Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q1 FY20 Earnings Presentation
36 slides from Federal Bank Ltd. (india)'s earnings presentation, Jul 16, 2019
Slide 1: Federal Bank cover letter to exchanges
FEDERAI. BANK YOUR PERTECT BANKINC PARTNER Secretarial Department sDF-241 120',19-20 16th July 2019 Listing Department Department of Corporale Services - Listing The National Stock Exchange of lndia Limited BSE Limited -ilt!llu Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Floor 2
Slide 2: Version 2.0
Version:2.0
Slide 3: Key Messages
Key Messages Strong Operating Momentum Stable & Controlled Credit Growth of 19% • Highest ever Operating Profit @ 783cr, grows • Core Retail grew by 32% & CIB by 18% 30% Y-o-Y • Auto grew 61%, PL-176% & HL-31% • Highest ever Net Profit @ 384cr, grows 46% Y- • Highest ever NII @1154Cr, grows 18% Y-o-
Slide 4: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 11.86 11.44 10.48 8.61 8.50 3.17 3.15 1.02 0.98 3.12 3.15 3.17 0.91 0.79 0.76 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Cost to Income Ratio NNPA (%) PCR (%) 51.80 50.25 49.96 49.
Slide 5: Key Revenue
Key Revenue ₹ in Cr Net Interest Income Other Income 1154 1077 1097 412 392 1022 980 346 323 271 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Fee Income Net Profit 382 384 334 279 289 261 260 263 266 208 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q2 FY19 Q3 FY
Slide 6: Business Architecture
Business Architecture Retail - Personal Banking Corporate & Institutional Banking Business Structure Business Banking Commercial Banking Agri, Rural and Micro Banking • Catering to Retail, Small Business, Agri, Rural and • Catering to Commercial, Mid Market and Micro Banking Clients. Corporate Clien
Slide 7: Rearview and the Road Ahead
Rearview and the Road Ahead… Business initiatives To Sharpen high Quality Growth • Facilitated a cautious lending approach given the heightened risks in the external environment • Ensured right pricing and repricing of credit facilities based on Reciprocity and Risk resulting in higher yield. • Thru
Slide 8: Performance Highlights Y-o-Y
Performance Highlights Y-o-Y Operating Profit 30 % Retail (inc Agri) 24 % Net Profit 46 % Agri 21 % RoA @ 0.98 % Business banking 13 % RoE @ 11.44 % Corporate Business 18 % Cost to Income Ratio @ 49.36 % GNPA @ 2.99 % Total Advance 19 % Core Fee Income 25 % Other Income 45 % CASA 12 % CA 23 % NII 18
Slide 9: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Business Banking Commercial Total Advances Retail + Agri CIB (BuB)# Banking (CoB)# Advances 24% 13% 12% 18% 19% 35821 -> 44585 8250 -> 9296 10421 -> 11625 41023 -> 48211 95515 -> 113717 CASA CASA Ratio NRE Deposits Retail Deposits -203 Deposits bps 12% 13% 1
Slide 10: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Business Banking Commercial Total Advances Retail + Agri CIB (BuB)# Banking (CoB)# Advances -3% 3% 1% 1% 2% 43171 -> 44585 9564 -> 9296 11525 -> 11625 47569 -> 48211 111829 -> 113717 CASA CASA Ratio NRE Deposits Retail Deposits -71 Deposits -4% bps 1% 0.2% 4
Slide 11: Key Indicators
Key Indicators Q1 FY20 Q4 FY19 Q3 FY19 Q2 FY19 Q1 FY19 Book Value 68.79 66.87 64.60 62.81 62.62 (Per Share in ₹) Shareholder Value EPS 7.76 7.68 6.68 5.33 5.32 (annualized) CASA + Deposits <2 Cr 89% 88% 91% 92% 93% Granularity (% of Total Deposits) ROA 0.98 1.02 0.91 0.76 0.79 Profitability RoRWA 1.
