Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q2 FY2025 Earnings Presentation
45 slides from Au Small Finance Bank's earnings presentation, Oct 23, 2024
Slide 1: Investor Presentation Q2 FY2024-25
BADLAAV au HUMSE HAI FINANCE BANK INVESTOR PRESENTATION Q2 FY2024-25 23'4 October 2024 Sustainable Business Model | Retail Focused | Tech-Led | Customer Centric | Well Governed
Slide 2: Agenda
1 MANAGEMENT UPDATE 2 OPERATING & FINANCIAL HIGHLIGHTS 3 LIABILITIES UPDATE 4 ASSETS PERFORMANCE 5 OTHER KEY INFORMATION
Slide 3: Management Update
1 MANAGEMENT UPDATE
Slide 4: Executive summary (1/4)
Executive summary (1/4) ❑ Operating environment has been challenging during the last 6 months with persistent inflation and tight liquidity, prolonged elections (both national and state), along with intense heat wave in Q1, and unusually heavy rains in Q2 Operating ❑ This affected continuity of poli
Slide 5: Executive summary (2/4)
Executive summary (2/4) Deposit and Liquidity - Q2’FY25 ₹1,09,693 Cr Deposits & Cost of Funds Total Deposits (₹97,290 Cr) ❑ Total deposits crossed milestone of one lakh crore to stand at ₹109,693 Cr, registering a QoQ growth of 12.7% and YTD growth of 12.3% ₹5,981 Cr ‒ Current account (CA) deposits
Slide 6: Executive summary (3/4)
Executive summary (3/4) Advances and Asset Quality – Q2’FY25 Loan Portfolio Gross Loan ₹1,05,031 Cr Portfolio (₹99,792 Cr) ❑ Gross loan portfolio crossed milestone of one lakh crore to stand at ₹105,031 Cr, registering a QoQ growth of 5.3% and YTD growth of 8.9% despite slowdown in MFI and calibrate
Slide 7: Executive summary (4/4)
Executive summary (4/4) Financial Performance – Q2’FY25 Earnings Net Interest ₹1,974 Cr ❑ Net Interest Income grew 58% YoY and 3% QoQ to ₹1,974 Cr income (₹1,921 Cr) ❑ NIM, on interest earning assets, for the quarter stood at 6.1% (vs. 6.0% in Q1) aided by optimization of investment book seen during
Slide 8: Credit cost summary
Credit cost summary Actual for H1’FY25 on Gross Loan Portfolio FY25 guidance in Q1’FY25 (GLP) Business segments Annual Credit Weighted Annualised Weighted Credit GLP mix Avg GLP mix Cost Credit cost Credit Cost cost Secured Retail (Wheels, MBL, HL, GL, Others) 69.0% 0.80% 0.55% 68.7% 0.90% 0.62% Com
Slide 9: H1'FY25 Financial highlights
H1’FY25 Financial highlights ₹ in Crores Net Interest Income Other Income Total Income PAT 1,147 8,827 1,074 3,895 714 5,703 789 2,495 H1'FY24 H1'FY25 H1'FY24 H1'FY25 H1'FY24 H1'FY25 H1'FY24 H1'FY25 Yield on Advance Cost of Fund Net Interest Margin Cost to Income GNPA Vs Vs Vs. Vs Vs 13.4% 6.64% 5.6
Slide 10: An upgrade to Universal Bank license will make Forever Bank journey more sustainable
An upgrade to Universal Bank license will make “Forever Bank” journey more sustainable Benefits from upgrade to Universal Bank license Improved brand acceptance with higher perception of safety and trust leading to: Increased customer Greater access to Reduction in Cost of Attract and retain talent
Slide 11: Bank is progressing well on its AU@2027 strategy
Bank is progressing well on its ‘AU@2027’ strategy Key Internal Monitorables Guidance for Mar’27 H1’FY25 update Key External Monitorable Portfolio mix shift towards High RoA assets to contribute Currently 73% Loan Portfolio is Bank is watchful on the final higher RoA assets 72-75% High RoA outcome o
