RBL Bank Ltd. · NSE:RBLBANK
RBL Bank — Q4 FY19 Earnings Presentation
51 slides from RBL Bank's earnings presentation, Apr 18, 2019
Slide 1: Investor Presentation 4th Quarter/FY19
Investor Presentation 4th Quarter/ FY 19 April 18, 2019
Slide 2: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by RBL Bank Limited (the “Company”) for use in presentations by
Slide 3: Glossary and Key Notes
Glossary and Key Notes AEPS Aadhaar Enabled Payment System IFI Institutional Financial Inclusion Agri Agribusiness Banking INR Indian Rupee API Application Programming Interface IPO Initial Public Offering ARC Asset Reconstruction Company LAP Loan Against Property ATM Automated Teller Machine MF Mut
Slide 4: Table of Contents
Table of Contents Topic Page Number Key Performance Highlights 5 RBL Vision 2020 12 Financial Performance 16 Distribution Network 31 Shareholding Pattern and Ratings 33 Awards 35 Microbanking Update 37 Credit Cards Update 41 Annexures 44 4
Slide 5: Key Performance Highlights
Key Performance Highlights 5
Slide 6: Q4 FY19 / FY19 Financial Highlights
Q4 FY19 / FY19 Financial Highlights Q4 FY19 / FY19 continues to track well to RBL Vision 2020 goals Total Revenue growth in Q4 FY19 of 41% YoY(FY19 growth of 40% YoY) NII growth of 48% YoY in Q4 FY19 (FY19 growth of 44% YoY) ; Other Income growth of 31% YoY in Q4 FY19 (FY19 growth of 35% YoY) Net Pr
Slide 7: Q4 FY19 Highlights
Q4 FY19 Highlights YoY Growth QoQ Growth Net interest Income Rs. 739cr 48% 13% Core Fee Income Rs. 388cr 43% 12% Net Total Income Rs. 1,148cr 41% 12% Operating Profit Rs. 560cr 46% 12% Net Profit Rs. 247cr 39% 10% 7
Slide 8: FY19 Highlights
FY19 Highlights YoY Growth Net interest Income Rs. 2,539cr 44% Core Fee Income Rs. 1,348cr 52% Net Total Income Rs. 3,982cr 40% Operating Profit Rs. 1,940cr 46% Net Profit Rs. 867cr 37% 8
Slide 9: FY19 Highlights Contd....
FY19 Highlights Contd…. YoY Growth QoQ Growth Advances Rs. 54,308cr 35% 9% Wholesale Rs. 30,229cr 25% 6% Advances Non-Wholesale Rs. 24,079cr 49% 12% Advances Deposits Rs. 58,394cr 33% 12% CASA Rs. 14,587cr 37% 14% 9
Slide 10: Key Indicators
Key Indicators Pre-IPO Advances Deposits Net Profit RoA BVPS FY 11 1,905 2,042 12 0.5% Rs. 50 FY 16 21,229 24,349 292 1.0% Rs. 91 (84% CAGR FY 11-16) (64% CAGR FY 11-16) (88% CAGR FY 11-16) Post Listing Performance) Advances YoY NIM Net Profit RoA Q3 FY17 26,773 46% 3.4% 129 1.17% Q4 FY17 29,449 39%
Slide 11: Key Indicators – Business Breakup
Key Indicators – Business Breakup Advances by Segment (%) Deposit Breakup (%) 14.0% 10.9% 39.3% 14.1% 30.3% 75.0% 16.3% Term Deposits Saving Deposits CIB CB Retail Assets DB&FI Current Deposits 11
Slide 12: RBL Vision 2020
RBL Vision 2020 12
Slide 13: Performance Tracking to Vision 2020 Goals
Performance Tracking to Vision 2020 Goals RBL Vision 2020 Actual FY19 (Post IPO/Sept 2016) Advances 30-35% CAGR 35% 0.75 - 1% increase FY 16: 18.6%; FY 17: 22.0% CASA Ratio every year FY 18: 24.3%; FY19: 25.0% Other Income % ~ 1/3rd of Net Total Income 36% Cost/Income ratio of FY 16: 58.6%; FY 17: 5
Slide 14: Key Initiatives of Vision 2020
Key Initiatives of Vision 2020 Leveraging technology to acquire, engage and service clients API banking, Abacus (Digital savings account); Fintech Partnerships (Moneytap, Technology Zeta) ; Credit card partnerships (Bajaj Finserv, BookMyShow, HyperCity) Enhancing distribution through a combination o
Slide 15: Our Fundamentals Have Resulted in Consistent Strong Performance