Slide 12: Asset Quality Drill-Down
Asset Quality Drill-Down 4.30 4.29 4.37 3.40 3.33 3.44 Total Stressed Book @ 3.01 2.74 2.92 2.86 2.84 2624Cr. 1.67% of Average 2.28 Total Assets. 3498 3537 3662 2.01 2.01 1.96 1.71 1.67 3191 3197 3357 532 3139 2970 431 417 2955 2958 3139 2890 2680 584 775 2784 2855 2581 2624 484 675 606 804 788 876
Slide 13: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q1 Q4 Q3 Q2 Q1 FY20 FY19 FY19 FY19 FY19 Q1 FY20 Q4 FY19 TYPE Retail 141 67 108 120 109 Of which Of which Balance Balance Bonds Bonds Agri 67 92 71 65 54 STANDARD 619 66 604 66 SME 119 97 192 169 90 BuB 99 67 107 94 39 Gross NPA 596 58 626 58 CoB
Slide 14: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution Risk Rating Q1 FY20 1% Q1 FY20 16% 21% 16% A & Above FBR1/FB1 1% 20% BBB FBR2/FBR3/FB2 32% 32% 11% <BBB FBR4/FB3 11% Q4 FY19 FBR5/FBR6/FB4 Q4 FY19 73% OTHERS 23% 23% 24% 73% 23% Wholesale Assets Other Assets Rating Q1 FY-20 Q4 FY-19 Rating Q1 FY-20 Q4 FY-19 FBR1 F
Slide 15: Digital Migration
Digital Migration Digital vs Branch : Transaction count with bifurcation on various Digital channels(In lakhs) 40.00 39.06 39.12 78.00% 35.48 35.00 76.15% 76.00% 28.39 74.00% 30.00 25.91 73.77% 73.50% 72.00% 25.00 70.00% 20.00 68.00% 13.07 68.47% 13.46 14.09 15.00 12.62 12.25 66.00% 10.00 65.82% 64.
Slide 16: Digital Migration: Performance highlights
Digital Migration : Performance highlights BYOM Digital Personal Loans : Loan book progress 45000 41461 800 755 40000 700 33776 35000 31082 600 30000 27429 515 500 25000 22173 452 20188 400 • BYOM enables Instant online loan pre 20000 358 300 approved loan disbursal 15000 . 230 232 • Option to conve
Slide 17: Business Parameters
FEDERAL BANK YOUR PERFECT BANKING PARTNER Business Parameters
Slide 18: Liability: Trends
Liability : Trends ₹ in Cr Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 CASA Ratio 80991 79032 33.47% 33.39% 33.35% 32.15% 74175 31.44% 72018 69480 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 43731 42018 41622 39900 37542 Cost of Deposits 5.93 5.97 Q4 FY19 Q1 FY20 CASA + Demand Dep Other Retail Deposit COD 1
Slide 19: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing Mortgage Auto Personal Others Total Loan Book 7144 7246 7135 929 6815 773 29% 7113 602 2323 2565 488 2041 42% 337 1804 6121 1596 5990 5373 5110 4864 10% 14560 15394 16038 12209 13582 10% 8% Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY
Slide 20: Credit Portfolio Distribution
Credit Portfolio Distribution Retail Wholesale ₹ in Cr Total Loan Book 59094 59837 47% 55717 57847 53% 51444 46604 49251 52735 53880 44071 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Retail Book Retail AGRI BuB 9564 9296 22% 8918 8625 8250 11788 61% 10621 11444 9703 10180 17% 29712 31727 32797 26118 277
Slide 21: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q1 FY20 Q4 FY19 Q3 FY19 Q2 FY19 Q1 FY19 Y-o-Y % Loan Processing Fee 49 50 50 53 31 56% Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 169 185 156 147 129 31% Income 260 Net Profit on Forex 43 54 74 61 47 -10% Transactions 25% 208 Fee Income 260 289 279
Slide 22: Fee Income: Distribution
Fee Income : Distribution Fee Income Distribution : Vertical Wise IDBI Federal 412 (In Cr) 500 392 Dividend 346 400 Income : 21Cr 323 400 7 25 271 300 2 107 104 300 95 102 200 78 81 59 65 200 63 100 41 100 182 219 197 0 149 164 0 -100 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 Retail Wholesale Tre
