State Bank Of India · NSE:SBIN
State Bank Of India — H1 FY2017 Earnings Presentation
43 slides from State Bank Of India's earnings presentation, Nov 11, 2016
Slide 1: Quarterly Results H1FY17 Analyst Presentation
Quarterly Results H1FY17 Analyst Presentation 11.11.2016
Slide 2: Safe Harbor
Safe Harbor Certain statements in these slides are forward-looking forward statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a va
Slide 3: • Financial Performance • Business • Capital
• Financial Performance • Business • Capital • Asset Quality • Digital • Associates & Subsidiaries • Balance Sheet 3
Slide 4: Sustained Operating Performance
Sustained Operating Performance Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Interest Income 42,319 40,658 4.09 83,912 80,300 4.50 Other Income 8,424 6,197 35.93 15,759 11,285 39.64 Total Income 50,743 46,855 8.30 99,672 91,586 8.83 Interest Expenses 27,881 26,405 5.59 55,163 52,316 5.44 Ne
Slide 5: Provisions and Net Result
Provisions and Net Result Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Operating Profit 11,224 10,266 9.34 22,278 19,468 14.43 Total Provisions 8,686 6,387 36.00 17,219 11,896 44.74 Loan Loss 7,670 3,842 99.64 14,009 7,200 94.56 Standard Assets -71 591 -112.02 846 987 -14.28 Investment 109
Slide 6: Interest Income/Expenses
Interest Income/Expenses Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Interest on Loans 29,934 28,982 3.29 59,818 57,563 3.92 Interest on Resources 11,580 10,745 7.77 22,467 20,998 6.99 Other Interest income 805 931 -13.52 1,628 1,739 -6.37 Total Interest Income 42,319 40,658 4.09 83,912 80
Slide 7: Robust Growth in Non-Interest Income
Robust Growth in Non-Interest Non Income Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Fee Income 4,317 3,153 36.91 7,714 6,355 21.38 Profit/Loss on Sale of 2,291 1,494 53.38 5,015 2,366 111.91 Investments Forex Income 900 474 89.91 1,496 962 55.40 Dividend Income 136 47 188.40 295 80 269.63
Slide 8: Stable Fee Income
Stable Fee Income Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Fee Income 4,317 3,153 36.91 7,714 6,355 21.38 of which : 552 592 -6.71 983 973 1.05 Loan Processing Charges Commission on Govt. 508 466 9.11 1,085 1,037 4.64 Business Commission on LC/BG 721 727 -0.79 1,433 1,495 -4.15 Transact
Slide 9: Investing in Our Future Growth
Investing in Our Future Growth Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Staff Expenses 6,853 6,142 11.58 13,110 12,048 8.81 Overheads 4,784 4,042 18.36 9,121 7,753 17.64 Operating Expenses 11,637 10,184 14.27 22,231 19,802 12.27 Cost to Income Ratio 49.95 50.43 -48 bps Past 12 Months Br
Slide 10: Containing Operating Expenses
Containing Operating Expenses Rs. In Crores Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY % Staff Expenses 6,853 6,142 11.58 13,110 12,048 8.81 of which : Salary 5,194 4,614 12.57 10,395 9,370 10.95 Contribution for Employees 1,659 1,528 8.59 2,714 2,679 1.33 Overheads 4,784 4,042 18.36 9,121 7,753 17.64 of
Slide 11: Key Performance Indicators: Performance Ratios
Key Performance Indicators: Performance Ratios Yield & Costs (%) Net Interest Margin (%) YOA COF COD Domestic Whole Bank Foreign 10.33 10.32 10.12 3.29 3.32 3.22 3.27 10.00 3.09 3.05 6.44 6.39 2.99 3.01 2.93 2.96 6.34 2.83 2.80 6.31 9.55 9.54 6.35 6.30 6.26 1.30 1.33 1.34 1.29 1.37 1.37 6.22 6.07 6.
Slide 12: Other Performance Ratios
Other Performance Ratios Earnings Per Share (Rs) Book Value per Share(Rs) 19.95 183.91 19.52 180.23 175.95 177.77 176.60 15.10 12.98 13.03 13.00 162.54 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 ROA (%) ROE(%) 0.72 0.73 12.30 12.61 0.55 0.46 0.44 9.65 0.44 7.
