National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — 9M 2016 Earnings Presentation
23 slides from National Development Bank's earnings presentation, September 2016
Slide 1: Investor Update September 2016
INVESTOR UPDATE September - 2016
Slide 2: Forward Looking Statements
01 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 regarding the information disc
Slide 3: Agenda
02 Agenda 1 Overview of NDB Group 2 Macro Economic Overview 3 Awards & Accolades 4 Financial Performance
Slide 4: Overview
03 Overview 58.7% 99.9% 99.9% 77.8% 99.9% 99.9% 60.0% Vision Mission Values “The driving force for a To be the catalyst in the Integrity financially empowered financial services industry by Sri Lanka” creating superior shareholder Accountability value and contributing to the national development thr
Slide 5: Brief History – Milestones
04 Brief History – Milestones 1995 2015 Setting up of NDB 2005 Establishment of NDB Stockbrokers 1999 2011 Zephyr Partners Ltd. 1979 (NDBZ) in 2014; jointly & NDB The merger of NDB Partners Zurich owned by NDB Capital Venture Bank and National Establishment of Formation of Insurance in Holdings PLC
Slide 6: Macro Economic Overview
05 Macro Economic Overview Economic Growth Economic Growth 10.00 9.14 8.40 • 2016 growth forecast was revised down to 5% 8.00 • Growth forecast for 2017 is lowered to 5.5% because of 6.00 4.46 4.80 4.90 tight monetary and fiscal policies. % 4.00 3.40 2.00 Extended Fund Facility with IMF - 2011 2012
Slide 7: Operational Excellence Strategy
Operational Excellence Strategy Strong Sales Culture Higher Fee Income Profitable Balance Sheet Growth Cost Optimization Strong Corporate Governance ,Compliance , Risk Management & CSR Best In Class Engaged and Inspired Team 06
Slide 8: Awards & Accolades
07 Awards & Accolades CFA Sri Lanka Capital Market Awards 2016 • Best Investor relations - Gold Award EUROMONEY Awards for Excellence 2016 • NDBIB - Best Investment Bank in Sri Lanka – 5th consecutive year Asian Banking & Finance Retail Banking Awards 2016 • Domestic Retail Bank of the Year - Sri La
Slide 9: Financial Performance 9M 2016
Financial Performance 9M 2016
Slide 10: 9M 2016 Performance Summary
09 9M 2016 Performance Summary 9M 2015 9M 2016 YoY Operating Income 9,613 9,980 4% Profitability (LKR Mn) Operating Expenses 5,027 5,328 6% Profit for Shareholders 2,288 1,965 -14% Total Assets 285 334 17% Financial Position (LKR Bn) Total Loans 198 228 15% Total Deposits 169 193 14% Cost to Income
Slide 11: Income Statement
10 Income Statement LKR Mn Year – to - date Variance over 2015 2016 2015 % Net Interest Income 5,705 6,532 827 14 Operating Income 9,613 9,980 367 4 Impairment 545 1,050 505 93 Operating Expenses 5,027 5,328 301 6 Operating Profit 4,041 3,603 (439) (11) Tax 1,790 1,579 (211) (12) PAS 2,288 1,965 (32
Slide 12: Net Interest Income
11 Net Interest Income Figures in LKR Mn • Interest income improved on the back of re-pricing of 9M-2016 YoY (%) short term assets (60%-70% of the loan book) Interest Income 20,783 32.9 Interest Expenses 14,251 43.4 Prime Lending Rate 14.0 Net Interest Income 6,532 14.5 12.0 10.0 8.0 % 6.0 2015 Cost
