State Bank Of India · NSE:SBIN
State Bank Of India — Q3 FY2018 Earnings Presentation
49 slides from State Bank Of India's earnings presentation, Feb 9, 2018
Slide 1: Quarterly Results Q3FY18 Analyst Presentation
Quarterly Results Q3FY18 Analyst Presentation 09.02.2018
Slide 2: Safe Harbor; Merger of Associate Banks and BMB with SBI
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 Key Trends During the Quarter Financial Performance Digital Banking & Financial Inclusion Subsidiaries Balance Sheet 3
Slide 4: Key Trends During the Quarter
Key Trends During the Quarter 4
Slide 5: Loan Growth
Loan Growth • Robust growth in Personal segment loans – Home Loans 13.56% YoY, Auto loans 18.08% YoY, Other Personal loans 11.88% YoY – ASCB Credit Cards O/S 36.3% YoY; for SBI, Credit Cards business is housed outside the Bank • Green shoots visible in SME, sequential growth of Rs 15,224 cr
Slide 6: Hardening Bond Yields
Hardening Bond Yields Rs. in Crores AFS Book 3.5 7,50,000 3.33 6,50,000 3.05 3 5,40,851 5,45,657 5,50,000 2,625 3,395 2.5 65,063 70,049 4,50,000 73,398 70,524 2 3,50,000 56,718 73,627 1.5 2,50,000 3,43,047 3,28,062 1,50,000 1 Dec-17 Current Gsec and T Bill CP SDLs Corporate Bonds Others Modified Dur
Slide 7: Asset Quality (1/2)
Asset Quality (1/2) Dec 2017, Rs. in Crores Total Slippages Corporate Slippages Break-up Sectorwise Corporate Slippages 25,836 1,977 1,564 21,823 21,823 472 2,429 1,529 831 912 1,562 2,566 21,823 19,394 14,422 Total Slippages Corporate Retail Total Std. Slippages Stress Pool Sum of Fund Based O/S Po
Slide 8: Asset Quality (2/2)
Asset Quality (2/2) Dec 2017, in Rs. crore Overview of Stressed Std Assets 50,482 24,992 20,884 17,661 10,341 5,825 6,101 Std. Rest. 5/25 SDR S4A Watchlist Overlaps Net Total Rs. in Crores Dec 17 Stressed Standard Assets Provision 5,637 Counter Cyclical Provision Buffer 1,250 8
Slide 9: Status of NCLT accounts
Status of NCLT accounts Dec 2017, Rs. in Crores List 1 Fund Based o/s* Rs. 49,160 PCR on NCLT accounts 66% List 2 Fund Based o/s* 60% 57% Rs. 29,150 NCLT 1 NCLT 2 Total Total Rs. 78,310 * Including amount of written off Expected Timeline for Resolution of NCLT cases 4.45% 60.55% 1.97% 33.03% Q4FY18
Slide 10: Containing Operating Expenses
Containing Operating Expenses Staff Strength & FY17 FY18 (E) FY19 (P) FY20 (P) Retirements Total Employees 2,79,803 2,64,473 Retirements 16,240 12,580 13,101 Containment of operating expenses in 9MFY18 not reflected in cost to income ratio due to lower revenue growth Expect trend to reverse from H2F
Slide 11: Channel and Digital Strategy
Channel and Digital Strategy Share of Transactions (%) Dec 17 Dec 16 Internet 20 18 Banking 36 28 POS 13 8 yono- Full digital service Mobile platform to facilitate banking 3 79 2 75 Banking and other lifestyle needs; to aid customer acquisition, will ATM / CDM 34 40 lead to increase in Cross Sell; B
Slide 12: Financial Performance
Financial Performance 12
Slide 13: Operating Performance
Operating Performance Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Interest Income 54,803 55,700 1,64,558 1,65,014 -0.28 -1.61 Other Income 8,084 11,507 32,106 30,415 5.56 -29.75 Total Income 62,887 67,207 1,96,664 1,95,429 0.
