State Bank Of India · NSE:SBIN
State Bank Of India — Q2 FY2020 Earnings Presentation
42 slides from State Bank Of India's earnings presentation, Oct 25, 2019
Slide 1: Quarterly Results Q2FY20 Analyst Presentation
QUARTERLY RESULTS Q2FY20 Analyst Presentation 25.10.2019
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: Contents
Contents 1 Performance Highlights 2 Financial Performance 3 Business 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet 3
Slide 4: Performance Highlights – Q2FY20 (1/3)
Performance Highlights – Q2FY20 (1/3) YoY QoQ Rs. 24,600 Cr Rs. 24,600 Cr NII 17.67% 7.24% Rs. 20,906 Cr Rs. 22,939 Cr 3.22% 3.22% NIM 42 bps 21 bps (Domestic) 2.80% 3.01% Rs. 18,199 Cr Rs. 18,199 Cr Operating 30.88% 37.39% Profit Rs 13,905 Cr Rs. 13,246 Cr Rs. 3,012 Cr Rs. 3,012 Cr Net Profit 218.7
Slide 5: Performance Highlights – Q2FY20 (2/3)
Performance Highlights – Q2FY20 (2/3) YoY QoQ Rs. 10,725 Cr Rs. 16,212 Cr Slippages -17.91% -45.69% Rs. 8,805 Cr Rs. 8,805 Cr 2.05% 2.03% Credit Cost -8 bps -6 bps 1.97% 1.97% 4.84% 3.07% -205 bps -28 bps Net NPA 2.79% 2.79% 81.23% 81.23% 1049 bps 189 bps PCR 70.74% 79.34% 5
Slide 6: Performance Highlights – Q2FY20 (3/3)
Performance Highlights – Q2FY20 (3/3) In lakh Crores YoY QoQ Rs. 22.48 Rs. 22.48 Total 8.65% 0.45% Advances Rs. 20.69 Rs. 22.38 Rs. 30.33 Rs. 30.33 Total 8.05% 2.87% Deposits Rs. 28.07 Rs. 29.49 Rs. 6.86 Rs 6.86 Retail Personal 18.90% 3.32% Advances Rs. 5.77 Rs. 6.64 13.59% 13.59% Capital 98 bps 70
Slide 7: Financial Performance
Financial Performance 7
Slide 8: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter Ended Half Year Ended Growth (%) H1FY20 Q2FY20 Q2FY20 Q2FY20 Q1FY20 Q2FY19 H1FY20 H1FY19 over over over H1FY19 Q1FY20 Q2FY19 Interest Income 64,312 62,638 58,793 1,26,950 1,17,607 7.94 2.67 9.39 Interest Expenses 39,712 39,699 37,888 79,411 74,903 6.02
Slide 9: Total Income
Total Income Rs. in Crores Quarter Ended Half Year Ended Growth (%) H1FY20 Q2FY20 Q2FY20 Q2FY20 Q1FY20 Q2FY19 H1FY20 H1FY19 over over over H1FY19 Q1FY20 Q2FY19 Interest on Loans 45,242 43,863 38,326 89,106 77,192 15.43 3.14 18.04 Interest on Resources 17,546 17,345 19,310 34,891 38,142 -8.52 1.16 -9
Slide 10: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter Ended Half Year Ended Growth (%) H1FY20 Q2FY20 Q2FY20 Q2FY20 Q1FY20 Q2FY19 H1FY20 H1FY19 over over over H1FY19 Q1FY20 Q2FY19 Loan Processing Charges 766 617 641 1,383 1,282 7.87 24.08 19.51 Commission on Govt. Business 893 963 973 1,856 1,904 -2.50 -7.33 -8.
