Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q2 FY2021 Earnings Presentation
36 slides from Federal Bank Ltd. (india)'s earnings presentation, Oct 16, 2020
Slide 1: Cover letter to stock exchanges
Secretarial Department SD/ F 24/125/2020-21 16th October, 2020 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Floor 25, Dalal Street, Mumbai – 400 00
Slide 2: Investor Information Q2 FY 2021
Investor Information ee Q2 FY 2021
Slide 3: Key Messages
Key Messages Robust Operating Performance • Highest ever Operating Profit @ 1007 Cr for Credit Growth in Chosen Areas the Quarter, grew 40% YoY • Total Advances grew by 6% YoY • Net Profit @ 308 Cr, impacted by significant • Retail grew by 13% YoY step up in provisions to further strengthen the • Go
Slide 4: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Operating Profit 40% Retail Banking 13% Other Income 21% Agri Banking 20% RoA @ 0.65% Business Banking (BuB) 13% RoE @ 8.09% Cost to Income Ratio @ 46.72% Commercial Banking (CoB) 6% GNPA @ 2.84% NNPA @ 0.99% Total Advance 6% NII 23% CASA 20% NIM @ 3.13% NRE Deposit 17%
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.06 12.50 10.92 8.09 3.07 3.13 1.03 1.04 8.41 3.01 3.00 3.04 0.88 0.69 0.65 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Cost to Income Ratio NNPA (%) PCR (%) 75.09 78.34 72.48 53.
Slide 6: Key Revenue
Key Revenue ₹ in Cr Net Interest Income Other Income 711 1380 1296 1216 1155 509 1124 488 421 408 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Fee Income Net Profit 341 441 417 317 311 401 288 301 308 171 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 F
Slide 7: Key Indicators
Key Indicators Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Q2 FY20 Book Value 76.38 74.85 72.86 71.33 69.18 (Per Share in ₹) Shareholder Value EPS 6.12 8.07 6.06 8.78 8.32 (annualized) CASA + Deposits <2 Cr 90% 89% 87% 88% 89% Granularity (% of Total Deposits) ROA 0.65 0.88 0.69 1.04 1.03 Profitability RoRWA 1.
Slide 8: Asset Quality Trends
Asset Quality Trends 4.30 4.29 4.37 Amt in Rs.Cr. 3.40 3.33 3.44 Strengthened Provision 3.01 2.74 2.92 2.86 2.84 Coverage ratio to 64.65%, 3498 3537 3662 2.28 2.01 2.01 1.96 3357 1.71 1.67 1.73 1.59 an increase of 611 bps QoQ 431 417 532 2955 2958 3139 3139 2970 3191 3197 28902680 2784 2855 1.28 1.1
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q2 FY21 Q1 FY21 Q2 Q1 Q4 Q3 Q2 TYPE Of which Of which FY21 FY21 FY20 FY20 FY20 Balance Balance Bonds Bonds Retail 1 1 97 101 124 STANDARD 441 42 406 42 Agri 1 1 36 50 72 Net NPA 197 80 198 80 TOTAL 638 122 604 122 BuB 1 0 54 66 95 Security Receip
Slide 10: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q2 FY-21 Q1 FY-21 Q2 FY21 6% 5% A & above 79% 79% 7% 4% BBB 10% 10% 10% 10% < BBB 5% 4% Q1 FY21 Others 6% 7% 79% Internal Rating of ‘others’ (Externally unrated
Slide 11: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q2 FY-21 Q1 FY-21 17% Q2 FY21 18% 16% 17% FBR1 FB1 18% 17% FBR2/FBR3 FB2 17% 18% Q1 FY21 18% 17% 31% FBR4 FB3 17% 18% 30% 18% FBR5/FBR6 FB4 30% 31% 17% Staff 3% 3% 1) FB1_FBR1 2) FB2_FBR2_FBR3 3) FB3_FBR4 4) FB4_FBR5_F
Slide 12: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# CoB# CIB Total Advances Advances -3% 13% 20% 13% 6% 6% 34996 -> 39649 12399 -> 14915 9858 -> 11134 11752 -> 12416 48617 -> 47093 117622 -> 125209 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 213 20% 17% 14% bps 44023 -> 52786 31.55
Slide 13: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# CoB# CIB Total Advances Advances -5% 5% 9% 6% 5% 1% 37908 -> 39649 13645 -> 14915 10512 -> 11134 11830 -> 12416 49542 -> 47093 123437 -> 125209 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 165 6% 2% 3% bps 49616 -> 52786 32.02 -> 33
Slide 14: Digital Migration
Digital Migration Digital vs Branch : Transaction count with bifurcation on various Digital channels(In lakhs) 70 88.00% 85.52% 60 86.00% 84.00% 50 82.64% 81.90% 82.00% 40 79.69% 80.00% 30 59.81 50.7 50.64 78.00% 48.22 20 76.84% 40.82 76.00% 10 74.00% 12.29 12.28 10.65 11.19 10.12 0 72.00% Sep-19 De
Slide 15: Digital Migration
Digital Migration BYOM Digital Personal Loans : Loan book progress 100000 1600 1354 1416 90000 1255 1400 80000 1104 • BYOM enables digital instant personal 70000 1200 947 loans through Web, Google Pay & Paisa 60000 1000 Bazaar clubbed with HDFC Ergo 50000 800 insurance. 40000 82953 89849 • EMI on ch
Slide 16: Business Parameters
aheeeerataetieor Business Parameters
Slide 17: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 31.55% 31.46% 32.02% 33.68% 30.50% 92630 91984 89967 85751 83631 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 CA & SA 38019 39195 42059 44318 37268 53152 6755 7465 7255 7557 8467 49915 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 46
Slide 18: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 9% 10% 12% 52% 38% 32% 48% Retail Agri BuB CB CIB Retail Wholesale Yield on Advances 8.98 8.90 62695 61372 59510 60369 61311 Q1 FY21 57253 59551 61458 62065 65699 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 YOA 17