Slide 12: Operating & Financial Highlights
2 OPERATING & FINANCIAL HIGHLIGHTS
Slide 13: Profit & Loss statement
Profit & Loss statement (All Figures in ₹ Crore) H1'FY25 H1'FY24 YoY Q2'FY25 Q2'FY24 YoY Q1'FY25 QoQ ❑ Q2’FY25 PPoP grew 19% QoQ driven Income by: Interest Earned 7,680 4,989 54% 3,911 2,531 55% 3,769 4% ‒ Growth in NII and Other income, and Interest Expended 3,785 2,494 52% 1,936 1,282 51% 1,848 5%
Slide 14: Other Income
Other Income (All Figures in ₹ Crore) H1'FY25 H1'FY24 YoY Q2'FY25 Q2'FY24 YoY Q1'FY25 QoQ Loan Assets Processing & Other Fees 502 349 44% 272 184 48% 230 18% General Banking, Cross Sell & Deposits related fees 314 185 70% 172 130 32% 142 22% PSLC Fees 2 0 N.A 2 0 N.A 0 N.A Credit Card 199 122 63% 98
Slide 15: Profitability ratios
Profitability ratios (calculated on avg. of monthly total assets) NII (%) Other Income (%) 6.0% 6.0% 1.7% 1.9% 1.8% 1.5% 5.3% 5.4% Q2'FY24Q2'FY25 H1'FY24 H1'FY25 Q2'FY24Q2'FY25 H1'FY24 H1'FY25 RoA Components Opex (%) Provision & Contingencies (%) 4.4% 4.5% 4.4% 4.6% 0.4% 1.1% 0.3% 1.0% Q2'FY24Q2'FY2
Slide 16: Incremental spreads aided by higher disbursement yield
Incremental spreads aided by higher disbursement yield Incremental Spreads Gross Advance Spreads 15.8% 15.2% 14.4% 14.4% 13.7% 13.5% 13.6% 13.3% 13.2% 13.2% 8.7% 7.6% 7.8% 7.7% 7.9% 7.4% 7.0% 7.4% 6.7% 6.9% 7.1% 7.3% 7.0% 6.6% 7.0% 6.1% 5.7% 5.8% 6.3% 6.2% Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q2'
Slide 17: Quarterly trends of key parameters (1 of 2)
Quarterly trends of key parameters (1 of 2) ₹ in Crores Net Interest Income Total Income PAT Gross Advance Yield 571 1,921 1,974 4,549 503 14.4% 14.4% 4,278 1,337 3,371 428* 13.3% 13.2% 13.2% 1,249 1,325 2,937 3,178 402 Q1'FY25 375 Q1'FY25 Q1'FY25 Q1'FY25 Q3'FY24 Q4'FY24 Q3'FY24 Q3'FY24 Q2'FY25 Q3'F
Slide 18: Quarterly trends of key parameters (2 of 2)
Quarterly trends of key parameters (2 of 2) ₹ in Crores Customers Employees Shareholders’ Funds Total B/S Assets (in Lacs) (in 000s) 16,041 1,38,829 108.5 109.2 46.6 48.0 15,516 1,25,942 11,763 12,167 12,560 1,09,426 28.5 28.9 29.7 95,977 1,01,176 44.3 46.8 49.4 Q1'FY25 Q1'FY25 Q1'FY25 Q1'FY25 Q3'FY
Slide 19: Balance sheet
Balance sheet 1st Apr’24 (All Figures in ₹ Crore) 30th Sep’24 30th Sep’23 YoY 30th Jun’24 QoQ (Merged YTD Opening B/S) Liabilities Shareholders Fund 16,041 11,763 36% 15,516 3% 14,985 7% Deposits 1,09,693 75,743 45% 97,290 13% 97,704 12% Borrowings 8,777 5,344 64% 8,931 -2% 9,240 -5% Other Liabiliti
Slide 20: Pan-India geographic presence
Pan-India geographic presence 21 States and 4 UTs 2,408 Touchpoints 461 Districts 688 ATMs 03 16 57 AU 02 Asset Center Mirco Finance Centre 04 44 630 Branches 250 Asset Centres 784 MFI Centres 57 102 2,408 Touchpoints AU 02 + BANK AU 479 BO 181 265 79 Unbanked 13 BCs + 650 BOs Branches 2 DBU 16 234
Slide 21: Diversified Advances & Deposits franchise
Diversified Advances & Deposits franchise Gross Advances Deposits 1% 1% 3% Rajasthan 2% 2% 1% 3% Rajasthan 3% 2% 2% Madhya Pradesh Maharashtra 3% Maharashtra Delhi 3% 3% (78%) 4% 23% Gujarat Gujarat 27% Haryana 3% Punjab 4% Punjab Haryana Delhi 5% Madhya Pradesh 8% Andhra Pradesh Karnataka 5% Uttar
Slide 22: Liabilities Update
3 LIABILITIES UPDATE
Slide 23: Evolution of the Branch Banking charter