Our Fundamentals Have Resulted in Consistent Strong Performance Key Pillars Robust corporate governance framework and processes Broad Based Shareholder and Strong Capital Base Professional and experienced management team Eminent Board of Directors 15
Slide 16: Financial Performance
Financial Performance 16
Slide 17: Strong Profitability Momentum Continues
Strong Profitability Momentum Continues Parameter Q4 FY19 Q4 FY18 YoY Q3 FY19 QoQ FY19 FY18 Net Interest Income 739 500 48% 655 13% 2,539 1,766 Other Income 409 312 31% 374 9% 1,442 1,068 Net Total Income 1,148 812 41% 1,029 12% 3,982 2,834 Operating Profit 560 383 46% 498 12% 1,940 1,331 Net Profit
Slide 18: Strong Growth in Business; Improvement in Asset Quality
Strong Growth in Business; Improvement in Asset Quality Parameter March 31,2019 March 31, 2018 YoY Advances 54,308 40,268 35% Deposits 58,394 43,902 33% Investments 16,840 15.447 9% Parameter March 31,2019 March 31, 2018 December 31, 2018 CASA 25.0% 24.3% 24.6% GNPA 1.38% 1.40% 1.38% NNPA 0.69% 0.78
Slide 19: Well Diversified Other Income Profile; Rising Core Fee Income
Well Diversified Other Income Profile; Rising Core Fee Income Other Income Core Fee Income Breakup 1,442 7% 1,348 9% 1,068 409 374 388 5% 17% 346 887 40% 7% 9% 311 10% 8% 93% 270 13% 29% 4% 41% 41% 10% 93% 4% 13% 95% 83% 33% 4% 14% 71% 3% 6% 11% 14% 14% 23% 87% 28% 24% 23% 23% 16% 12% 14% 11% 12% Q4
Slide 20: Cost Increase Driven by Business Expansion; Range Bound Credit Costs
Cost Increase Driven by Business Expansion; Range Bound Credit Costs Operating Expenses Net Credit Cost by Business (bps) 24* 30* 29* 96 111 2,042 69 24 55% 1,503 588 531 17 49% 429 57% 56% 34 55% 10 6% 26 9 6% 8% 19 19 8% 17 6% 6% 8% 31% 5 13 6% 7% 37% 4 4 8% 3 10 29% 2 2 31% 31% 1 0 Q4 FY18 Q3 FY1
Slide 21: Changing Advances Mix and Improving Yields Helping NIMs
Changing Advances Mix and Improving Yields Helping NIMs Yield March 31,2019 March 31,2018 YoY Proportion FY19 C&IB 21,354 16,240 31% 8.9% CB 8,875 7,910 12% (8.6%) 56% Wholesale 30,229 24,150 25% Retail Assets 16,468 10,434 58% LAP 6,453 4,161 55% Credit Cards 5,283 2,244 135% Retail Agri 1,571 1,53
Slide 22: Diversified Loan Portfolio
Diversified Loan Portfolio Break up of advances - Tenor of Advances Secured/Unsecured 54,308 54,308 49,893 9% 49,893 10% 9% 8% 8% 40,268 40,268 8% 25% 11% 8% 24% 6% 21% 20% 21% 18% 66% 67% 68% 61% 68% 64% March 31, 2018 December 31, 2018 March 31, 2019 March 31, 2018 December 31, 2018 March 31, 2019
Slide 23: Stable Borrowers' Rating Profile
Stable Borrowers’ Rating Profile March 31, 2018 December 31, 2018 March 31, 2019 3.8% 3.1% 3.1% 3.3% 3.3% 3.8% 10.3% 9.3% 11.4% 16.2% 14.3% 18.7% 32.4% 31.4% 32.3% 37.5% 37.8% 38.2% 48.6% 50.1% 47.0% 39.8% 41.5% 36.7% 5.5% 2.6% 5.6% 3.4% 5.9% 3.1% Internal Borrower Internal Facility Ratings Internal
Slide 24: Diversified Industry Mix
Diversified Industry Mix Top 10 industry* Outstanding Industry FB-NFB Split % of Exposure Loan Exposure Engineering 3,895 42:58 5.3% Construction 3,546 39:61 4.9% Retail / Distribution 3,204 82:18 4.4% NBFC (ex. HFC & DFI) 2,816 98:2 3.9% Power 2,725 67:33 3.8% Real Estate 2,617 91:9 3.6% Pharma 2,5
Slide 25: Asset Quality Continues to Remain Strong
Asset Quality Continues to Remain Strong Gross NPA by business segment Quarter Ended Business segment March December March March December March 31,2019 31,2018 31,2018 31,2019 31,2018 31,2018 C&IB 121.5 92.1 83.1 Movement of Gross NPAs Opening Balance 696 645 580 % of total advances 0.22% 0.18% 0.21
