State Bank Of India · NSE:SBIN
State Bank Of India — Q1 FY2020 Earnings Presentation
41 slides from State Bank Of India's earnings presentation, Aug 2, 2019
Slide 1: Quarterly Results Q1FY20 Analyst Presentation
QUARTERLY RESULTS Q1FY20 Analyst Presentation 02.08.2019
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 (1/2)
Performance Highlights (1/2) NET PROFIT Q1FY19: Rs. (-) 4,876 FY 19: Rs. 862 Q1FY20: Rs. 2,312 (in Rs. cr) CREDIT GROWTH Domestic Corporate Retail- Per 11.89% 11.62% 18.68% 14.11% 7.21% 4.35% 1.16% June 17 June 18 June 19 June 18 June 19 June 18 June 19 ASSET QUALITY NPA Ratios Provision Coverage Ra
Slide 5: Performance Highlights (2/2)
Performance Highlights (2/2) Yield, Costs and Margins NIM (Domestic) Yield on Advances Cost of Deposits 5.54% 2.95% 3.01% 8.57% 2.50% 8.56% 5.11% 5.07% 8.49% June 17 June 18 June 19 June 17 June 18 June 19 June 17 June 18 June 19 LIQUIDITY AND CAPITAL Liquidity Coverage Ratio Credit Deposit Ratio Ca
Slide 6: Financial Performance
Financial Performance 6
Slide 7: Financials – At a Glance
Financials – At a Glance Rs. in Crores Quarter Ended Growth (%) Q1FY20 over Q1FY20 over Q1FY20 Q4FY19 Q1FY19 Q4FY19 Q1FY19 Interest Income 62,638 62,985 58,813 -0.55 6.50 Interest Expenses 39,699 40,032 37,015 -0.83 7.25 Net Interest Income 22,939 22,954 21,798 -0.07 5.23 Non Interest Income 8,015 1
Slide 8: Total Income
Total Income Rs. in Crores Quarter Ended Growth (%) Q1FY20 over Q1FY20 over Q1FY20 Q4FY19 Q1FY19 Q4FY19 Q1FY19 Interest on Loans 43,863 42,628 38,865 2.90 12.86 Interest on Resources 17,345 18,313 18,832 -5.28 -7.90 Other Interest income 1,429 2,045 1,116 -30.11 28.10 Total Interest Income 62,638 62
Slide 9: Fee Income Break Up
Fee Income Break Up Rs. in Crores Quarter Ended Growth (%) Q1FY20 Q1FY20 Q1FY20 Q4FY19 Q1FY19 over over Q4FY19 Q1FY19 Loan Processing Charges 617 1,502 641 -58.92 -3.76 Commission on Govt. Business 963 1,118 931 -13.82 3.46 Commission on LC/BG 704 1,289 592 -45.42 18.90 Cross Selling 366 583 376 -37
Slide 10: Total Expenses
Total Expenses Rs. in Crores Quarter Ended Growth (%) Q1FY20 over Q1FY20 over Q1FY20 Q4FY19 Q1FY19 Q4FY19 Q1FY19 Interest on Deposits 36,303 35,607 34,258 1.96 5.97 Interest on Borrowings 2,233 3,223 1,706 -30.72 30.94 Other Interest paid 1,162 1,201 1,051 -3.24 10.58 Total Interest Expenses 39,699
Slide 11: Overhead Expenses
Overhead Expenses Rs. in Crores Quarter Ended Growth (%) Q1FY20 Q1FY20 Q1FY20 Q4FY19 Q1FY19 over over Q4FY19 Q1FY19 Rent, Taxes and Lighting 1,181 1,480 1,173 -20.23 0.63 Depreciation 779 831 798 -6.17 -2.29 Printing and Stationery 98 189 103 -48.14 -4.99 Postage & Telecommunications 73 116 85 -36.8
Slide 12: Provisions & Profit
Provisions & Profit Rs. in Crores Quarter Ended Growth (%) Q1FY20 over Q1FY20 over Q1FY20 Q4FY19 Q1FY19 Q4FY19 Q1FY19 Operating Profit 13,246 16,933 11,973 -21.77 10.63 Loan Loss 11,648 17,336 13,038 -32.81 -10.66 Standard Assets -1,288 810 -919 Investment Depreciation -1,225 -1,615 7,098 Other Prov
