National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q3 2017 Earnings Presentation
26 slides from National Development Bank's earnings presentation, Nov 1, 2017
Slide 1: Investor Webinar – Q3 2017
INVESTOR WEBINAR – Q3 2017 National Development Bank PLC – NDB:N0000 01 November 2017 : 1115 hrs : Colombo Sri Lanka December - 2016
Slide 2: Corporate Participants
Corporate Participants Panelists Presented by Buwaneka Perera - Vice President -Corporate Banking Dimantha Seneviratne Sanjaya Perera - Vice President – Personal Banking Branch Network Management Niran Mahawatte – Vice President-Treasury Director/ Chief Executive Officer Indika Ranaweera – Assistant
Slide 3: Forward Looking Statements
Forward Looking Statements 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 regard
Slide 4: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic Analysis – Country & Sector 4. Q3 2017 Financial Performance 5. Q&A Session 4
Slide 5: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic Analysis – Country & Sector 4. Q3 2017 Financial Performance 5. Q&A Session 5
Slide 6: Business Overview - Corporate Profile
Business Overview - Corporate Profile Our Vision Corporate Profile To be the driving force for a financially empowered Sri Lanka Established in 1979 as a Development Financing Institution Conversion in to a fully-fledged commercial bank in 2005 Our Mission A staff strength of over 2,000 employ
Slide 7: A unique banking and capital markets group structure
Business Overview - A unique banking and capital markets group structure 58.7% Property management Licensed commercial banking* 100% 77.8% 99.9% Investment banking 100% Investment banking (Bangladeshi arm) Wealth management Full service investment banking 100% Investment advisory & securities tradin
Slide 8: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic Analysis – Country & Sector 4. Q3 2017 Financial Performance 5. Q&A Session 8
Slide 9: Recognition
Recognition Global Awards Asian Banking & Finance Magazine of Singapore Global Banking & Finance Review of UK – Retail Banking Awards 2017 • Best Mobile Banking Application – Sri Lanka 2017 • Domestic Retail Bank Sri Lanka 2017 (for the • Best SME Bank – Sri Lanka 2017 fifth consecutive year) • Best
Slide 10: Recognition contd.
Recognition contd. Local Awards CFA Sri Lanka Capital Market Awards 2017 • Gold awardee for the second consecutive year for best investor relations amongst listed entities in the Colombo Stock Exchange SLT ZeroOne Awards 2017 • 'Best use of Mobile’ under Financial Sector category LankaPay Technnovat
Slide 11: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic Analysis – Country & Sector 4. Q3 2017 Financial Performance 5. Q&A Session 11
Slide 12: Macro Economic Analysis – Country & Sector
Macro Economic Analysis – Country & Sector Sri Lankan Economy • Sri Lankan economy growth of 3.9% in H1 2017 vs. 3.7% in H1 2016 • Rupee depreciation by 2.6% against the US dollar during the year up to 25 October 2017 • Credit to the private sector continued to decelerate since July 2016 in response
Slide 13: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic Analysis – Country & Sector 4. Q3 2017 Financial Performance 5. Q&A Session 13
Slide 14: Q3 2017 Financial Performance Summary - Bank
Q3 2017 Financial Performance Summary - Bank Q3-17 Q3-16 Growth Net Operating Income 11,151 8,356 33% Profitability Operating Expenses 5,472 4,824 13% (LKR Mn) Profit after Tax 3,310 2,014 64% Q3-17 FY2016 Growth Total Assets 371 335 11% Financial Position (LKR Bn) Total Loans 259 228 14% Total Depo
Slide 15: Income Statement - Summary
