Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q3 FY2024 Earnings Presentation
33 slides from Pnb Housing Finance's earnings presentation, Jan 24, 2024
Slide 1: Stock exchange cover letter for investor presentation
Ref: PNBHFL/SE/EQ/FY24/94 Date: January 24, 2024 BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai – 400051 Scrip Code: 540173 Symbol: PNBHOU
Slide 2: Investor Presentation Quarter Ended December 2023
Investor Presentation Quarter Ended December 2023 24-January-2024 Public
Slide 3: Table of Content
Table of Content 1 Key Performance Highlights 2 Update on Strategic Objectives 3 Business Update 4 Asset Quality 5 Financial Performance Annexure 6 Public
Slide 4: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total INR 11,942 Crore (9MFY24) INR 67 Crore (9MFY24) INR 12,009 Crore (9MFY24) (16.1% YoY ) (-64.0% YoY) (14.7% YoY) Disbursement INR 4,110 Crore (Q3FY24) INR 33 Crore (Q3FY24) INR 4,143 Crore (Q3FY24) (22.2% YoY | -1.3% QoQ) (-47.8% YoY |
Slide 5: Key Performance Highlights
Key Performance Highlights AUM Loan Assets Deposits Spread NIM 2.42% (9MFY24) 3.77% (9MFY24) (-45 bps YoY ) (5 bps YoY ) INR 68,549 Crore INR 62,337 Crore INR 17,134 Crore (4.3% YoY | 1.7% QoQ ) (7.4% YoY | 2.4% QoQ) Public 88% | ICD 12% 2.12% (Q3FY24) 3.49% (Q3FY24) (-171 bps YoY | -47 bps QoQ) (-1
Slide 6: Key Performance Highlights
Key Performance Highlights Business Highlights • In 9M FY24, average disbursement monthly run-rate improved to ~INR 1,300 crore vs ~INR 1,150 crore in 9M FY23 and ~INR 800 crore in 9MFY22 • Loan Asset grew ~INR 1,500 crore per quarter during 9M FY24 as compared to ~INR 870 crore in 9M FY23 • Pan-Ind
Slide 7: Recent Developments
Recent Developments India Ratings upgraded rating on PNB Housing to AA+ (Outlook: Stable) from AA on Jan 02, 2024 The rating upgrade takes into account: • Granularization of loan book, with 96% of the book being retail, and almost complete rundown of the corporate book • Ease of asset quality pressu
Slide 8: Update on Strategic Objectives
Update on Strategic Objectives Asset Mix Distribution Network Underwriting & Asset Mix Distribution Collections Network • Increased Retail contribution in Loan Asset to • Plan to expand presence in Prime & • Straight through Processing implemented for 96.5% in Dec-23 from 91.5% in Dec-23 Affordable
Slide 9: Update on Strategic Objectives
Update on Strategic Objectives Borrowing Profile Digital Drive Corporate Governance • Credit Rating upgraded by India Ratings to • Launched fully digital sales and sourcing • Diversified & highly experienced Board; all AA+ from AA platform for the field team to push sales committees except CCB heade
Slide 10: Focus on Strategic Objectives aided in delivering Improved Performance
Focus on Strategic Objectives aided in delivering Improved Performance (INR Crore) 1 Growth in Retail Loan Asset 2 Improved Asset Quality (GNPA) Total 8.13% -178 bps Retail 60,129 1,658 -29 bps -119 bps 1,493 -16 bps -34 bps 1,507 -16 bps -104 bps -0.29% -54 bps -7 bps 2,348 -197 bps 999 -1.19% -29
Slide 11: Improved Retail contribution in Loan Asset
Improved Retail contribution in Loan Asset (INR Crore) Loan Asset Mix Retail Product-wise Break-up Retail Segment-wise Breakup 58,034 60,852 62,337 8.5% 3.9% 3.5% 28.8% 28.0% 28.2% 42.0% 39.9% 39.5% 91.5% 96.1% 96.5% 71.2% 72.0% 71.8% 58.0% 60.1% 60.5% 31-Dec-22 30-Sep-23 31-Dec-23 31-Dec-22 30-Sep-
Slide 12: De-risking Corporate Portfolio
De-risking Corporate Portfolio Corporate loan book (INR crore) Reduction in Corporate GNPA through multi-pronged strategy (INR crore) % of total 8.5% 3.5% GNPA % 3.35% loan assets) 26.61% 55% YoY Reduction in book through down sell, 2,703 accelerated pre-payments & resolutions 4,911 1,233 1,307 2,20
Slide 13: Wide Distribution Network
Wide Distribution Network Loan Asset – Geographical Breakup Affordable 82 100 branches & outreaches 35% 33% 212 186 26 29% 32% 36% 36% 31-Dec-22 31-Dec-23 Disbursement - Geographical Break-up 31-Dec-22 Dec’22 - Dec’23 31-Dec-23 Branches/outreaches 34% 35% 31% 37% 14,000+ Channel Partners for loans &
Slide 14: Expand Affordable Segment, especially in tier-II and tier-III cities
Expand Affordable Segment, especially in tier-II and tier-III cities Affordable Segment Distribution Network Disbursements (INR Crore) Crossed INR 1,000 crore disbursement 406 374 228 137 Q4FY23 Q1FY24 Q2FY24 Q3FY24 PNB Housing Finance is ready to capitalize on available opportunity in Affordable Se
Slide 15: GNPA & Non-Performing Assets
Non-Performing Assets Overall Retail Corporate GNPA (INR -62% -34% -94% Crore) 2,824 1,518 1,424 1,416 1,307 2,270 2,270 Gross NPA 846 854 1,086 1,079 1,018 1,005 68 74 31- 31- 30- 30- 31- 31- 31- 30- 30- 31- 31- 31- 30- 30- 31- Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 D