Slide 13: CASA Driving Deposit Growth
CASA Driving Deposit Growth …..(1) Rs. In Crores Sep16 YoY Growth (%) Sep15 Total Deposits 18,58,999 13.76 16,34,115 Foreign Offices 90,558 -1.49 91,923 Domestic 17,68,442 14.67 15,42,192 Market Share Domestic 17.53 32bps 17.21 TD 10,12,637 13.68 8,90,762 CA 1,13,810 12.65 1,01,033 SB 6,41,995 16.64
Slide 14: Retail Advances Driving Growth
Retail Advances Driving Growth Rs. In Crores (% YOY growth) Share % 3 38,716 Misc (27) 30,552 19 2,80,082 2 FOs (5) 2,65,817 19 3,50,465 Retail (20) 24 2,91,043 21 1,28,649 Agri (9 ) 9 1,18,419 9 1,66,052 1,76,572 11 SME (-6) 13 14 2,05,478 2,04,749 MCG (0.36 ) 15 21 3,12,390 CAG (10) 2,83,549 21 Se
Slide 15: Home Loans Constitute Nearly 60% of Retail Loans
Home Loans Constitute Nearly 60% of Retail Loans Rs. In Crores Home Loans Auto Loans Other P-Segment Loans 20.38% 20.91% 20.29% 41,224 1,03,507 2,05,734 34,094 86,050 1,70,899 Sep 15 Sep 16 Sep 15 Sep 16 Sep 15 Sep 16 Market 25.03% 25.53% 25.62% 25.22% Share Total P-Segment Sep 15 Sep 16 Sep 15 Sep
Slide 16: Diversified Exposure Across Industries
Diversified Exposure Across Industries – Domestic Fund Based Outstanding Rs. In Crores Sep 16 Mar 16 Sep 15 Sep 16 YTD Gr YOY Gr Level % Share Level % Share Level % Share % % Infrastructure 2,01,261 16.75 2,07,522 16.70 1,88,674 17.08 -3.02 6.67 of which: Power 1,36,285 11.34 1,36,455 10.98 1,21,375
Slide 17: We Remain Well Capitalized
We Remain Well Capitalized Major Contributions to Capital 13.94 14.01 During Q2FY17 12.17 3.09% 3.19% AT1 Capital raised – Rs.6,600 Cr 0.11% 2.26% 0.57% 0.04% Tier II AT1 Tier I CET1 10.85% Way Forward 10.82% 9.91% 10.28% 10.71% Expected Capital from GoI in FY 17 – 9.87% Rs.7,575 Cr AT1 raised
Slide 18: Gross NPAs: Segment wise
Gross NPAs: Segment wise Rs. In Crores Sep 16 Jun 16 Sep 15 Sector NPA Ratio% NPA Ratio% NPA Ratio% Large Corporate 23,249 7.41 21,870 7.07 982 0.35 Mid Corporate 44,739 20.77 42,248 19.59 22,600 10.62 SME 17,743 9.20 17,344 8.40 17,381 8.72 Agri 8,399 6.53 8,764 7.03 10,219 8.66 Retail 3,225 0.92 2
Slide 19: Movement of NPAs
Movement of NPAs Rs. In Crores H1FY17 Q2FY17 Q1FY17 FY16 H1FY16 Q2FY16 Opening Level of Gross 98,173 1,01,541 98,173 56,725 56,725 56,421 NPAs Less :Recovery 2,991 1,344 1,647 4,389 2,102 892 Less: Up gradation 1,375 206 1,169 2,598 2,123 629 Less :Write-off 10,673 6,060 4,613 15,763 8,859 3,941 Add
Slide 20: Movement of Impaired Assets
Movement of Impaired Assets Rs. In Crores H1FY17 Q1FY17 H1FY16 Gross Advances 14,81,832 14,63,690 13,70,701 Restructured Standard 36,570 36,551 53,452 Total Gross NPAs plus Restructured Std. 1,42,353 1,38,092 1,10,286 Gross NPA + Restructured Standard to Gross Adv. % 9.61 9.43 8.04 Net NPA + Std Res
Slide 21: Watch List Declines by 17% in Q2FY17
Watch List Declines by 17% in Q2FY17 Major Slippages are from Watch List Sectoral Composition 34,776 Total Corporate Slippages 1,181 Watch list Slippages 2326 Recovery in Watch list 25,951 3396 913 10,565 4299 2284 (74%) 4748 3396 (71%) 7,800 6,883 2686 6564 3682 (80%) 4,853 2037 3,682 2,947 12262 1
Slide 22: Digital Updates
Digital Updates Mobile Banking: Retail Internet Banking: Retail Number of Active Customers : 1.64 Crs No. of customers : 2.77 crores Transaction Amount during Q2FY17 :Rs.17,321 Crs Avg. No. Of Daily Transactions: 28.06 lacs Mobile Banking: Corporate Internet Banking: Corporate Number of Active Custo
Slide 23: Moving away from Cash to Digital
Moving away from Cash to Digital Share of Transactions (%) SEP 16 SEP 15 Internet 18.63 16.44 Banking POS 6.13 4.48 Mobile Banking 3.26 79 1.91 71 Kiosk 8.15 5.35 ATM/CDM 42.99 43.25 Branch 20.84 28.57 23
Slide 24: Dominant Player in the Digital Space
Dominant Player in the Digital Space Channel Market Share (%) Market Share (%) Next SBI Largest Player Number of Group ATMs 29.20 7.03 Group ATMs : Amt of Txns (Cr) 36.14 8.30 Number of Debit Cards (Cr) 29.07 6.65 Debit Card Spent on POS (Cr) 23.13 16.33 Mobile Banking: Number of Txns (Cr) 34.71 15.
