Slide 1: Investor Webinar Q1 2019
INVESTOR WEBINAR Q1 2019 National Development Bank PLC [CSE Stock Code - NDB.N0000] 16 May 2019 10:00 HRS Colombo Sri Lanka
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements This document has been prepared by National Development Bank PLC [“NDB”, “Bank” or the “Group”] solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regard
Slide 3: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Director/ Group Chief Executive Officer Panelists Buwaneka Perera – Senior Vice President - Corporate Banking Sanjaya Perera – Senior Vice President – Personal Banking & Branch Network Deepal Akuratiyagama – Chief Operating Officer Niran Mahaw
Slide 4: Agenda
Agenda • Part I – Business Overview • Part II - Financial Performance • Part III - Q&A Forum 4
Slide 5: Agenda
Agenda • Part I – Business Overview • Part II - Financial Performance • Part III - Q&A Forum 5
Slide 6: Business Overview – Fast Facts
Business Overview – Fast Facts • 4 decades of banking excellence with 14 years of commercial banking specialization • Approximately 2,500 competent NDBers delivering universal banking services • 110 branches, 122 ATM & CRM touch-points • Strong digital financial capabilities • Bank2U, the Branch-les
Slide 7: Business Overview – Key Awards 2019
Business Overview – Key Awards 2019 • AsiaMoney Magazine - Country Best Bank Awards 2019 Best Domestic Bank Sri Lanka Best for Premium Banking Services Sri Lanka Best Corporate and Investment Bank Sri Lanka [Third consecutive year] • Global Banking & Finance Review UK - 2019 Best SME Bank Sri Lanka
Slide 8: Agenda
Agenda • Part I – Business Overview • Part II - Financial Performance • Part III - Q&A Forum 8
Slide 9: Movement in KPIs - Snapshot
Movement in KPIs - Snapshot Income Statement & Profitability Key ratios LKR Mn Q1 2019 YoY Growth % NIM of 3.41% Net interest income 4,661 39 Cost to income ratio of 37.28% ROE of 11.06% Net fee & comm income 864 22 ROA of 0.81% NPL ratio of 3.37% Pre-tax core banking 2,579 22 Tier I CAR
Slide 10: Income Statement [Bank]
Income Statement [Bank] LKR Mn Q1 2019 Q1 2018 Variance % Gross Income 14,101 11,943 2,158 18 Interest Income 12,770 9,884 2,885 29 Interest expenses 8,108 6,533 1,575 24 Net interest income 4,661 3,351 1,310 39 Non – Fund based income 1,331 2,059 [728] [35] Impairment charges for loans and other lo
Slide 11: Non Fund Based Revenue Analysis
Non Fund Based Revenue Analysis LKR Mn Q1 2019 Q1 2018 Variance % Net fee and commission income 864 710 154 22 Net gains from trading 356 355 1 0.3 Net gain/ [loss] from financial 5 [11] 16 142 investments Net gains from de-recognition of 62 272 [210] [77] financial assets Other operating income 44
Slide 12: Operating Expenses [Bank]
Operating Expenses [Bank] Cost to Income Ratio - % LKR Mn Q1 2019 Q1 2018 % Increase Personnel expenses 1,161 1,015 14 Q1 2019 37.3 Depreciation & amortization 137 105 30 Other expenses 934 811 15 FY 2018 39.3 Total operating expenses 2,232 1,932 16 Key cost drivers • Increase in staff base to suppo
Slide 13: Balance Sheet [Bank]
Balance Sheet [Bank] LKR Bn Q1 Q1 FY 2018 YTD YTD % YoY YOY % 2018 2019 Quantum growth Quantum growth growth growth Total assets 396 483 473 9.7 2 87 22 Gross loans 288 361 353 7.6 2 73 26 Total deposits 284 351 348 3.5 1 67 24 Total equity 29.7 35.3 35 0.3 1 5.6 19 • Balance Sheet growth moderated
Slide 14: Loans & Receivables & Customer Deposits
Loans & Receivables & Customer Deposits Total gross loans – Currency Customer deposits composition 120 400 350 100 70 300 76 20 22 80 250 % composition CASA LKR Bn FCY 200 60 Other LCY 150 281 272 40 80 78 100 20 50 0 0 Q1 2019 2018 Q1 2019 FY 2018 • Enhanced currency mix of the loan book in Q1 • CA
Slide 15: Capital Management & Liquidity
Capital Management & Liquidity BASEL III – Q1 2019 Bank Group Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7.0%] 9.34 10.61 Tier 1 Capital Ratio % [Minimum Requirement – 8.5%] 9.34 10.61 Total Capital Ratio % [Minimum Requirement – 12.5%] 14.40 15.39 Liquidity Coverage Ratio [%] – Rupe
Slide 16: Investor Ratios
Investor Ratios Investor Ratios Bank Group Q1 2019 FY 2018 Q1 2019 FY 2018 Closing price per share [LKR] 94.20 106.80 NA NA EPS [LKR] [Annualized] 17.52 30.22 13.92 27.98 ROE [%] 11.06 17.41 7.91 14.26 ROA [%] 0.81 1.30 0.64 1.18 Book value per Share [LKR] 159.17 166.41 176.10 185.49 P/E [times] 5.3
Slide 17: Agenda
Agenda • Part I – Business Overview • Part II - Financial Performance • Part III - Q&A Forum 17
Slide 18: NDB Investor Relations
NDB Investor Relations NDB’s Investor Relations is the recipient of the Gold Award for Best Investor Relations at the coveted CFA Sri Lanka Capital Market Awards, for three consecutive years in 2018, 2017 & 2016. Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the