Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q1 FY2021 Earnings Presentation
38 slides from Au Small Finance Bank's earnings presentation, July 2020
Slide 1: Investor Presentation Q1FY21
Investor Presentation Q1FY21 A SCHEDULED BANK I FORTUNE INDIA 500 COMPANY Retail Focused I Differentiated I Well Capitalized I Fast Learning I Customer Centric Completed 25 years as an institution and 3 years as a Bank July 2020
Slide 2: Table of Contents
Table of Contents 1. Q1FY21 Performance Highlights 2. Branch Banking 3. Retail Assets and Small & Mid Corporate Assets 4. Distribution Network and Digital journey 2
Slide 3: 1. Q1FY21 Performance Highlights
1. Q1FY21 Performance Highlights 3
Slide 4: Q1FY21 Key Highlights
Q1FY21 Key Highlights Operating Highlights AUM Growth of 17% Y-o-Y, Retail AUM remains dominant at ~84% The bank disbursed ₹ 1,181 Cr which includes disbursements under TLTRO 2.0 of ₹ 246 Cr Operating expenses declined by 6% YoY and 30% QoQ due to low growth momentum Q1FY21 PAT (excluding ga
Slide 5: Q1FY21 Key Highlights
Q1FY21 Key Highlights Treasury Updates For FY20 – 7.7% ₹ Crore For FY20 – 7.3% Avg. Cost of funds 7.6% 7.2% 6.0% Incremental Funds 7.9% Raised 7.5% 10,067 Incremental Cost of 7.2% 8,529 7,765 Funds Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 As on 30th June’20, LCR further improved to ~150% (LCR at
Slide 6: Q1FY21 Key Highlights
Q1FY21 Key Highlights Digital Outlook To further strengthen our presence in digital payments, UPI QR went live Going forward, we expect it should give us a major thrust on QR payments to capture payments data and enable analytics-based lending. Savings Account and Fixed Deposit Account Onboardin
Slide 7: Q1FY21 Key Financial Highlights
Q1FY21 Key Financial Highlights 12 States and 1 UT 655 Touchpoints 17.9 lakh Customers 16,092 employees Loan Assets Under Total B/S Assets Disbursements1 Deposits3 CASA Ratio4 Management2 ₹ Crore ₹ Crore ₹ Crore ₹ Crore 16% 44,267 26,734 3,983 30,036 33,762 25,610 19,849 1,181 30-Jun-19 30-Jun-20 Q1
Slide 8: Q1FY21 Key Financial Highlights
Q1FY21 Key Financial Highlights Total Income Net Interest Income PAT Net Worth ₹ Crore ₹ Crore ₹ Crore ₹ Crore 1,410 Income (pre- 1,168 27 tax) from Sale 201 of part stake Profit (after 4,588 1,383 24 77 in Aavas 516 tax) from Sale 1,091 Financiers 190 177 of part stake 3,361 Ltd. 396 in Aavas 71 Fi
Slide 9: Profitability Trends
Profitability Trends *Including Profit from Sale of part stake in Aavas Financiers Ltd. RoA1 (%) RoE2 (%) 2.3%* 23.3%* 1.9%* 17.9%* 1.2%* 11.4%* 1.4% 1.1% 1.6% 14.7% 10.7% 15.8% Q1FY20 Q4FY20 Q1FY21 Q1FY20 Q4FY20 Q1FY21 ROA / ROE – Components NII1 (%) Other Income3 (%) Opex1 (%) 5.5% 2.5%* 3.8% 4.2%
Slide 10: Asset Quality
Asset Quality Credit Cost - Net Impact on P/L Q1FY20 Q4FY20 Q1FY21 (All Figures in ₹ Cr) Unaudited Audited Unaudited Repossession Loss 7 11 2 POS Loss 2 5 1 Write off 0 0 0 Less: Bad Debt Recovery -4 -6 -1 Net Credit Loss 5 11 2 Net Credit Loss (as % of Avg. Total Assets) 0.1% 0.1% 0.0% A reflection
Slide 11: Profit & Loss Statement – NII growth at 30%
Profit & Loss Statement – NII growth at 30% (All Figures in ₹ Cr) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q Unaudited Unaudited Audited Income Interest Earned 1,184 957 24% 1,183 - Interest Expended 668 562 19% 629 6% Net Interest Income 516 396 30% 555 -7% Other Income 199 134 48% 174 14% Income from sale o
Slide 12: Other Income
Other Income (All Figures in ₹ Crore) Q1FY20 Q4FY20 Q1FY21 Break-up of Other Income Unaudited Audited Unaudited Loan Assets Processing & Other fees 67 86 15 General Banking & Deposits related fees 17 21 12 Cross Sell, Distribution related fees & others 7 13 4 PSLC Premium / Fees 10 35 8 Income from
Slide 13: Balance Sheet – Total Assets grew 31% y-o-y