Slide 23: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Q1 FY20 Q4 FY19 Q3 FY19 30 Branches 1251 1251 1251 3 1 27 22 ATM/Recyclers 1934 1937 1926 23 2 8 12 8 2 1 45 1 12% 16% 8 31 1 11 12% 16% 1 3 25 102 Q4 FY19 17% 17% Q1 FY20 16 22 6 55% 101 55% 2 137 Metro Urban Semi Urban Rural 599
Slide 24: Distribution: Bank's Market Share
Distribution ₹ in Cr Kerala : Prominence to Dominance Outside Kerala: Presence to Prominence 7150 30-Jun-19 36593 Corporate 11% 30704 19% 6470 30-Jun-18 Commercial Banking 5083 6428 9% 5681 13% (CoB) 4685 4507 4718 Business Banking (BuB) 11% 4063 4069 16% 19526 20008 Retail ex-gold (inc Agri) 22% 14
Slide 25: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Jun-19 Mar-19 Risk Weighted Assets Credit Risk 84084 83112 Market Risk 3458 3327 Operational Risk 8715 7326 Total RWA 96257 93764 Tier-1 Capital Funds 12550 12546 Tier-II Capital Funds 1019 714 Total Capital Funds 13569 13260 CRAR 14.10% 14.14% Tier-I 13.04% 1
Slide 26: Annexures
FEDERAL BANK YOUR PERFECT BANKING PARTNER Annexures
Slide 27: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q1 FY20 Q1 FY19 LIABILITIES Capital 397 396 Share Holding Pattern Reserves & Surplus 13264 12103 Deposits 132537 111242 Borrowings 9951 9470 21% 36% Other Liabilities & Provisions 4188 3470 TOTAL 160338 136681 4% ASSETS 3% Cash & Balance with RBI 6449 483
Slide 28: Financials
Financials ₹ in Cr Q1 FY20 Q4 FY19 Q-o-Q Q1 FY19 Y-o-Y Interest Income 3229 3032 6% 2667 21% Interest Expenses 2075 1936 7% 1687 23% Net Interest Income 1154 1097 5% 980 18% Other Income 392 412 -5% 271 45% Operating Expense 763 754 1% 648 18% Total Income 3621 3444 5% 2938 23% Total Expense 2838 26
Slide 29: Top Sectors in Wholesale Advance Portfolio
Top 10 Sector in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance 30.06.2019 BASIC METALS 1.51% POWER GENERATION & 1.62% TRANSMISSION POST & 1.84% TELECOMMUNICATIONS CHEMICALS 1.99% CONTRACTORS 2.08% BANKS 2.08% FOOD PRODUCTS 2.21% 98% in HFC Segment rated A & Above RE
Slide 30: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % Equity Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 82.59% IDBI Federal Life Insurance Company of India Limited 26.00% Equirus Capital Private Ltd 19.59% Subsidiaries & JVs IDBI Federal Life Ins
Slide 31: External Ratings
External Ratings Fixed Deposit A1+ 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 PERE ae sat
Slide 34: Press Release: highest ever quarterly net profit
Marketing Department MKT/ /2019-20 July 16, 2019 PRESS RELEASE Federal Bank delivers highest ever quarterly net profit with 46% YoY growth Federal Bank announced the Unaudited Financial Results for the quarter ended 30th June 2019. The key highlights of the results on a Y-o-Y basis are as follows:
Slide 35: Operating Profit & Net Profit
Operating Profit & Net Profit The Operating Profit of the Bank as on 30th June 2019 stood at Rs. 782.76 Cr up from Rs. 602.92 Cr. The Total Income grew 23.23% Y-o-Y to reach Rs.3620.84 Cr. The Net Profit of the Bank as at the end of the current quarter stood at Rs. 384.21 Cr registering a Y-o-Y grow
Slide 36: Major Financial Indicators
MAJOR FINANCIAL INDICATORS (Standalone Nos) (Rs. in Cr) Business Figures As on 30.6.2019 As on 30.6.2018 Growth (%) Total Deposits 132537.46 111241.85 19.14% SB & Demand Deposits 42017.89 37541.53 11.92% Advances 112032.33 94296.78 18.81% Retail Advances 32797.10 26118.03 25.57% SME Advances 209