Slide 13: Costs, Yields and Margins (Cumulative)
Costs, Yields and Margins (Cumulative) Yield on Advances (%) Net Interest Margin (%) 8.57 8.56 Domestic NIM 3.01 2.95 2.92 2.95 2.88 8.48 8.49 8.43 Foreign NIM Cost of Deposits (%) 1.47 1.42 5.11 1.38 1.32 1.18 5.10 5.10 5.09 Whole Bank NIM 5.07 2.80 2.78 2.81 2.73 2.76 Jun-18 Sep-18 Dec-18 Mar-19 J
Slide 14: Business
Business 14
Slide 15: Strong Liability Franchise
Strong Liability Franchise JUN 19 Domestic Deposits JUN 18 CA, 6.34% CA, 6.26% SA, 38.81% SA, 38.71% TD, TD, 54.95% 54.93% CASA: 45.1% CASA: 45.1% Rs. in Crores Jun 19 Jun 18 YoY Growth Current Account 1,80,864 1,66,155 8.85 Saving Bank 11,03,537 10,30,040 7.14 CASA 12,84,401 11,96,195 7.37 Term Dep
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio Domestic Advances JUN 18 JUN 19 Per, 34.41% Per, 32.44% Agri, 10.43% Agri, 10.91% SME, 14.58% Corporates, Corporates, 40.58% SME, 15.96% 40.68% Retail: 59.42% Retail: 59.32% YoY Growth Rs. in Crores Jun 19 Jun 18 (%) Retail Per 6,63,559 5,59,134 18.68 Agri 2,01,054 1,88,11
Slide 17: Diversified Industry Portfolio
Diversified Industry Portfolio Domestic Fund Based Outstanding Rs. in Crores Jun 19 Mar 19 Jun 18 Jun 19 Level % Share Level % Share Level % Share YOY Gr % Infrastructure 3,25,224 16.86 3,15,455 15.85 2,62,734 15.24 23.78 of which: Power 2,03,568 10.56 1,99,583 10.03 1,76,760 10.26 15.17 Telecommuni
Slide 18: Drivers of Corporate Growth
Drivers of Corporate Growth YoY growth in advances Jun 19 over Jun 18 Growth driven by Central Govt. PSUs 100.5% Rs.26,808 cr 34.3% Power -34.8% Central Govt. State Govt. Others Growth driven by large Pvt. Sector entity 82.9% Telecom Rs.17,003 cr 19.2% -2.1% Pvt. Sect. Entity Govt. Entity Others Gro
Slide 19: Retail Banking - Leadership across all segments
Retail Banking - Leadership across all segments As on June 2019 Personal Retail Portfolio of Rs 6.6 lakh crore NPA ratio at 1.16% % of Dom. Adv. 34.41 Home Xpress Other P Auto Loans Loans Credit segment Loans O/S, 4,11,360 71,727 1,12,335 68,137 In Rs cr YoY 17.62 7.26 42.77 6.76 Growth, % Market sh
Slide 20: Treasury Operations
Treasury Operations AFS Book JUN 19 JUN 18 Others, 6.8% Others, 5.7% Corporate Corporate Bonds, 14.0% Bonds, 19.9% SDLs, 14.1% G-Sec and T Bill, SDLs, 10.0% 50.6% CP, 11.2% G-Sec and T Bill, CP, 12.7% 55.0% Modified Duration: 2.58 Modified Duration: 2.55 Break up of Domestic Investments (%) 41.7 Tot
Slide 21: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality 21
Slide 22: Capital Adequacy
Capital Adequacy 12.83% 12.72% 12.89% Tier II 2.30% 2.07% 2.24% AT1 Tier I 0.73% 1.03% 1.04% CET1 10.53% 10.65% 10.65% 9.80% 9.62% 9.61% June 18 Mar 19 June 19 • “Credit Risk Weighted Assets on Advances to Gross Advances” - Jun 18: 58.98%, Jun 19: 57.94%. • “TRWAs to Total Asset” ratio - Jun 18: 53.
