Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q3 FY2021 Earnings Presentation
36 slides from Pnb Housing Finance's earnings presentation, Jan 27, 2021
Slide 1: Cover letter to stock exchanges
January 27, 2021 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 540173 Symbol: PNBHOUSING Dear Sirs, Sub: Inves
Slide 2: Investor Presentation Q3/9M ended December 2020
Investor Presentation Q3/9M ended December 2020 27-January-2021
Slide 3: Contents
Contents A. Setting the New Agenda B. Business and Financial Performance C. Shareholding D. ESG Snapshot E. Key Takeaways F. Growth in Housing Finance Sector 2
Slide 4: Setting the "New Agenda"
Setting the “New Agenda” Strengthen Core Drive Efficiency Accelerate Growth Capital Cost Retail Focused Grow Affordable Management Risk Management Management Digital Drive Lending Housing Position • Strengthen leadership • Improve capital and • Leverage advance • Rationalize • Accelerate digital • R
Slide 5: Phased Strategic Repositioning
Phased Strategic Repositioning Phase I Phase II Phase III Strengthening the Core Driving Efficiency Accelerating Growth (Up to March 2021) (March 2021 – September 2021) (September 2021 onwards) • Focus on immediate priorities - COVID-19 • Embark upon Business process transformation • Complete implem
Slide 6: Experienced Management Team
Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 5 Months CHIEF CENTRALIZED ED & CHIEF CREDIT OFFICER CHIEF FINANCIAL OFFICER CHIEF PEOPLE OFFICER OPERATIONS & TECHNOLOGY • Years of Experience: 30+ • Years of Experience: 24+ • Years of Experience: 30
Slide 7: Capital Position
Capital Position Provisions Capital to Risk Asset Ratio Stage 3 28.4% 20.9% 36.2% 46.8% Coverage ratio (%) 3.5% 20.1% 3,000 3.5 2.6% 3.0 2.6% 2,500 2,243 18.0% 2.5 16.7% 2,000 1,766 2.8% 2.0 1,500 1.5 3.9% 14.0% 0.8% 0.8% 1.0 1,000 594 0.5 3.0% 500 432 0.0 0 -0.5 31-Mar-18 31-Mar-19 31-Mar-20 31-Dec
Slide 8: Continuous Focus on Risk Management
Continuous Focus on Risk Management Retail Corporate Selective Monitoring and Underwriting Portfolio Management Collections Disbursements Resolutions • Regular review the credit • Identifying potential early • Control forward flow into • Selective approach with • Formed Remedial monitoring and contr
Slide 9: Corporate Book Details
Corporate Book Details • 79% of the Book is good; majority backed by Tier 1 Developers Construction Finance Book Construction Status • 62% of the book is with Zero DPD • Down Sell / Accelerated pre payment of INR 994 crore in 9M FY20-21 24% • Deleveraging Top 20 developers book; reduced by 7% as on
Slide 10: Cost Rationalization
Cost Rationalization Opex to ATA Ratio Cost to Income Ratio 0.7% 19.6% 0.6% 0.6% 17.2% 16.9% 0.5% 14.9% FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 Key Initiatives • Operating expense reduced by 24% in 9M FY21 as compared to 9M FY20 • Rationalization of branches & hubs while maintaining presence in
Slide 11: Digital Drive across the Value Chain
Digital Drive across the Value Chain Tools & Collaborations Impact Sourcing • Digital acquisition at 16% • Significant reduction in TAT Uconnect • Fraud control tools and multi layered Underwriting ecosystem resulting in negligible fraud losses Digital Email verification • Around 70% of the customer
Slide 12: Retail Focused Lending Operations
Retail Focused Lending Operations Retail segment contribute 97% of the 9M FY21 Robust and scalable Hub-and-Spoke model disbursement resulting in efficiency Continue to operate in mass housing and Digitisation across the value chain resulting into merchant category increased efficiencies Policy inter
Slide 13: Business and Financial Performance
Business and Financial Performance 12
Slide 14: Performance Highlights
Performance Highlights Disbursement* INR 6,342 Crore / Total Provision/ INR 3,203 Crore Total Assets 3.47% 2.64% on Loan Assets Asset Under Management INR 77,769 Crore GNPA 2.26% on AUM Retail Loans 83% of the AUM 12 bps Write-offs since Inception** Deposits INR 16,512 Crore Book Value Per Share INR
Slide 15: Business Trends - Quarter on Quarter
Business Trends - Quarter on Quarter No. of Logins No. of Sanctions 22,943 16,232 20,165 14,226 17,063 11,733 14,625 10,368 5,071 3,288 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Pre COVID Pre COVID Disbursement (INR Crore) Retail Disbursement Breakup (%) 3,196 3,203 438 2
Slide 16: Business Update
Business Update (INR Crore) Asset AUM CAGR +16% 84,722 83,346 77,769 • AUM reduced by 10% YoY; 62,252 Retail AUM reduced by 9% and Corporate AUM by 14% 74,023 67,571 64,584 57,014 • Retail AUM is 83% of the total 31-Mar-18 31-Mar-19 31-Mar-20 31-Dec-20 AUM AUM Loan Assets • 97% of the total Disburse
Slide 17: Asset Under Management
Asset Under Management Product-wise Break-up AUM Mix Individual Housing Loan 17% 20% 18% 17% 21% 4% Retail Loan Against Property 57% Retail Non- residental 22% Premises Loan Corporate Loan 80% 82% 83% 79% Segment-wise Breakup Corporate Retail 83% 17% Salaried 44% 31-Mar-18 31-Mar-19 31-Mar-20 31-Dec
