State Bank Of India · NSE:SBIN
State Bank Of India — Q3 2020 Earnings Presentation
40 slides from State Bank Of India's earnings presentation, Jan 31, 2020
Slide 1: Quarterly Results Q3FY20 Analyst Presentation
QUARTERLY RESULTS Q3FY20 Analyst Presentation 31.01.2020
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: Key Indicators
Key Indicators YoY Q3FY20 Q3FY19 Growth 9.27% 8.19% Net Interest Income 27,779 22,691 22.42% CASA 11,51,701 Net Interest Margin – 1,89,129 10,64,497 3.59 2.97 62 bps Domestic 1,73,081 Profit & Loss Operating Profit 18,223 12,625 44.34% (in Rs. Crore) Profit Before Tax 10,970 6,619 65.74% Current Acc
Slide 5: Performance Highlights-Q3FY20
Performance Highlights-Q3FY20 Profitability Asset Quality Highest ever quarterly Net profit at Rs. 5,583 Crs Net NPA at 2.65% down 130 bps YoY and 14 bps QoQ PBT at Rs.10,970 Crs increased by 65.74% YoY and 116.80% QoQ GNPA at 6.94%, down 177 bps YoY and 25 bps QoQ NII grew by 22.42% YoY a
Slide 6: Financial Performance
Financial Performance 6
Slide 7: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter Ended 9 Months Ended Growth (%) 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Interest Income 67,692 64,312 62,277 1,94,642 1,79,883 8.20 5.25 8.70 Interest Expenses 39,913 39,712 39,586 1,19,324 1,14,488 4.
Slide 8: Total Income
Total Income Rs. in Crores Quarter Ended 9 Months Ended Growth (%) 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Interest on Loans 48,063 45,242 41,821 1,37,169 1,19,012 15.26 6.24 14.93 Interest on Resources 17,968 17,546 19,131 52,860 57,273 -7.70 2.41
Slide 9: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter Ended 9 Months Ended Growth (%) 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Loan Processing Charges 1,120 766 926 2,502 2,208 13.33 46.28 20.88 Commission on Govt. Business 972 893 953 2,828 2,856 -0.99 8.88 2.
Slide 10: Total Expenses
Total Expenses Rs. in Crores Quarter Ended 9 Months Ended Growth (%) 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Interest on Deposits 37,182 36,746 35,473 1,10,231 1,04,665 5.32 1.19 4.82 Interest on Borrowings 1,521 1,712 2,981 5,467 6,616 -17.37 -11.
Slide 11: Overhead Expenses
Overhead Expenses Rs. in Crores Quarter Ended 9 Months Ended Growth (%) 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Rent, Taxes and Lighting 1,322 1,361 1,284 3,864 3,786 2.07 -2.83 3.01 Depreciation 815 809 797 2,403 2,382 0.88 0.75 2.22 Printing and
Slide 12: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter Ended 9 Months Ended Growth (%) 9MFY20 Q3FY20 Q3FY20 Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 over over over 9MFY19 Q2FY20 Q3FY19 Operating Profit 18,223 18,199 12,625 49,667 38,503 29.00 0.13 44.34 Loan Loss 8,193 11,041 13,971 30,882 37,193 -16.97 -25.79 -41.36
Slide 13: Costs, Yields and Margins (Cumulative)
Costs, Yields and Margins (Cumulative) Yield on Advances (%) Net Interest Margin (%) 8.49 8.56 8.69 8.91 8.48 Domestic NIM 3.27 3.11 3.01 2.92 2.95 3.69 3.71 3.70 3.59 3.51 Foreign NIM Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 1.38 1.32 Cost of Deposits (%) 1.18 1.20 1.20 5.09 5.10 5.07 5.02 4.97 Whole Ban
Slide 14: Business
Business 14
Slide 15: Strong Liability Franchise
