Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q2 FY22 Earnings Presentation
38 slides from Pnb Housing Finance's earnings presentation, Nov 2, 2021
Slide 1: Investor Presentation filing cover letter to exchanges
@ pnb Housing Finance Lim it ed E?h~r Ki B~~t November 02, 2021 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, "Exchange Plaza" Dalal Street, Bandra Kurla Complex, Mumbai - 400 001 Sandra (E), Mumbai- 400 051 Scrip Code: 5
Slide 2: Investor Presentation Quarter Ended September 2021
Investor Presentation Quarter Ended September 2021 02-November-2021
Slide 3: Contents
Contents A Progress on the New Agenda Strategy Monitorables Business & Financial Performance Digital Drive & Branch Network B Shareholding and ESG Snapshot Growth in Housing Finance Sector Key Takeaways 2
Slide 4: Agenda envisaged in January 2021
Agenda envisaged in January 2021 Strengthening the Core Drive Efficiency Accelerate Growth Capital Risk Cost Digital Retail Focused Grow Affordable Management Position Management Management Drive Lending Housing “Unnati” • Improve capital and • Leverage advance • Rationalize • Accelerate digital • L
Slide 5: Strengthening the Core – Key Monitorables
Strengthening the Core – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 H1FY22 Remarks Key roles hired at senior level^ 5 hires and 2 promotion 3 hires and 1 promotion Strengthen the management team Management Incentive plan to retain talent RSU Allotment done Annual appraisal completed T
Slide 6: Drive Efficiency – Key Monitorables
Drive Efficiency – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 H1FY22 Remarks Higher on account of increased Cost to Income Ratio 16.9% 15.1% 18.4% investments to enhance business activities Incremental Cost of Borrowing 8.5% 6.8% 5.7% Supported by NHB Cost Implement Transformation Ini
Slide 7: Accelerate Growth – Key Monitorables
Accelerate Growth – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 H1FY22 Remarks Disbursements grew by 50% in H1 FY22 (YoY) Retail Loan Book (YoY) -6% -5% -6% Retail loan book degrowth arrested during the quarter Building Granular book (Disbursement of upto 88.1% 93.0% 94.5% Focus on low
Slide 8: Update on Project “IGNITE”
Update on Project “IGNITE” Scale-up high-yielding affordable housing Unnati business Focus on core capability of serving self-employed non-professionals Key Structural Create differentiators to remain competitive in salaried segment Interventions Manage risk costs through improved collections and re
Slide 9: Business and Financial Performance
Business and Financial Performance 8
Slide 10: Performance Highlights
Performance Highlights 5.4% on AUM INR 4,720 Crore (2.2% YoY) Disbursement* GNPA (+50% YoY) 5.9% on Loan Assets (2.6% YoY) INR 69,810 Crore Total Provision/ 4.8% Asset Under Management (-14% YoY) Total Assets (3.0% YoY) 86% of the AUM Retail Loans (82% of AUM as on Write-offs since Inception** 15 bp
Slide 11: Business Trends - Quarter on Quarter
Business Trends - Quarter on Quarter No. of Logins No. of Sanctions Disbursement (INR Crore) +19.3% +22.6% +21.1% +51.7% +60.3% +68.4% 25,473 19,201 4,103 22,943 195 16,232 3,203 20,363 14,390 48 2,961 17,063 129 11,733 2,444 13,420 149 8,977 1,759 3,908 3,156 107 2,833 2,296 1,652 Q2FY21 Q3FY21 Q4F
Slide 12: Business Update
Business Update (INR Crore) Asset AUM CAGR -6% 84,722 83,346 74,469 69,810 • As on 30-Sep-21, retail AUM is 86% of total AUM 74,023 67,571 62,255 59,283 compared to 82% as on 30-Sep-20 31-Mar-19 31-Mar-20 31-Mar-21 30-Sep-21 • Covid Restructured loans AUM Loan Assets of INR 2,408 Crore as on 30-Sep-
Slide 13: Asset Under Management Mix