Slide 14: Provisions and Net Result
Provisions and Net Result Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Operating Profit including Exceptional Item & one time 11,755 14,401 43,628 42,152 3.50 -18.38 items Total Provisions 14,171 12,581 42,457 40,515 4.79 12.6
Slide 15: Interest Income / Expenses
Interest Income / Expenses Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Interest on Loans 35,185 38,175 1,07,128 1,16,683 -8.19 -7.83 Interest on Resources 18,422 16,403 54,053 44,913 20.35 12.31 Other Interest income 1,196 1,
Slide 16: Non-Interest Income
Non-Interest Income Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Fee Income 4,979 4,710 15,206 13,955 8.97 5.71 Profit/Loss on Sale of Investments 1,026 4,900 11,362 11,613 -2.16 -79.06 Forex Income 597 655 1,938 1,863 4.07 -8
Slide 17: Stable Fee Income
Stable Fee Income Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Fee Income 4,979 4,710 15,206 13,955 8.97 5.71 of which: 627 691 1,918 1,916 0.06 -9.29 Loan Processing Charges Commission on Govt. Business 840 661 2,406 2,129 13
Slide 18: Contained Operating Expenses (1/2)
Contained Operating Expenses (1/2) Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Staff Expenses 8,497 8,978 23,925 25,061 -4.53 -5.36 Overheads 6,520 5,897 19,433 17,336 12.10 10.58 Operating Expenses 15,017 14,875 43,358 42,39
Slide 19: Contained Operating Expenses (2/2)
Contained Operating Expenses (2/2) Rs. in Crores Quarter ended 9 Month Ended Growth (%) 9MFY18 Q3FY18 Q3FY18 Q3FY17 9MFY18 9MFY17 over over 9MFY17 Q3FY17 Staff Expenses 8,497 8,978 23,925 25,061 -4.53 -5.36 of which: Salary 7,016 6,923 20,419 19,889 2.66 1.35 Contribution for employees 1,481 2,056 3
Slide 20: Key Performance Indicators : Performance Ratios
Key Performance Indicators : Performance Ratios Net Interest Margin (%) Yield & Costs (%) Yield on Advances Yield on Investments Domestic Whole Bank Foreign Cost of Funds Cost of Deposits 2.89 9.41 2.59 2.61 2.50 2.71 8.49 8.46 8.38 2.43 2.45 2.36 7.72 7.38 7.33 7.31 1.33 6.00 1.16 1.17 1.16 5.63 5.
Slide 21: Sustained CASA growth driving liability franchise
Sustained CASA growth driving liability franchise Rs. in Crores Dec 17 YoY Growth (%) Dec 16 Dec 17 Over Dec 16 (SBI+e-ABs+BMB) Total Deposits 26,51,240 1.86 26,02,757 Foreign Offices 1,07,082 20.59 88,796 Domestic 25,44,157 1.20 25,13,962 TD 13,96,019 1.22 13,79,247 CA 1,75,442 2.28 1,71,525 SB 9,7
Slide 22: Diversified Asset Portfolio
Diversified Asset Portfolio Rs. in Crores Dec 17 Dec 16 YOY Gr % Domestic Non Food Credit 16,08,224 15,63,138 2.88 Comm. Paper(CP) 54,775 45,722 19.80 Corp. Bonds(CB) 66,367 51,051 30.00 Domestic Total Non Food (incl. CP & CB) 17,29,366 16,59,911 4.18 Advances in Foreign Offices 2,99,774 2,85,536 4.
Slide 23: Diversified Loan Portfolio
Diversified Loan Portfolio Rs. in Crores YoY Growth (%) Dec 16 Dec 17 Dec 17 Over Dec 16 (SBI+e-ABs+BMB) Total Advances 19,24,578 2.52 18,77,278 Foreign Offices 2,99,774 4.99 2,85,536 Domestic 16,24,804 2.08 15,91,742 Large Corporate 3,53,923 -4.22* Mid Corporate 2,88,112 9,49,788* 9,09,723* SME 2,6
Slide 24: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Dec 17 Sep 17 Dec 16 Dec 17 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 2,51,298 15.47 2,52,764 15.79 2,59,642 16.31 -3.21 of which: Power 1,67,496 10.31 1,66,893 10.43 1,72,471 10.84 -2.88 Telecommuni
Slide 25: Personal Segment Continues to drive Loan Growth