Slide 23: Asset Quality (1/3)
Asset Quality (1/3) Rs. in Crores Gross NPA Net NPA 2,12,840 2,05,864 99,236 94,810 80,944 1,87,765 65,895 65,624 1,72,750 1,68,494 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Jun 19 Mar 19 Dec 18 Sep 18 Jun 18 Gross NPA Ratio (%) 7.53 7.53 8.71 9.95 10.69 Net NPA Ratio (%)
Slide 24: Asset Quality (2/3)
Asset Quality (2/3) Rs. in Crores Movement of NPAs: Q1FY20 FY19 Q4FY19 Q3FY19 Q2FY19 Q1FY19 FY18 Opening Level of Gross NPAs 1,72,750 2,23,427 1,87,765 2,05,864 2,12,840 2,23,427 1,77,866 Total Reductions 21,251 90,417 22,976 24,641 17,865 24,936 54,726 Of which : Recovery + Upgradation 5,769 31,512
Slide 25: Asset Quality- Whole Bank SMA 1 & SMA 2 (3/3)
Asset Quality- Whole Bank SMA 1 & SMA 2 (3/3) As on June 2019 Rs. in Crores Fresh Slippages Q1FY20 Q1FY19 FY19 SMA 1 & SMA 2 18,321 Corporate 5,354 3,391 10,056 4,658 SME 3,964 1,775 9,478 10,289 * 7,762 3,104 AGRI 4,239 2,560 8,978 13,663 2,766 7,185 4,996 PER 2,438 1,965 3,976 Jun-18 Mar-19 Jun-19
Slide 26: Power Sector – Stress mostly recognized
Power Sector – Stress mostly recognized As on June 2019 Rs. in Crores Standard Power Power Portfolio Classification Public Private 1,77,815 1,12,822 64,993 2,03,568 Rating break-up of Std. Pvt 25,753 61.9% A- and above BBB+, BBB, BBB- BB+ and below Unrated 10.4% 15.2% 12.4% 1,77,815 Resolution Plan
Slide 27: NBFC & FI Sector – Loans to PSUs and High Quality Private Sector
NBFC & FI Sector – Loans to PSUs and High Quality Private Sector As on June 2019 Rs. in Crores Housing Finance NBFCs Other NBFCs FIs NBFC & FI Portfolio Classification 1,73,584 63,520 97,983 12,081 1,73,584 Backed by PSUs' 36,405 22% 30% Housing Backed by large Finance Pvt Sector 65,437 NBFCs Instit
Slide 28: Large Infrastructure Conglomerate
Large Infrastructure Conglomerate As on June 2019 Rs. in Crores Portfolio Classification Standard Portfolio Classification 3,430 1,835.9 47 30 142 PCR on NPA – 59.6% 1,593.7 930 1,835.9 687 Green category Amber category Red category International Not classified in any category Standard NPA • Only on
Slide 29: Resolution Status
Resolution Status Fund based O/S Provision Coverage Ratio (%) 453 Accounts Admitted to NCLT • NPAs - Rs. 59,000 crs Rs. 1,13,809 cr 90.4 81.4 • AUCA – Rs. 54,809 crs Without AUCA With AUCA 123 Accounts filed in NCLT but yet to be admitted Rs. 25,725 cr 78.8 44.9 • NPAs - Rs. 9,882 crs • AUCA – Rs. 1
Slide 30: Digital Journey
Digital Journey 30
Slide 31: Digital Leadership
Digital Leadership Market share (As on June 2019) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 30.2% 15.3% 28.3% 21.7% 34.6% Presence across multiple channels and payment acceptance touch points Customer touch points Payment acceptance touc
Slide 32: Other digital payment offerings
Other digital payment offerings Processed 3.82 Crs. Quick & Easy payments from customers on Total 500+ Integration with txns worth Rs. Merchant’s site merchants 42 major Banks 38000 + Crs. in FY19 A Unique Payment Solution specially designed for Schools, Colleges, Government institutions, Hospitals,
Slide 33: 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 34: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability 34
Slide 35: Financial Inclusion
Financial Inclusion Accounts & Amount in FI Channel Transactions in BC Channel (No. in Crores) (No. & Amt. in Crores) No. of Accounts 65,000 11.57 12.00 14.8 13.5 60,000 11.00 55,000 52,757 10.00 11.2 10.5 50,000 8.87 9.00 45,000 8.00 39,061 3.0 3.6 40,000 7.00 35,000 Jun 18 Jun 19 6.00 PMJDY Others
Slide 36: SBI's ESG Practices
SBI’s ESG Practices ‘Environmental’ Practices ‘Governance’ Practices Conducted 29,450 financial literacy camps during F.Y 2018-19, a 26% increase from FY 2017-18 SBI has created an independent ETHICS SBI committed to achieve Carbon Average training hours per employee has business conduct fun
Slide 37: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet 37
Slide 38: SBI and its Subsidiaries - Leveraging Synergies
SBI and its Subsidiaries - Leveraging Synergies As on June 2019 • #1 in Individual Rated Premium with Private Market share of 21.5% • Rank 3rd in AUM with Market Share of 12.06%. • #2 Total New Business Premium with Private market share • AUM at Rs.308K Crores, up by 32% of ~20%. New Business Premiu
Slide 39: SBI Group Financials – Q1FY20
SBI Group Financials – Q1FY20 Rs. In crores Growth Quarter Ended Quarter Ended (%) Rs. In crores Q1FY20 Q1FY19 YoY Q1FY20 Q1FY19 Interest Earned 65,594 61,201 7.18 ROA (%) 0.31 -0.47 Non-Interest Income 17,892 13,793 29.71 Total Income 83,486 74,994 11.32 ROE (%) 6.24 -9.12 Interest Expended 40,139
Slide 40: Balance Sheet
Balance Sheet Rs. in Crores Liabilities SBI SOLO SBI GROUP YOY YOY Jun 19 Jun 18 Jun 19 Jun 18 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,21,665 2,14,197 3.49 2,35,838 2,25,913 4.39 Minority Interest 6,361 4,842 31.38 Deposits 29,48,821 27,47,813 7.32 29,78,835 27
Slide 41: Thank You
Thank You
State Bank of India — Q1 FY2020 Earnings Presentation on 6ix