Slide 13: Non Interest Income
12 Non Interest Income Figures in LKR Mn • Fee & Commission growth at the Group level was hindered by the moderation of capital market 9M-2016 YoY (%) activities. Fee & Commission 2,243 1.3 • However, there was a 13% YoY growth at the Bank Gain / (Loss) Trading 683 (17.8) level. Other operating inco
Slide 14: Operating Expenses
13 Operating Expenses Figures in LKR Mn • Major portion of the incremental depreciation is due 9M -2016 YoY (%) to the continued focus on network expansion. Personnel expenses 2,888 6.6 Depreciation and amortization 367 18.6 Branches Other expenses 2,073 3.2 105 13 Total operating expenses 5,328 6.0
Slide 15: Balance Sheet
14 Balance Sheet LKR Mn Asset Mix (Sep 2016) Sep-16 Dec-15 % Other Assets 2% Cash & Cash Equivalents 26,851 20,002 34 Fixed Assets Investments 76,369 77,327 (1) 1% Net Loans & Advances 222,225 209,666 6 Loans LKR 78% Fixed Assets 2,504 2,455 2 Investments 69% 22% Other Assets 6,245 5,905 6 Total Ass
Slide 16: Loans & Advances
15 Loans & Advances Growth Trend YoY 15% 5 Yr CAGR : 26% • Gross Loan Book stood at LKR 228 Bn 50 56 • Grew by 6% from Dec-2015 50 45 LKR Bn 33 • Corporate Segment represents 34% of Loan book 28 23 compared to 40% in Sep-2015 49 19 178 108 136 159 148 73 91 2010 2011 2012 2013 2014 2015 9M 2015 9M 2
Slide 17: Asset Quality
16 Asset Quality Gross NPL Ratio Impairment Allowance: % of Gross Loans 5.6% 3.8% NDB 3.3% 3.2% 3.1% 4.3% 4.3% 4.2% 3.0% 4.0% Industry 2.7% 2.6% 3.2% 2.6% 3.1% 3.0% 2.5% 3.0% 2.8% 2.8% 2.8% 2.7% 2.6% 2.5% 2.4% 2.7% 2.5% 2.6% 2.4% 2.5% 2.5% 2.5% 2.5% 2.4% NDB Peer Avg. 2013 2014 Mar-15 Jun-15 Sep-15
Slide 18: Customer Deposits
17 Customer Deposits Deposit Mix (Sep 2016) Growth Trend YoY 14% Current 9% 5 Yr CAGR : 25% 14% Savings 45 51 LKR Bn Time 51 37 30 28 6 55 5 77% 148 100 115 133 118 76 79 2010 2011 2012 2013 2014 2015 9M 2015 9M 2016 FCY LKR Source: Internal Analysis Source: Internal Analysis Healthy Liquidity DBU F
Slide 19: Capital Adequacy
18 Capital Adequacy Capital Adequacy Trend Tier I Tier I + II 21.0% 20.7% 25.0% Minimum Requirement (Tier I+II) 17.6% 15.8% 20.0% 15.3% 14.9% 14.9% 18.8% 15.0% 15.4% 15.2% 14.2% 11.3% 12.9% 10.0% 10.9% 11.1% 10.8% 5.0% 0.0% 2011 2012 2013 2014 2015 1Q 2016 1H 2016 3Q 2016 RWA (LKR Bn) 116.1 135.1 16
Slide 20: Investor Ratios
19 Investor Ratios 2014 1Q-2015 1H-2015 3Q-2015 2015 1Q-2016 1H 2016 3Q-2016 EPS (LKR) 25.14 21.12 17.54 18.25 21.51 13.37 13.19 15.89 ROE (%) 15.78 12.42 10.21 10.55 12.59 7.84 7.64 8.98 Book value per Share (LKR) 169.35 170.70 174.19 176.79 172.35 168.80 173.52 182.12 P/E (times) 9.95 11.74 14.84
Slide 21: Outlook
20 Outlook Improve Margins Manage Cost Better Focus on Risk Management Governance & Controls Build Leadership & Talent Contribute to Society & Environment
Slide 22: Q&A
YA NDB bank Q&A
Slide 23: Investor Relations
Investor Relations Telephone : +94 112 448 448 (ext. 3838) Email : investor.relations@ndbbank.com Web : www.ndbbank.com
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