Personal Segment Continues to drive Loan Growth Market Share Avg. LTV Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 13.56% 18.08% 11.88% 1,54,889 3,01,087 65,050 2,65,145 55,088 1,38,437 Dec 16 Dec 17 Dec 16 Dec 17 Dec 16 Dec 17 32.35% 32.16% 32.90% 35.54% 53.90% Total P-Segment Dec 17 D
Slide 26: We Remain Well Capitalized
We Remain Well Capitalized 13.56% 13.73% Tier II 12.68% AT1 Tier I 2.60% 3.08% 2.38% 0.72% CET1 0.70% 0.68% 10.30% 10.24% 10.96% 10.65% 9.60% 9.97% Dec 17 Sep 17 Dec 16 * * SBI Solo 9MFY18 • Equity raised through QIP - Rs 15,000 cr in 9MFY18 • AT1 bonds raised- Rs 2,000 crores in 9MFY18 26
Slide 27: Asset Quality : Gross NPAs - Segment wise (1/2)
Asset Quality : Gross NPAs - Segment wise (1/2) Rs. in Crores 01-04-2017 31-12-2016 Dec 17 Sep 17 Jun 17 Sector Merged Merged NPA Ratio % NPA Ratio % NPA Ratio % NPA Ratio % NPA Ratio % Agri 19344 9.97 18982 9.93 17988 9.51 12191 6.37 14848 8.10 Per Segment 6929 1.33 7096 1.41 7632 1.56 3717 0.77 47
Slide 28: Asset Quality : Movement of NPAs (2/2)
Asset Quality : Movement of NPAs (2/2) Rs. in Crores 9MFY18 Q3FY18 H1FY18 Q2FY18 Q1FY18 FY17 9MFY17 Opening Level of Gross NPAs 177866 186115 177866 188068 177866 121973 121973 Less :Recovery 9087 2231 6856 2210 4646 10302 7259 Less: Up gradation 5358 2211 3147 1113 2034 21981 18104 Less :Transfer t
Slide 29: Corporate Watch List
Corporate Watch List Fund based Outstandings Rs. In Crores 89% of Corporate Slippages in Q3FY18 are from the Post Standard Stress Pool Merger Watch List 32,427 818 34,724 3152 24,444 3,503 602 21,288 3,137 2548 312 21,823 21162 2,939 2548 2,468 1,881 11,075 2,049 12,901 10,341 10424 10738 10,531 312
Slide 30: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion 30
Slide 31: Debit Cards Spend Market Share YoY Comparison
Debit Cards Spend Market Share YoY Comparison FY 2016-17 (Cumulative as on Nov 16) FY 2017-18 (Cumulative as on Nov 17) SBI 27.30% SBI Others 30.60% 34.33% Others 37.21% Bank-1 15.31% Bank-1 Bank-3 Bank-3 12.82% 7.96% Bank-2 Bank-2 7.18% 15.10% 12.19% • Market share in Card spends improved 330 basis
Slide 32: Merchant Acquiring Business
Merchant Acquiring Business Pos Terminals Number of Transactions Value of Transactions (in lakhs) (in crs) (Rs. in crs) 32.14 6.34 76844 51% 88% 87% 4.19 17.07 41071 2.9 7.32 20525 Apr to Dec Apr to Dec Apr to Dec Apr to Dec Apr to Dec Apr to Dec Dec 15 Dec 16 Dec 17 15 16 17 15 16 17 • Only Bank to
Slide 33: Digital & e-Commerce (1/2)
Digital & e-Commerce (1/2) Buddy Users Vol. of Buddy Value of Buddy (Nos. in lakhs) Transactions Transactions (Rs. in Crs.) (Nos. in Crs.) 125.05 508 • 1.2 Crore plus 2.11 420 users 79.35 • 75-80K daily 1.20 Txns. • 05-10K daily registrations Dec 16 Dec 17 Apr-Dec 16 Apr-Dec 17 Apr-Dec 16 Apr-Dec 17
Slide 34: Digital & e-Commerce (2/2)
Digital & e-Commerce (2/2) INB Users Vol. of INB Transactions Value of INB (Nos. in lakhs) (Nos. in Crs.) Transactions (Rs. in Crs) • 5th most 457.25 70,27,250 popular online 56,17,199 global financial 355.13 110 116 site. 294.49 95 41,62,760 • 4.57 Crore Users • 116 Crore txns. during 9MFY18. Dec 1
Slide 35: Unlocking the Digital Potential
Unlocking the Digital Subsidiaries Potential (3/3) : Others 14.56 lack+ Merchant Payments Acceptance Touch Points BHARAT QR BHIM-Aadhaar-SBI PoS 71,451 4,03,779 6,33,640 SBI PAY BHIM MERCHANTS 2,79,228 68,324 35
Slide 36: Accolades & Social Media Leadership
Accolades & Social Media Leadership ‘Golden Peacock Award for Risk Management’ for the year 2017 Best Nationalised Bank of the Year (2017) by Financial Express Platform Status Rank Comments Highest number of followers across all banks 136 Lakh 1 in the world 819 Lakh Views 1 Ranked Number 1 Globally
