Equitas Small Finance Bank Ltd. · NSE:EQUITASBNK
Equitas Small Finance Bank — Q4 FY22 Earnings Presentation
38 slides from Equitas Small Finance Bank's earnings presentation, May 4, 2022
Slide 1: Exchange intimation letter for Q4 investor presentation
May 4, 2022 The Secretary The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers BandraKurla Complex (BKC) Bandra (East) Dalal Street Mumbai – 400051 Mumbai – 400001 Symbol: EQUITASBNK Scrip Code No-543243 F Group – Debt Instruments listed in BSE
Slide 2: Investor Presentation Q4FY22
Investor Presentation Q4FY22 BEYOND BANKING When you bank with us, you contribute towards a better society.
Slide 3: Disclaimer
Disclaimer Disclaimer: The information in this document, including facts and figures, is being provided by Equitas Small Finance Bank Limited (the “Bank”) for informational purposes only and could be subject to change without notice. The information has also not been independently verified. No repre
Slide 4: Table of Contents
Table of Contents 1. Key Highlights 2. Financial Performance 3. Advances 4. Liabilities & Branch Banking 5. Digital Banking 6. Financials 3
Slide 5: Journey of building a Stable, Sustainable and Scalable Bank
Journey of building a Stable, Sustainable and Scalable Bank 4
Slide 6: Diversifying across the informal segment
Diversifying across the informal segment 25,0 00 25. 00% 22.90% 21.80% 23. 00% 21.50% 20,597 20,0 00 21. 00% 19.70% 19.22% 18.90% 17,925 19. 00% 17.62% 15,367 18.66% 15,0 00 17. 00% 11,704 15. 00% 10,0 00 13. 00% 6,125 7,176 8,238 10.70% 10.10% 11. 00% 9.40% 9.02% 9.11% 8.55% 8.44% 8.54% 4,010 5,00
Slide 7: Liability franchise evolution
Liability franchise evolution 2,372 3,323 5,097 4,769 4,909 2,002 7,093 7.34% 5,869 8.36% 8.13% 7.97% 643 6.58% 1,636 3,811 476 502 365 368 400 401 232 231 73 159 64 32 1,638 57 2,274 632,208 5,614 9,855 FY18 FY19 FY20 FY21 FY22 CASA (Cr) Retail TD (Cr) Bulk TD (Cr) Cost of Funds % Liability Fee Inc
Slide 8: Key Highlights
Key Highlights BEYOND BANKING | When you bank with us, you contribute towards a better society. 7
Slide 9: Snapshot
Snapshot Operational Asset Offerings Liability Profile Financials Gross Advances: Total Deposits: PAT for Q4FY22: 17 States and UTs Rs. 20,597 Cr [Rs. 17,925 Cr] Rs. 18,951 Cr [Rs. 16,392 Cr] Rs. 120 Cr [Rs. 113 Cr] SBL- 46%, VF - 25%, MFI- CASA – 52%, TD – 48% 19%, MSE – 6%, NBFC – 4%, Third Party
Slide 10: Highlights
Highlights Highest ever yearly & quarterly disbursements | Advances growth picks up • FY22 disbursement at Rs. 10,549 Crs, our highest ever achievement – growth of 41% • Q4FY22 disbursement at Rs. 3,279 Crs exceeding previous highest quarter • Fastest growing Segment for the quarter is Small Busines
Slide 11: Highlights
Highlights Expanding cross sell opportunity • Liability Fee Income at Rs. 73 Crs vs. Rs. 54 Crs in FY21, growth of 35% YoY • 53% growth in Insurance Premium mobilized for the year at Rs. 127 Crs • 32,000 3in1 Account sourced in FY22 • Cross selling of Used Car loans, Prime Home Loans and Working cap
Slide 12: Highlights
Highlights Profit & Loss • Net Interest Income for Q4FY22 at Rs. 552 Cr as against Rs. 449 Cr in Q4FY21. NIM at 9.12% • Pre Provisioning Operating Profit (PPoP) as a % of assets improved to 4.21% from 3.56% sequentially • PAT for Q4FY22 at Rs. 120 cr as against Rs. 113 Cr in Q4FY21 Asset Quality, Pr
Slide 13: Restructured Loans - Update
