 8: Executive summary (4/4)
Executive summary (4/4) Financial Performance – Q3’FY25 Earnings Net Interest ₹2,023 Cr (₹1,974 Cr) ❑ Net Interest Income grew 53% YoY and 2.4% QoQ to ₹2,023 Cr; NIM, calculated on daily avg. interest income earning assets incl off book, stood at 5.9% for Q3 (vs. 6.1% in Q2) and remains at 6% for 9M
Slide 9: 9M'FY25 Financial highlights
9M’FY25 Financial highlights ₹ in Crores Net Interest Income Other Income Total Income PAT 5,918 1,602 1,766 13,559 3,820 1,164 1,156 8,881 9M'FY24 9M'FY25 9M'FY24 9M'FY25 9M'FY24 9M'FY25 9M'FY24 9M'FY25 Yield on Advance Cost of Fund Net Interest Margin Cost to Income GNPA Vs Vs Vs. Vs Vs 13.3% 6.74
Slide 10: Credit cost summary
Credit cost summary H1’FY25 on Gross Loan Portfolio (GLP) 9M’FY25 on GLP Business segments Avg GLP Annualised Weighted Credit Avg GLP Annualised Weighted Credit mix Credit Cost cost on B/s mix Credit Cost cost on B/S Secured Retail (Wheels, MBL, HL, 68.7% 0.90% 0.62% 69.0% 0.95% 0.65% GL, Others) Co
Slide 11: MFI – additional disclosure
MFI – additional disclosure Gross loan portfolio Average outstanding exposure Non-OD collection efficiency ₹ in Crores Per borrower in ‘000 8,007 7,958 99.4% 99.6% 99.1% 98.5% 7,695 7,644 27 27 26 98.4% 26 25 7,171 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q3'FY
Slide 12: MFI – additional disclosure (cont'd)
MFI – additional disclosure (cont’d) ▪ GNPA at ~4.1%; SMA book at ~4.4% evenly distributed across SMA 0, SMA 1 and SMA 2 ▪ 39% portfolio with customers having Sole Lender relationship ▪ ~20% of portfolio is affected by MFIN 2.0 guidelines (~17% loans has >3 lenders and remainder have total unsecured
Slide 13: Operating & Financial Highlights
2 OPERATING & FINANCIAL HIGHLIGHTS
Slide 14: Profit & Loss statement
Profit & Loss statement (All Figures in ₹ Crore) 9M'FY25 9M'FY24 YoY Q3'FY25 Q3'FY24 YoY Q2'FY25 QoQ ❑ NIM dropped by 23bps during the Income quarter driven by: Interest Earned 11,793 7,725 53% 4,113 2,736 50% 3,911 5% ▪ ~10bps impact on account of Interest Expended 5,875 3,905 50% 2,091 1,411 48% 1
Slide 15: Other Income
Other Income (All Figures in ₹ Crore) 9M'FY25 9M'FY24 YoY Q3'FY25 Q3'FY24 YoY Q2'FY25 QoQ Loan Assets Processing & Other Fees 790 549 44% 288 200 44% 272 6% General Banking, Cross Sell & Deposits 469 310 51% 155 125 24% 172 -10% related fees PSLC Fees 4 0 N.A 2 0 N.A 2 0% Credit Card 292 211 39% 93
Slide 16: Profitability ratios
Profitability ratios NII (%) Other Income (%) 5.7% 5.9% 1.8% 1.8% 1.6% 1.8% 5.4% 5.3% Q3'FY24 Q3'FY25 9M'FY24 9M'FY25 Q3'FY24 Q3'FY25 9M'FY24 9M'FY25 RoA Components Opex (%) Provision & Contingencies (%) 4.5% 4.1% 4.4% 4.4% 1.4% 1.2% 0.6% 0.4% Q3'FY24 Q3'FY25 9M'FY24 9M'FY25 Q3'FY24 Q3'FY25 9M'FY24
Slide 17: Incremental spreads aided by higher disbursement yield
Incremental spreads aided by higher disbursement yield Incremental Spreads Gross Advance Spreads 15.8% 15.2% 15.1% 14.4% 14.4% 14.4% 13.5% 13.6% 13.2% 13.2% 8.7% 7.8% 7.7% 7.9% 7.6% 7.4% 7.4% 7.3% 6.9% 7.0% 7.3% 7.5% 7.1% 7.0% 7.0% 7.1% 5.8% 6.3% 6.2% 5.7% Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q3'
Slide 18: Quarterly trends of key parameters (1 of 2)
Quarterly trends of key parameters (1 of 2) ₹ in Crores Net Interest Income Total Income PAT Gross Advance Yield 571 528 1,921 1,974 2,023 4,549 4,732 503 14.4% 14.4% 14.4% 4,278 3,371 428 * 13.2% 13.2% 1,325 1,337 3,178 375 Q1'FY25 Q1'FY25 Q1'FY25 Q3'FY25 Q3'FY25 Q3'FY25 Q3'FY24 Q3'FY24 Q3'FY24 Q4'
Slide 19: Quarterly trends of key parameters (2 of 2)
Quarterly trends of key parameters (2 of 2) ₹ in Crores Customers Employees Shareholders’ Funds Total B/S Assets (in Lacs) (in 000s) 46.6 48.0 49.1 16,041 16,602 108.5 109.2 111.7 15,516 1,38,829 1,43,044 12,560 1,25,942 29.7 12,167 28.9 1,09,426 1,01,176 46.8 49.4 Q3'FY24 Q1'FY25 Q3'FY24 Q1'FY25 Q3
Slide 20: Balance sheet
Balance sheet 1st Apr’24 (All Figures in ₹ Crore) 31st Dec’24 31st Dec’23 YoY 30th Sep’24 QoQ (Merged YTD Opening B/S) Liabilities Shareholders Fund 16,602 12,167 36% 16,041 3% 14,985 11% Deposits 1,12,260 80,120 40% 1,09,693 2% 97,704 15% Borrowings 9,988 5,414 84% 8,777 14% 9,240 8% Other Liabilit
