Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q4 FY2021 Earnings Presentation
38 slides from Pnb Housing Finance's earnings presentation, Apr 27, 2021
Slide 1: Cover letter to stock exchanges
April 27, 2021 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 540173 Symbol: PNBHOUSING Dear Sirs, Sub: Investo
Slide 2: Investor Presentation Q4/FY ended March 2021
Investor Presentation Q4/FY ended March 2021 27-April-2021
Slide 3: Contents
Contents A Progress on the New Agenda Strategy Monitorables Business & Financial Performance B Shareholding and ESG Snapshot Key Takeaways Growth in Housing Finance Sector 2
Slide 4: New Agenda set by the Company
New Agenda set by the Company Strengthening the Core Drive Efficiency Accelerate Growth Capital Cost Retail Focused Grow Affordable Management Risk Management Management Digital Drive Lending Housing “Unnati” Position • Strengthen leadership • Improve capital and • Leverage advance • Rationalize • A
Slide 5: Strengthening the Core – Key Monitorables
Strengthening the Core – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Remarks Key roles hired at senior level 5 hires and 2 promotion Further strengthen management team Management Introduced incentive plan to retain RSU Allotment done Introduced RSU for critical positions Team talent Re
Slide 6: Drive Efficiency – Key Monitorables
Drive Efficiency – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Remarks 16.9% Cost rationalisation measures Maintain Cost to Income Ratio 15.1% undertaken Reduce incremental Cost of 8.47% Incremental COB for Q4FY21 has 6.80% Borrowing dropped to 6.26% Cost Implement Transformation Focus
Slide 7: Accelerate Growth – Key Monitorables
Accelerate Growth – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Remarks Disbursements higher by 50% Reduced Grow Retail Book (YoY) -6% -5% lending rates Focus on building Granular book 87.2% 92.3% Focus on lower ticket asset sourcing (disbursement) Retail Focussed INR 14,614 crore INR
Slide 8: Business and Financial Performance
Business and Financial Performance 7
Slide 9: Performance Highlights
Performance Highlights INR 10,445 Crore*/ Total Provision/ Disbursement 4.09% INR 4,103 Crore# Total Assets Asset Under Management GNPA 4.44% on Loan Assets INR 74,469 Crore 3.95% on AUM Retail Loans 84% of the AUM NNPA 2.43% Deposits INR 17,129 Crore Write-offs since Inception** 15 bps Gross Margin
Slide 10: Update on FY21 Guidance
Update on FY21 Guidance FY20 Actual FY21 Guidance FY21 Actual Achieved INR 18,626 Crore Focus on lower risk weighted retail INR 10,445 Crore Disbursements 92% of disbursements in Retail segment and Unnati segment 96% of disbursements in Retail AUM Retail 82% of Total AUM Retail >85% of Total AUM Ret
Slide 11: Business Trends - Quarter on Quarter
Business Trends - Quarter on Quarter No. of Logins No. of Sanctions 99,986 70,550 73,548 50,454 25,473 19,201 22,943 20,165 16,232 14,226 17,063 11,733 • 50% growth in retail 5,071 3,288 disbursements in Q4 FY21 (YoY) Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 • Improving
Slide 12: Business Update
Business Update (INR Crore) Asset AUM CAGR +6% 84,722 83,346 • AUM reduced by 11% YoY 74,469 62,252 o Retail 9% 74,023 o Corporate 19% 67,571 62,255 57,014 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 • Retail AUM is 84% of the total AUM AUM Loan Assets Disbursement • 96% of the total 36,079 disbursement
Slide 13: Asset Under Management
Asset Under Management Product-wise Break-up AUM Mix Individual Housing Loan 16% 18% 16% 4% 20% 21% Retail Loan Against Property 58% Retail Non- residental 22% Premises Loan Corporate Loan 82% 84% 80% 79% Segment-wise Breakup Corporate Retail 84% 16% Salaried 45% 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar
Slide 14: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes INR Lakhs Average Ticket Size Weighted Average Loan to Value 52 51 47 69% 71% 71% 72% 44 31 31 47% 49% 49% 49% 29 27 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Compl
Slide 15: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 0.6% 0.4% 1.4% 0.3% 1.1% 0.2% 1.9% 1.6% 1.9% 1.6% 3.0% 2.5% 4.6% 3.3% 2.5% 6.2% 5.0% 4.2% 4.5% 6.7% 12.0% 12.9% 12.0% 13.9% 13.5% 15.1% 15.8% 16.6% 17.5% • Focus on granular 19.4% 20
Slide 16: Corporate Book Exposure Continues to Scale Down
Corporate Book Exposure Continues to Scale Down % of Total 21.1% 17.5% 17.7% 17.6% 17.0% 15.8% AUM -34% 17,922 -19% 14,614 14,808 14,331 13,227 11,152 11,786 10,356 10,453 10,352 9,636 8,637 3,678 3,052 3,126 2,955 2,677 3,092 2,243 1,206 1,229 1,024 914 906 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Slide 17: Corporate Book Performance
Corporate Book Performance • 78% of the book is good which continues to be in Stage 1; majority backed by Tier 1 Developers 42% of the Construction Finance Book • Company identified 5 accounts for voluntary SICR having total outstanding of INR 875 comprises completed and near crore (7% of the book)
Slide 18: Corporate Book Remedial Actions
Corporate Book Remedial Actions Resolutions Underway on few Resolutions Achieved Final Stages of Resolution NPA Accounts • IREO Pvt Ltd with O/s of INR 150 crore • Vipul Ltd with O/s of INR 353 crore is in • Radius with O/s of INR 259 crore; working the final stages of resolution with co-lender on r
Slide 19: Gross Non-Performing Assets
Gross Non-Performing Assets % of Loan Asset Gross NPA 0.33% 0.48% 2.75% 4.44% Net NPA 0.23% 0.38% 1.75% 2.43% As on 31-Mar-21 INR Crore INR Crore 4,500 4.5 4.1% 4,000 4.0 3,500 3.5 Gross NPA 2,762 3,000 2.6% 3.0 2,500 2.5 ECL Provision 2,544 2,000 1,491.2 2.0 1,500 1.5 0.8% 0.8% 1,195.4 Regulatory p
Slide 20: Expected Credit Loss (ECL) Provisions – Overall
Expected Credit Loss (ECL) Provisions – Overall Classification of the Assets based on the ECL computation under Ind AS: Particulars (INR Crore) 31-Mar-21 31-Dec-20 31-Mar-20 Gross Stage 1 & 2 59,492 61,696 65,715 % portfolio in stage 1 & 2 95.6% 95.5% 97.3% ECL Provision Stage 1 & 2 1,295 1,107 1,09
Slide 21: Expected Credit Loss (ECL) Provisions – Retail
Expected Credit Loss (ECL) Provisions – Retail Particulars (INR Crore) 31-Mar-21 31-Mar-20 Gross Stage 1 46,624 50,730 % portfolio in stage 1 92.4% 95.8% ECL Provision Stage 1 251 234 Net Stage 1 46,372 50,496 As on 31-March-21 ECL Provision % Stage 1 0.6% 0.5% • Provision Coverage ratio of 71% Gros
Slide 22: Expected Credit Loss (ECL) Provisions – Corporate
Expected Credit Loss (ECL) Provisions – Corporate Particulars (INR Crore) 31-Mar-21 31-Mar-20 Gross Stage 1 9,129 12,505 % portfolio in stage 1 77.5% 85.6% ECL Provision Stage 1 396 432 Net Stage 1 8,733 12,073 As on 31-March-21 ECL Provision % Stage 1 4.3% 3.5% • Provision Coverage ratio of 110% Gr
Slide 23: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 6.5% 8.5% 7.4% 10.9% 7.7% 2.5% 18.2% 24.4% • ~70% of the total resource is 22.2% 19.5% floating; giving opportunity for 5.7% 6.7% replacement & repricing 8.3% 17.2% 17.5% 19.6% 9.6% 23.7% 0.5% 1.6% 37.5% 22.5% 28.0% 16.5% Credit Rating 18.8% 16.9% 8.8% 1
Slide 24: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,952 2,022 1,524 1,468 1,447 1,872 1,896 1,834 1,346 1,295 1,380 1,364 1,340 1,246 1,150 144 104 107 100 145 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Finance Cost Operating Expense Pre-provision Opera