Strong Liability Franchise Dec 19 Dec 18 Domestic Deposits CA, 6.31% CA, 6.33% SA, SA, 38.41% 38.90% TD, TD, 54.77% 55.28% CASA: 44.72% CASA: 45.23% Rs. in Crores Dec 19 Dec 18 YoY Growth (%) Current Account 1,89,129 1,73,081 9.27 Saving Bank 11,51,701 10,64,497 8.19 CASA 13,40,830 12,37,578 8.34 Te
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio Dec 19 Domestic Advances Dec 18 Per, 36.38% Per, 32.60% Agri, Agri, 10.61% Corporates, 10.57% 38.96% Corporates, SME, 14.05% SME, 15.60% 41.23% Retail: 61.04% Retail: 58.77% Rs. in Crores Dec 19 Dec 18 YoY Growth (%) Retail Per 7,19,766 6,12,595 17.49 Agri 2,09,997 1,98,68
Slide 17: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Dec 19 Sep 19 Dec 18 Dec 19 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 3,33,437 16.85 3,22,818 16.74 3,23,132 17.20 3.19 of which: Power 1,99,194 10.07 1,97,613 10.25 1,95,133 10.38 2.08 Telecommunica
Slide 18: Retail Personal Banking
Retail Per Banking Leadership across all segments As on Dec 2019 Personal Retail Portfolio of Rs 7.20 lakh crore NPA ratio at 1.04% % of Dom. Adv. 36.37 Home Xpress Other P Seg Auto Loans Loans Credit Loans O/S, 75,176 4,40,448 73,462 1,30,680 In Rs cr YoY 15.61 3.72 39.18 12.38 Growth, % #Market sh
Slide 19: Treasury Operations
Treasury Operations DEC 19 AFS Book DEC 18 Corporate Others, 6.2% Others, 5.6% Bonds, 20.1% Corporate Bonds, 15.5% SDLs, 14.4% SDLs, G-Sec and T Bill, G-Sec and T Bill, 8.8% CP, 11.2% 53.7% 53.5% CP, 11.0% Modified Duration: 2.29 Modified Duration: 2.45 Break up of Domestic Investments (%) 0.1 0.8 T
Slide 20: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 20
Slide 21: Capital Adequacy
Capital Adequacy Tier II 13.59% 13.73% AT1 12.77% Tier I CET1 2.28% 2.14% 2.23% 1.23% 1.41% 0.97% 10.54% 11.31% 11.59% 9.57% 10.08% 10.18% Dec 18 Sep 19 Dec 19 • “Credit Risk Weighted Assets on Advances to Gross Advances” - Dec 18: 59.73%, Dec 19: 55.29%. • “TRWAs to Total Asset” Ratio - Dec 18: 54.
Slide 22: Asset Quality (1/3)
Asset Quality (1/3) Rs. in Crores Gross NPA Net NPA 1,87,765 80,944 1,72,750 1,68,494 1,61,636 1,59,661 65,895 65,624 59,939 58,249 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Dec 19 Sep 19 Jun 19 Mar 19 Dec 18 Gross NPA Ratio (%) 6.94 7.19 7.53 7.53 8.71 Net NPA Ratio (%)
Slide 23: Asset Quality (2/3)
Asset Quality (2/3) Rs. in Crores Movement of NPAs: Q3FY20 Q2FY20 Q1FY20 FY19 Q4FY19 Q3FY19 Opening Level of Gross NPAs 1,61,636 1,68,494 1,72,750 2,23,427 1,87,765 2,05,864 Total Reductions 22,073 15,984 21,251 90,417 22,976 24,641 of which : Recovery + Upgradation 13,553 3,931 5,769 31,512 5,712 6
Slide 24: Asset Quality (3/3)
Asset Quality (3/3) As on Dec 2019 Rs. in Crores Fresh FY19 Q1FY20 Q2FY20 Q3FY20 SMA 1 & SMA 2 Slippages 18,313 Corporate 10,056 5,354 3,239 9,467# 17,059 3,619 SME 9,478 3,964 1,522 1,578 7,632 AGRI 8,978 4,239 3,078 2,965 7,762 8,101 13,440 2,766 3,677 PER 3,976 2,438 648 821 10,681 4,996 4,424 IB
Slide 25: Resolution Status NCLT ICA
Resolution Status Accounts Admitted to NCLT: 617 Fund Based Outstanding • NPAs - Rs. 53,490 crs Rs. 1,23,730 crs NCLT • AUCA – Rs. 70,240 crs (91.1%) As on Dec-19 Accounts filed in NCLT but yet to be admitted: 112 Fund Based Outstanding (PCR in brackets) • NPAs - Rs. 6,196 crs Rs. 22,472 crs • AUCA
Slide 26: Power Sector