Slide 21: Diversified Advances & Deposits franchise
Diversified Advances & Deposits franchise Gross Advances Deposits Rajasthan 2% 1% 1% Rajasthan 2% 2% 3% 3% Maharashtra 1% Maharashtra 3% 2% Madhya Pradesh 3% 3% Delhi Gujarat (78%) Punjab 4% 23% Haryana 3% 26% Gujarat Delhi 3% Haryana 4% Punjab Madhya Pradesh 5% Andhra Pradesh Karnataka 8% Telangana
Slide 22: Pan-India geographic presence
Pan-India geographic presence 21 States and 4 UTs 2,400 Touchpoints 459 Districts 674 ATMs 03 16 57 02 AU Asset + Unbanked 03 MFI Center 43 2,400 57 101 Touchpoints Branches Asset Centres BO + BC + Unbanked 617 1,039 744 02 477 Region Touchpoints 181 South 672 260 North 658 15 235 10 States with mor
Slide 23: Significant headroom to expand product range within existing branches
Significant headroom to expand product range within existing branches Total unique Deposits Retail Assets Inclusive Banking touchpoints Commercial As on Urban Swadesh Banking Wheels MBL HL Gold Agri SMF MFI (excl. BO/BC/URC ) Banking banking Dec’24 1,656 440 177 574 911 596 861 507 98 798 Expansion
Slide 24: Liabilities Update
3 LIABILITIES UPDATE
Slide 25: Evolution of the Branch Banking charter
Evolution of the Branch Banking charter Bank’s Deposit Journey Current proposition Complete product Deposit Total CASA + Complete Channels Branch Banking Branches (#) CASA % suite Breakup Deposits Retail TD % • Urban Branches • Segmented CA and SA products (ivy, • Swadesh Banking Royale, Platinum) M
Slide 26: Focus on granular deposits and retail customer profile
Focus on granular deposits and retail customer profile ₹ in Crores Deposit Mix Deposit Customer Profile unless specified Total Deposits 80,120 87,182 97,290 1,09,693 1,12,260 % Share Certificate TASC 1,117 2,463 2,110 4,245 4,492 4% 4% 4% 5% 4% 4% of Deposits 6% 7% 7% 7% 6% 10% 9% 10% 11% 10% 5,644
Slide 27: Deepening engagement digitally via AU0101
Deepening engagement digitally via AU0101 7x growth on AU 0101 since launch Registered users 31.2 32 33 29.5 26.3 23.7 19.2 21.2 65% 33 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 M
Slide 28: Other cross sell products
Other cross sell products Wealth Dedicated Relationship Officer & AU0101 for 2.1 Lacs+ ₹1,250 Cr 40K all Product Segment – IVY, Customers Total AUM Customers with Live SIP Eternity, Royale, Platinum & Others AD- I (Fx & Trade) PRODUCT (phase I live) CHANNELS - Import & Export Financing Monthly Fx fl
Slide 29: Assets Performance
4 ASSETS PERFORMANCE
Slide 30: Well diversified, predominantly retail asset book
Well diversified, predominantly retail asset book Gold Loans 1.8% Microfinance Unsecured businesses 10.2% ₹ 1,08,921 Cr 6.6% Total Loan Portfolio Credit Card as of Q3FY25 2.7% Personal Loans 0.9% Mortgage backed Loans Others 33.3% 2.7% (MBL – 24.5% & HL – 8.7%) REG 2.4% Commercial Business EEFI Bank
Slide 31: Secured retail assets – loan book and growth opportunity
Secured retail assets – loan book and growth opportunity Secured Retail Assets (₹ Bn) Performance 725 ❑ Vintage Business with strong legacy, and best in class risk adjusted 24% CAGR returns, through the cycles 20 growth 573 ❑ 24% CAGR growth over last 5 years 95 ❑ Last 7-year average credit cost – 1
Slide 32: Commercial Banking – loan book and growth opportunity
Commercial Banking – loan book and growth opportunity Commercial Banking (₹ Bn) Performance ❑ Strong growth of 36% in last 5 years, albeit from a low base 224 ❑ Average credit cost for last 7 years was ~0.4% 36% CAGR 26 growth 182 19 37% Creating a well-crafted Right to Win 39 26% ❑ Complete product
Slide 33: Credit cards update – loan book and key metrics
Credit cards update – loan book and key metrics Card In Force Portfolio Size Engagement 10.2 lacs+ ~₹2,984 Cr ~₹15,500 4,790 Cr+ Credit Card receivables Avg. Spend per Card Spends In Q3’FY25 Cards Live In Q3’FY25 Ending Net Receivable (ENR) Key Measures Taken 23.5% • Policy tightening on various par
