Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q3 FY2022 Earnings Presentation
41 slides from Federal Bank Ltd. (india)'s earnings presentation, Jan 25, 2022
Slide 1: Secretarial Department cover letter to exchanges
Secretarial Department SD/ F24/220/2021-22 January 25,2022 The Manager The Manager Listing Department Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Mumbai – 400 051. Floor 25, Dal
Slide 2: Investor Information Q3 FY 2022
Investor Information ee Q3 FY 2022
Slide 3: Disclaimer
Disclaimer This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from th
Slide 4: Key Messages
Key Messages Credit Growth in Chosen Areas Profitability • Total Advances grew by 12% YoY • Net Profit @ 522 Cr, grew by 29% YoY • Retail Advances grew by 8% YoY Gaining Momentum • ROA for Q3 at 1.02% and ROE at 11.62% • Agri Business grew by 18% YoY in Business Growth • Operating Profit for Q3 at 9
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin (%) 12.20 11.62 10.73 10.38 3.27 9.03 3.23 3.20 1.02 3.22 3.15 1.02 0.92 0.84 0.76 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Cost to Income Ratio* NNPA (%) PCR (%) 54.81 1.23 53.73 1.
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income* 1539 1437 1479 648 1420 1418 475 478 492 484 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Fee Income 412 Net Profit 363 373 522 357 478 460 404 255 367 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21
Slide 7: Key Indicators
Key Indicators Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Book Value 86.05 83.52 82.60 80.77 78.32 (Per Share in ₹) Shareholder Value EPS 9.85 8.79 7.38 9.71 8.04 (annualized) CASA + Deposits <2 Cr 92% 92% 91% 88% 90% Granularity (% of Total Deposits) ROA 1.02 0.92 0.76 1.02 0.84 Profitability RoRWA 1.
Slide 8: Asset Quality Trends
Asset Quality Trends Amt in Rs.Cr. Standard Covid Specific Restructuring outstanding 2.92 2.86 2.84 2.62 2.61 of 3519 Cr, i.e. at 2.45% of 2.28 5194 5310 2.24 2.01 1.96 Gross Advances 2.01 1.71 1.67 1.73 1.76 139 116 1.59 4328 1.28 1502 1471 1.14 161 1.00 1.08 3191 3197 3357 3347 2890 160 1593 788 7
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q3 FY22 Q2 FY22 Q3 Q2 Q1 Q4 Q3* TYPE Of which Of which FY22 FY22 FY22 FY21 FY21 Balance Balance Bonds Bonds Retail 95 85 127 301 314 STANDARD 3723 17 3553 17 Agri 103 98 157 89 159 Net NPA 459 102 382 117 TOTAL 4181 119 3935 134 BuB 84 49 169 73
Slide 10: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q3 FY22 Q2 FY22 Q3 FY22 7% A & above 79% 77% 3% 7% BBB 11% 12% 3% 11% 13% < BBB 3% 3% Q2 FY22 Others 7% 8% 77% Internal Rating of ‘others’ (Externally unrated C
Slide 11: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q3 FY22 Q2 FY22 5% Q3 FY22 4% 17% FBR1 5% 4% 32% 18% 33% FBR2/FBR3 17% 18% Q2 FY22 16% FBR4 17% 16% 17% 29% FBR5/FBR6 29% 29% 29% Staff 3% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance against 29
Slide 12: Comparison: Y-o-Y (3 M)
Comparison : Y-o-Y (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances 8% 18% 11% 12% 14% 12% 42203 -> 45541 15626 -> 18431 11793 -> 13104 12846 -> 14339 45713 -> 52223 128180 -> 143638 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 15% 220 5% 10% bps 55740 -> 64343 34.
Slide 13: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB# (CoB)# CIB Total Advances Advances 3% 3% 5% 4% 7% 5% 44264 -> 45541 17890 -> 18431 12457 -> 13104 13851 -> 14339 48851 -> 52223 137313 -> 143638 CASA CASA Ratio NRE Deposits Retail Deposits Deposits 3% 52 0.3% 2% bps 62191 -> 64343 36.16 ->
Slide 14: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Digital Migration Digital ansformation f Future Readiness 88.3% SHARE OF DIGITAL TRANSACTION 135% YOY GROWTH IN UPI TRANSACTIONS 300+ API'S AVAILABLE IN OPEN BANKING 212.2K R25.1K CR WORTH MONTHLY | {CR WORTH MONTHLY MOBILE BANKING CORPORAT
Slide 15: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 31 Pine Labs EMI on POS Checkout Pane EMI on PG Checkout EMI on PG Checkout Full stack for Neo Banks Checkout No tension instant r3. Blockchain for cossberser © Tipple remittances Cross Border remittances %p Lulu (GROUP INTERNATIONAL Cross
Slide 16: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 15 15
Slide 17: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 16
Slide 18: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 17 17
Slide 19: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 18 18
Slide 20: Digital Migration
Digital Migration FEDERAL BANK YOUR PERFECT BANKING PARTNER Branch vs Digital Transactions (In Lakhs) 100 80 87.50% c “ 69.36 6.76 ep 79.98 20 A122. 13.16 8.39 11.42 . = C4 — Loa Dec-20 Mar-21 Jun-21 Sep-21 mam Transactions through Branch(Lakhs) YoY Growth in Digital Users (In Lakhs) Dec-20 Mar-21 J
Slide 21: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 20
Slide 22: Business Parameters
aheeeerataetieor Business Parameters 21
Slide 23: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio 34.81% 36.16% 36.68% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 34.48% 33.81% 99615 98598 97719 97265 93241 64725 62562 59336 58713 56037 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 CA & SA CASA + Demand Dep Other Retail Dep 47686 49996 51381 53014 46582 Remittance Mar
Slide 24: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 9% 10% 13% 54% 36% 32% 46% Retail Wholesale Retail Agri BuB CoB CIB Yield on Advances 62160 62702 66562 8.11 8.04 58559 60775 Q2 FY22 74611 77076 69621 73627 72012 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 23
Slide 25: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri & BuB) Housing LAP Auto Personal Other 11582 9892 9812 10343 24% 9116 1746 59% 1746 1809 1766 3583 1736 3840 4035 4035 3603 8263 17% 8263 7852 7783 7973 19043 20020 20124 20824 21685 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Retail Agri BuB RETAIL BAN
Slide 26: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio No of outstanding Accounts (in Lakhs) 11.82 16378 11.62 15976 11.22 11.32 15816 15764 14692 10.46 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Tonnage 50.82 49.51 48.41 48.73 46.48 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY
Slide 27: Wholesale Banking
Wholesale Banking CoB Corporate (CIB) ₹ in Cr 22% 52223 78% 45713 48748 47812 48851 12846 13190 12963 13851 14339 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 WHOLESALE BANKING Onboarded 53 new clients in CIB and 71 new clients in CoB, across business groups, geographies and sectors during the quarter.