Restructured Loans - Update As of 31st March 2022 Rs. Cr 1 to 90 DPD High Risk Buckets MF CV SBL MSE Total Retail Loans Advances Advances Standard 106 252 210 37 604 Rs. Cr Rs. Cr 1 to 30 Days 20 133 40 3 197 CV 343 6 31 to 60 Days 25 143 57 11 274 SBL 145 20 61 to 90 Days 62 66 48 - 140 MF 108 10 M
Slide 14: Provisioning Policy
Provisioning Policy Segments IRAC Equitas Actual Provision Coverage IRAC Equitas Micro Finance Sub-standard 19% 33% Sub-standard 25% 25% Doubtful-1 27% 54% Doubtful 100% 100% Doubtful-2 40% 49% Covid Restructured Doubtful - 3 100% 100% Sub-standard 25% 100% Total 28% 43% Doubtful 100% 100% Vehicle F
Slide 15: Financial Performance – Quarterly Trends
Financial Performance – Quarterly Trends 14
Slide 16: Key Ratios
Key Ratios Daily Avg Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 7.20% 9.10% 9.12% 6.93% 7.57% 7.87% 8.14% 1.80% 1.70% 1.83% 6.81% 6.16% 6.45% 6.47% 5.73% 5.73% 5.36% 6.20% 0.65% 0.19% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4
Slide 17: Income Evolution
Income Evolution Net Income Evolution (Rs. Cr) PPoP/ Assets (%) 4.35% 4.04% 3.52% 541 552 3.14% 449 461 484 2.65% 130 100 95 104 53 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 NII Other Income (Net) PPoP as a % of assets 2.5 0% Other Income Contribution (%) Other Income Bre
Slide 18: Opex evolution
Opex evolution Rs. Cr Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Employee expenses 204 222 228 240 209* Other expenses (net of digital expenses) 112 115 144 152 148 Depreciation 19 20 19 19 17 Total Operating expenses 335 357 391 411 375 No. of employees 16,556 16,770 17,441 17,509 17,607 9.80% 6.00% 5.30%
Slide 19: Advances
Advances BEYOND BANKING | When you bank with us, you contribute towards a better society. 18
Slide 20: Advances evolution
Advances evolution Rs Cr Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 YoY % Contribution % Micro Finance 3,236 3,128 3,438 3,695 3,907 21% 19% Small Business and Home Loans 7,971 8,015 8,596 8,919 9,522 19% 46% Small Business Loans 6,227 6,227 6,629 6,824 7,088 14% 34% Housing Finance 959 1,017 1,175 1,310 1,
Slide 21: Disbursements evolution
Disbursements evolution Rs Cr Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 YoY % QoQ % Micro Finance 655 393 938 1,010 972 48% -4% Small Business and Home Loans 960 315 1,154 905 1,207 25% 33% Small Business Loans 703 207 853 667 860 22% 29% Housing Finance 189 83 203 177 267 39% 49% Agri Loans 68 25 98 61 80
Slide 22: Segmental Details
Segmental Details Number of Live ATS @ ATS @ Product Segment GNPA (%) PCR (%) Loans Disbursement (Lacs) Portfolio (Lacs) Micro Finance 19,39,670 0.34 0.20 5.93% 54.09% Small Business Loans 2,46,614 6.23 3.86 3.55% 40.42% Vehicle Finance 1,65,797 4.13 3.04 3.97% 36.78% MSE Finance 3,737 46.04 31.15 4
Slide 23: Asset Quality Trend
Asset Quality Trend 950 .00 4.58% 4.64% 4.39% 5.0 0% 850 .00 3.59% 4.06% 4.0 0% 750 .00 650 .00 2.29% 2.37% 2.38% 2.37% 3.0 0% 1.52% 550 .00 2.0 0% 450 .00 350 .00 479.47 1.0 0% 250 .00 0.0 0% 150 .00 642.78 266.17 816.17 398.22 880.82 439.64 863.82 459.42 837.18 50.0 0 -1.00% Q4FY21 Q1FY22 Q2FY22 Q
Slide 24: Liabilities & Branch Banking
Liabilities & Branch Banking 23
Slide 25: Deposits Evolution
Deposits Evolution CA SA CASA TD CASA+TD as on 31 March 2022 [Customer Deposits] [Current Account] [Savings Account] [Low cost deposits] [Term Deposits] Balance (Cr) 772 9,083 9,855 9,095 18,951 as a % of total borrowings (Rs. 22,432 Cr) 3% 40% 44% 41% 84% as a % of total deposits (Rs. 18,951 Cr) 4%
Slide 26: Customer Deposit Profile