Asset Under Management Mix AUM Mix Product-wise Break-up Segment-wise Breakup Sep-21 Sep-21 4% 14% 14% 16% 14% 18% 46% 21% 22% 60% 40% Sep-20 Sep-20 86% 18% 84% 18% 82% 79% 4% 44% 57% 21% 38% 31-Mar-19 31-Mar-20 31-Mar-21 30-Sep-21 Individual Housing Loan Corporate Retail Retail Loan Against Propert
Slide 14: Retail Segment Focus Areas
Retail Segment Focus Areas Increasing Disbursement in Category B and C branches Increasing AUM from Category B & C branches 59.2% 56.9% 55.1% 63.3% 65.7% 62.9% 61.6% 69.2% 40.8% 43.1% 44.9% 38.4% 36.7% 31.0% 34.3% 37.1% FY19 FY20 FY21 H1FY22 31-Mar-19 31-Mar-20 31-Mar-21 30-Sep-21 Category A Categor
Slide 15: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes (INR Lakhs) Average Ticket Size Weighted Average Loan to Value 51 47 71% 71% 72% 72% 44 41 31 49% 49% 49% 49% 29 28 27 31-Mar-19 31-Mar-20 31-Mar-21 30-Sep-21 31-Mar-19 31-Mar-20 31-Mar-21 30-Sep-21 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Com
Slide 16: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 0.4% 0.3% 0.2% 0.2% 1.6% 1.1% 1.6% 1.4% 1.1% 0.9% 2.5% 1.9% 4.6% 4.3% 3.3% 2.5% 2.5% 6.2% 5.0% 4.5% 12.0% 11.2% 12.0% 11.6% 13.9% 12.9% 15.8% 15.1% 16.7% 17.5% 18.6% • Focus on granu
Slide 17: Corporate Book Exposure
Corporate Book Exposure % of Total 21.1% 17.5% 15.8% 14.3% AUM -44% (INR Crore) 17,922 14,614 11,152 11,786 9,985 10,356 8,637 7,755 3,678 3,052 2,243 3,092 1,670 1,206 906 560 Mar-19 Mar-20 Mar-21 Sep-21 Construction Finance Corporate Term Loan Lease Rental Discounting Average Ticket Size City Conc
Slide 18: Corporate Book Performance
Corporate Book Performance • 75% of the book is good which continues to be in Stage 1; majority backed by Tier 1 Developers 40% of the Construction Finance Book comprises completed and near 65% of the book is with Zero DPD on a declining base completion projects • Down Sell / Accelerated pre payme
Slide 19: Resolutions Achieved
Corporate Book Remedial Actions Resolutions Achieved • IREO Pvt Ltd with O/s of INR 150 crore with nil haircut • Windlass Developers with O/s of INR 30 crore through SWAMIH investment • Pate Developers with O/s of INR 20 crore with nil haircut. • 4 other NPA accounts with O/s of INR 6 crore with nil
Slide 20: Gross Non-Performing Assets
Gross Non-Performing Assets % of Loan Asset Gross NPA 2.59% 4.47%* 4.44% 6.00% 5.92% Net NPA 1.46% 2.69% 2.43% 3.61% 3.32% As on 30-Sep-21 INR Crore (INR Crore) 4.8% 4,500 4.5% 5 4.1% 4,000 3.5% 4 3.0% 3,625.0 3,510.8 3,500 Gross NPA 3,510.8 3 3,000 2,887.0 2,762.3 1,752.0 2 2,500 1,904.8 1,390.0 1
Slide 21: Expected Credit Loss (ECL) Provisions – Overall
Expected Credit Loss (ECL) Provisions – Overall Classification of the Assets based on the ECL computation under Ind AS: Particulars (INR Crore) 30-Sep-21 30-Jun-21 30-Sep-20 Gross Stage 1 52,080 52,914 62,090 % portfolio in stage 1 87.8% 87.6% 92.7% ECL Provision Stage 1 699 601 642 Net Stage 1 51,3
Slide 22: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 8.5% 7.4% 10.9% 9.6% 18.2% 24.4% • ~71% of the total resource is 22.2% 25.3% floating; giving opportunity 5.7% 6.7% for replacement & repricing 8.3% 9.0% 17.2% 19.6% 9.6% 23.7% 0.5% 26.3% 1.6% 22.5% 0.2% 28.0% 16.5% 13.7% Credit Rating 18.8% 16.9% 15.9%
Slide 23: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 2,022 1,447 1,896 1,834 1,346 1,295 1,693 1,217 1,153 1,586 1,340 1,246 1,150 1,103 1,035 107 100 145 114 118 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Finance Cost Operating Expense Profit After Tax Pr
Slide 24: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 11.30% 10.62% 10.39% 10.31% 8.01% 10.10% 7.72% 7.60% 10.19% 9.69% 7.49% 7.29% 10.69% 10.43% 10.03% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Yield Yield (Excl. Securitisation income) S