Evolution of the Branch Banking charter Bank’s Deposit Journey Current proposition Complete product Deposit Total CASA + Complete Channels Branch Banking Branches (#) CASA % suite Breakup Deposits Retail TD % • Urban Branches • Segmented CA and SA products (ivy, Mar'18 125 181 • Swadesh Banking Roya
Slide 24: Focus on granular deposits and retail customer profile
Focus on granular deposits and retail customer profile ₹ in Crores Deposit Mix Deposit Customer Profile Total Deposits 75,743 80,120 87,182 97,290 1,09,693 % Share Certificate 993 1,117 2,463 2,110 4,245 4% 4% of Deposits 4% 4% 5% 4% TASC 5,981 5% 7% 6% 7% 7% 7% 4,736 9% 10% 9% 10% 11% Govt 5,338 17
Slide 25: Deepening engagement digitally via AU0101
Deepening engagement digitally via AU0101 7x growth on AU 0101 since launch Registered users 31.2 32 29.5 26.3 23.7 19.2 21.2 66% 32 Lacs 7.8 10.5 11.9 14.3 16.3 4.5 5.8 customers registered registered users on AU 0101 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Mar'
Slide 26: AU Wealth – enhancing value proposition for our deposit customers
AU Wealth – enhancing value proposition for our deposit customers Our Wealth proposition across customer segments Customer Segment Wealth Solutions Services/Platform Alternative Investment Funds1, Debt PMS, Bonds & other wealth services Dedicated Wealth Specialist IVY + PMS referral & Risk profile b
Slide 27: AD-I business – Phase I is live and seeing initial signs of pick-up
AD-I business – Phase I is live and seeing initial signs of pick-up In the first phase, we have gone live with Product and ▪ Import – import financing, LC/BG, bills under LC, import payments etc. Processes live ▪ Export – pre & post shipment, SBLC backed funding, EEFC A/c, inward payments, LC advisi
Slide 28: Assets Performance
4 ASSETS PERFORMANCE
Slide 29: Well diversified, predominantly retail asset book
Well diversified, predominantly retail asset book Gold Loans Credit Cards 1.9% 3.1% Personal Loans ₹ 1,05,031 Cr Microfinance 7.3% 1.0% Total Loan Portfolio Others* as of Q2’FY25 2.8% Mortgage backed Loans 33.3% EEFI (MBL – 24.6%, Agri Banking 3.6% HL – 8.7%) 6.4% Commercial Banking 20.0% REG 2.2% B
Slide 30: Asset book snapshot
Asset book snapshot ₹ in Crores Q2'FY25 Q1’FY25 Assigned/ Total Gross Gross Assigned/ Total Gross Gross Segments Gross Gross Gross Securitised/ Loan Advance NPA Securitised Loan Advance NPA Advances NPA Advances IBPC loans Portfolio Yield (%) (%) loans Portfolio Yield (%) (%) Retail Assets (A+B) 72,
Slide 31: NPA movement
NPA movement ₹ in Crores NPA Movement Q2’FY25 Q2’FY24 Q1’FY25 Opening GNPA 1,613 1,121 1,437# Additions during the period* 736 349 543 Less: Recoveries & Write Offs during the period (447) (226) (367) Closing GNPA 1,902 1,245 1,613 # including opening GNPA from Fincare SFB NPA Summary Q2’FY25 Q2’FY2
Slide 32: Provisioning summary
Provisioning summary ₹ in Crores Credit Cost Q2’FY25 Q2’FY24 Q1’FY25 H1’FY25 H1’FY24 Provision on NPA and Write off* 380 117 267 647 194 Repossession loss & POS loss 29 26 21 50 43 10 4 21 32 20 Standard & other provision (5) (12) (6) (11) (28) Covid restructuring provision Contingency provision cre
Slide 33: Overview of total provisions
Overview of total provisions ₹ in Crores Sep’24 Jun’24 Particulars Loan Loan Provisions Coverage Provisions Coverage Amount Amount GNPA 1,902 1,154 61% 1,613 1,010 63% Covid related restructuring (Standard) 360 60 17% 390 64 17% Contingency provisions 17 17 Floating provisions 41 41 Stressed and con