Balance Sheet – Total Assets grew 31% y-o-y (All Figures in ₹ Crore) Jun 30, 2020 Jun 30, 2019 Y-o-Y Mar 31, 2020 Q-o-Q Unaudited Unaudited Audited Liabilities Capital 306 292 5% 304 1% Money received against Share Warrants - 175 - - - Employees stock options outstanding 49 49 2% 52 -5% Reserves and
Slide 14: Marquee Shareholders Base – As on 30th June 2020
Marquee Shareholders Base – As on 30th June 2020 Shareholding Break –up Holding on Key Shareholders (Holding 1%+) 30-Jun-20 Foreign Institutions Promoter & Promoter Group - Promoter & Promoter Group 29.0% (FC, FPI, FII) & NRI Domestic, 29.0% (Non-repatriable), Redwood Investment (Warburg Pincus) 6.8
Slide 15: 2. Branch Banking - Snapshot
2. Branch Banking - Snapshot 15
Slide 16: Branch Banking – Turning crisis into opportunities
Branch Banking – Turning crisis into opportunities Approach during lockdown and key learnings • Increased focus on Quality customer acquisition, driving activation across channels, and deepening engagement with our customers • Segregated our markets into Core market banking and Urban market banking
Slide 17: Liabilities operations returning to normalcy
Liabilities operations returning to normalcy • Number* of accounts opened (both CA and SA) has been reverting towards normalcy mainly driven by Focus on high quality deposits with separate teams set up recently focusing on TASC, NRE/NRI, and Government accounts Organization-wise sustainability d
Slide 18: Branch Banking - Snapshot
Branch Banking - Snapshot Growing Deposit Franchise; CASA Ratio* of 16% 40% of the Term Deposits are non- in ₹ Crore callable [Bulk TD – 67% non-callable] CASA RATIO* (%) CASA RATIO* (%) CASA RATIO* (%) Total Deposit 19% 16% 23,868 16% 24,831 Growth* 20,080 20,962 18,060 14,656 Y-o-Y Q-o-Q 37% 4% 2,
Slide 19: Focused on Building A Granular Retail Deposit Franchise
Focused on Building A Granular Retail Deposit Franchise Share of Retail in Savings Account (SA) has improved in the last 2 quarters Bulk SA Retail SA 3,045 2,811 2,673 2,638 2,611 82% 81% 89% 85% 86% 18% 15% 19% 14% 11% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Increasing Share of Retail in Term Deposits (
Slide 20: Branch Banking – Deposit profile
Branch Banking – Deposit profile 1 1 Area-wise Deposit Distribution Diversified Deposit Build-up across States 2% 1% CA SA TD MAHARASHTRA Urban Market Banking 64% 52% 74% 4% Core Market Banking 36% 48% 26% 4% RAJASTHAN 5% DELHI NCR Break-up of total deposits 6% 33% PUNJAB GUJARAT Core Market Banking
Slide 21: 3. Retail Assets and Small & Mid-Corporate Assets - Snapshot
3. Retail Assets and Small & Mid- Corporate Assets - Snapshot 21
Slide 22: Disbursements and AUM Trends
Disbursements and AUM Trends in ₹ Crore Disbursements AUM 15.6% 15.2% 14.5% 14.7% 14.6% 11.2% 30,893 30,036 5,000 25,610 3,983 1,181 Q1FY20 Q4FY20 Q1FY21* Q1FY20 Q4FY20 Q1FY21 Disbursements Yield AUM Yield *Includes ₹ 246 Cr disbursed under TLTRO and ₹ 23 Cr disbursed under ECLGS Scheme 22
Slide 23: AUM Trends
AUM Trends AUM grew 17% Y-o-Y led by 25% Y-o-Y AUM growth in Retail Assets Small and Mid Corporate (Amount in ₹ Crores) Retail Assets Term Assets Lending Total New Used & Wheels SBL- GL+CD OD Agnst Total Retail Agri SMC by AUM Particulars Period HL REG BB NBFC Wheels CoW Total MSME +PL FD Assets SME
Slide 24: Loan Assets Cuts
Loan Assets Cuts Overall Loan AUM - Geographically well diversified Distribution of Retail Assets Rajasthan Madhya Pradesh 5%1% 5% Maharashtra 7% Urban Gujarat Market 42% Banking Core 11% Delhi Market 44% Banking 56% Punjab 13% CG + Haryana + HP + 16% Goa Other States 24
Slide 25: Collection Efficiency
Collection Efficiency Particulars June Collection (₹ Cr) June May April Product Billed Collection Coll%* Coll%* Coll%* SBL 223 211 95% 63% 58% Wheels 622 515 83% 54% 46% NBFC 132 144 109% 76% 75% Business Banking 12 11 93% 79% 74% Others 0 0 102% 93% 83% REG 18 14 79% 30% 39% Agri 8 9 110% 74% 68% H
Slide 26: Customer Activation
