Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q2 FY2022 Earnings Presentation
37 slides from Equitas Small Finance Bank's earnings presentation, October 2021
Slide 1: Investor Presentation Q2FY22
Investor Presentation Q2FY22 BEYOND BANKING When you bank with us, you contribute towards a better society.
Slide 2: Disclaimer
Disclaimer Disclaimer: The information in this document, including facts and figures, is being provided by Equitas Small Finance Bank Limited (the “Bank”) for informational purposes only and could be subject to change without notice. The information has also not been independently verified. No repre
Slide 3: Table of Contents
Table of Contents 01 KEY HIGHLIGHTS PAGE 08 02 FINANCIAL PERFORMANCE PAGE 14 03 ADVANCES PAGE 18 04 LIABILITIES & BRANCH BANKING PAGE 23 05 DIGITAL BANKING PAGE 28 06 FINANCIALS PAGE 30
Slide 4: Update on Scheme of Amalgamation
Update on Scheme of Amalgamation • The Board in their meeting held on July 26th 2021 approved the scheme of amalgamation between Equitas Holdings Limited (EHL - Transferor Company) and Equitas Small Finance Bank Limited (ESFB - Transferee Company) • The Bank had reached out to SEBI for two exemption
Slide 5: Journey of building a Stable, Sustainable and Scalable Bank
Journey of building a Stable, Sustainable and Scalable Bank 5
Slide 6: Diversifying across the informal segment
Diversifying across the informal segment 20,0 00 25. 00% 18,978 22.90% 18,0 00 17,925 17,837 23. 00% 21.80% 21.50% 16,0 00 15,367 21. 00% 19.70% 19.22% 14,0 00 18.66% 19. 00% 17.69% 17.75% 18.90% 12,0 00 11,704 17. 00% 10,0 00 15. 00% 8,238 8,00 0 13. 00% 7,176 10.70% 6,125 10.10% 6,00 0 11. 00% 9.4
Slide 7: Liability franchise evolution
Liability franchise evolution 100 % 800 1,124 2,401 2,729 3,323 4,311 4,135 4,682 5,097 4,726 5,176 5,222 4,769 5,056 4,672 6,395 4,909 3,996 3,127 9.12% 712 90% 9.63% 8.76% 700 8.27% 8.14% 8.18% 8.23% 80% 8.05% 7.96% 7.96% 7.82% 7.77% 7.56% 600 7.36% 7.27% 7.20% 538 70% 6.97% 6.81% 6,767 500 60% 6,
Slide 8: Key Highlights
Key Highlights 8
Slide 9: Quarterly Snapshot
Quarterly Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: 13% YoY Total Deposits: 40% YoY PPoP: 17 States and UTs Rs. 18,978 Cr [Rs. 16,731 Cr] Rs. 18,094 Cr [Rs. 12,901 Cr] Q2FY22 Rs. 195 Cr [Rs. 211 Cr] SBL- 45%, VF - 25%, MFI- 18%, MSE – 6%, NBFC – 5% PAT: Q2FY22
Slide 10: Advances and Liabilities Highlights
Advances: • Advances as of Q2FY22 was at Rs. 18,978 Cr, Advances growth of 13% YoY. • 81.44% of advances is secured loans • Highest quarterly disbursement of Rs. 3,145 Cr in Q2FY22 • Improvement in X Bucket Collection Efficiency indicating significant reduction in further build up of stress. Segment
Slide 11: Profit & Loss and Asset Quality Highlights
Profit & Loss: • Net Interest Income for Q2FY22 at Rs. 484 Cr as against Rs. 461 Cr in Q2FY21. NIM at 8.14% • Core Income (Net Income other than PSL Fees, Treasury & Others) at 88% • Pre Provisioning Operating Profit (PPoP) for Q2FY22 at Rs. 195 Cr as against Rs. 211 Cr in Q2FY21 • PAT affected due
Slide 12: Advances restructured during H1FY22