Slide 37: Financial Inclusion (1/2)
Financial Inclusion ….(1/2) Financial Inclusion Accounts (No. in Crs) Average Balance (Rs.) PMJDY Others 1596 1594 1490 5.26% 1345 12.73 13.40 8.51 10.01 4.22 3.39 Dec 16 Dec 17 Out of PMJDY A/cs: Dec 16 Jun 17 Sep 17 Dec 17 Aadhar seeded A/cs as on Dec 17: 7.39 crs Rupay Cards issued as on Dec 17:
Slide 38: Financial Inclusion (2/2)
Financial Inclusion ….(2/2) Transactions Amount (Rs. in Crores) Social Security Schemes 91,228 (Enrolment up to 31.12.2017) 62.51% (in Lakhs) 56,135 Pradhan Mantri Suraksha 172.06 Bima Yojana 9MFY17 9MFY18 Financial Literacy Rural Self Employment Training Institute Cumulative Pradhan Mantri Jeevan R
Slide 39: Subsidiaries
Subsidiaries 39
Slide 40: SBI Group Financials : Net Profit 9MFY18
SBI Group Financials : Net Profit 9MFY18 Rs. In crores 9 Month Ended Major Non Banking Subsidiaries 9MFY18 9MFY17 SBI Life 769 619 SBI Capital Markets Ltd (Consolidated) 226 134 SBI Funds Management Pvt Ltd 243 163 SBI Cards & Payment Services Pvt Ltd 417 280 SBI DFHI Ltd 34 145 SBI General Insuranc
Slide 41: Subsidiaries : Others (1/3)
Subsidiaries (2/3)(1/3) Subsidiaries : Others SBI CARDS Performance Highlights: YoY • 2nd Highest base in terms of cards & spends - Market 9MFY18 9MFY17 share steadily rising (in %) • Spends 88.7% YOY, Assets 46.5% YOY #CIF market share (%) 16.22 14.93 129 bps • Enhanced quality of portfolio; de
Slide 42: Subsidiaries : Others (2/3)
Subsidiaries (3/3)(2/3) Subsidiaries : Others Performance Highlights: SBI Capital Markets Limited • CMG DCM: DCM has been awarded three awards at The Asset Triple A Country Awards 2017 for: YoY o Best Quasi-Sovereign Bond, India for NTPC (€500 mn), 9MFY18 9MFY17 (in %) o Best Masala Bond, India for
Slide 43: Subsidiaries (3/3) : SBI Life
Subsidiaries (3/3) : SBI Life In crores Premium 27.8% ‘Life Insurance Company of the Year’ and 26.1% 13,621 16,064 ‘Banc assurance Leader Life Insurance 9,830 4,525 6,941 7,200 (Large Category)’ Awards New Business Premium Gross Written Premium Dec-15 Dec-16 Dec-17 CAGR Key Performance Highlights: •
Slide 44: Balance Sheet
Balance Sheet 44
Slide 45: Balance Sheet : SBI
Balance Sheet : SBI Rs. in Crores Liabilities YOY Growth Dec 17 Dec 16 (%) Capital 863 790 9.28 Reserves and Surpluses 2,16,076 2,12,226 1.81 Deposits 26,51,240 26,02,757 1.86 Borrowings 2,60,435 2,80,395 -7.12 Other Liabilities & Provisions 1,26,580 1,21,604 4.09 Total Liabilities 32,55,194 32,17,7
Slide 46: Balance Sheet : SBI Consolidated
Balance Sheet : SBI Consolidated Rs. in Crores Liabilities YOY Growth Dec 17 Dec 16 (%) Capital 863 776 11.20 Reserves and Surplus 2,27,197 2,17,315 4.55 Minority Interest 4,556 6,976 -34.69 Deposits 26,68,559 26,17,495 1.95 Borrowings 2,70,212 2,87,606 -6.05 Other Liabilities & Provisions 2,43,526
Slide 47: SBI Group Financials – 9MFY18
SBI Group Financials – 9MFY18 Rs. In crores 9 Month Ended Growth (%) 9MFY18 9MFY17 Rs. In crores YoY Interest Earned 1,70,760 1,69,906 0.50 Non-Interest Income 54,192* 47,965 12.98 Total Income 2,24,952 2,17,870 3.25 Interest Expended 1,10,365 1,11,252 -0.80 Operating Expenses(i+ii) 67,569 62,076 8.
Slide 48: SBI Solo and Group Financials – 9MFY18
SBI Solo and Group Financials – 9MFY18 SBI SBI Standalone SBI Consolidated Dec 17 Mar 17 Dec 16 Mar 17 Dec 16 Dec 17 Mar 17 Dec 16 ROA (%) 0.05 -0.06 0.07 0.41 0.41 0.12 0.01 0.13 ROE (%) 0.92 -1.07 1.31 7.25 7.46 2.33 0.14 2.55 Earning Per Share 1.38 -2.23 2.76 13.43 13.11 4.66 0.31 5.53 (Rs.) Book
Slide 49: Thank You
Thank You
State Bank of India — Q3 FY2018 Earnings Presentation on 6ix