National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q3 2018 Earnings Presentation
22 slides from National Development Bank's earnings presentation, Nov 1, 2018
Slide 1: Investor Webinar Q3 2018
Best Bank in Sri Lanka 2018 INVESTOR WEBINAR Q3 2018 National Development Bank PLC [CSE Stock Code - NDB.N0000] 01 November 2018: 1000 HRS (UTC + 0530) Colombo: Sri Lanka December - 2016
Slide 2: 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 3: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Director/ Group Chief Executive Officer Panelists Finance & Planning Lalith T Fernando – Group Chief Financial Officer Suvendrini Muthukumarana - AVP-Finance & Planning Heads of Business Buwaneka Perera - VP-Corporate Banking Niran Mahawatte –
Slide 4: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 4
Slide 5: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 5
Slide 6: Business Overview
Business Overview Incorporated in 1979 as a Development Financing Institution under and by virtue of National Development Bank of Sri Lanka Act No. 2 of 1979 Converted in to a fully fledged commercial bank in 2005 A network of 108 branches and 129 ATMs [including 12 Cash Recycling Machines] sp
Slide 7: Business Overview - Awards 2018
Business Overview Awards – 2018 [Bank] LankaPay Technnovation Awards 2018 Best Bank of the Year for Excellence in Customer Convenience - Category C – Winner Global Finance Magazine USA Best Bank in Sri Lanka – 2018 Best Common ATM Acquirer of the Year - Category B - Merit Award Bank of the Year for
Slide 8: Business Overview - Strategic Focus - Update
Business Overview - Strategic Focus - Update • “Transformation 2020” - The Bank’s strategic framework spanning up to year 2020 Goal To transform the Bank to a large, systemically important bank from its current mid sized status by end 2020 • Involves a wide span of changes including the business foc
Slide 9: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 9
Slide 10: Q3 2018 – Key Performance Indicators [Bank]
Q3 2018 – Key Performance Indicators [Bank] Profitability Indicators [Vs. Q3 2018] Balance Sheet Indicators [Vs. FY 2017] Pre-tax core banking profits up by 43% - LKR 6.4 bn Total assets of LKR 458 bn – impressive 20% growth NII up by 39% - LKR 10.6 bn Net loans to customers of LKR 328 bn - growth o
Slide 11: Income Statement [Bank]
Income Statement [Bank] LKR Mn Q3-2018 Q3-2017 Variance % Gross Income 36,797 31,650 5,148 16 Net Interest Income 10,628 7,656 2,972 39 Net Fee and Commission Income 2,272 1,813 459 25 Total Operating Income 15,634 12,023 3,612 30 Impairment charges for loans and other losses 2,365 872 1,493 171 Net
Slide 12: Revenue Analysis – Fund Based Income
Revenue Analysis – Fund Based Income LK Mn Q3 2018 Q3 2017 % growth Interest income 31,790 27,283 17 Interest expenses 21,163 19,627 8 NII 10,628 7,656 39 NIM (%) 3.36 2.9 - Fund based income • Impressive NII growth due to • sound balance sheet management 35,000 4.00% Interest and ALCO strategies. 3
Slide 13: Revenue Analysis – Other Income
Revenue Analysis – Other Income LKR Mn Q3 2018 Q3 2017 % growth Net Fee and Commission Income 2,272 1,813 25 Net gain from trading 861 793 9 Net gain from financial investments 455 545 -17 Other operating income [excluding 857 160 436 equity income] Total non-interest income from core 4,445 3,311 34
Slide 14: Operating Expenses [Bank]
Operating Expenses [Bank] LKR Mn Q3 Q3 % • Operating expenses increase of 13% 2018 2017 growth • Incurred capital expenditure to support business Personnel expenses 3,267 2,645 24 expansion and enhanced customer experience • Network expansion [New branch opened in Depreciation & amortization 319 312
Slide 15: Balance Sheet [Bank]
Balance Sheet [Bank] LKR Bn Q3 2018 FY 2017 YTD YTD Q3 2017 YoY YoY Quantum percentage Quantum percentage growth growth growth growth Total assets 458 383 75 20 371 87 23 Net loans and 328 274 54 20 259 69 27 receivables from customers Total deposits from 329 273 56 20 255 74 29 customers Total equi
Slide 16: Loans & Receivables [Bank]
Loans & Receivables [Bank] Total gross loans growth 400 350 300 258 250 210 197 LKR Bn 200 180 LCY 160 136 FCY 150 108 100 50 68 67 76 45 55 54 0 33 2013 2014 2015 2016 2017 Q3 2017 Q3 2018 • Considerable improvement in the currency mix of the loan book with 77% of LCY loans in Q3 2018 [Q3 2017 – 75
Slide 17: Asset Quality
Asset Quality Impairment analysis • The increase in the Bank NPL ratio LKR mn Q3 2018 Q3 2017 reflects the industry-wide trend for NPLs resulting from slowing economic growth and Individual impairment 1,479 365 other market challenges Collective impairment 934 439 • Collective impairment increase du
Slide 18: Customer Deposits
Customer Deposits Customer deposits 350 • Re-launched Ithuru Karana Maga – NDB’s iconic 300 proposition for savings as a life’s habit 250 200 256 LKR Bn 221 150 203 134 159 100 115 100 50 73 37 51 45 53 52 30 0 2013 2014 2015 2016 2017 Q3 2017 Q3 2018 FCY LCY • Quantum increase in deposits • YTD LKR
Slide 19: Capital Management
Capital Management Equity capital BASEL III –Q3 2018 Bank Group Common Equity Tier 1 Capital Ratio % (Minimum Requirement -6.375%) 8.37 9.62 Tier 1 Capital Ratio % (Minimum Requirement - 7.875%) 8.37 9.62 Total Capital Ratio % (Minimum Requirement - 11.875%) 12.13 13.12 Rights Issue announced at t
Slide 20: Investor Ratios
Investor Ratios Investor Ratios Bank Group Q3 2018 FY 2017 Q3 2018 FY 2017 Closing price per share (LKR) 104/- 136.40 NA NA EPS (LKR) (Annualized) 29.09 24.52 26.69 19.66 ROE (%) 16.95 16.27 13.27 11.09 ROA (%) 1.23 1.21 1.11 0.96 Book value per Share (LKR) 181.27 167.58 203.15 192.51 P/E (times) 3.
Slide 21: Agenda
Agenda Part I - Business Overview Part II - Financial Performance Part III - Q&A Forum 21
Slide 22: NDB Investor Relations
NDB Investor Relations NDB’s Investor Relations is the recipient of the Gold Award for Best Investor Relations at the coveted CFA Sri Lanka Capital Market Awards, for three consecutive years in 2018, 2017 & 2016. Investor/ Analysts Support Clearly defined Quarterly Results Calendar released at the
National Development Bank — Q3 2018 Earnings Presentation on 6ix