Slide 34: Key portfolio markers – Credit cards
Key portfolio markers – Credit cards SALARIED CUSTOMERS EXISITING CARD HOLDERS BUREAU BAND 8% 20% >=760 740-759 71% 86% <740 72% Distribution in salaried segment. Majority sourcing under Carded 72% distribution above Bureau >760 Segment URBAN CUSTOMERS LIMIT UTILISATION SUPER A/CAT A/GOVT EMP 69% 18
Slide 35: Asset book snapshot
Asset book snapshot ₹ in Crores Q3'FY25 Q2’FY25 Assigned/ Total Gross Gross Assigned/ Total Gross Gross Segments Gross Gross Gross Securitised/ Loan Advance NPA Securitised Loan Advance NPA Advances NPA Advances IBPC loans Portfolio Yield (%) (%) loans Portfolio Yield (%) (%) Retail Assets (A+B) 75,
Slide 36: NPA movement
NPA movement ₹ in Crores NPA Movement Q3’FY25 Q3’FY24 Q2’FY25 Opening GNPA 1,902 1,245 1,613 Additions during the period* 956 403 736 Less: Recoveries & Write Offs during the period (522) (308) (447) Closing GNPA 2,336 1,340 1,902 NPA Summary Q3’FY25 Q3’FY24 Q2’FY25 Gross NPA 2,336 1,340 1,902 Less:
Slide 37: Provisioning summary
Provisioning summary ₹ in Crores Credit Cost Q3’FY25 Q3’FY24 Q2’FY25 9M’FY25 9M’FY24 Provision on NPA and Write off* 488 143 380 1,134 337 Repossession loss & POS loss 44 22 29 94 65 15 7 10 46 27 Standard & other provision (5) (2) (5) (16) (30) Covid restructuring provision Contingency provision cr
Slide 38: Overview of total provisions
Overview of total provisions ₹ in Crores Dec’24 Sep’24 Particulars Loan Loan Provisions Coverage Provisions Coverage Amount Amount GNPA 2,336 1,389 59% 1,902 1,154 61% Covid related restructuring (Standard) 333 55 17% 360 60 17% Contingency provisions 17 17 Floating provisions 41 41 Stressed and con
Slide 39: Provisioning policy
Provisioning policy The Bank follows a conservative provisioning policy which came into effect in FY22 RBI Policy Bank’s internal provisioning policy Overdue bucket Asset All Other Products / Days Past Due Classification Secured Unsecured Credit Card MFI (DPD) Secured Un-Secured 50% 50% 91-120 Sub S
Slide 40: Other Key Information
5 OTHER KEY INFORMATION
Slide 41: Sustained focus on ESG initiatives
Sustained focus on ESG initiatives Environment Social Governance COE for Skills Development Independent and diversified Board Till Q3’FY25, 25,400+ youth were trained, of - 7 of 10 directors are independent and non- which 19,550+ were linked to employment in executive 16 centers across 12 districts
Slide 42: Financial & Digital Inclusion
Financial & Digital Inclusion Universal Access to Financial Services ➢ 32% of our total touchpoints/branches – 766 are in unbanked rural centres ➢ Present in 89 Special Focus Districts* with 295 touchpoints covering 54 Aspirational districts, 21 Left Wing Extremist Affected Districts, 13 Hill States
Slide 43: Awards & Ratings
Awards & Ratings “Best SIP Performer “Best Cloud Management in Bank Category 2024” and Infrastructure & “Best Small Finance Bank” Initiative Award” “Best Performer in Bank Category 2024 ” At Mint BFSI At ET Now Data Center by Bombay Summit & Awards & Cloud Innovation Stock Exchange Summit & Awards 2
Slide 44: 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 45: Shareholding pattern
Shareholding pattern KMP, Director & their relatives (Excluding Independent Director) 1.9% Others Individuals – Domestic 5.2% 1.9% Fincare Business Services Promoter & Promoter Group Limited 6.3% 22.9% Foreign holding 40.0% Domestic holding 60.0% Domestic Institution (Mutual Funds, Insurance, AIF an
Slide 46: For further information about the bank - Scan to Download
For further information about the bank - Scan to Download Analyst day Q2’FY25 Annual Report FY24 Investor Presentation AU Insights presentation - Mar’24 45
Slide 47: 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 48: For Investor queries contact
For Investor queries contact (details in QR Code): Prince Tiwari Email: investorrelations@aubank.in
AU Small Finance Bank — Q3 FY2025 Earnings Presentation on 6ix