Slide 19: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Others 23% 7801 8013 9106 7694 7595 60% 1126 1294 1492 3231 1551 1645 3195 3115 3134 2872 6884 7125 7009 7206 6581 17% 16822 17564 18229 18201 18497 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Retail Agri BuB RETAIL BANK
Slide 20: Wholesale Banking
Wholesale Banking CoB Corporate 48617 49313 50725 49542 47093 21% 79% 11752 11998 11970 11830 12416 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 WHOLESALE BANKING The quarter saw strong traction in new name acquisition - 25 NTB clients added during the quarter – marquee names across sectors and establi
Slide 21: Fee Income: Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise (In Cr) 1000 711 700 800 9 488 509 421 408 500 600 0 369 0 3 7 400 165 300 111 96 319 91 82 84 123 200 100 216 223 249 50 221 119 0 -100 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Retail Wholesale Treasury Others Total Fee Income Di
Slide 22: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q2 FY21 Q1 FY21 Q4 FY20 Q3 FY20 Q2 FY20 Y-o-Y % Loan Processing Fee 82 44 56 63 61 34% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 174 103 209 191 191 -9% Income Net Profit on Forex 317 32 24 76 56 64 -50% 288 Transactions Fee Income 288 171 341 311
Slide 23: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 30 3 1 28 22 Customers 2 23 @ 8 12 Core BC led 8 Sales /Relationship 2 Distribution 1 Channel (Bank owned) 45 9 31 1 1 11 1 3 26 105 18 Direct Sales 12% Agents /Connectors 16% 22 13% 16% Q2 FY21 6 Q2 FY21 Q1 FY21 Q4 FY20 110 2 Q1 F
Slide 24: Distribution: Bank's Market Share
Distribution ₹ in Cr Network I Network II 30-Sep-20 -2% 7531 36684 Corporate 7380 2% 37434 30-Sep-19 Commercial Banking 5246 7053 9% 5148 2% 6479 (CoB) Business Banking 5222 5849 14% (BuB) 4658 12% 5141 Agri 7488 13% 7427 26% 6636 5897 15139 7% 20867 Retail 14058 17084 22% 59641 5473 NR Business 17%
Slide 25: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Sep-20 Jun-20 Risk Weighted Assets Credit Risk 91404 92139 Market Risk 3980 5890 Operational Risk 10095 10095 Total RWA 105479 108124 Tier-1 Capital Funds 14066 14062 Tier-II Capital Funds 1381 1262 Total Capital Funds 15447 15324 CRAR 14.64% 14.17% Tier-I 13.
Slide 26: Annexures
FEDERAL BANK Annexures
Slide 27: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q2 FY21 Q2 FY20 LIABILITIES Capital 399 398 Share Holding Pattern Reserves & Surplus 14836 13357 Deposits 156747 139547 Borrowings 11043 7764 25% Other Liabilities & Provisions 6001 5360 TOTAL 189027 166424 45% 5% ASSETS Cash & Balance with RBI 6120 7733
Slide 28: Financials
Financials ₹ in Cr Q2 FY21 Q1 FY21 Q-o-Q Q2 FY20 Y-o-Y Interest Income 3488 3444 1% 3254 7% Interest Expenses 2108 2148 -2% 2130 -1% Net Interest Income 1380 1296 6% 1124 23% Other Income 509 488 4% 421 21% Operating Expense 883 852 4% 826 7% Total Income 3997 3933 2% 3675 9% Total Expense 2991 3000
Slide 29: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance CHEMICALS 1.24% 30.09.2020 BASIC METALS 1.42% BANKS 1.60% TEXTILES INCLUDING JUTE & COIR 1.66% CONTRACTORS 1.73% FOOD PRODUCTS 2.08% POWER GENERATION & TRANSMISSION 2.89% REAL ESTATE BUSINESS 3.87% HFC
Slide 30: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 74.00% IDBI Federal Life Insurance Company of India Limited 26.00% Equirus Capital Private Ltd 19.90% Subsidiaries & JVs * Includes CCPS(Com
Slide 31: External Ratings
External Ratings Fixed Deposit A1+ (Short term) Certificate of Deposit A1+ India Ratings IND AA Tier 2 (Capital) Bonds & Research CARE AA Pvt Ltd, CARE • Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 30
Slide 32: Disclaimer
Disclaimer This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from th
Slide 33: Thank You
Thank You AE A aA og
Slide 34: Press Release
Marketing Department _______________________________________________________________________________ October 16, 2020 PRESS RELEASE Federal Bank registers 40% growth in Operating ProfitFederal Bank announced Unaudited Financial Results for the quarter ended 30th September 2020. Highlights of the res
Slide 35: Press Release (continued)
NRE Deposits of the Bank grew from Rs. 52690.21 Cr to Rs.61560.46 Cr registering a growth of 16.83%. CASA Deposits clocked a growth of 20% Y-o-Y to reach Rs. 52786 Cr. On the Asset side, Gold Loans continued their impressive run with a growth of 54.02% reaching Rs. 12691.00 Cr as on 30th September 2
Slide 36: Major Financial Indicators (Standalone)
MAJOR FINANCIAL INDICATORS (Standalone nos.) (Rs. in Crore) Business Figures As on 30.9.2020 As on 30.9.2019 Growth (%) Total Deposits 156747.38 139546.53 12.33% SB & Demand Deposits 53152.28 44534.81 19.34% Gross Advances 125208.57 117622.36 6.45% Retail Advances 39649.20 34862.97 13.30% Busine