Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q1 FY2023 Earnings Presentation
36 slides from Federal Bank Ltd. (india)'s earnings presentation, Jul 15, 2022
Slide 1: Secretarial Department filing letter
Secretarial Department SD/ F24/82/2022-23 July 15,2022 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, Dalal S
Slide 2: Investor Information Q1 FY 2023
Investor Information ee Q1 FY 2023
Slide 3: 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 4: Key Messages
Key Messages Profitability Strong momentum in Credit Growth RoA & RoE trending • Highest ever Net Profit @ 601 Cr, up 64% YoY • Total Advances grew by 16% YoY • CV/CE grew by 56% at the Guided Level • Operating Profit for Q1 at 973 Cr • Highest ever NII @ 1605 Cr for Q1, grew 13% • Auto Loans grew b
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 11.93 12.70 11.62 10.73 1.10 3.27 3.16 3.22 1.03 9.03 3.15 3.20 1.02 0.92 0.76 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Cost to Income Ratio NNPA (%) PCR (%) 59.89 1.23 1.12 53.7
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1605 648 1539 1525 1479 1418 492 484 465 453 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Fee Income 453 441 Net Profit 412 601 373 541 522 460 255 367 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q
Slide 7: Key Indicators
Key Indicators Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Book Value 82.60 83.52 86.05 88.75 91.59 (Per Share in ₹) Shareholder Value EPS 7.38 8.79 9.85 10.43 11.46 (annualized) CASA + Deposits <2 Cr 91% 92% 92% 92% 92% Granularity (% of Total Deposits) ROA 0.76 0.92 1.02 1.03 1.10 Profitability RoRWA
Slide 8: Asset Quality Trends
Asset Quality Trends Amt in Rs.Cr. Total stressed book 2.92 2.86 2.84 2.62 2.61 trending down and is at 2.28 2.01 2.01 1.96 2.24 2.36 2.22 2.22% of average total 1.71 1.67 1.73 1.59 1.28 1.76 5194 5310 4998 assets 1.14 1.00 1.08 116 4852 139 69 4328 66 1502 1471 161 1393 1420 3191 3197 3357 3347 160
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q4 FY22 Q1 FY23 Q1 Q2 Q3 Q4 Q1 TYPE Of which Of which FY22 FY22 FY22 FY22 FY23 Balance Balance Bonds Bonds Retail 126 85 95 86 204 STANDARD 3536 17 3366 17 Agri 157 98 102 147 89 Net NPA 427 100 534 100 TOTAL 3963 117 3900 117 BuB 169 48 81 68 10
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 Q4 FY22 Q1 FY23 Q1 FY23 9% A & above 78% 78% 3% 8% BBB 11% 10% 3% 10% 11% < BBB 3% 3% Q4 FY22 Others 8% 9% 78% Internal Rating of ‘others’ (Externally unrated C
Slide 11: Asset Quality : Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q4 FY22 Q1 FY23 5% Q1 FY23 5% 17% FBR1 5% 5% 33% 17% 33% FBR2/FBR3 17% 17% Q4 FY22 17% FBR4 17% 17% 17% 28% FBR5/FBR6 28% 28% 28% Staff 3% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance against 30
Slide 12: Comparison : Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB CV/CE# CoB CIB Advances 14% 19% 18% 56% 20% 15% 43606 -> 49872 16827 -> 19988 10846 -> 12799 915 -> 1425 12804 -> 15349 47789 -> 54960 CASA CASA Ratio NRE Deposits Total Deposits Deposits 15% 203 3% 8% bps 58959 -> 67540 34.81 -> 36.84 66019
Slide 13: Comparison : Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB CV/CE# CoB CIB Advances 4% 4% 2% 12% 5% 6% 47863 -> 49872 19228 -> 19988 12529 -> 12799 1275 -> 1425 14651 -> 15349 52094 -> 54960 CASA CASA Ratio NRE Deposits Total Deposits -10 Deposits 1% bps 0.5% 1% 67121 -> 67540 36.94 -> 36.84 67416 ->
Slide 14: Digital Migration
Digital Migration Digital Migration 87.73% SHARE OF DIGITAL %13.6K CR WORTH MONTHLY MOBILE BANKING %44.3K ICR WORTH MONTHLY CORPORATE DIGITAL IN OPEN BANKING / PARTNERS yy, TRANSACTION TRANSACTIONS | |PRODUCTS VOLUME _4 § 3 fe) re) =2|| 232% || 245 92% aS YOY GROWTH ACCOUNTS ae IN UPI RPA PROCESSES
Slide 15: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 14
Slide 16: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 15
Slide 17: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 16
Slide 18: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Branch vs Digital Transactions (In Lakhs) 120 88.60% 88.42% 28.40% 9, 100 88.34% 88.17% 38.20% 80 y 88.00% 60 87.73% & 87.80% 40 TD: 91.63 87.60% 20 23.29 aa 11.42 11.69 13 12.81 740% = Ye | | | 87.00% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 mm
Slide 19: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 18
