National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — H1 2018 Earnings Presentation
23 slides from National Development Bank's earnings presentation, Jul 30, 2018
Slide 1: Investor Webinar H1 2018
Best Bank in Sri Lanka 2018 INVESTOR WEBINAR H1 2018 National Development Bank PLC [CSE Stock Code - NDB.N0000] 30 July 2018: 1330 HRS (UTC + 0530) : Colombo Sri Lanka December - 2016
Slide 2: Forward Looking Statements
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 regard
Slide 3: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Director/ Group Chief Executive Officer Panelists Finance & Planning Lalith T Fernando – Group Chief Financial Officer Suvendrini Muthukumarana - AVP-Finance & Planning Heads of Business Buwaneka Perera - VP-Corporate Banking Niran Mahawatte –
Slide 4: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 4
Slide 5: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 5
Slide 6: Business Overview
Business Overview Incorporated in 1979 as a Development Financing Institution under and by virtue of National Development Bank of Sri Lanka Act No. 2 of 1979 Converted in to a fully fledged commercial bank in 2005 A network of 107 branches and 125 ATMs [including 6 Cash Recycling Machines] spr
Slide 7: Business Overview - Awards
Business Overview Awards – 2018 [Bank] Awards – 2018 [Group companies] Global Finance Magazine USA NDB Investment Bank Limited Best Bank in Sri Lanka – 2018 Euromoney Magazine Awards for Excellence Sri Lanka’s Best Investment Bank [For the seventh consecutive Global Banking & Finance & Review - UK y
Slide 8: Business Overview - Strategic Focus - Update
Business Overview - Strategic Focus - Update • “Transformation 2020” - The Bank’s strategic framework spanning up to year 2020 Goal To transform the Bank to a large, systemically important bank from its current mid sized status • Involves a wide span of changes including the business focus, business
Slide 9: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 9
Slide 10: H1 2018 – Key Performance Indicators [Bank]
H1 2018 – Key Performance Indicators [Bank] Profitability Indicators [Vs. H1 2017] Balance Sheet Indicators [Vs. FY 2017] Core banking profits up by 53% - LKR 4.25 bn Total assets crosses LKR 400 bn – 9% growth up to NII up by 43% - LKR 6.8 bn 417 bn Net fee & comm income by 27% - LKR 1.45 bn Net lo
Slide 11: Income Statement [Bank]
Income Statement [Bank] LKR Mn H1-2018 H1-2017 Variance % Gross Income 23,649 20,696 2,953 14 Net Interest Income 6,797 4,746 2,051 43 Net Fee and Commission Income 1,447 1,141 306 27 Total Operating Income 10,093 7,738 2,355 30 Impairment charges for loans and other losses 1,314 581 733 126 Net ope
Slide 12: Revenue Analysis – Fund Based Income
Revenue Analysis – Fund Based Income LK Mn H1 2018 H1 2017 % growth Interest income 20,352 17,703 15 Interest expenses 13,556 12,958 5 NII 6,797 4,746 43 NIM (%) 3.43 2.74 69 bps • Considerable improvement in interest 25,000 4.00% income due to 3.43% • enhanced loan volumes • effective pricing of th
Slide 13: Revenue Analysis – Other Income
Revenue Analysis – Other Income LKR Mn H1 2018 H1 2017 % growth Net Fee and Commission Income 1,447 1,141 27 Net gain from trading 588 533 10 Net gain from financial investments 390 122 221 Other operating income [excluding 342 169 102 equity income] Total non-interest income from core 2,767 1,965 4
Slide 14: Operating Expenses [Bank]
Operating Expenses [Bank] LKR Mn H1 2018 H1 2017 % growth • Operating expenses increase of 19% • Incurred capital expenditure to support business Personnel expenses 2,138 1,703 26 expansion and enhanced customer experience • network expansion Depreciation & amortization 212 206 3 • 6 Cash Recycle Ma
Slide 15: Balance Sheet [Bank]
Balance Sheet [Bank] LKR Bn H1 2018 FY 2017 YTD YTD H1 2017 YoY YoY Quantum percentage Quantum percentage growth growth growth growth Total assets 417 383 34 9% 365 52 14% Net loans and 301 274 27 10% 252 49 19% receivables from customers Total deposits from 297 273 24 9% 239 58 24% customers Total
Slide 16: Loans & Receivables [Bank]
Loans & Receivables [Bank] Total gross loans growth Segmental mix of Gross Loans 350 3% 17% 300 235 35% 250 210 195 180 200 160 LCY 150 136 FCY 22% 108 100 50 68 62 72 24% 45 55 54 33 0 Commercial banking Business Banking 2013 2014 2015 2016 2017 H1 2017 H1 2018 Project Finance Retail Other • YTD lo
Slide 17: Asset Quality
Asset Quality Impairment analysis NPL ratio analysis H1 2018 H1 2017 Bank Bank Industry FY 2017 H1 2018 As of May 2018 Individual impairment 749 338 1.83% 2.54% 3.3% Collective impairment 544 196 • The increase in the Bank NPL ratio reflects the industry-wide trend for NPLs • Collective impairment i
Slide 18: Customer Deposits
Customer Deposits Customer Deposits 350 • Quantum increase from FY 2017 – LKR 24 300 billion 250 • Increase in CASA base – LKR 6.5 billion 200 LKR Bn 240 LCY • Key attributes supporting the CASA 221 150 194 growth FCY 134 159 100 • New CASA deposit products 115 100 introduced during 2017 50 57 • Dig
Slide 19: Institutional Borrowings
Institutional Borrowings • Obtained a loan of up to USD 75 million from Commerzbank Germany • Entered in to an agreement with the IFC for a loan up to USD 50 million [fixed rupee equivalent of LKR 8 bn] • Purpose : Lending to borrowers in the SME sector including climate smart agriculture sector NDB
Slide 20: Capital Management
Capital Management Equity capital BASEL III – H1 2018 Bank Group Common Equity Tier 1 Capital Ratio % (Minimum Requirement -6.375%) 8.48 9.85 Tier 1 Capital Ratio % (Minimum Requirement - 7.875%) 8.48 9.85 Total Capital Ratio % (Minimum Requirement - 11.875%) 12.80 13.87 Further to intimations of
Slide 21: Investor Ratios
Investor Ratios Investor Ratios Bank Group H1 2018 FY 2017 H1 2018 FY 2017 Closing price per share (LKR) 120.80 136.40 NA NA EPS (LKR) (Annualized) 28.81 24.52 27.51 19.66 ROE (%) 17.15 16.27 14.38 11.09 ROA (%) 1.28 1.21 1.20 0.96 Book value per Share (LKR) 174.14 167.58 196.53 192.51 P/E (times) 4
Slide 22: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 22
Slide 23: NDB Investor Relations
NDB Investor Relations NDB’s Investor Relations is the recipient of the Gold Award for Best Investor Relations at the coveted CFA Sri Lanka Capital Market Awards, for two consecutive years in 2018, 2017 & 2016. Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the e
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