Slide 11: Total Expenses
Total Expenses Rs. in Crores Quarter Ended Half Year Ended Growth (%) H1FY20 Q2FY20 Q2FY20 Q2FY20 Q1FY20 Q2FY19 H1FY20 H1FY19 over over over H1FY19 Q1FY20 Q2FY19 Interest on Deposits 36,746 36,303 34,934 73,049 69,192 5.57 1.22 5.19 Interest on Borrowings 1,712 2,233 1,929 3,945 3,635 8.54 -23.34 -1
Slide 12: Overhead Expenses
Overhead Expenses Rs. in Crores Quarter Ended Half Year Ended Growth (%) H1FY20 Q2FY20 Q2FY20 Q2FY20 Q1FY20 Q2FY19 H1FY20 H1FY19 over over over H1FY19 Q1FY20 Q2FY19 Rent, Taxes and Lighting 1,361 1,181 1,328 2,542 2,502 1.59 15.25 2.44 Depreciation 809 779 787 1,588 1,585 0.21 3.79 2.75 Printing and
Slide 13: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter Ended Half Year Ended Growth (%) H1FY20 Q2FY20 Q2FY20 Q2FY20 Q1FY20 Q2FY19 H1FY20 H1FY19 over over over H1FY19 Q1FY20 Q2FY19 Operating Profit 18,199 13,246 13,905 31,445 25,878 21.51 37.39 30.88 Loan Loss 11,041 11,648 10,185 22,689 23,222 -2.30 -5.22 8.41 S
Slide 14: Costs, Yields and Margins (Cumulative)
Costs, Yields and Margins (Cumulative) Yield on Advances (%) Net Interest Margin (%) Domestic NIM 3.11 8.69 3.01 2.92 2.95 2.88 8.56 8.48 8.49 8.43 Foreign NIM 1.42 1.38 Cost of Deposits (%) 1.32 1.20 1.18 5.10 5.09 5.10 5.07 Whole Bank NIM 5.02 2.90 2.76 2.78 2.81 2.73 Sep-18 Dec-18 Mar-19 Jun-19 S
Slide 15: Business
Business 15
Slide 16: Strong Liability Franchise
Strong Liability Franchise SEP 19 Domestic Deposits SEP 18 CA, 6.65% CA, 6.42% SA, 38.85% SA, 38.48% TD, TD, 54.95% 54.73% CASA: 45.13% CASA: 45.27% Rs. in Crores Sep 19 Sep 18 YoY Growth Current Account 1,95,349 1,74,076 12.22 Saving Bank 11,30,822 10,52,728 7.42 CASA 13,26,171 12,26,804 8.10 Term
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio Domestic Advances SEP 18 SEP 19 Per, 35.56% Per, 32.42% Agri, 10.50% Agri, 10.73% SME, 14.21% Corporates, Corporates, 39.73% SME, 14.94% 41.91% Retail: 60.27% Retail: 58.09% YoY Growth Rs. in Crores SEP 19 SEP 18 (%) Retail Per 6,85,570 5,76,594 18.90 Agri 2,02,462 1,90,73
Slide 18: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Sep 19 Jun 19 Sep 18 Sep 19 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 3,22,818 16.74 3,25,223 16.86 2,85,421 16.05 13.10 of which: Power 1,97,613 10.25 2,03,568 10.56 1,78,988 10.06 10.41 Telecommuni
Slide 19: Drivers of Corporate Growth
Drivers of Corporate Growth YoY growth in advances SEP 19 over SEP 18 Growth driven by Central Govt. PSUs 75% 51% Power Rs.18,625 cr -26% Central Govt. State Govt. Others Growth driven by large Pvt. Sector entity 107% Telecom Rs. 10,197cr 7% -14% Pvt. Sect. Entity Govt. Entity Others Growth driven b
Slide 20: Retail Banking - Leadership across all segments
Retail Banking - Leadership across all segments As on Sep 2019 Personal Retail Portfolio of Rs 6.86 lakh crore NPA ratio at 1.04% % of Dom. Adv. 35.56 Home Xpress Other P Auto Loans Loans Credit segment Loans O/S, 4,24,487 70,726 1,20,660 69,697 In Rs cr YoY 18.03 5.60 42.06 7.17 Growth, % #Market s
