Iifl Finance Limited · NSE:IIFL
Iifl Finance — IIFL Holdings — Q3 FY2019 Earnings Presentation
39 slides from Iifl Finance's earnings presentation, Jan 30, 2019
Slide 1: Cover letter to stock exchanges
January 30, 2019 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalai Street, Bandra - Kuria Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. Tel no.:
Slide 2: Press Release: Results update
IIFL Holdings Limited Press Release For immediate publication Mumbai, India January 30, 2019 Results update IIFL Consolidated * -Profit after tax for 9MFY19 at 869 Cr (up 18% y-o-y) -Income# for 9MFY19 at 3,052 Cr (up 10% y-o-y) For the quarter and nine months ended December 31, 2018 (Q3FY19, 9MFY19
Slide 3: Loans and Mortgages
Mr. Nirmal Jain, Chairman, IIFL Holdings Ltd., commented on the financial results: “The last quarter has been challenging but in many ways a defining quarter for Indian NBFCs and capital market. Although our risk and liquidity management practices have been vindicated in last few months, we incessan
Slide 4: Wealth and Asset Management, Capital Market and others, Group reorganization
Wealth and Asset Management IIFL Wealth Management is the leading wealth management company in India. The company has catapulted itself to become the largest private wealth management firm in India in a decade since its inception. Headquartered in Mumbai, IIFL Wealth has over 900 employees and prese
Slide 5: Awards and Accolades received in Q3FY19
Awards and Accolades received in Q3FY19: IIFL Securities Ltd has bagged the "Best IPO Bidding Member -- Retail" award at the NSE Market Achievers Awards, 2018. IIFL had previously bagged the same award in 2017 also IIFL Securities Ltd won two awards at BSE Annual Felicitation ceremony, for being
Slide 6: About IIFL
About IIFL IIFL Holdings Ltd (NSE: IIFL, BSE: 532636) is a leading player in the Indian financial services space. IIFL is engaged in the business of loans and mortgages, asset and wealth management, retail and institutional broking, investment banking and realty services through its various subsidia
Slide 7: IIFL Holdings Limited: For the quarter ended December 31, 2018
For the quarter ended December 31, 2018 IIFL Holdings Limited Bloomberg: IIFL IN January 30, 2019 www.iifl.com 1
Slide 8: Index
Index I: IIFL Group Performance Overview 3 (i) IIFL Finance 10 (ii) IIFL Wealth 19 (iii) IIFL Securities 24 II: Ownership, Management and Governance 29 23 30 2
Slide 9: IIFL Group – Quarterly results at a glance (as per IND AS)
IIFL Group – Quarterly results at a glance (as per IND AS) Quarter ended December 2018 Key highlights of the period Profit Profit ` Cr Income Y-o-Y Y-o-Y Y-o-Y Before After (%) (%) (%) Tax Tax Loan AuM grew 33% y-o-y to `36,400 Cr IIFL Finance 602.0 12% 169.0 13% 108.4 6% IIFL Wealth 226.5 (22%) 103
Slide 10: IIFL Group – Nine-months results at a glance (as per IND-AS)
IIFL Group – Nine-months results at a glance (as per IND-AS) Nine months ended December 2018 Key highlights of the period Profit Profit ` Cr Income Y-o-Y Y-o-Y Y-o-Y Before After (%) (%) (%) Tier I Capital Tax Tax Adequacy Ratio stands at 17.4% IIFL Finance 1,755.1 24% 704.1 51% 464.9 48% against a
Slide 11: IIFL Group – Consolidated results (as per IND AS)
IIFL Group – Consolidated results (as per IND AS) Quarter ended December 2018 ` Cr Q3FY19 Q3FY18 Y-o-Y 9MFY19 9MFY18 Y-o-Y Revenue from Operations 1,790.3 1,686.5 6% 5,374.4 4,691.0 15% Other income 31.6 74.8 (58%) 121.8 155.6 (22%) Total Income 1,821.9 1,761.3 3% 5,496.3 4,846.6 13% Employee cost 3
Slide 12: IIFL Group – Consolidated Balance Sheet
IIFL Group – Consolidated Balance Sheet Quarter ended December 2018 ` Crore As at As at ASSETS Dec 31 2018 LIABILITIES AND EQUITY Dec 31 2018 Unaudited Unaudited 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 1,013 (a) Derivative financial instruments 88 (b) Bank Balance ot
Slide 13: IIFL Group – Consolidated financial trends
IIFL Group – Consolidated financial trends Quarter ended December 2018 Net-worth (` Cr) Profit after tax (` Cr) Return on Equity (%) 911 19.0% 19.3% 17.3% 17.7% 16.3% 686 664 13.5% 5,066 5,768 447 511 4,381 2,558 3,352 278 2,152 FY14 FY15 FY16 FY17 FY18 9MFY19 FY14 FY15 FY16 FY17 FY18 9MFY19 FY14 FY