Slide 18: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes Average Ticket Size Weighted Average Loan to Value 52 51 47 45 69% 71% 71% 72% 31 31 47% 49% 49% 49% 29 28 31-Mar-18 31-Mar-19 31-Mar-20 31-Dec-20 31-Mar-18 31-Mar-19 31-Mar-20 31-Dec-20 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Completed Indiv
Slide 19: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 1.9% 0.6% 1.6% 0.4% 1.4% 0.3% 1.2% 0.2% 3.0% 2.5% 1.9% 1.7% 5.0% 4.6% 3.3% 3.1% 6.7% 6.2% 4.2% 4.5% >15 Crore 12.2% 13.9% 13.1% 12.9% 13.5% 15.8% 15.1% 16.6% 10-15 Crore 17.9% 18.6%
Slide 20: Corporate Book Summary
Corporate Book Summary Unique Corporate houses AUM No. of Unique Corporate Product Segment % of AUM ATS (INR Crore) houses (INR Crore) Construction Finance 9,636 12.4% 162 Corporate Term Loan 2,677 3.4% 100 122 Lease Rental Discounting 914 1.2% 84 Total Corporate Book 13,227 17.0% Geographical Distr
Slide 21: Corporate Book Remedial Actions on Key NPA accounts
Corporate Book Remedial Actions on Key NPA accounts Accounts Resolved Resolution Underway • Pate Developers - INR 20 crore; an MOU has been • Vipul Ltd. - INR 356 crore; Order passed for taking over executed with leading developer of Pune who has paid physical possession of site. JDA with a large de
Slide 22: Gross Non-Performing Assets
Gross Non-Performing Assets % of Loan Asset Gross NPA 1.75% 2.75% 2.76% 2.59% 2.64% As on 31-Dec-20 INR Crore Net NPA 1.25% 1.75% 1.67% 1.46% 1.41% INR Crore Gross NPA 1,708 1,195.3 1,192.3 ECL Provision 2,243 1,088.9 1,087.7 641.8 Regulatory provision 687 (as per NHB) 571.0 660.9 686.6 648.0 620.2
Slide 23: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Classification of the Assets based on the ECL computation under Ind AS: Particulars (INR Crore) 31-Dec-20 30-Sep-20 31-Dec-19 Gross Stage 1 & 2 62,876 65,214 67,981 % portfolio in stage 1 & 2 97.4% 97.4% 98.3% ECL Provision Stage 1 & 2 1,444 1,241 540 Net Stage
Slide 24: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 6.5% 8.5% 7.4% 11.0% 7.7% 2.5% • ~70% of the total resource 18.2% 24.4% 24.9% is floating; giving 19.5% 5.7% opportunity for replacement 6.7% 17.2% 7.7% & repricing 17.5% 19.6% 9.6% 21.4% 0.5% 1.3% 37.5% 22.5% 28.0% 16.7% Credit Rating 18.8% 17.1% 8.8% 1
Slide 25: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter Revenue Expense 2,075 2,022 1,596 1,524 1,952 1,872 1,896 1,468 1,447 1,346 1,461 1,380 1,364 1,340 1,246 134 144 104 107 100 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Finance Cost Operating Expense Pre-provision Operating Profit
Slide 26: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.74% 11.30% 10.62% 8.21% 8.03% 8.13% 8.01% 10.26% 10.32% 7.72% Q3FY20 Q4YF20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Spread Net Interest Margin 3.29% 3.52% 2.90% 2.98% 3.18% 2.53% 2.49% 2.66% 2.
Slide 27: Margin Analysis
Margin Analysis Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.7% 10.8% 8.0% 8.2% 8.0% 2.8% 3.2% 3.1% 10.2% 10.4% 7.7% 2.5% 2.9% 3.0% 2.4% 2.5% FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21 Gross Interest Margin Opex to ATA Ratio Retu
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q3 FY21 Q3 FY20 YoY Q2 FY21 QoQ 9M FY21 9M FY20 YoY FY20 Interest Income 1,758 1,890 1,960 5,520 5,886 7,688 Add: Net gain on fair value changes 43 33 31 123 96 159 Add: Income on derecognized (assigned) loans 35 104 0 35 333 336 Less: Fin
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-20 31-Mar-20 Particulars (INR Crore) 30-Sep-20 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Debt Securities 14,339 17,837 (a) Cash and cash equivalents 7,472 8,514 (b) Borrowings (Other than Debt Securities) 33,
Slide 30: Shareholding
Shareholding Shareholding as on 31-Dec-20 1.5% 0.8% Top Shareholders 6.2% 2.1% 32.7% SSG Capital, General Atlantic Singapore Fund, Franklin 24.6% Templeton MF, Malabar Investments, Vanguard, United India Insurance, Blackrock (ETFs), Reliance Capital MF, Edelweiss Trusteeship MF, Dimensional Fund Adv
Slide 31: ESG Snapshot
ESG Snapshot Environment Social • Over 95% reduction in usage of paper for customer communication • COVID-19: • Supported scientific R&D of efficient and reusable PPE material in partnership with • 99% EMI collections through digital mode IIT Delhi to create masks and surgical gowns • Encouraging ad
Slide 32: Key Takeaways
Key Takeaways Continue to operate in Robust and scalable mass housing and Hub and Spoke model Created Remedial Operating leverage Improve collection management playing out, thereby efficiencies through Strengthening digital merchant segment Leverage advance Group to focus on improving Cost to predic
Slide 33: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 4% 31% 32% 17% 26% 25% 25% 21% 22% 21% 20% 20% 20% 22% 15% 19% 21% 12% 11% 15% 8% 11% 3% 9% 16% 3% 6% 63% 3% 3% 4% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Other Loans Overall Portfolio H
Slide 34: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Cost to Income (%) Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost) / (Net Revenue-Acquisition Cost) NIM (%) Net Interest
Slide 35: 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 to purchase or subscribe for any se
Slide 36: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 35
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