National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — FY2014 Earnings Presentation
29 slides from National Development Bank's earnings presentation, Mar 10, 2015
Slide 1: Pushing the pace in a Resurgent Sri Lanka
National Development Bank PLC Investor Forum 10th March 2015 Pushing the pace in a Resurgent Sri Lanka
Slide 2: Content
Content 1 Business Model 2 Financial Performance Highlights 3 Financial Position and Asset Quality 4 External Recognition Investor Forum December 2014
Slide 3: Business Model
Business Model Investor Forum December 2014
Slide 4: Mission, Values and Strategic Direction
Mission, Values and Strategic Direction “To be a world-class Sri Lankan Bank” Our Seven Pillars of Strategy “To be dominant in the financial 1. Profitable Balance Sheet growth services sector, creating superior 2. Operational Excellence long-term shareholder value and contributing to economic 3. Str
Slide 5: Group Structure
Group Structure Fully fledged Financial Conglomerate 58.7% Retail Banking Banking SME Banking Corporate Banking FUM LKR 331 Bn 77.8% Projects and 99.9% infrastructure Financing Property Development Capital Market Cluster FUM LKR 100+ Bn Bangladesh Operations 99.9% 59.8% 99.9% 99.9% Stock Bro
Slide 6: Corporate Milestones
Corporate Milestones Phase 1 Phase 2 Phase 3 Phase 4 • Development • Project finance dominance • Commercial • Building scale in chosen banking Banking businesses locally and regionally Phase Operations Established in Acquisition of ABN Amro in 2001. (1) Corporate; Formation of NDB Capital – 1979. Es
Slide 7: Increasing Foot print and Reach
Increasing Foot print and Reach Branch Network Province Branches Branches 2014 2013 Northern 4 4 North Western 7 7 North Central 2 2 Eastern 4 4 Central 8 7 Western 41 39 Uva 4 4 Sabaragamuwa 5 4 Southern 8 7 Total 83 78 Tie up with Lanka pay, ATM network of 2,500 Take the Pressure off with Convenie
Slide 8: Financial Performance Overview
Financial Performance Overview Investor Forum December 2014
Slide 9: Snapshot 2014 – Strong Performance
Snapshot 2014 – Strong Performance 2014 LKR Mn YoY Growth Industry Growth Gross Revenue 26,205 4% -2% Operating Expenses 5,911 6% 13% Profit for Shareholders 4,134 56% 18% Loans & Advances 180,561 27% 13% Deposits 151,485 17% 12% Total Assets 269,130 30% 16% Profit for Shareholders grew by 56% Sourc
Slide 10: Income Statement
Income Statement 2014 LKR Mn YoY Growth (%) Gross income 26,205 4 Interest Income 21,152 2 Interest Expenses 13,239 -4 Net Interest Income 7,913 13 Profit Before Tax Non Interest Income Profit After Tax 5,053 11 Profit Attributable to Shareholders Operating Income 12,966 12 Impairment 529 -58 Net Op
Slide 11: Banking Revenue Generation NII and Other Income
Banking Revenue Generation NII and Other Income Banking Revenue Trend % 10,000 4.2 4.1 3.7 3.5 4 8,000 3.7 3.8 NII 3.5 3 3.3 6,000 Other Income LKR Mn 2 NDB NIM 4,000 Industry NIM 2,000 1 4,562 2,146 5,597 3,218 6,812 3,022 7,675 3,987 0 0 2011 2012 2013 2014 2013 other income has been adjusted fo
Slide 12: Profitability was Driven by Core Banking operations
Profitability was Driven by Core Banking operations Core Banking revenue supported the Profit Growth over the previous year. 732 LKR Mn 362 347 153 38% 902 6,527 4,724 Operating NII Fee Trading and Impairment Overheads Operating Profit Profit 2013 Other 2014 Investor Forum December 2014
Slide 13: Management in Administrative Expenses
Management in Administrative Expenses Cost Composition 7,000 Depreciation/Amortization Administration Personal 6,000 5,000 46% 4,000 52% 3,000 48% Cost to Income ratio of 2,000 45.6% is well below the 1,000 industry average of 50.1% 0 2012 2013 2014 CIR 50.5% 48.2% 45.6% Administrative cost repres
Slide 14: Snapshot - 2014 Incremental Performance
Snapshot - 2014 Incremental Performance Performance Radar Growth over NII 8000 7,913 2013 7000 6000 Operating Income (LKR Mn) 1,416 7,012 5000 4000 3000 Non Operating Cost (LKR Mn) 347 PAS 5,053 Interest Income 2000 4,134 4,537 1000 Loans and Advances (LKR Mn) 39,181 2,642 0 Customer Deposits (LKR M
Slide 15: Financial Position / Asset Quality
Financial Position / Asset Quality Investor Forum December 2014