Slide 14: Update on IIFL Group Reorganisation
Update on IIFL Group Reorganisation The Board of Directors of the Company at its meeting held on January 31, 2018, had approved the reorganization of IIFL Group, which will result in three listed entities – IIFL Finance, IIFL Wealth and IIFL Securities. Prior approvals/no objection Next Steps re
Slide 15: I: IIFL Group Performance Overview
I: IIFL Group Performance Overview (i) IIFL Finance (ii) IIFL Wealth (iii) IIFL Securities II: Ownership, Management and Governance 9
Slide 16: IIFL Finance – Consolidated results (as per IND AS)
IIFL Finance – Consolidated results (as per IND AS) Quarter ended December 2018 (NBFC, HFC and MFI) ` Cr Q3FY19 Q3FY18 Y-o-Y 9MFY19 9MFY18 Y-oY Loan book 27,341 23,562 16% 27,341 23,562 16% Securitised assets * 9,059 3,726 143% 9,059 3,726 143% Assets under management 36,400 27,288 33% 36,400 27,288
Slide 17: IIFL Finance – Consolidated Balance Sheet
IIFL Finance – Consolidated Balance Sheet Quarter ended December 2018 (NBFC, HFC and MFI) ` Crore As at As at ASSETS Dec 31 2018 LIABILITIES AND EQUITY Dec 31 2018 Unaudited Unaudited 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 613 (a) Derivative financial instruments 27
Slide 18: Achieving volume & profit growth with superior asset mix
Achieving volume & profit growth with superior asset mix Quarter ended December 2018 AUM break-up (%) Loan AUM (`Cr) Q3FY19 Y-o-Y Q-o-Q MSME & ● Focus getting sharper on Micro- others, Home Loan 11,208 49% 6% finance, 7% small ticket retail loans, Capital 5% Loan against property 5,848 5% (1%) Marke
Slide 19: Funding costs rise, boarding yields rise in tandem
Funding costs rise, boarding yields rise in tandem Quarter ended December 2018 Cost of Funds (%) NIM (%) ● Capital adequacy at 20.7%, well above the minimum requirement 12.0% 11.1% 7.1% 7.1% ● Tier I Capital Adequacy 10.2% 9.4% 7.0% 7.0% 8.5% 8.8% Ratio stands at 17.4% 6.5% against a threshold of 6.
Slide 20: Through cycles, maintaining superior quality of assets
Through cycles, maintaining superior quality of assets Quarter ended December 2018 ● GNPA stood at 3.7% Gross NPA (%) Net NPA (%) and NNPA at 1.5%, the spike was caused by 180 150 120 90 90 180 150 120 90 90 DPD DPD DPD DPD DPD DPD DPD DPD DPD DPD real estate loans, in the last quarter 3.74% 1.49% ●
Slide 21: Comfortable liquidity position
Comfortable liquidity position Quarter ended December 2018 ● During last quarter, we ` Cr 35,000 halved our commercial paper (CP) exposure, down Cumulative 30,000 Inflow from 24% of loans to 12%. 25,000 ● Funding mix is well diversified including 17% 20,000 Surplus Cumulative from NCDs, 5% from sub-
Slide 22: Loan maturity pattern
Loan maturity pattern Quarter ended December 2018 IIFL’s retail short tenure loans, have shorter maturity, making asset liability match more comfortable As at Loan Book 0 – 6m 6m - 1 year 1 to 3 year > 3 year Total December 31, 2018 ` Cr Home loan 13% 7% 26% 54% 100% 8,218 Loan against property 11%
Slide 23: Well diversified funding mix
Well diversified funding mix Quarter ended December 2018 IIFL’s resource profile is well diversified, with increasing share of securitized assets and bank loans `Cr 40,000 35,000 16% 30,000 27% 17% 2% 12% 1% 25,000 2% 1% 35% 20,000 14% 32% 33% 4% 40% 15,000 10% 4% 31% 5% 6% 43% 19% 18% 18% 10,000 5%
Slide 24: I: IIFL Group Business Overview
I: IIFL Group Business Overview (i) IIFL Finance (ii) IIFL Wealth (iii) IIFL Securities II: Ownership, Management and Governance 18
Slide 25: IIFL Wealth – Consolidated results (as per IND AS)
IIFL Wealth – Consolidated results (as per IND AS) Quarter ended December 2018 `Cr Q3FY19 Q3FY18 Y-o-Y 9MFY19 9MFY18 Y-o-Y Assets under advice, management and distribution 1,60,573 1,28,175 25% 1,60,573 1,28,175 25% Fee based income 169.0 218.7 (23%) 656.2 648.1 1% Less: Direct Cost 19.7 16.2 22% 55
Slide 26: IIFL Wealth – Consolidated Balance Sheet
IIFL Wealth – Consolidated Balance Sheet Quarter ended December 2018 As at As at ASSETS Dec 31 2018 LIABILITIES AND EQUITY Dec 31 2018 Unaudited Unaudited 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 142 (a) Derivative financial instruments 61 (b) Bank Balance other than