Slide 21: Treasury Operations
Treasury Operations AFS Book SEP 19 SEP 18 Others, 6.6% Corporate Others, 5.6% Corporate Bonds, 12.9% Bonds, 18.6% SDLs, 14.0% SDLs, 9.2% G-Sec and T Bill, G-Sec and T Bill, 52.1% 55.8% CP, 11.7% CP, 13.5% Modified Duration: 2.12 Modified Duration: 2.44 Break up of Domestic Investments (%) Total Inv
Slide 22: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 22
Slide 23: Capital Adequacy
Capital Adequacy 13.59% Tier II 12.61% 12.72% 2.28% AT1 Tier I 2.25% 2.07% 1.23% CET1 0.71% 1.03% 10.65% 11.31% 10.36% 9.65% 9.62% 10.08% Sep 18 Mar 19 Sep 19 • “Credit Risk Weighted Assets on Advances to Gross Advances” - Sep 18: 58.21%, Sep 19: 55.31%. • “TRWAs to Total Asset” Ratio - Sep 18: 52.9
Slide 24: Asset Quality (1/3)
Asset Quality (1/3) Rs. in Crores Gross NPA Net NPA 2,05,864 1,87,765 94,810 1,72,750 1,68,494 1,61,636 80,944 65,895 65,624 59,939 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Sep 19 Jun 19 Mar 19 Dec 18 Sep 18 Gross NPA Ratio (%) 7.19 7.53 7.53 8.71 9.95 Net NPA Ratio (%)
Slide 25: Asset Quality (2/3)
Asset Quality (2/3) Rs. in Crores Movement of NPAs: Q2FY20 Q1FY20 FY19 Q4FY19 Q3FY19 Q2FY19 Opening Level of Gross NPAs 1,68,494 1,72,750 2,23,427 1,87,765 2,05,864 2,12,840 Total Reductions 15,984 21,251 90,417 22,976 24,641 17,865 Of which : Recovery + Upgradation 3,931 5,769 31,512 5,712 6,617 4,
Slide 26: Asset Quality (3/3)
Asset Quality (3/3) As on Sep 2019 Rs. in Crores Fresh Slippages FY19 Q1FY20 Q2FY20 SMA 1 & SMA 2 11,312 10,289 * 9,312* Corporate 10,056 5,354 3,239 3,658 7,762 3,104 SME 9,478 3,964 1,522 4,355 2,766 AGRI 8,978 4,239 3,078 7,654 7,185 4,996 4,957 PER 3,976 2,438 648 Sep-18 Mar-19 Jun-19 Sep-19 IBG
Slide 27: Resolution Status
Resolution Status SEP - 19 JUN - 19 541 Accounts Admitted 453 Accounts Admitted to NCLT Rs. 1,16,370 cr Rs. 1,13,809 cr to NCLT • NPAs - Rs. 48,249 crs • NPAs - Rs. 59,000 crs (93.0%) (90.4%) • AUCA – Rs. 68,121 crs • AUCA – Rs. 54,809 crs 117 Accounts filed in NCLT 123 Accounts filed in NCLT but ye
Slide 28: Power Sector – Stress mostly recognized
Power Sector – Stress mostly recognized As on Sep 2019 Rs. in Crores Standard Power Power Portfolio Classification Public Private 1,73,142 1,09,040 64,102 1,97,613 Rating break-up of Std. Pvt 24,471 58.1% A- and above BBB+, BBB, BBB- BB+ and below 7.2% Unrated 21.8% 12.9% 1,73,142 Resolution Plan fo
Slide 29: NBFC & FI Sector – Loans to PSUs and High Quality Private Sector
NBFC & FI Sector – Loans to PSUs and High Quality Private Sector As on Sept 2019 Rs. in Crores Housing Finance Companies NBFCs FIs NBFC & FI Portfolio Classification 1,67,175 63,176 99,696 4,303 1,67,175 Backed by PSUs' 35,675 21% 31% Housing Backed by large Finance Pvt Sector Companies Institutions
Slide 30: Telecom Sector
Telecom Sector As on Sept 2019 Rs. in Crores Standard Portfolio Classification Telecom Portfolio Classification Public Private 35,735 26,408 7,443 18,965 PCR : 80.5% Standard Private 9,327 99.5% A- and above 26,408 Others 0.5% Standard NPA 30