Customer Deposit Profile Elite Balance (Rs. Cr) Savings Slab Wise (%) Deposit Category 5% 6% 5% OTHERS 3% 8,119 Upto 1 Lac 6,120 1 Lac to 1 Cr 5,351 14% 4,155 1 Cr to 10 Cr TRUSTS 4% 3,262 10 Cr to 100 Cr 70% 100 Cr + GOVT./LOCAL Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 BODIES 8% Retail & Bulk TD Mix Term
Slide 27: Funding Profile
Funding Profile Funding Profile Mix In Rs Cr March 2021 Dec 2021 March 2022 4% 1% TD 10,705 8,799 9,095 11% CASA Refinance 3,934 2,635 2,466 TD CASA 5,614 9,085 9,855 44% Refinance Sub Debt 220 150 150 IBPC 41% Sub-ordinated Debt IBPC 700 968 865 Others (CD + RBI Borrowing) 84 - - Total Borrowings 2
Slide 28: Treasury Update
Treasury Update The Bank’s total investment portfolio of Rs. 4,450 Crore comprises of SLR and Non-SLR securities Category (Rs. Cr) Book Value SLR 4,416 Non SLR 34 Total 4,450 Borrowings & Liquidity • The Bank’s Certificate of Deposit (CD) programme for Rs. 1,000 Crore has highest rating from at CRIS
Slide 29: Digital Banking
Digital Banking BEYOND BANKING | When you bank with us, you contribute towards a better society. 28
Slide 30: Digital Banking Milestones
Digital Banking Milestones Digitally Sourced Digitally Sourced Virtually Managed No of Accounts Balances as a % of CASA Accounts 21.4 6.03% 1 Lac Lac 9x Growth 5x Growth Rs. 1,000 Cr Book 29
Slide 31: Digital Banking – Key Highlights
Digital Banking – Key Highlights NeoBanking – Live Partnerships Prepaid Engagements • NiyoX • Over 20 lakh new cards issued o 13.8 lac accounts opened • 6.8 Cr transactions o CASA balance of Rs. 343 Crs • 2,433 Crs transactions value • Groww processed o 1,700+ FDs opened o Balance of Rs. 8 Crs • Pro
Slide 32: Digital Theme in focus
Digital Theme in focus Each theme to accelerate acquisition , customer revenue accretion and cross sell opportunity: Payments MSME AI Led Open Market E-Commerce Architecture Financing Sourcing Enabled Finance Retail Open Merchant Digital Insure-tech, Pay Lending Wealth-tech Business Micro Self Servi
Slide 33: Financials
Financials BEYOND BANKING | When you bank with us, you contribute towards a better society. 32
Slide 34: Balance Sheet
Balance Sheet Particulars (in Rs Cr) Mar-22 Mar-21 YoY % Dec-21 QoQ% Capital & Liabilities Capital 1,252 1,139 10% 1,148 9% Reserves & Surplus 2,994 2,257 33% 2,435 23% Networth 4,246 3,396 25% 3,583 19% Deposits 18,951 16,392 16% 17,884 6% Borrowings 2,616 4,165 -37% 2,785 -6% Other Liabilities & P
Slide 35: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY22 Q4FY21 YoY% Q3FY22 QoQ% FY22 FY21 YoY% Interest Income from Loans 811 736 10% 819 -1% 3,139 2,901 8% Income on Investments 66 59 12% 64 3% 246 219 12% Interest on balances with Reserve Bank of India and other inter bank 19 23 -17% 18 6% 74 74 - fun
Slide 36: Profit & Loss Account
Profit & Loss Account Particulars (in Rs Cr) Q4FY22 Q4FY21 YoY% Q3FY22 QoQ% FY22 FY21 YoY% Net Income 701 627 12% 675 4% 2,576 2,216 16% Employee Cost 209 204 2% 240 -13% 898 791 14% Opex 208 173 20% 210 -1% 806 538 50% Total Operating Expenditure 417 377 11% 450 -7% 1,704 1,329 28% PBT before provi
Slide 37: Key Ratios - Annual
Key Ratios - Annual Cost of Funds Net Interest Margin (NIM) Cost to Assets RoA 8.36% 8.13% 8.06% 9.11% 8.33% 1.70% 7.34% 9.02% 1.45% 1.39% 6.58% 6.96% 6.75% 5.52% 6.00% 1.10% 8.55% 8.54% 8.44% 0.30% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 C
Slide 38: Investor Relations
Investor Relations Equitas Small Finance Bank Limited Website – https://ir.equitasbank.com/ Email – ir@equitasbank.com Twitter - @EquitasIR 4th Floor, Phase II, Spencer Plaza, No. 769, Mount Road, Anna Salai, Chennai 600 002, Tamil Nadu
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