Slide 27: Performance: Leading Wealth manager in India
Leading Wealth manager in India Quarter ended December 2018 Total assets (` Cr) * Profit before and after tax (` Cr) ● IIFL Wealth offers a broad range of product and services to participate in a 496 1,60,573 larger share of the client 410 1,31,762 363 385 wallet, including financial 94,919 290 prod
Slide 28: Broadening advisory and asset management services
Broadening advisory and asset management services Quarter ended December 2018 ● Wealth NBFC, which Break-up of Wealth Mgmt Assets (%) Break-up of AMC Assets (%) mainly offers loans against securities to 2% 4% 4% 4% 5% 2% 6% 5% 4% 5% 3% 1% 1% 3% 3% 3% 4% 4% 4% clients had a loan book 7% 35% 35% 44% o
Slide 29: (iii) IIFL Securities
I: IIFL Group Performance Overview (i) IIFL Finance (ii) IIFL Wealth (iii) IIFL Securities II: Ownership, Management and Governance 23
Slide 30: IIFL Securities – Consolidated results (as per IND AS)
IIFL Securities – Consolidated results (as per IND AS) Quarter ended December 2018 ` in Crore Q3FY19 Q3FY18 Y-o-Y 9MFY19 9MFY18 Y-o-Y Revenue from Operations 192.6 204.8 (6%) 629.3 615.6 2% Other income 11.1 31.9 (65%) 31.8 86.3 (63%) Total income 203.7 236.7 (14%) 661.1 701.9 (6%) Employee cost 56.
Slide 31: IIFL Securities – Turnover and market share
IIFL Securities – Turnover and market share Quarter ended December 2018 ● IIFL is a key player in both Average daily turnover – Cash (` Cr) Average daily turnover - Total (` Cr) retail and institutional Quarterly Quarterly segments with a 3.5% share of daily cash 21,070 turnover 1,563 17,455 16,677
Slide 32: Digitization and Research backed institutional and retail equity businesses
Digitization and Research backed institutional and retail equity businesses Quarter ended December 2018 Number of retail customers Distinguished Apps Internationally acclaimed research In ‘000 IIFL Markets 23,76,000 772 783 787 downloads 714 736 Highest rated (4.3) and Most downloaded stock trading
Slide 33: Investment Banking has made significant strides
Investment Banking has made significant strides Quarter ended December 2018 A number of transactions are in various stages of execution across capital markets, private equity and advisory IIFL continues to expand product offerings with a focus on diversifying the business and capitalizing on mar
Slide 34: II: Ownership, Management and Governance
I: IIFL Group Business Overview (i) IIFL Finance (ii) IIFL Wealth (iii) IIFL Securities II: Ownership, Management and Governance 28
Slide 35: Distinguished Board of Directors
Distinguished Board of Directors IIFL Holdings – Board of Directors Nirmal Jain, Executive Chairman R Venkataraman, Managing Director ● MBA from IIM Ahmedabad, rank-holder CA and Cost ● MBA from IIM Bangalore, B-Tech from IIT Kharagpur Accountant ● Co-promoter of IIFL since 1999 ● Founded and led II
Slide 36: Management team with rich domain experience and ownership
Management team with rich domain Marquee Investors experience and ownership Chairman Nirmal Jain IIFL Holdings Ltd Managing Director R. Venkataraman Public & Others 11.6% NRI IIFL Finance Sumit Bali 7.2% Promoters 29.0% Domestic IIFL Home Finance Monu Ratra Institution 2.5% IIFL Wealth Karan Bhagat
Slide 37: IIFL’s brand and credibility are substantiated by multiple awards
IIFL’s brand and credibility are substantiated by multiple awards IIFL Securities IIFL Finance ET Now & won won Broadcast One "Best IPO Bidding Member -- “Best On-Boarding Solutions” recognised Retail" at IIFL Group NSE Market Achievers Awards People Matters Learning & as 2018 Development Conference
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility Sakhiyon ki Baadi (Rajasthan) 1,156 Hearing Aid Distribution (Mumbai) An initiative undertaken in rural, remote areas of Centres Free 'Ear Check-up' camps were Rajasthan, to promote education of out-of-school and organized across 8 locations in Mumbai 38,094 'Hearing
Slide 39: Thank you
Thank you Published in January 2019 © IIFL Holdings Ltd 2018-19. IIFL Holdings Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. Tel.: +(91 22)4007 7000 Fax: 2685 0451. This report is for information p