State Bank Of India · NSE:SBIN
State Bank Of India — FY2018 Earnings Presentation
24 slides from State Bank Of India's earnings presentation, May 22, 2018
Slide 1: Annual Results FY18 Chairman's Presentation
Annual Results FY18 Chairman's Presentation 22.05.2018
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety o
Slide 3: Operating Performance – Q4FY18
Operating Performance – Q4FY18 In Rs Crores Q4FY18 Q4FY17 YoY Net Interest 19,974 Interest income lower by 5.13%, while interest expenses 21,065 -5.18% declined by 5.11% Income Non Interest 12,495 12,222 Fee Income grew by 13.40%, Recovery in written off 2.23% accounts up by 21.18% Income Operating
Slide 4: Operating Performance – FY18
Operating Performance – FY18 In Rs Crores FY18 FY17 YoY Net Interest 74,854 Interest income lower by 1.55%, while interest expenses down 75,199 -0.46% by 2.11% Income Non Interest 44,601 42,637 Fee Income up by 10.51%, Recovery in written off 4.61% accounts up by 34.56% Income* Operating Staff Expen
Slide 5: We Remain Well Capitalized
We Remain Well Capitalized 12.60% 12.68% 12.85% Tier II 2.24% 2.38% 2.80% AT1 Tier I 0.68% 0.70% 0.64% CET1 10.36% 10.30% 10.05% 9.68% 9.60% 9.41% Mar 18 Dec 17 01.04.2017 FY18 • Credit Risk Weighted Assets to Gross Advances declined by 780 bps from 78.94% as on 01.04.2017 to 71.17% as on 31.03.2018
Slide 6: Asset Quality (1/3)
Asset Quality (1/3) In % FY18 FY17 Gross NPA 10.91 9.11 Net NPA 5.73 5.19 Gross NPA + Watch list 12.17 10.77 Slippage ratio 4.85 5.78 Credit Cost 3.62 2.90 PCR with AUCA 66.17 61.53 PCR without AUCA 50.38 45.48 6
Slide 7: Asset Quality (2/3)
Asset Quality (2/3) Q4FY18, Mar 2018, Rs. in Crores Corporate Slippages Corporate Slippages Total Corporate Slippages Break-up Sectorwise Break-up Sectorwise Break-up 29,037 29,037 11,601 4,196 7,767 211 8- 11,601 6,684 17,435 2,648 866 - 502 3571 6,684 2,437 858 17,435 10,569 11,071 Total Slippages
Slide 8: Asset Quality (3/3)
Asset Quality (3/3) Mar 2018, Rs. in Crores 1.26% of Total Advances 25,802 4,721 • All stressed accounts from 9MFY18 Standard Stressed classification which continue to be 2,662 under stress are included in the watchlist; and 3,454 some new stressed accounts have been added 4,390 • All SDR accounts s
Slide 9: Status of NCLT accounts
Status of NCLT accounts Mar 2018, Rs. in Crores List 1 Fund Based o/s* Rs. 49,116 PCR on NCLT accounts 75% 63% 56% List 2 Fund Based o/s* Rs. 28,510 NCLT 1 NCLT 2 Total Total Rs. 77,626 * Including amount transferred to AUCA Expected Timeline for NCLT List 1 43.7% 56.3% Q1FY19 Q2FY19 • Expected hair
Slide 10: SBI on the path to recovery
SBI on the path to recovery OSBI
Slide 11: SBI on the path to recovery- FY20E (1/2)
SBI on the path to recovery- FY20E (1/2) Mar-18 (A) Mar-20E Remarks Focus on sustainable and profitable credit Credit Growth growth, FY18- FY20E CAGR est. at 10.0- 12.0% 4.91 > 12.0 (in %) CRWA/ Total advances to trend lower Leverage pricing power & optimizing risk return NIM matrix 2.67 > 3.0
Slide 12: SBI on the path to recovery- FY20E (2/2)
SBI on the path to recovery- FY20E (2/2) Mar-18 (A) Mar-20E Remarks Slippage Ratio Slippage ratio to trend downwards to ~2% in 4.85 < 1.3 (in %) FY19E and improve further in FY20E GNPA Ratio • GNPA ratio to trend lower from FY19E, as 10.91 < 6.0 (in %) resolutions gather pace NNPA Ratio • Resoluti
Slide 13: Comprehensive framework for maximizing RoA (1/2)
Comprehensive framework for maximizing RoA (1/2) Interest Adopting Portfolio Strategy for Credit Growth Income Yield on Optimising Risk Return matrix & containing slippages Advances Cost of Increasing CASA and share of CA in CASA PPOP Funds Non-Interest Improving productivity, more products per cust