Restructuring 31-90 DPD Bucket movement • Advances restructured during H1FY22 at Rs. 1,401* Cr • 60-90 DPD Bucket shrinks to 1.5% of Gross Advance • 17.74% of Covid 1.0 restructured book slipped into NPA • X Bucket improves to 85% of Gross Advances 18.68% SBL 17.49% Advances As a VF Products Segment
Slide 13: Highlights
Highlights Key Ratios: • Cost to Income^ at 67.01% in Q2FY22 as compared to 68.89% in Q1FY22 and 58.77% in Q2FY21 • RoA and RoE for Q2FY22 at 0.65% and 4.79% respectively Capital: • As of September 30, 2021 Total CRAR at 22.21%, Tier-I CRAR at 20.96% and Tier II CRAR at 1.25% Treasury: • The Bank’s
Slide 14: Financial Performance – Quarterly trends
Financial Performance – Quarterly trends 14
Slide 15: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.36% 9.02% 7.27% 6.89% 7.20% 8.48% 6.44% 5.89% 6.02% 1.88% 1.83% 1.80% 8.14% 5.59% 6.93% 7.87% 6.81% 7.57% 0.65% 0.19% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY2
Slide 16: Income Evolution
Income Evolution Net income evolution (in Rs. Cr) 461 484 449 461 484 146 178 148 64 104 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 NII Other Income Non-interest income * evolution Other Income Break-up (Rs. Cr) 3.5 0% 28.14% 30. 00% Banking Fees & 3.0 0% 24.02% 23.40% 25. 00% Other Charges 2.5 0% 2.85% 11%
Slide 17: Opex Evolution
Opex Evolution Rs Cr Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Employee expenses 188 205 204 222 228 Other expenses^ 94 119 124 116 148 Depreciation 19 19 19 20 19 Total Operating expenses 300 344 347 358 395 No. of employees 15,879 16,036 16,556 16,770 17,441 Opex evolution 7.5 0% 80. 00% 54.92% 67.01% 58
Slide 18: Advances
> equibas Advances
Slide 19: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book 908 , 196 , 5% 1% Rs Cr Q2FY21 Q2FY22 YoY Growth % 1,170 , 3,438 , 6% 18% Micro Finance 3,641 3,438 -6% Small Business & Home Loans 7,052 8,596 22% 4,670 , 25% Vehicle Finance 4,137 4,670 13% MSE Finance 791 1,170 48% 8,596 , NBFC 879 908 3% 45% Others † 232 196
Slide 20: Advances Evolution & Diversified Book
Advances Evolution & Diversified Book Rs Cr Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Micro Finance 3,641 3,491 3,236 3,128 3,438 Small Business and Home Loans 7,052 7,496 7,971 8,015 8,596 Small Business Loans 5,580 5,890 6,227 6,227 6,629 Housing Finance 715 834 959 1,017 1,175 Agri Loans 757 772 785 771
Slide 21: Product Segment & Disbursement Details
Product Segment & Disbursement Details ATS @ ATS @ PCR Product Segment Number of Live Loans GNPA (%) Disbursement (Lacs) Portfolio (Lacs) (%) Micro Finance 18,40,325 0.32 0.19 6.81% 52.71% Small Business Loans (Incl. HF) 2,39,190 5.64 3.59 3.66% 39.83% Vehicle Finance 1,47,400 4.21 3.17 4.58% 47.84%
Slide 22: Asset Quality Trend
Asset Quality Trend 950 .00 4.58% 4.64% 5.0 0% 4.16% 3.59% 850 .00 4.0 0% 750 .00 650 .00 2.39% 2.29% 2.37% 3.0 0% 550 .00 1.71% 1.52% 2.0 0% 450 .00 1.09% 350 .00 439.64 1.0 0% 250 .00 0.0 0% 399.65 179.92 722.62 289.90 642.78 266.17 816.17 398.22 880.82 150 .00 50.0 0 -1.00% Q2FY21 Q3FY21 Q4FY21 Q
Slide 23: Liabilities & Branch Banking
Liabilities & Branch Banking 23
Slide 24: Customer Deposits Evolution
Customer Deposits Evolution Update for Q2Y22 CA SA CASA TD CASA+TD as on 30 September 2021 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 504 7,696 8,200 9,894 18,094 as a % of total borrowings (Rs. 21,924 Cr) 2% 35% 37% 45% 83% as a % of tot