Slide 26: Capital Adequacy - Well Capitalized to Support Growth
Capital Adequacy - Well Capitalized to Support Growth Particulars March 31, 2019 March 31, 2018 December 31, 2018 Tier 1 Capital Funds* 7,210 6,544 7,060 Tier 2 Capital Funds 814 826 721 Total Capital Funds 8,024 7,370 7,781 Total RWA 59,607 48,079 56,406 Tier 1 CRAR* 12.1% 13.6% 12.5% Total CRAR* 1
Slide 27: Sustained Growth in Deposits, Led by CASA
Sustained Growth in Deposits, Led by CASA 37% yoy growth in CASA, while total deposits grew by 33% CASA : 24.3% CASA : 24.6% CASA : 25.0% CASA : 10,678 CASA : 12,821 CASA : 14,587 58,394 52,187 10.9% 43,902 12.1% 14.1% 12.1% 12.5% 12.2% 75.4% 75.0% 75.7% March 31, 2018 December 31, 2018 March 31, 20
Slide 28: Diversified Borrowing Streams
Diversified Borrowing Streams Borrowing Breakup 11,832 10,265 9,261 6% 7% 7% 8% 19% 49% 6% 55% 43% 31% 45% 24% March 31, 2018 December 31, 2018 March 31, 2019 Refinance FCY Inter-bank CBLO/LAF Tier II 28
Slide 29: Steady Investment Book
Steady Investment Book Investment Breakup 16,840 14,815 15,447 6% 1% 13% 6% 15% 8% 13% 10% 8% 76% 71% 73% March 31, 2018 December 31, 2018 March 31, 2019 G-Sec Debentures & Bonds Money Market /Equities/MF Others Yield Yield Q4 FY19 Q4 FY18 Q3 FY19 FY19 FY18 Total Investments 7.5% 7.2% 7.5% 7.4% 7.4%
Slide 30: NIM Improvement Helped by Lower Cost of Funds and Stable Yields
NIM Improvement Helped by Lower Cost of Funds and Stable Yields Pre-IPO FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Yield on Advances 10.9% 12.6% 13.1% 12.9% 12.3% 11.7% Cost of Funds 5.8% 8.3% 9.6% 9.4% 8.4% 7.6% Cost of Deposits 5.8% 8.1% 8.9% 8.8% 8.3% 7.7% Post Listing Performance Q4 FY17 Q1 FY18 Q2 FY1
Slide 31: Distribution Network
Distribution Network 31
Slide 32: Our Growing, Multi-Layered Distribution Network
Our Growing, Multi-Layered Distribution Network Locations Customers (Mn.) Chandigarh 3 5.33 5.82 6.51 27 4.50 4.91 GIFT 2 city 10 New Delhi branch March 31, June 30, September December March 31, 9 2018 2018 30, 2018 31, 2018 2019 10 6 Channel Breakup 1 Channels Number of transaction points 26 15 Mar
Slide 33: Shareholding Pattern & Ratings
Shareholding Pattern & Ratings 33
Slide 34: Diversified Shareholding & Strong/Improving Rating Profile
Diversified Shareholding & Strong/Improving Rating Profile Shareholding by category (%) Ratings Instrument Rating 1.3 0.8 Basel III compliant Tier II ICRA AA- hyb (Stable) 7.0 bonds CARE AA- (Stable) 27.7 18.8 Certificate of Deposits ICRA A1+ 21.5 23.0 Medium term fixed deposit ICRA MAA (Stable) pro
Slide 35: Awards
Awards 35
Slide 36: Recent Awards
Recent Awards BEST PRIVATE SECTOR BEST FOR MICROFINANCE BEST SMALL BANK BANK ASIAMONEY AWARDS : INDIA SILVER, OUTLOOK MONEY BUSINESS TODAY- MONEY AWARDS TODAY FINANCIAL AWARDS 2019 2018 2018 36
Slide 37: Microbanking Update
Microbanking Update 37
Slide 38: Microbanking Distribution Network
Microbanking Distribution Network State Name % of Portfolio Tamilnadu 15% Bihar 14% Maharashtra 12% Karnataka 10% (25) Odisha 8% 6 (19) West Bengal 8% Rajasthan 6% 49 48 (35) (32) Madhya Pradesh 5% (69) (2) Gujarat 4% 74 29 78 15 (42) (27) (59) Punjab 4% 20 Jharkhand 3% 74 105 Haryana 3% (21) Micro
Slide 39: Micro-banking - Portfolio Growth
Micro-banking - Portfolio Growth Portfolio Mix March 31st ,2019 In Rs. crores Pre-Jan 2017 0.03% Post Jan 2017 99.97% Loan Tenor 5,028 0.8% 4,220 3,560 2,161 1,483 839 40.9% Mar 31,2015 Mar 31,2016 Mar 31,2017 Mar 31,2018 Dec 31,2018 Mar 31,2019 58.3% • Post Jan 2017 – 90+DPD : 0.54% • 2.49 Mn activ