Slide 14: Comprehensive framework for maximizing RoA (2/2)
Comprehensive framework for maximizing RoA (2/2) Domestic Advances • RoA based Portfolio Strategy Home Loans • RoA, RoRWA and RoE set as Agri 57.3% SME benchmarks for budgeting at Retail 10.8% 15.5% Bank level 31.3% • For Business Units RoRWA set as benchmark for Large Corp Mid Corp budgetary target
Slide 15: Revamping Corporate Credit Structure and Systems
Revamping Corporate Credit Structure and Systems Widen universe of clients and focus on new segments Corporate Credit Increase product penetration across high priority relationships – Way forward Strengthening of credit processes Capture risk in a more meaningful way before sanction of credit Stream
Slide 16: Dominance in Digital and E-Commerce (1/2)
Dominance in Digital and E- Commerce (1/2) Share of Transactions (%) Mar 18 Mar 17 Internet Banking 21 18 POS 13 37 9 31 Mobile Banking 3 80 3 75 ATM / CDM 34 37 BC Channel 9 7 Branch 20 25 • Registered users 14.9 lakh; No. of Transactions 7.7 lakh • Downloads 4.37 Million; Logins 1,90,000 pe
Slide 17: Dominance in Digital and E-Commerce (2/2)
Dominance in Digital and Subsidiaries (3/3)E-: Others Commerce (2/2) 19.64 lakh+ Merchant Payments Acceptance Touch Points BHARAT QR BHIM-Aadhaar-SBI PoS 2,02,362 4,96,970 6,09,789 SBI PAY BHIM MERCHANTS 5,58,440 96,771 • 5th most popular online • 1.84 Crore users on SBI Pay / • 3 Crores+ Users glob
Slide 18: Technology for the future (1/2)
Technology for the future (1/2) Collaboration • Collaboration with FinTechs Cloud Platform Artificial Intelligence and Start-ups • Cloud based virtualisation of • Customer profiling on basis of • Collaboration Innovation branch servers mobile digital footprint, social Centre & UX design lab • Meghdo
Slide 19: Technology for the future (2/2)
Technology for the future (2/2) Transactions through Alternate Channel at 80% Higher PPoP margins Cost FY18 Redeployment to sales Containing transaction Gains in fee income Fee+float income with FY20E costs & productivity from cross sell & focus on CMP & TB gains wealth management Channel • Omni-cha
Slide 20: Wealth Management & Transaction Banking
Wealth Management & Transaction Banking Sustainable levers for Fee Income Wealth Management Business AUM & Customers- Wealth No. of customers to more than double by the end of FY19 Management AUM is expected to double by FY19 24,168 14,284 Acquiring and mapping NRI clients to e-Wealth centres by pla
Slide 21: Talent and Capacity building
Talent and Capacity building Leadership, SB Institute of Management & Leadership, Kolkata Banking SB Institute of Credit & Risk Management, Risk, Forex & Credit Gurgaon SB Institute of Apex Training Institutes (ATIs) to Consumer Markets Consumer Markets, provide domain specific knowledge & Retail Ba
Slide 22: Scaling up and discovering value in Subsidiaries
Scaling Focus up on Subsidiaries scaling upand Subsidiaries discovering and value FY17 PAT FY18 PAT FY18 ROE SUBSIDIARIES SBI's stake (in Rs cr) (in Rs cr) (in %) SBI Life 62.1% 955.0 1,150.0 19.0 SBI Cards 74% 390.4 363.1 22.5 SBI General 74% 152.7 396.0 26.5 SBI Caps 100% 218 327.3 23.0 SBI Funds
Slide 23: SBI and its Subsidiaries - Leveraging Synergies
SBI and its Subsidiaries - Leveraging Synergies As on Mar-2018 SBI Total Customers (In lakhs) 58 65 SBI Life 32 26 SBI Funds SBI customers 4,242 holding products of subsidiaries 215 46 General Insurance 20 45 SBI Card Number of SBI Customers with subsidiary products (in lakhs) Sales through Banca ch
Slide 24: Thank You
Thank You