Power Sector Stress mostly recognized As on Dec 2019 Rs. in Crores Standard Power Power Portfolio Classification Public Private 1,77,258 1,08,158 69,100 1,99,194 Rating break-up of Std. Pvt 21,936 61.5% A- and above BBB+, BBB, BBB- BB+ and below 9.1% Unrated 15.3% 14.1% 1,77,258 Resolution Plan for
Slide 27: NBFC & FI Sector
NBFC & FI Sector Loans to PSUs and High Quality Private Sector As on Dec 2019 Rs. in Crores NBFC & FI Portfolio Classification Housing Finance Companies NBFCs 1,69,125 1,69,125 68,002 1,01,123 35,603 Backed by PSUs' 27% 25% 64,739 Housing Finance Backed by large Companies Pvt Sector Institutions 26,
Slide 28: Telecom Sector
Telecom Sector As on Dec 2019 Rs. in Crores Telecom Portfolio Classification Standard Portfolio Classification Public Private 28,625 37,793 9,465 19,160 9,168 PCR : 97.2% Standard Private 73.6% A- and above 28,625 BBB+ and below & Others 26.4% Standard NPA 28
Slide 29: Digital Journey
Digital Journey 29
Slide 30: YONO
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 Loans
Slide 31: 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 29.68% 14.98% 28.36% 21.81% 32.69% Presence across multiple channels and payment acceptance touch points Customer touch points Payme
Slide 32: Other Digital Payment Offerings
Other Digital Payment Offerings Quick & Easy payments from customers Total 780 Integration with 43 Processed 3.90 Crs. on Merchant’s site merchants major Banks txns worth Rs. 32,116 Crs. in FY 2019-20 A Unique Payment Solution specially designed for Schools, Colleges, Government institutions, Total
Slide 33: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability 33
Slide 34: Financial Inclusion
Financial Inclusion As on Dec 2019 Accounts & Amount in FI Channel Transactions in BC Channel (No. in Crores) (No. & Amt. in Crores) No. of Accounts 2,00,000 36.93 40.00 15.42 13.98 1,67,109 35.00 28.49 30.00 10.67 11.87 1,50,000 25.00 1,23,403 20.00 3.31 3.55 1,00,000 15.00 Dec 18 Dec 19 10.00 PMJD
Slide 35: SBI's ESG Practices
SBI’s ESG Practices ‘Environmental’ Practices ‘Governance’ Practices Conducted nearly 22900 financial literacy camps till Dec,2019 .through 341 Financial literacy centers. Big push to digitalization. as on December 2019, Children’s Day celebrated across the Bank. Activities ‘Sustainability’ inco
Slide 36: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 36
Slide 37: SBI and its Subsidiaries
SBI and its Subsidiaries Leveraging Synergies As on Dec 2019 • Increase in share of Protection NBP from 11.2% to 11.3% with 37% growth • Rank 3rd in AUM with Market Share of 13.17%. • Private market leadership in Individual Rated Premium (IRP) with • AUM at Rs.353K Crores, up by 33% YoY 19% growth •
Slide 38: SBI Group Financials – 9MFY20
SBI Group Financials – 9MFY20 Rs. In crores Growth Rs. In crores 9 Months Ended 9 Months Ended (%) 9MFY20 9MFY19 YoY 9MFY20 9MFY19 Interest Earned 2,03,976 1,87,538 8.77 ROA (%) 0.43 0.04 Non-Interest Income 67,225 51,615 30.24 Total Income 2,71,201 2,39,153 13.40 ROE (%) 9.07 0.76 Interest Expended
Slide 39: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Dec 19 Dec 18 Dec 19 Dec 18 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,31,628 2,19,471 5.54 2,47,458 2,31,486 6.90 Minority Interest 7,367 5,502 33.89 Deposits 31,11,229 28,30,538 9.92 31,44,280 28
Slide 40: Thank You
Thank You