Slide 40: Micro-banking - Through the door Mix
Micro-banking - Through the door Mix Bureau Rejection Rate Borrowing Cycle with RBL Bank 22% 20% 21% 21% 23% 33% 30% 28% 27% 26% 78% 80% 79% 79% 77% Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 First Cycle Repeat Cycle Bureau Hit Rate 82% 82% 79% 78% 78% Q4 FY18 Q1
Slide 41: Credit Card Update
Credit Card Update 41
Slide 42: Credit Card Base Increasing Steadily
Credit Card Base Increasing Steadily Cards in Force ( In Mn) Card Additions ( In Mn) 1.71 0.34 1.43 0.31 1.19 0.26 0.97 0.20 0.21 0.80 0.18 0.62 Dec Mar Jun Sep Dec Mar Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 31,2017 31,2018 30,2018 30,2018 31,2018 31,2019 Advances Breakup (In Rs. crore) Cus
Slide 43: Credit Cards - Sticky Customer Spends
Credit Cards - Sticky Customer Spends Total Spends (In Rs Crore) Consumer Loans 20.79 20.09 19.19 18.6 19.19 19.39 4,712 1,186 4,403 4,208 1,024 3,234 790 636 2,378 544 512 1,889 412 382 325 285 214 170 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 N
Slide 44: Annexures
Annexures 44
Slide 45: Board of Directors
Board of Directors Mr. Vishwavir Ahuja Mr. Prakash Chandra Managing Director and CEO Non – Executive Part Time Chairman Previously, Managing Director & Country Executive Officer of Bank Previously, Chairman of Central Board of Direct Taxes of America for Indian Sub-continent (CBDT) Mr. Sivanandhan D
Slide 46: Professional and Experienced Leadership Team
Professional and Experienced Leadership Team Mr. Vishwavir Ahuja Mr. Rajeev Ahuja Managing Director and CEO Executive Director Managing Director & Country Executive Officer of Bank of America Previously, associated with Citibank India, Bank of America, India for Indian Sub-continent from 2007-2009 a
Slide 47: Professional and Experienced Leadership Team (Contd.)
Professional and Experienced Leadership Team (Contd.) Mr. Ramnath Krishnan Mr. Pankaj Sharma Chief Risk Officer Chief Operations Officer Previously, Country Chief Risk Officer , HSBC Malaysia Berhad Previously, Head Retail Operations, Axis Bank (31) (20) Mr. Mohit Kapoor Mr. Bhavtaran Singh (Sunny)
Slide 48: Profit & Loss Statement
Profit & Loss Statement Particulars Q4 FY19 Q4 FY18 Q3 FY19 FY19 FY18 Income Interest Earned 1,834 1,223 1,639 6,301 4,508 Interest Expended 1,095 722 984 3,761 2,741 Net Interest Income 739 500 655 2,539 1,766 Other Income 409 312 374 1,442 1,068 Total Income 1,148 812 1,029 3,982 2,834 Expenditure
Slide 49: Balance Sheet Statement
Balance Sheet Statement Particulars March 31, 2019 December 31, 2018 March 31, 2018 Liabilities Capital 427 428 420 Reserves and Surplus 7,121 6,848 6,264 Deposits 58,394 52,187 43,902 Borrowings 11,832 10,266 9,261 Other Liabilities 2,585 2,474 2,003 Total 80,359 72,202 61,851 Assets Cash & Balance
Slide 50: Our Recent History
Our Recent History Particulars FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 Net Worth 1,075 1,131 1,594 2,012 2,224 2,960 4,242 6,544 7,336 Deposits 2,042 4,739 8,341 11,599 17,099 24,349 34,588 43,902 58,394 Advances (Net) 1,905 4,132 6,376 9,835 14,450 21,229 29,449 40,268 54,308 Investmen
Slide 51: Thank you
Thank you Contact us at: ir@rblbank.com +91-22-4302 0600 Please email us your contact details at the above id to get added to our investor relations mailing list Please visit our Investor Relations website – https://ir.rblbank.com/ 51