Slide 16: Gaining Market Share
Gaining Market Share 2013 2014 27% NDB Growth Loans 4.12% 14% Industry Growth 4.63% 17% NDB Growth Deposits 3.10% 12% Industry Growth 3.23% 30% NDB Growth Total 3.48% 17% Industry Growth 3.86% Assets Source : CBSL Investor Forum December 2014
Slide 17: Statement of Financial Position
Statement of Financial Position YoY Total Assets Growth 2014 LKR Mn Cash & Cash Equivalents 10,015 Investments 75,692 Net Loans & Advances 175,547 28% Fixed Assets 2,253 Other Assets 5,623 Total Assets Total Deposits 269,130 30% Deposits 151,485 17% Debt Securities & Borrowings 68,955 Subordinated T
Slide 18: Composition of the Balance Sheet
Financial Position Composition of the Balance Sheet Segmental dispersion of Loans Corporate A LCY 75% 4% Loans 11% s Consumer 67% s 42% FCY 25% e 18% Project Financing t s Investments LCY 80% SME 27% FCY 20% 25% Other LCY 76% Product Composition of Deposits F Deposits u 56% 8% n FCY 24% 16% Demand d
Slide 19: Robust Loan Growth with healthy CAR
Robust Loan Growth with healthy CAR Customer Loan Growth 28% 22% FCY LKR 32% 45 33 136 LKR Bn 28 47% 108 23 91 19 73 Project Finance Retail & SME 49 Corporate 2010 2011 2012 2013 2014 SME, Personal, Capital Adequacy 5,461 4,167 Total Tier I Min requirement 25.0% LKR Mn 20.3% 20.7% 21.0% 17.8% 18.8%
Slide 20: Asset Quality Maintained with the Loan growth
Asset Quality Maintained with the Loan growth NPL Trend Provision Cover 4,500.0 100% 5.4% 5.6% 4,000.0 75% 75% 3,500.0 80% 4.2% 62% 3.8% 3.7% 3,000.0 51% 50% 60% 2,500.0 45% 46% 2.5% 41% 2.5% 2,000.0 35% 1.9% 33% 40% LKR Mn 1.4% 1.3% 1,500.0 1,000.0 20% 500.0 1,355 1,364 1,558 3,490 4,498 0.0 0% 201
Slide 21: Asset Quality Maintained with the Loan growth
Asset Quality Maintained with the Loan growth 2014 2013 Individual Impairment 2,290 1,828 Collective Impairment 2,725 2,359 Impairment allowance for loans and 5,014 4,187 receivables to other customers Total Gross Loans and Receivables 180,561 141,710 Percentage of impairment allowance (%) 2.78 2.97
Slide 22: Deposits Grew with healthy liquidity position
Deposits Grew with healthy liquidity position Customer Deposit Growth CASA Base 17% 40 40.0% FCY LKR Portfolio Ratio 35 35.0% 37 30 30.0% 24.0% 24.6% 23.9% 30 25 22.9% 25.0% 6 28 115 100 20 20.0% 36 5 76 80 15 32 15.0% 26 LKR Bn LKR Bn 55 10 18 10.0% 5 5.0% 0 0.0% 2010 2011 2012 2013 2014 2011 2012
Slide 23: Key Performance Indicators
Key Performance Indicators 2013 2014 Industry Investor Ratios 2013 2014 Return on Equity 10.70% 15.78% 16.5% EPS 16.48 25.14 Return on Assets 1.39% 1.74% 1.4% BVPS 148.85 169.35 Net Interest Margin 3.68% 3.33% 3.5% P/E 9.74 9.95 Non Performing Loans 2.48% 2.51% 4.2% Total Capital Adequacy 21.04% 17.
Slide 24: Value Addition
Value Addition Value Addition and Distribution Economic Value Added - Group LKR Mn 2014 2013 LKR Mn 2014 2013 Value Added Invested Equity Income from banking service 24,518 23,556 Shareholders’ funds 27,875 24,513 Cost of services (14,048) (15,858) Add : Impairment 5,121 4,379 Value added by baking
Slide 25: External Recognition
External Recognition Investor Forum December 2014
Slide 26: Gaining Recognition
Gaining Recognition Awards Description Conferred by the Banker Magazine of UK to just one global winner each year, the Banker Financial Inclusion Award recognized the Bank’s efforts towards promoting financial inclusion, particularly Award 2014 our innovative and comprehensive efforts in promoting l
Slide 27: Gaining Recognition
Gaining Recognition Awards Description Domestic Retail Bank of the Year Collecting twin recognition for the second consecutive year at the Asian - Sri Lanka Banking and Finance Retail Banking Awards held in Singapore, the Bank also won a third award for ‘Core Banking System Initiative of the Year -
Slide 28: Visit our Web site: Investor & Community Relations
Visit our Web site : www.ndbbank.com Investor & Community Relations Investor Forum December 2014
Slide 29: Disclaimer
Disclaimer This document has been prepared by National Development Bank (“NDB or the “Bank”) solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclosed in this document The in
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