Slide 16: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 31-Dec-23 30-Sep-23 31-Dec-22 Gross Stage 1* 59,302 57,796 53,133 Gross Stage 1 as % to Loan Asset 95.13% 94.98% 91.56% ECL Provision Stage 1 579 559 536 ECL Provision % Stage 1 0.98% 0.97% 1.01% Gross Stage 2* 1,956 1,970 2,076 Gross Sta
Slide 17: Financial Performance
Financial Performance Public
Slide 18: Well Diversified Resource Profile
Well Diversified Resource Profile Borrowing Mix – 31-Dec-23 6.1% 6.3% Cost of Borrowing 8.06% 7.97% 8.00% 7.99% 7.87% 8.07% 10.5% 7.76% 7.83% 42.0% Borrowings INR 53,106 Crore | 7.98%* 32.3% Total Resource INR 59,188 Crore 2.7% Q4FY23 Q1FY24 Q2FY24 Q3FY24 *In Q3FY24, there is a one-off of INR 11.79
Slide 19: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,794 1,704 1,777 1,752 1,225 1,252 1,634 1,172 1,146 1,197 1,730 1,718 1,681 996 1,008 1,048 1,057 1,087 1,601 1,676 124 150 168 166 64 33 28 59 70 52 -5 143 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 I
Slide 20: Financial Ratio Analysis – Quarter on Quarter
Financial Ratio Analysis – Quarter on Quarter Average Yield Average Cost of Borrowing 11.38% 10.65% 10.59% 10.58% 10.48% 8.07% 7.98%* 10.41% 10.43% 10.50% 7.97% 7.97% 7.99% 7.99% 10.19% 10.29% 7.76% 7.76% 7.55% 7.55% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 *In Q3FY24, t
Slide 21: Financial Ratio Analysis – Nine Months
Financial Ratio Analysis – Nine Months Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.24% 10.45% 10.42% 8.03% 8.00%* 2.87% 3.72% 3.77% 3.78% 9.56% 7.37% 7.37% 2.42% 2.42% 3.11% 2.19% 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 *In Q3FY24, there is a one-off of INR
Slide 22: Consolidated Profit & Loss Statement – X 1-off
Consolidated Profit & Loss Statement – X 1-off Reported X 1-off Amount in INR Crore Q3 FY24 Q3 FY23 YoY (%) Q2 FY24 QoQ (%) Q3 FY24 Q3 FY23 YoY (%) Q2 FY24 QoQ (%) Total Interest Income 1,682 1,730 -3% 1,718 -2% 1,697 1,626 4% 1,702 0% Interest Expense 1,087 996 1,057 1,075 996 1,057 Net Interest In
Slide 23: Financial Ratio Analysis - Annual
Financial Ratio Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.68% 10.28% 7.91% 2.77% 2.81% 3.73% 7.30% 7.47% 9.42% 3.16% 2.12% 2.80% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Gross Interest Margin Opex to ATA Ratio Return on Asset Return o
Slide 24: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q3 FY24 Q3 FY23 YoY Q2 FY24 QoQ 9M FY24 9M FY23 YoY FY23 FY22 FY21 Interest Income 1,680 1,714 1,703 5,049 4,610 6,199 5,822 7,190 Add: Net gain on fair value changes 2 17 15 26 23 34 111 162 Add: Income on derecognized (assigned) loans 0
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-23 31-Mar-23 31-Mar-22 31-Mar-21 Particulars (INR Crore) 30-Sep-23 31-Mar-23 31-Mar-22 31-Mar-21 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - - 51 (b) Debt Securities 6,579 3,994 6,202 1
Slide 26: Key Takeaways
Key Takeaways Focus on Retail Strengthen underwriting Resolutions in Capital Raise Enhance Profitability Segment Growth and Collections Corporate Book & Return Ratios including Affordable Framework Segment Continued focus on Retail Leverage advance analytics Resolution in one large Successfully comp
Slide 27: Annexure
Ghar Ki Baat Annexure
Slide 28: Shareholding Pattern
Shareholding Pattern Shareholding as on 31-Dec-23 Top 10 Shareholders 4.2% 6.0% 4.3% 28.1% • Promoter (PNB) 5.0% • Carlyle 9.8% • Ares SSG Capital • General Atlantic Singapore Fund 32.7% • Tata Mutual Fund 9.9% • Pioneer Investment Fund • Vanguard • Nippon Mutual Fund Promoters Quality Investment Ho
Slide 29: Experienced and Professional Management Team
Experienced and Professional Management Team Girish Kousgi Managing Director and CEO Sanjay Jain Vinay Gupta Company Secretary & Chief Jatul Anand Compliance officer Chief Credit & Collections Officer Chief Financial Officer Ajay Kumar Mohanty Anujai Saxena Amit Singh Chief People Officer Head - Int
Slide 30: ESG Snapshot
ESG Snapshot Environment ▪ 99.6% EMI collections through digital mode ▪ The Company through its CSR initiative supported • Undertaken various program under Environment and Water Conservation in MP, Rajasthan, UP, Haryana & Maharashtra • Installed 16 bottle recycling machines with aim to save approx.
Slide 31: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets NIM (%) Net Interest Income including assignment income / Average Earning Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - C
Slide 32: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any man
Slide 33: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations & Treasury) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com Public 32
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