Slide 34: Credit cards update – Key Metrics
Credit cards update – Key Metrics Adoption Growing Portfolio Engagement 10.2 lacs+ ₹3,295 Cr ₹17,400+ 5,300 Cr+ Credit Card receivables Avg. Spend per Card Spends In Q2’FY25 Cards Live In Q2’FY25 Crossed 1 Mn Credit Card YOY growth of 32% holders in Jul’24 during Q2’FY25 Key Initiatives and Portfoli
Slide 35: Key Portfolio markers
Key Portfolio markers SALARIED CUSTOMERS EXISITING CARD HOLDERS BUREAU BAND 10% 20% >=760 740-759 70% 86% <740 70% Distribution in salaried segment. Majority sourcing under Carded 70% distribution above Bureau >760 Segment URBAN CUSTOMERS LIMIT UTILISATION SUPER A/CAT A/GOVT EMP 69% 19% 68% Distribu
Slide 36: Microfinance business highlights
Microfinance business highlights ▪ Top 3 states contributing ~35% with No state contributing more than 12% ▪ Top district contributing 2.9% and top 3 together 6.3% ▪ Remaining 345 districts are <1.5% of book each Portfolio Concentration ▪ Portfolio is in 61K villages across India ▪ One of the lowest
Slide 37: Other Key Information
5 OTHER KEY INFORMATION
Slide 38: Sustained focus on ESG initiatives
Sustained focus on ESG initiatives Environment Social Governance COE for Skills Development Independent and diversified Board Till Q2’FY25, 23,560 youth were trained, of - 7 of 10 directors are independent and non- which 77% were linked to employment across executive 16 centers of Rajasthan. A Parti
Slide 39: Financial & Digital Inclusion
Financial & Digital Inclusion Universal Access to Financial Services ➢ 32% of our total touchpoints/branches – 766 are in unbanked rural centres (Tier-VI, population less than 5,000 & Tier-V, population less than 10,000) ➢ Present in 89 Special Focus Districts* with 297 touchpoints covering 55 Aspir
Slide 40: Awards & Ratings
Awards & Ratings “Secured 56th rank” “ICC Emerging & “Top 50 “Best ESG Practices” Asia Banking Award” Best Place to Work for Millennials” AT 2nd ICC Emerging Asia Banking Conclave & At ASSOCHAM Awards 2024 (Excellent Recognized by 19th Annual Summit practices & adoption of Great place to Work & Awar
Slide 41: Board of Directors
Board of Directors Mr. H R Khan Executive Directors Part time Chairman & Independent Director 46+ years of experience Masters in Arts & Philosophy, Diploma in Mr. Sanjay Agarwal Business Mgt., CAIIB MD & CEO 29+ years of experience Ex-Deputy Governor of RBI Served on Boards of Several Banks & regula
Slide 42: Shareholding pattern
Shareholding pattern Fincare Business KMP, Director & Solutions Limited their relatives (Excluding 6.3% Others Independent Director) Promoter & Promoter Group 1.9% 1.9% 22.9% Individuals 5.4% Foreign holding 41.5% Domestic holding 58.5% Mutual Fund 15.5% Foreign Holding 41.5% AIF 1.3% Insurance 3.3%
Slide 43: For further information about the bank - Scan to Download
For further information about the bank - Scan to Download Analyst day Q1’FY25 Annual Report FY24 Investor Presentation AU Insights presentation - Mar’24 43
Slide 44: 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 45: For Investor queries contact
For Investor queries contact (details in QR Code): Prince Tiwari Email: investorrelations@aubank.in
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