Slide 1: Investor Forum FY 2017
INVESTOR FORUM FY 2017 27 MARCH 2018 – HOTEL GALADARI December - 2016
Slide 2: Disclaimer & Forward Looking Statements & Note
Disclaimer & Forward Looking Statements & Note 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 co
Slide 3: Panelists
Panelists Ananda W Atukorala - Chairman Dimantha Seneviratne – Director/ Chief Executive Officer Lalith T Fernando – Group Chief Financial Officer Buwaneka Perera - Vice President - Corporate Banking Sanjaya Perera - Vice President – Personal Banking & Branch Network Management Representing the NDB
Slide 4: Agenda
Agenda 1. Business Overview 2. Awards 3. Macro analysis of the 2017 Financial Performance 4. Detailed analysis of the 2017 Financial Performance 5. Questions and Answers Session 4
Slide 5: Agenda
Agenda 1. Business Overview 2. Awards 3. Macro analysis of the 2017 Financial Performance 4. Detailed analysis of the 2017 Financial Performance 5. Questions and Answers Session 5
Slide 6: Business Overview - Corporate Profile
Business Overview - Corporate Profile Our Vision To be the driving force for a financially empowered Sri Lanka Corporate Profile Our Mission Established in 1979 as a Development Financing To be the catalyst in the financial Institution services industry by creating superior Conversion in to a fu
Slide 7: Business Overview - Group Structure
Business Overview - Group Structure 58.7% Property management Licensed commercial banking* 100% 77.8% 99.9% Investment banking 100% Investment banking (Bangladeshi arm) Wealth management Full service investment banking 100% Investment advisory & securities trading 60.0% Management of private equity
Slide 8: Business Overview - Strategic Focus
Business Overview - Strategic Focus • “Transformation 2020” - The Bank’s new strategic framework spanning up to year 2020 • Goal : To transform the Bank to a large, systemically important bank from its current mid sized status • Developed with the professional input of the International Finance Corp
Slide 9: Agenda
Agenda 1. Business Overview 2. Awards 3. Macro analysis of the 2017 Financial Performance 4. Detailed analysis of the 2017 Financial Performance 5. Questions and Answers Session 9
Slide 10: Awards - 2017
Awards - 2017 37 awards titles won by the Bank and the Group companies at both local and foreign awards programs, with several titles defended for consecutive years. Overall excellence Annual report awards Digital banking • National Business Excellence • CA Sri Lanka – 53rd Annual Report • LankaPay
Slide 11: Awards Contd.
Awards Contd. Close to 40 awards titles won by the Bank and the Group companies at both local and foreign awards programs, with several titles defended for consecutive years. HR Awards won by Group companies Investor relations • CFA Sri Lanka Capital Market • Best Training Partnership with External
Slide 12: Our latest win: Best Bank in Sri Lanka 2018
Our latest win BEST BANK IN SRI LANKA 2018 as adjudged by the prestigious Global Finance Magazine of USA
Slide 13: Agenda
Agenda 1. Business Overview 2. Awards 3. Macro analysis of the 2017 Financial Performance 4. Detailed analysis of the 2017 Financial Performance 5. Questions and Answers Session 13
Slide 14: FY 2017 Financial Performance Summary - Bank
FY 2017 Financial Performance Summary - Bank FY 2017 FY 2016 Growth Net Interest Income 10,750 8,487 27% Net Operating Income 14,893 11,784 26% Profitability Operating Expenses 7,346 6,449 14% (LKR Mn) Profit after Tax 4,352 3,170 37% Profit Attributable to Shareholders (PAS) (Group) 3,490 2,691 30%
Slide 15: FY 2017 – Bank's Performance vs. Industry
FY 2017 – Bank’s Performance vs. Industry FY 2017 – Bank’s performance vs. Industry Key performance indicators of the Bank improved during the year, some well ahead of the industry, whilst others were close to the industry average. KPI Bank Industry Average Total assets growth 15% 13.8% Loans and re
Slide 16: Agenda
Agenda 1. Business Overview 2. Awards 3. Macro analysis of the 2017 Financial Performance 4. Detailed analysis of the 2017 Financial Performance 5. Questions and Answers Session 16
Slide 17: Income Statement - Summary