Slide 25: Expanding Digital Footprint (1)
Expanding Digital Footprint….(1) POS Transactions Mobile Banking Transactions (No. in Lacs) (No. in Lacs) 637 1,000 377 259 494 331 Sep 14 Sep 15 Sep 16 Sep 14 Sep 15 Sep 16 Internet Banking Transactions Debit Card spends (No. in Crores) (Rs. in Crores ) 68 25,461 59 19,141 40 14,512 Sep 14 Sep 15 S
Slide 26: Expanding Digital Footprint (2)
Expanding Digital Footprint …. (2) No of Calls (lacs) No of Registrations (in lacs) Month wise Cumulative 48.70 191 155 170 140 149 149 136 32.60 26.60 Mar 16 Jun 16 Sep 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Crossed 5 million registrations in Oct 16 Users Review Users Review Rolled out
Slide 27: Our Financial Inclusion (1)
Our Financial Inclusion ….(1) Financial Inclusion Accounts ( No. in Crs) Transactions through BC Channel (No. in Crores) PMJDY Others 9.28 8.50 10.10 21.69 7.28 14.16 14.37 12.09 3.33 5.32 4.54 6.80 7.07 3.53 3.95 3.96 3.96 3.30 Mar 14 Mar 15 Mar 16 Sep 15 Sep 16 Mar 14 Mar 15 Mar 16 Sep 15 Sep 16 O
Slide 28: Our Financial Inclusion (2)
Our Financial Inclusion …. (2) Zero Bal. A/cs (%) F.I A/cs Average Balance (Rs.) 69 1033 PMJDY A/cs 909 54 53 53 44 46 618 606 37 35 27 Mar 14 Mar 15 Mar 16 Sep 16 Mar 14 Mar 15 Mar 16 Sep 15 Sep 16 Financial Literacy Social Security Schemes RSETIs ( Total Numbers: 116) H1FY17 Cumulative (Enrolment
Slide 29: SBI on Social Media
SBI on Social Media SBI ranked No.1 among Top 100 Banks using Social Media by The Financial Brand in their list of “Power 100 Ranks – Banks” SBI Online is the world’s 6th most visited banking site. Highest number of likes across all banks in the world – 72.76 Lakhs Highest number of followers across
Slide 30: Awards & Accolades
Awards & Accolades Brand of the Year Award 2016-17 17 in Banking Category by World Branding Forum Golden Cart Awards by Business World Award for special initiative in the field of Financial Inclusion in the FE Best Bank Awards 2016 Golden Peacock Award for Sustainability 2016 Best Home Loan Provider
Slide 31: Associate Banks: Asset Quality
Associate Banks: Asset Quality Ratios Q2FY17 Q1FY17 GNPA 13.77% 9.14% Gross Impaired Assets 17.33% 13.64% NNPA 8.75% 5.50% Slippage Ratio 25.76% 19.99% Provision Coverage 49.89% 54.47% Ratio Credit Cost 7.46% 5.06% CET 1 8.40% 8.20% Tier I 8.67% 8.45% CAR 11.24% 11.06% 31 Nearly 57% of increase in N
Slide 32: Associate Banks: Performance
Associate Banks: Performance Rs. In Crores SBBJ SBH SBM SBP SBT H1FY17 H1FY16 H1FY17 H1FY16 H1FY17 H1FY16 H1FY17 H1FY16 H1FY17 H1FY16 Operating Profit 1,179 1,136 2,011 1,521 619 573 868 958 919 838 Net Profit -432 451 -749 627 -655 226 -1,950 223 -1331 184 ROA (%) -0.80 0.89 -0.86 0.77 -1.55 0.56 -
Slide 33: Net Profit: Subsidiaries
Net Profit: Subsidiaries Rs. In Crores Subsidiary Q2FY17 Q2FY16 YOY % H1FY17 H1FY16 YOY% SBI Life Insurance Company 213 206 3.40 428 408 4.90 Limited SBI card and payment services 88 69 27.12 177 132 34.38 Pvt. Ltd. SBI DFHI Ltd. 67 23 195.22 102 27 283.32 SBI Funds Management Pvt. 58 43 35.33 98 88