Customer Activation EMI/Due Clearance (% of Gross Advances) June May April Total Gross Product Advances Full Part Full Part Full Part (₹ Cr) SBL 10542 67% 9% 55% 9% 55% 25% Wheels 9257 64% 8% 42% 6% 42% 26% NBFC 1500 89% 7% 74% 23% 81% 13% Business Banking 1021 85% 2% 78% 4% 78% 6% REG 782 52% 3% 42
Slide 27: Update on Moratorium
Update on Moratorium In our view, moratorium is a useful mechanism for borrowers to tide over disruptions in income in these unprecedented times Borrower behavior has been quite encouraging as despite their right to defer payment, we experienced that typically our borrowers started repaying volu
Slide 28: Repayment Trends
Repayment Trends Full EMI recovery has also improved to 67% in the month of June from 53% in the month of April, which indicates that more and more customers are opting out of moratorium with each successive month. On an average, 80% customers pay in full and another 5% in part in normal times, th
Slide 29: 4. Distribution Network and Digital journey
4. Distribution Network and Digital journey 29
Slide 30: Well entrenched contiguous distribution franchise
Well entrenched contiguous distribution franchise 12 States and 655 Touchpoints 359 ATMs No. of Touch points 1 UT Urban Market Core Market Total Banking# Banking# 594 Branches1, 61 BCs 139 516 655 Break up of branches States & UT Total Branches Rajasthan 279 Punjab Himachal Pradesh Madhya Pradesh 84
Slide 31: Key Digital Initiatives during the quarter
The image part with relationship ID rId2 was not found in the file. Key Digital Initiatives during the quarter To further strengthen our position towards digital payments, UPI QR went live for merchants in Jaipur UPI became most preferred payment mode for our customers. We are now processing more th
Slide 32: Digital footprint
The image part with relationship ID rId2 was not found in the file. Digital footprint AU Bank Retail Internet PSP app for UPI Banking/ Mobile Banking Available on Google 2 Lakhs+ Registered users Play Store & 2 .5 Lakhs + monthly transactions AU Bank Corporate Internet Banking/ Mobile Banking AU Ban
Slide 33: Transaction via Digital Channels
The image part with relationship ID rId2 was not found in the file. Transaction via Digital Channels 97% 95% 100% 1,60,000 93% 90% Total Savings Accounts opened 1,40,000 80% 88,198 89,756 1,20,000 70% 60% 68,927 1,00,000 50% 80,000 40% Over 20,000 accounts opened through AU Abhi 60,000 30% 40,000 20
Slide 34: Transaction via Digital Channels
The image part with relationship ID rId2 was not found in the file. Transaction via Digital Channels 29% 24% -15% 328 Digital Transactions Trends 59 68 70 280 98 Q1FY20 Q4FY20 Q1FY21 ADC transactions crossed 2.8 Cr in Q1FY21 Total CBS transactions (in lakh) Total ADC transactions (in lakh) ADC Trans
Slide 35: Experienced Board of Directors
Experienced Board of Directors Mr. Raj Vikash Verma Mr. V G Kannan Mr. Krishan Kant Rathi Chairman and Independent Director Independent Director Independent Director 37+ years of experience 38+ years of experience in Banking 34+ years of experience Industry Masters in Economics, MBA (FMS), CAIIB MBA
Slide 36: Disclaimer
Disclaimer This presentation has been prepared by AU SMALL FINANCE BANK LIMITED (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Ban
Slide 37: THANK YOU
THANK YOU Contact for Investor queries: Aseem Pant / Ayush Rungta AU Small Finance Bank Ltd Tel: Mobile : +91 73400 12458 / +91 84548 13139 Email: investorrelations@aubank.in 37
Slide 38: Abbreviations
Abbreviations ADC Alternate Delivery Channels NPA Non Performing Assets AFS Available for Sale NSE National Stock Exchange ALM Asset Liability Management OPEX Operating Expenses AUM Asset Under Management P/L Profit & Loss Statement BSBDA Basic Savings Bank Deposit A/C PAT Profit After Tax BSE Bomba
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