Slide 25: Customer Deposit Profile
Customer Deposit Profile Mass Affluent Customer* (Deposit in Rs. Cr) Savings Account Value Slabs Deposits by Category 5% 16% 2,684 22% OTHERS 4% 2,279 16% 2,107 1,906 1,703 5,351 3,262 4,155 TRUSTS 5% 1,786 2,378 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 41% < 1L 1L to < 10L 10L to < 1Cr 1Cr to < 10Cr 10Cr
Slide 26: Funding Profile
Funding Profile As on 30 Sept 2021 In Rs Cr June 2021 Sep 2021 1% 3% TD 10,227 9,894 Refinance 3,413 2,980 14% TD CASA 6,794 8,200 CASA CD 74 - 45% Refinance Sub Debt 150 150 IBPC IBPC 700 700 Sub-ordinated Debt 37% RBI Borrowing 15 - Tri Party Repo 100 - Total Borrowings 21,473 21,924 Daily Average
Slide 27: Treasury
Treasury Investments The Bank’s total investment portfolio of Rs. 3,530 Crore comprises of SLR and Non-SLR securities as given below: Category (Rs. Cr) Book Value SLR 3,529 Non SLR 1 Total 3,530 During the quarter, the Bank participated in equity primary market. Profits realized in those equity IPOs
Slide 28: Digital Banking
Digital Banking 28
Slide 29: Digital Banking
Digital Banking Key Quarterly Highlights Prepaid Engagements NeoBanking • 7 lakh+ cards issued (Physical + Virtual) • NiyoX Program: • 3 Cr Transactions o ~7 lac Accounts Opened • ~2,100 Cr transactions value processed o CASA Balance – Rs. 280 Cr • Programs under integration: o ~600 Fixed Deposits v
Slide 30: Financials
> equibas Financials
Slide 31: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Sep-21 Sep-20 YoY % June-21 QoQ% Capital & Liabilities Capital 1,145 1,053 9% 1,142 - Reserves & Surplus 2,321 1,851 25% 2,274 2% Networth 3,466 2,905 19% 3,416 1% Deposits 18,094 12,901 40% 17,095 6% Borrowings 3,130 6,174 -49% 3,678 -15% Other Liabilities & Pro
Slide 32: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q2FY22 Q2FY21 YoY% Q1FY22 QoQ% H1FY22 H1FY21 YoY% Interest Income from Loans 767 730 5% 742 3% 1,509 1,392 8% Income on Investments 60 57 5% 57 5% 116 101 16% Interest on balances with Reserve Bank of India and 17 11 61% 20 -13% 37 27 40% other inter ba
Slide 33: Profit & Loss Statement
Profit & Loss Statement Particulars (in Rs Cr) Q2FY22 Q2FY21 YoY% Q1FY21 QoQ% H1FY22 H1FY21 YoY% Net Income 632 516 22% 562 12% 1,194 949 26% Employee Cost 228 188 21% 222 3% 449 382 18% Opex 209 117 78% 179 17% 388 215 81% Total Operating Expenditure 437 305 43% 400 9% 837 597 40% PBT before provis
Slide 34: Provisions - Breakup
Provisions - Breakup Particulars (Rs. Cr) H1FY22 Standard Asset Provision (0.21) Restructured Standard Asset Provision 192.83 Total Standard Asset Provision (A) 192.62 NPA and other provision 65.79 Loan assets written off 33.85 Loan loss recovery (6.92) Total NPA Provisions & Write Off (B) 92.72 Tot
Slide 35: Financial Performance – Yearly trends
Financial Performance – Yearly trends 35
Slide 36: Key Ratios
Key Ratios Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 10.00% 9.52% 7.84% 8.33% 7.83% 1.60% 1.70% 6.96% 6.75% 1.45% 1.39% 8.36% 8.13% 7.97% 9.11% 7.34% 9.02% 8.55% 8.44% 0.30% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Credit Co
Slide 37: Thank You
Thank You Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu
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