Income Statement - Summary Bank Group Change Change LKR Mn FY 2017 FY 2016 FY2017 FY2016 LKR % LKR % Net Interest Income 10,750 8,487 2,263 27 11,086 8,861 2,226 25 Other Income 5,402 4,663 738 16 5,597 4,816 781 16 Operating Income 16,152 13,151 3,001 23 16,683 13,677 3,006 22 Impairment 1,259 1,36
Slide 18: Revenue Analysis – Net Interest Income
Revenue Analysis – Net Interest Income LKR Mn FY 2017 FY 2016 % NII & NIM behavior Interest Income 37,119 28,618 30 Q4 recorded the highest interest income and Interest Expenses 26,369 20,131 31 NII on a quarterly basis during the year Net Interest Income (NII) 10,750 8,487 27 NII grew by an imp
Slide 19: Revenue Analysis – Non Interest Income
Revenue Analysis – Non Interest Income LKR Mn FY 2017 FY 2016 % Net fee and commission income 2,521 2,253 12 Net gain/(loss) from trading 1,064 982 8 Net gain/(loss) from financial investments 570 211 169 Other operating income 1,248 1,217 3 Total non interest income 5,402 4,663 16 • Net fee and com
Slide 20: Operating Expenses
Operating Expenses Bank Group LKR Mn FY 2017 FY 2016 % FY 2017 FY 2016 % Personnel expenses 3,611 3,435 5 4,025 3,793 6 Depreciation & amortization 417 435 (4) 472 491 (4) Other expenses 3,317 2,580 29 3,704 2,875 29 Total operating expenses 7,346 6,449 14 8,201 7,159 15 Major cost drivers during th
Slide 21: Balance Sheet – Summary - Bank
Balance Sheet – Summary - Bank LKR Mn FY 2017 FY 2016 % 5 year CAGR of 18.6% Cash & Cash Equivalents 21,480 20,130 7% Investments 80,657 80,597 0.1% Net Loans & Investments 274,029 227,677 20% Fixed Assets 2,741 2,447 12% Other Assets 4,165 3,693 13% Total Assets 383,073 334,545 15% Impressive incre
Slide 22: Loans & Advances
Loans & Advances • Impressive loan growth of 20%, above industry average of 16.1% • Loan growth recorded across all the segments of the loan book • Market share well retained 22
Slide 23: Asset Quality
Asset Quality NPL & Provision Cover 300 3.5 2.97 Gross Loans 250 2.51 2.63 3 2.43 2.5 200 2.78 2.58 2.48 2.52 1.83 2 NPL Ratio % 150 1.5 1.72 100 1 Impairment 50 0.5 Provision Cover over 141 180 215 234 278 Gross Loans - % 0 0 2013 2014 2015 2016 2017 • One of the lowest NPLs recorded amidst high lo
Slide 24: Customer Deposits
Customer Deposits • 34% growth in deposits, well ahead of the industry deposits growth rate of 17.5% • Highest deposits growth recorded over the last 5 years • Resultantly, Loans to Deposits Ratio (LDR) improved to 102% from 115% in 2016 • Preserved CASA ratio at 21.2% • Substantial improvement in C
Slide 25: New product propositions introduced in 2017
New product propositions introduced in 2017 New CASA Deposits launches • NDB Savings Planner • NDB Araliya – Women’s Savings Account • NDB Achara – A deposit and loan product for senior citizens Product re-launches • NDB Children’s Savings Account Business proposition for SMEs • NDB Business Class •
Slide 26: Digital Financial Services & Credit Cards
Digital Financial Services & Credit Cards Digital Financial Services NDB’s Mobile Banking App • 96% growth in subscriber base • LKR 4 billion worth of transaction routed the App • Access to Sole proprietorships introduced in the App in March 2018 E-statements – 113% increase in the subscriber ba
Slide 27: Capital Management
Capital Management BASEL III – FY 2017 Bank Group Common Equity Tier 1 Capital Ratio (Minimum Requirement -5.75%) 8.85% 10.49% Tier 1 Capital Ratio (Minimum Requirement - 7.25%) 8.85% 10.49% Total Capital Ratio (Minimum Requirement - 11.25%) 13.89% 15.18% Capital adequacy metrics well above the mi
Slide 28: Investor Ratios
Investor Ratios Investor Ratios Bank Group FY 2017 FY 2016 FY 2017 FY 2016 Price per share (LKR) 136.40 156.0 NA NA EPS (LKR) (Annualized) 25.38 18.49 20.35 15.69 ROE (%) 16.27 13.36 11.09 9.23 ROA (%) 1.21 0.99 0.96 0.82 Book value per Share (LKR) 167.58 149.80 192.51 181.23 Dividend per Share (LKR
Slide 29: Agenda
Agenda 1. Business Overview 2. Awards 3. Macro analysis of the 2017 Financial Performance 4. Detailed analysis of the 2017 Financial Performance 5. Questions and Answers Session 29
Slide 30: NDB's Investor Relations Team
NDB’s Investor Relations Team 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 2017 & 2016. Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the