National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q1 2023 Earnings Presentation
22 slides from National Development Bank's earnings presentation, May 23, 2023
Slide 1: Investor Update – Q1 2023
Investor Update – Q1 2023 National Development Bank PLC NDB.N0000 National Long-term Rating: A- (lka), Fitch Ratings Lanka Limited 23 May 2023 11.00 am (GMT +0:530) Hosted from Colombo, Sri Lanka
Slide 2: 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 regarding the information disclos
Slide 3: Corporate Participants
Corporate Participants PRESENTED BY Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera - Senior Vice President - Personal Banking & Customer Experience Deepal Akuratiyagama - Chief Operating Officer Suvendrini Muthukumarana - Chief Financial Officer Niran Mahawatte - Vic
Slide 4: Agenda
AGENDA PART I CORPORATE PROFILE PART II OPERATING ENVIRONMENT PART III FINANCIAL PERFORMANCE – Q1 2023 PART IV WAY FORWARD PART V Q&A
Slide 5: Part I - Corporate Profile
PART I - CORPORATE PROFILE PART I - CORPORATE PROFILE 5
Slide 6: Corporate Profile
CORPORATE PROFILE Our Legacy Our Team Over 40 years of Over 3,000 NDBers across the Our Values service to the nation NDB Group Integrity Our Vision Creativity Our Presence 113 branches, 150+ CRM cum The driving force for a Excellence ATMs , Global access through financially empowered Sincerity NDB N
Slide 7: Part II - Operating Environment: Navigating Turbulences
PART II - OPERATING ENVIRONMENT Navigating Turbulences
Slide 8: Operating Environment
OPERATING ENVIRONMENT Economic conditions on a slow but gradual and steady improvement • Inflationary pressures easing, due to moderating external pressures, normalisation of supply-side dynamics and lower disposable income following the increases in taxes. Considerable reduction in April 2023 infla
Slide 9: Banking Sector Highlights – Q1 2023
BANKING SECTOR HIGHLIGHTS – Q1 2023 • Marginal growth in total assets at industry level with most banks recording a decline in total assets or marginal growth • Negative growth in loans and receivables • Deposits on a moderate growth trend • CASA deposits denote a considerable decline • Enhancement
Slide 10: Part III - Financial Performance Review: A Transformative Journey
PART III - FINANCIAL PERFORMANCE REVIEW A Transformative Journey
Slide 11: Financial Performance Overview
FINANCIAL PERFORMANCE OVERVIEW Income/ Profitability Gross Income – LKR 33.5 Bn - YoY 75% NII – LKR 8.5 Bn - YoY 38% Net Operating Income - LKR 4.5 Bn – YoY 24% Pre-tax profitability LKR 1.4 Bn - YoY 45% Post-tax profitability LKR 805.3 Mn YoY 33% Balance Sheet Total Assets - LKR 781.9Bn - YTD (6% )
Slide 12: Financial Performance - Income
FINANCIAL PERFORMANCE - INCOME LKR Mn Fund based income Q1 2023 Q1 2022 Variance % Gross Income 33,534 19,162 14,372 75 Interest Income 32,774 15,366 17,408 113 Interest Expense 24,229 9,159 15,070 165 Net Interest Income 8,545 6,207 2,338 38 Non-fund based income Q1 2023 Q1 2022 Variance % Net Fee
Slide 13: Financial Performance – Impairment Charges
FINANCIAL PERFORMANCE – IMPAIRMENT CHARGES LKR Mn Q1 2023 Q1 2022 Variance % Impairment Charges 4,811 6,367 -1,556 -24% • Despite its negative YoY growth in the quarter, impairment charges continued to weigh down the profits of the quarter • Impairment charges inclusive of provisions made on Investm
Slide 14: Financial Performance – Operating Expenses
FINANCIAL PERFORMANCE – OPERATING EXPENSES LKR Mn Q1 2023 Q1 2022 % Personnel expenses 1,454 1,340 9% Depreciation & amortization 242 193 25% Other expenses 1,399 1,133 23% Total operating expenses 3,094 2,666 16% Composition of Operating Expenses • Controllable costs denoted in total operating expe
Slide 15: Financial Performance – Balance Sheet
FINANCIAL PERFORMANCE – BALANCE SHEET Variance LKR Bn Q1 2023 FY 2022 LKR % Total assets 782 833 (51) -6% Investments 210 199 11 6% Gross loans 536 580 (44) -7% Total deposits 629 672 (43) -6% Borrowings 72 81 (9) -11% Total equity 65 64 1 2% • Balance sheet deceleration – an industry-wide direction
Slide 16: Financial Performance – Investor Ratios
FINANCIAL PERFORMANCE – INVESTOR RATIOS Bank Group Q1 2023 FY 2022 Q1 2023 FY 2022 N/A Closing Price per Share [LKR] 44.90 32.00 N/A EPS [LKR] 8.59 7.65 9.11 7.92 ROE [%] 5.07 4.75 5.06 4.62 ROA [%] [Pre-tax] 0.70 0.26 0.75 0.34 Book Value per Share [LKR] 172.02 167.16 182.50 177.60 P/E [times] 5.23
Slide 17: Financial Performance – Capital & Liquidity Position
FINANCIAL PERFORMANCE – CAPITAL & LIQUIDITY POSITION Bank Group Ratio Q1 2023 FY 2022 Q1 2023 FY 2022 Common Equity Tier 1 Capital Ratio % [Minimum Requirement -7% - 10.08 9.34 10.62 9.87 2021-6.5% ] Tier 1 Capital Ratio % [Minimum Requirement – 2022-8.5% - 2021- 10.08 9.34 10.62 9.87 8.0%] Total Ca
Slide 18: Part IV - Way Forward: Responsive and Agile
PART IV - WAY FORWARD Responsive and Agile
Slide 19: Way Forward
WAY FORWARD • Our strategic priorities • maximizing fee based income and enhancing revenue mix • driving cost rationalizations to preserve profitability and enhance shareholder returns • preserving asset quality • Cautious loan book growth with risk efficient lending • supporting customers maintain
Slide 20: Part V - Q & A
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Slide 21: Q & A
Q&A Please use the Chat Option to pose your questions to the CEO and Panel Dimantha Seneviratne Director/ Chief Executive Officer Panelists Sanjaya Perera – Senior Vice President – Personal Banking & Customer Experience Deepal Akuratiyagama – Chief Operating Officer Suvendrini Muthukumarana – Chief
Slide 22: Analysts Support / Investor Relations
ANALYSTS SUPPORT Clearly defined Quarterly Results Calendar released at the end of each quarter NDBWebinar Investor transcriptsRelations hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for any queries and cla
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