Slide 34: Non-Banking Subsidiaries: SBI Life Insurance
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Performance Highlights: 1. The Company witnessed a 77% YoY growth in New Business Premium (NBP) at Rs.4,644 Cr, as against Private Insurers and Industry growth of 23% and 35% respectively. 2. Ranked No. 1 among Priv
Slide 35: Non-Banking Subsidiaries: SBI Life Embedded Value and Awards
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Embedded Value: The Embedded Value (EV) in the Life Insurance context is a realistic measure of the Shareholders’ interest in the covered business of the Company 1. The EV of the Company based on Market Consistent m
Slide 36: Non-Banking Subsidiaries: SBI General
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Performance Highlights: 1. SBI General has grown at 39.4% (YoY YoY), higher than the Private insurers that grew at 32% and the General Insurance Industry, which has grown at 28.6%. 2. Private Sector market share
Slide 37: Non-Banking Subsidiaries: SBI Capital Markets
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Performance Highlights: 1. Large Mandates in Infra Space: Mytrah Energy - Refinancing deals in RE sector (Rs.2600 Cr.), Advisory & Debt Syndication brownfield fertilizer project of Chambal Fertilizers (Rs.4800 Cr.),
Slide 38: Non-Banking Subsidiaries: SBI Funds Management
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Performance Highlights: SBI Funds Management Pvt. Ltd. Ltd has grown 48% in average AUM in the Quarter ended September 2016 (YoY basis). Average AUM is Rs.1,31,554 Crs in Q2 FY17 against 1. Rs.88,628 Crs in Q2 FY16.
Slide 39: SBI Funds Management Awards
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Awards: The Best Fund House in India. The Best Long Term Equity Asset Management House. SBI Funds Lipper Award A (Best Group Over 3 Years) SBI FM won Fund Family Award for mixed asset classes. Manageme Lip
Slide 40: Non-Banking Subsidiaries: SBI Card
Non-Banking Banking Subsidiaries : Performance Highlights for Q2 of FY: 2016-17 2016 Performance Highlights: Consistent business performance leading to Net Profit of Rs.177 Cr for H1’ 16-17 @ YOY Growth of 34% . Achieved 4 million Cards base in Sep’16, Sep’ growing @17% YOY with Industry Ranking
Slide 41: Balance Sheet (Solo)
Balance Sheet (Solo) Rs. In Crores Liabilities Rs. In Crores Sep 16 Sep 15 YOY Growth (%) Capital 776 776 Reserves and Surplus 1,80,148 1,44,781 24.43 Deposits 18,58,999 16,34,115 13.76 Borrowings 2,36,876 2,25,470 5.06 Other Liabilities & Provisions 1,08,714 1,05,284 3.26 Total Liabilities 23,85,51
Slide 42: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Liabilities Rs. In Crores Sep 16 Sep 15 YOY Growth (%) Capital 776 776 Reserves and Surplus 2,14,863 1,79,923 19.42 Minority Interest 6,546 5,980 9.47 Deposits 23,92,965 21,33,521 12.16 Borrowings 2,63,385 2,55,496 3.09 Other Liabilities & Provisions 2,21,327 2,05,570 7.
Slide 43: Thank You
Thank You 43
State Bank of India — H1 FY2017 Earnings Presentation on 6ix