Slide 28: Other Income: Distribution
Other Income : Distribution Other Income Distribution : Vertical Wise* (In Cr) 1000 648 700 800 475 478 492 484 27 500 600 1 3 1 2 295 88 47 300 400 135 107 124 116 86 84 200 143 100 253 284 279 319 184 0 -100 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Retail Wholesale Treasury Others Total Other Incom
Slide 29: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Loan Processing Fee 104 96 53 97 101 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 258 227 161 226 211 Income 412 Net Profit on Forex 50 50 41 40 45 357 15% Transactions Fee Income 412 373 255 363 357 Profit on s
Slide 30: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 Branches Digital 29 3 1 22 27 Customers @ 23 8 12 Core BC led 2 Sales /Relationship 8 2 Channel Distribution 1 (Bank owned) 45 9 31 11 1 2 3 25 101 20 Direct Sales Agents /Connectors 12% 16% Q3 FY22 6 12% 16% 24 Q3 FY22 Q2 FY22 Q1 FY22 104 2 Q2 FY2
Slide 31: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Dec-21 Sep-21 Risk Weighted Assets Credit Risk 103462 98648 Market Risk 3747 3605 Operational Risk 11695 11695 Total RWA 118904 113948 Tier-1 Capital Funds 16073 16057 Tier-II Capital Funds 1014 998 Total Capital Funds 17087 17055 CRAR 14.37% 14.97% Tier-I 13.
Slide 32: Annexures
FEDERAL BANK Annexures 31
Slide 33: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q3 FY22 Q2 FY22 LIABILITIES Capital 420 420 Share Holding Pattern Reserves & Surplus 17832 17307 Deposits 175432 171995 Borrowings 8150 10784 33% Other Liabilities & Provisions 7043 6368 32% TOTAL 208876 206874 2% ASSETS Cash & Balance with RBI 9526 8486
Slide 34: Financials
Financials ₹ in Cr Q3 FY22 Q2 FY22 Q-o-Q Q3 FY21 Y-o-Y Interest Income 3443 3379 1.9% 3460 -0.5% Interest Expenses 1904 1900 0.2% 2022 -5.9% Net Interest Income 1539 1479 4.0% 1437 7.1% Other Income* 484 492 -1.5% 475 1.9% Operating Expense 1109 1059 4.7% 956 16.0% Total Income* 3927 3871 1.4% 3935
Slide 35: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance FOOD/AGRICULTURAL PRODUCTS 1.32% 31.12.2021 CHEMICALS 1.57% CONTRACTORS 1.72% BANKS 1.75% TEXTILES INCLUDING JUTE & COIR 1.77% FOOD PRODUCTS 2.17% POWER GENERATION & TRANSMISSION 2.40% REAL ESTATE BUSIN
Slide 36: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 73.94% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.89% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 37: FedBank Financial Services Ltd. (FEDFINA)
FedBank Financial Services Ltd. (FEDFINA) Federal Bank Stake in Fedfina 507 Branches 15 States & UTs 82.6% 74% 74% 74% 5,505 7 PUNJAB 1 CHANDIGARH 4,752 9 HARYANA 33 DELHI AUM ( ₹ Cr ) 3,780 2,087 16 RAJASTHAN 7 UTTAR PRADESH 1,846 1,015 98 736 84 GUJARAT 6 MADHYA PRADESH 281 2,004 592 488 434 300 1
Slide 38: External Ratings
External Ratings Fixed Deposit A1+ (Short term) Certificate of Deposit A1+ India Ratings IND AA Tier 2 (Capital) Bonds & Research CARE AA Pvt Ltd, CARE • Fixed Deposits and Certificate of Deposits enjoy highest rating in that class. 37
Slide 39: Thank You
Thank You AE A aA og
Slide 40: Press Release: Net profit grows 29%
Marketing Department MKT/43/2021-22 25th January 2022 PRESS RELEASE Federal Bank’s net profit grows 29%, at Rs. 522 Cr Federal Bank announced Unaudited Financial Results for the quarter ended 31st December 2021. Major highlights of the results on a Y-o-Y basis are as follows: ➢ Total advances grew b
Slide 41: Press Release: Income, Margins and Asset Quality
Income & Margins Net Interest Income of the Bank increased to Rs.1538.90 Cr as on 31st Dec 2021 from Rs. 1437.04 Cr as on 31st Dec 2020. Core fee income has registered a growth of 15.47% to reach Rs. 412.03 Cr. The Net Interest Margin of the Bank during quarter ended 31st December 2021 stood at 3.27