Slide 25: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.52% 11.30% 10.62% 8.03% 8.13% 8.01% 10.42% 10.39% 7.72% 7.60% 10.26% 10.32% 10.69% 10.43% 10.03% Q4YF20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Yield Yield (Excl. Securitisation income)
Slide 26: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.4% 10.7% 10.7% 8.0% 8.2% 7.9% 2.8% 3.2% 3.2% 10.2% 7.7% 2.5% 2.9% 3.0% 2.4% 2.5% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Gross Interest Margin Opex to ATA Ratio Ret
Slide 27: Capital Position
Capital Position (INR Crore) Provisions Capital to Risk Asset Ratio Stage 3 28.4% 20.9% 36.2% 45.2% 18.7%** 18.0% Coverage ratio (%) 16.7% 3.2% 4,000 5 2.8% 4.1% 3,500 4 3.9% 14.0% 3,000 2.6% 2,544 3 2,500 3.0% 2,000 1,766 2 1,500 0.8% 0.8% 1 1,000 594 432 0 500 15.2% 15.5% 0 -1 31-Mar-18 31-Mar-19
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q4 FY21 Q4 FY20 YoY Q3 FY21 QoQ FY21 FY20 YoY Interest Income 1,670 1,803 1,758 7,190 7,688 Add: Net gain on fair value changes 39 63 43 162 159 Add: Income on derecognized (assigned) loans 35 3 35 71 336 Less: Finance Cost 1,150 1,380 1,2
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-21 31-Mar-20 Particulars (INR Crore) 31-Mar-21 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 51 - 11,461 17,837 (a) Cash and cash equivalents 6,969 8,514 (b) Debt Securities (c) B
Slide 30: Employee Efficiency
Employee Efficiency (INR Crore) Disbursement / Employee Asset under Management / Employee 28.99 58.43 54.37 52.78 24.88 50.65 11.80 7.10 FY18 FY19 FY20 FY21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Total Revenue / Employee Profitability / Employee 5.30 5.38 5.19 0.82 4.79 0.73 0.63 0.40 FY18 FY19 FY2
Slide 31: Experienced Management Team
Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 8 Months CHIEF CENTRALIZED ED & CHIEF CREDIT OFFICER CHIEF FINANCIAL OFFICER CHIEF PEOPLE OFFICER OPERATIONS & TECHNOLOGY • Years of Experience: 30+ • Years of Experience: 24+ • Years of Experience: 30
Slide 32: Shareholding
Shareholding Shareholding as on 31-Mar-21 Top Shareholders 2.1% 0.2% 6.3% 2.1% SSG Capital, General Atlantic Singapore Fund, Franklin Templeton 32.6% MF, Malabar Investments, Vanguard, Blackrock (ETFs), United 24.5% India Insurance, Edelweiss Trusteeship MF, Reliance Capital MF, Dimensional Fund Adv
Slide 33: ESG Snapshot
ESG Snapshot Environment Social • Over 95% reduction in usage of paper for customer communication • Covid-19: Supported scientific research and health initiatives, contributed towards PM Relief • 99% EMI collections through digital mode • Conducted skill development for 5,000 construction workers an
Slide 34: Key Takeaways
Key Takeaways Robust and scalable Continue to operate in Hub and Spoke model Created Remedial Operating leverage mass housing and Improve collection Strengthening digital merchant segment management playing out, thereby efficiencies through presence across the Leverage advance Group to focus on impr
Slide 35: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 31% 32% 19% 26% 25% 25% 21% 22% 21% 20% 20% 20% 22% 15% 19% 21% 12% 11% 15% 8% 11% 3% 9% 16% 3% 6% 4% 63% 3% 3% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Other Loans Overall Portfolio H
Slide 36: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Cost to Income (%) Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost) / (Net Revenue-Acquisition Cost) NIM (%) Net Interest
Slide 37: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 38: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 37
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