Slide 25: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.4% 10.7% 10.7% 10.2% 8.0% 8.2% 2.8% 2.8% 3.2% 3.1% 7.9% 2.9% 3.0% 9.9% 7.4% 2.4% 2.5% 2.5% 9.9% 10.4% 10.4% 2.5% 2.2% 1.9% FY19 FY20 FY21 H1FY22 FY19 FY20 FY21 H1FY22 FY19 FY20 FY21 H1FY22 FY19 FY20 FY21
Slide 26: Capital Position
Capital Position (INR Crore) Capital to Risk Asset Ratio Provisions 20.7% Stage 3 20.9% 36.2% 45.2% 44.0% Coverage ratio (%) 18.7%** 2.8% 4.8% 18.0% 4,000 5 4.1% 3.2% 3,500 4 2.8% 2,828 3,000 2.6% 2,544 3 14.0% 2,500 2,000 1,766 2 3.0% 1,500 0.8% 1 1,000 594 0 500 17.8% 0 -1 15.2% 15.5% 31-Mar-19 31
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q2 FY22 Q2 FY21 YoY Q1 FY22 QoQ H1 FY22 H1 FY21 YoY FY21 FY20 FY19 Interest Income* 1,500 1,960 1,611 3,111 3,762 7,190 7,688 6,793 Add: Net gain on fair value changes 38 31 42 80 80 162 159 129 Add: Income on derecognized loans assigned d
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-21 31-Mar-21 31-Mar-20 31-Mar-19 Particulars (INR Crore) 30-Sep-21 31-Mar-21 31-Mar-20 31-Mar-19 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - 51 - 211 (a) Cash and cash equivalents 5,693
Slide 29: Digital Interventions across the Value Chain
Digital Interventions across the Value Chain Tools & Collaborations Interventions • Implemented cloud based Virtual System interface to ensure secure working from any location • Integration of ACE (A Digital Onboarding Platform) with Loan Origination System (LOS) made live in Q1 for smooth flow of d
Slide 30: Strong Distribution Network
Strong Distribution Network AUM – Geographical Breakup Disbursement Origination (H1 FY22) 29% 38% 43% 62% 29% In-House DSA North South West Network 94 branches with 17 outreach 22 decision Over 21,500 presence in 64 centers making hubs channel partners unique cities Central Support Office Map not to
Slide 31: ESG Snapshot
ESG Snapshot Environment Social Human Capital Governance • 99% EMI collections through digital mode • Covid-19: Set up 70 bedded ICU Facility, • Team of 1,393 employees as on 30th • Diversified & highly experienced Board of 11 provided oxygen concentrators, establish PSA September 2021 members with
Slide 32: Experienced Management Team
Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 1 CHIEF CENTRALIZED COMPANY SECRETARY CHIEF FINANCIAL OFFICER OPERATIONS & TECHNOLOGY & COMPLIANCE HEAD BUSINESS HEAD – RETAIL • Years of Experience: 24+ • Years of Experience: 35+ • Years of Experienc
Slide 33: Shareholding
Shareholding Shareholding as on 30-Sep-21 Top Shareholders 2.5% 0.2% 5.1% 1.5% 32.6% SSG Capital, General Atlantic Singapore Fund, GIC, Franklin Templeton MF, Malabar Investments, Vanguard, Blackrock (ETFs), 26.0% United India Insurance, Bajaj Allianz Life Insurance, Dimensional Fund Advisors Inclus
Slide 34: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 39% 18% 29% 29% 26% 23% 24% 19% 19% 20% 7% 9% 13% 11% 15% 15% 7% 9% 7% 6% 2% 65% 6% 1% Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22P On-Book POS Non Housing Loans Housing Loans Home Loans LAP Construction
Slide 35: Key Takeaways
Key Takeaways Robust and scalable Continue to operate in Hub and Spoke model Remedial mass housing and Improve collection Strengthening digital merchant segment management Enhance productivity efficiencies through presence across the Leverage advance Group to focus on and right size predictive analy
Slide 36: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost - Fair value on repossessed assets) / Cost to Income (%) (Net Revenue-Acq
Slide 37: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 38: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 37