Slide 20: Business Parameters
aheeeerataetieor Business Parameters 19
Slide 21: Liability : Trends
Liability : Trends ₹ in Cr CASA Ratio 36.16% 36.68% 36.94% 36.84% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 34.81% 104594 104086 99615 98598 97719 67913 67471 64725 62562 59336 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 CA & SA CASA + Demand Dep Other Retail Dep 51381 53014 54510 56242 49996 Remittance M
Slide 22: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 1% 8% 10% 13% 54% 36% 32% 46% Retail Wholesale Retail Agri BuB CV/CE CoB CIB Yield on Advances 66744 70308 7.92 7.94 60593 62514 66383 Q4 FY22 84083 72194 74799 77256 80895 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 21
Slide 23: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri, BuB & CV/CE) Housing LAP Gold Auto Personal Other 5975 6124 24% 5595 5818 5764 1727 59% 1766 1736 1746 1751 4448 4229 3583 3840 4035 5167 4526 15% 4755 4106 4164 8263 8453 8762 7783 7973 2% 20124 20824 21685 22929 23644 Q1 FY22 Q2 FY22 Q3 FY22 Q4 F
Slide 24: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio No of outstanding Accounts (in Lakhs) 18469 12.61 17316 12.10 11.82 16378 11.62 15976 15764 11.32 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22 Q1FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22 Q1FY23 Tonnage 55.16 52.87 50.82 49.51 48.73 Q1 FY22 Q2 FY22 Q3 FY22 Q4FY22 Q1FY23 23
Slide 25: Wholesale Banking
Wholesale Banking CoB Corporate (CIB) Credit Substitutes ₹ in Cr 2707 2350 2241 2207 2255 21% 75% 52094 54960 48823 52198 47789 4% 12804 13692 14185 14651 15349 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 WHOLESALE BANKING Onboarded 44 new clients in CIB and 54 new clients in CoB, across business grou
Slide 26: Other Income : Distribution
Other Income : Distribution Other Income Distribution : Vertical Wise (In Cr) 1000 648 700 800 492 484 465 453 27 500 600 1 2 5 0 295 88 47 4 25 300 400 116 100 100 124 143 100 200 279 319 356 327 184 0 -100 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 Q1 FY 23 Retail Wholesale Treasury Others Total Other Incom
Slide 27: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Loan Processing Fee 53 96 104 105 103 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 161 227 258 280 275 Income 441 Net Profit on Forex 41 50 50 68 63 Transactions 73% Fee Income 255 373 412 453 441 255 Profit on
Slide 28: Distribution : Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Q3 FY22 Q4 FY22 Q1 FY23 29 3 1 Branches 1274 1282 1291 21 27 ATM/ 1882 1885 1860 23 Recyclers 8 12 2 8 2 1 47 9 31 11 1 2 3 24 101 Footprint Expansion Plans 22 (Lite Branch Heavy Distribution Approach) 12% 16% Q1 FY23 6 12% 16% 28 Opened 10 Branc
Slide 29: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Q4 FY22 Q1 FY23 Risk Weighted Assets Credit Risk 107167 115456 Market Risk 3398 3747 Operational Risk 11695 13136 Total RWA 122260 132339 Tier-1 Capital Funds 17639 17620 Tier-II Capital Funds 1637 1666 Total Capital Funds 19276 19285 CRAR 15.77% 14.57% Tier-I
Slide 30: Annexures
FEDERAL BANK Annexures 29
Slide 31: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q4 FY22 Q1 FY23 LIABILITIES Capital 421 421 Share Holding Pattern Reserves & Surplus 18373 18972 Deposits 181701 183355 Borrowings 15393 15834 30% Other Liabilities & Provisions 5059 6771 33% TOTAL 220946 225353 1% ASSETS 16049 13157 26% Cash & Balance wi
Slide 32: Financials
Financials ₹ in Cr Q1 FY22 Q4 FY22 Q1 FY23 Q-o-Q Y-o-Y Interest Income 3356 3483 3629 4.2% 8.1% Interest Expenses 1937 1958 2024 3.4% 4.5% Net Interest Income 1418 1525 1605 5.2% 13.1% Other Income 648 465 453 -2.7% -30.2% Operating Expense 933 1192 1084 -9.1% 16.1% Total Income 4004 3948 4081 3.4%
Slide 33: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance OTHER FINANCIAL INTERMEDIATION/ ON- 1.26% LENDING 30.06.2022 TRANSPORT VEHICLES & PARTS 1.47% CONTRACTORS 1.66% CHEMICALS 1.76% TEXTILES INCLUDING JUTE & COIR 2.04% POWER GENERATION & TRANSMISSION 2.16%
Slide 34: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 73.30% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.87% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 35: 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. 34
Slide 36: Thank You
Thank You AE A aA og