Slide 31: Digital Journey
Digital Journey 31
Slide 32: YONO: Our flagship digital offering – for Lifestyle and Banking
YONO: Our flagship digital offering – for Lifestyle and Banking 4:40 AM Salient features ▪ Paper-less and branch-less processes ▪ Higher staff productivity ▪ Increased branch business ▪ Efficient delivery Key offerings: E2e digitisation and Digital Bank ▪ Personal Loans ▪ Account Opening ▪ Home Loan
Slide 33: Digital Leadership
Digital Leadership Market share (As per latest available data) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 29.99% 14.31% 28.36% 22.50% 39.49% Presence across multiple channels and payment acceptance touch points Customer touch points Payme
Slide 34: Other digital payment offerings
Other digital payment offerings Processed 2.78 Quick & Easy payments from Total 690 Integration with Crs. txns worth Rs. customers on Merchant’s site merchants 43 major Banks 20276 + Crs. in FY 2019-20 A Unique Payment Solution specially designed for Schools, Colleges, Total 25500+ Processed 73.32 l
Slide 35: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability 35
Slide 36: Financial Inclusion
Financial Inclusion Accounts & Amount in FI Channel Transactions in BC Channel (No. in Crores) (No. & Amt. in Crores) No. of Accounts 1,60,000 27.00 15.2 13.8 23.93 1,40,000 22.00 1,20,000 11.6 18.43 1,06,278 10.5 1,00,000 17.00 79,257 80,000 3.3 3.6 12.00 60,000 Sep 18 Sep 19 40,000 PMJDY Others 7.
Slide 37: SBI’s ESG Practices
SBI’s ESG Practices ‘Environmental’ Practices ‘Governance’ Practices ▪ Big push to digitalization. As on Sep 2019 almost ▪ To align training with business priorities, STRAPS – 90% of Bank’s total transactions took place Strategic Training Partners meetings conducted by all through Alternate channels
Slide 38: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 38
Slide 39: SBI and its Subsidiaries - Leveraging Synergies
SBI and its Subsidiaries - Leveraging Synergies As on Sep 2019 • #1 in Individual Rated Premium with Private Market share of 23.1% • Rank 3rd in AUM with Market Share of 12.48%. • #2 Total New Business Premium with Private market share • AUM at Rs.321K Crores, up by 26% YoY of 21.8%. New Business Pr
Slide 40: SBI Group Financials – H1FY20
SBI Group Financials – H1FY20 Rs. In crores Growth Half Year Ended Half Year Ended (%) Rs. In crores H1FY20 H1FY19 YoY H1FY20 H1FY19 Interest Earned 1,32,951 1,22,627 8.42 ROA (%) 0.32 -0.20 Non-Interest Income 42,866 32,135 33.39 Total Income 1,75,817 1,54,763 13.60 ROE (%) 6.69 -3.94 Interest Expe
Slide 41: Balance Sheet
Balance Sheet Rs. in Crores Liabilities SBI SOLO SBI GROUP YOY YOY Sep 19 Sep 18 Sep 19 Sep 18 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,25,183 2,17,109 3.72 2,39,788 2,28,670 4.86 Minority Interest 6,970 5,270 32.26 Deposits 30,33,396 28,07,420 8.05 30,64,307 28
Slide 42: Thank You
Thank You
State Bank of India — Q2 FY2020 Earnings Presentation on 6ix