Income Statement - Summary Bank Group Change Change LKR Mn Q3-2017 Q3-2016 Q3-2017 Q3-2016 LKR % LKR % Net Interest Income 7,656 6,244 1,412 23 7,909 6,532 1,377 21 Other Income 4,367 3,095 1,272 41 4,095 3,448 647 19% Operating Income 12,023 9,339 2,684 29 12,004 9,980 2,024 20 Impairment 872 983 (
Slide 16: Revenue Analysis – Net Interest Income
Revenue Analysis – Net Interest Income LKR Mn Q3 2017 Q3 2016 % Key contributors to improved NII Interest Income 27,283 20,517 33 Combined effects of Interest Expenses 19,627 14,273 38 Steady growth in loans and advances Net Interest Income (NII) 7,656 6,244 23 Improved Net Interest Margins of 2
Slide 17: Revenue Analysis – Non Interest Income
Revenue Analysis – Non Interest Income LKR Mn Q3 2017 Q3 2016 % Net Fee and Commission Income 1,812 1,644 10 Net gain/(loss) from trading 793 683 16 Net gain/(loss) from financial investments 545 199 174 Other operating income 1,216 570 113 Total non interest income 4,367 3,095 41 NII: Net Fee & Com
Slide 18: Operating Expenses
Operating Expenses Bank Group LKR Mn Q3 2017 Q3 2016 % Q3 2017 Q3 2016 % Personnel expenses 2,645 2,632 1 2,941 2,888 2 Depreciation & amortization 312 325 (4) 349 367 (5) Other expenses 2,514 1,867 35 2,802 2,073 35 Total operating expenses 5,472 4,824 13 6,092 5,328 14 Income, Expenses and CIR mov
Slide 19: Balance Sheet - Summary
Balance Sheet - Summary Bank LKR Mn Q3 2017 FY 2016 % Bank YTD Balance YoY Growth Sheet growth Cash & Cash Equivalents 20,764 20,130 3% LKR Mn Total assets 36,224 13% Investments 83,297 80,597 3% Loans to 31,814 17% Net Loans & Investments 259,491 227,677 14% customers Fixed Assets 2,399 2,447 -2% C
Slide 20: Loans & Advances
Loans & Advances Segment Composition YTD Loan Growth 3.0% 14 275 15 18.5% 11 Total loans and 9 advances 250 10 35.5% LKR Billion Corporate 6 6 YTD growth - % % PF 259 225 252 5 Retail 241 228 SME 222 Other 200 0 20.8% Q3 2016 FY 2016 Q1 2017 H1 2017 Q3 2017 22.3% LCY:FCY mix of the Loan Book • Highe
Slide 21: Asset Quality
Asset Quality Sectoral Composition of Loans NPL & Provision Cover 270 3.5 Agriculture & Fishing 2.87 Gross Loans 260 3 Manufacturing 2.63 2.44 18% 11% Tourism 250 2.22 2.5 Transport 1.96 NPL Ratio % 240 2 11% 25% Construction 1.87 1.94 Traders 230 1.75 1.5 New Economy 1.44 Impairment Provision 9% 1.
Slide 22: Customer Deposits
Customer Deposits Products relaunched/ introduced to support the CASA base Customer Deposits Growth Trend 300 30 25% 250 25 239 228 255 200 20 204 194 150 17 15 Total deposits YTD Growth - % 100 12 10 10 50 5 5 0 0 Q3 2016 FY 2016 Q1 2017 H1 2017 Q3 2017 Highest YTD growth in customer deposits recor
Slide 23: Capital Adequacy & Investor Ratios
Capital Adequacy & Investor Ratios • Capital adequacy levels are well ahead of the new Basel III guidelines which came in to effect from 01 July 2017. BASEL III – Q3 2017 Bank Group Common Equity Tier 1 Capital Ratio (Minimum 8.77% 10.44% Requirement -5.75%) Tier 1 Capital Ratio (Minimum Requirement
Slide 24: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic Analysis – Country & Sector 4. Q3 2017 Financial Performance 5. Q&A Session 24
Slide 25: Q & A Session
Q & A Session Please pose your questions via the Chat option available. 25
Slide 26: Investor Relations Team
Investor Relations Team Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the end of each quarter Webinar transcripts hosted to the NDB Corporate website/ IR page in playback video and written transcript forms Dedicated communication channels made available for
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