State Bank Of India · NSE:SBIN
State Bank Of India — Q2 2022 Earnings Presentation
50 slides from State Bank Of India's earnings presentation, Nov 3, 2021
Slide 1: Q2FY22 Analyst Presentation
Q2FY22 Analyst Presentation 03.11.2021
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 Macro Economic Indicators 2 Performance Highlights 3 Financial Performance 4 Capital Adequacy & Asset Quality 5 Digital Journey 6 Financial Inclusion & Sustainability 7 Subsidiaries, Group Financials & Balance Sheet
Slide 4: Macro-Economic Indicators
Macro-Economic Indicators Movement in Short Term Cost of Borrowing of High Frequency Activity Indicators Corporates 3.0 5.50 2.7 ➢ Two-wheeler and tractor sales, exports & imports, railway 2.22 2.5 5.00 passenger traffic, e-way bill and RTO revenue collections show 2.2 1.9 4.44 sequential improvemen
Slide 5: Performance Highlights
Performance Highlights
Slide 6: Key trends in Q2FY22
Key trends in Q2FY22 Improving profit metrics – operating profit up 9.84% YoY, even as certain costs upfronted Net interest income growth at 10.65% Asset quality – improving outcomes Account recently identified for resolution - fully provided Slippages at Rs 4,176 cr (0.66%) in the quarter, restruct
Slide 7: Key Indicators
Key Indicators Rs. in Crores Current Account Savings Account For the 10.55% YoY 19.20% Rs. in Crores Growth Q2FY21 Q1FY22 Q2FY22 2,52,763 14,53,624 13,14,950 2,12,057 Net Interest Income 28,181 27,638 31,184 10.65% Profit & Net Interest Margin – 3.34 3.15 3.50 16 bps Domestic (%) Loss Sep 20 Sep 21
Slide 8: Credit Growth
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions • Strong growth in personal retail, driven by home loans, Xpress credit and gold loans Sep – 2020 Sep - 2021 • Corporate growth is impacted by lower utilizations, pricing pressure, and bi
Slide 9: Credit Growth: Retail Personal Banking
Deposit Asset Net Interest Non-Interest Operating Credit Growth Growth Quality Income Income Expenses Provisions Retail Personal Banking As on Sep 2021 Leadership across all segments Personal Retail Portfolio of Rs 9 lakh crore 3 - year CAGR at ~16% As a % of Dom. Adv. Sep 20: 38.1 Sep 21: 41.9 Pers
Slide 10: Credit Growth: Diversified Loan Portfolio
Deposit Asset Net Interest Non-Interest Operating Credit Credit Growth Growth Quality Income Income Expenses Costs Diversified Loan Portfolio Rs. in Crores High quality asset book Industry mix Corporate Rating mix Outstanding as on 30th Sep 21 Sep 21 Fund Based O/S Sectors Amount % Share YOY Gr % In
Slide 11: Deposit Growth
Credit Asset Net Interest Non-Interest Operating Growth Deposit Growth Quality Income Income Expenses Provisions Sep 2020 Sep 2021 CA, 6.30% CA, 6.85% 62% of new savings accounts opened through YONO in H1FY22 SA, TD, SA, TD, 39.09% 54.61% 39.39% 53.76% CASA: 45.39% CASA: 46.24% Rs.in crs Particulars
Slide 12: Asset Quality: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Provisions Growth Growth Asset Quality Income Income Expenses Slippages and Restructuring Rs. in Crores Q1FY22 slippages 15,666 Q2FY22 slippages 4,176 Restructuring 2.0 - H1FY22 17,317 Retail Restructuring details at end of H1FY22 Corporate SME Tota
Slide 13: Net Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Net Interest Margins Yield on Investments in % 3.29 3.31 3.26 3.33 3.15 3.07 3.09 3.04 3.09 2.92 6.47 6.42 6.32 6.10 6.05 1.15 1.13 1.10 1.06 1.06 Sep-20 Dec-20 Mar-21 Jun 21 Sep 21 Sep-2
Slide 14: Non-Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses H1FY21 H1FY22 Profit/ Loss on sale of investments, 12.7% Profit/ Loss on sale of investments, 28.4% Forex income, 7.4% Fee income, 53.9% Fee income, 53.9% Forex income, 5.5% Misc.income,
Slide 15: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Treasury Operations Sep 20 Sep 21 Others, 10.9% Others, 6.1% Corporate Bonds, 16.7% G-Sec and T Bill, Corporate Bonds, 48.9% 20.7% SDLs, 11.9% G-Sec and T Bill, 55.8% SDLs, 11.2% CP, 9.4%
Slide 16: Operating Expenses
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses H1FY22 • Focus continues on improving income streams with control on costs Overheads, 39.9% Salary, 41.9% • Cost to assets – amongst one of the best in the Retiral benefits & other provis
Slide 17: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.43% for Q2FY22 • PCR (excl AUCA) at 70.05%, legacy book well provided • Non NPA provisions at Rs 27,820 cr, ~75% of Net NPA at end of Q2FY22 Available Buffer, In Rs cr
Slide 18: Sustainable RoE – A perspective
Sustainable RoE – A perspective Mean RoA (FY00 – FY15) – 0.84 ROA ( in %) At variance to long term trends 0.99 1.01 1.04 0.97 0.94 0.89 0.86 0.84 0.88 0.88 0.61 0.75 0.73 0.68 0.48 0.71 0.65 0.38 0.57 0.46 0.02 -0.06 -0.19 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY
Slide 19: Financial Performance
Financial Performance
Slide 20: Financials – At a Glance
Financials – At a Glance Quarter ended Half Year Ended Growth (%) Q2FY22 Q2FY22 H1FY22 Particulars, In Rs crs Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 over over over Q1FY22 Q2FY21 H1FY21 Interest Income 66,814 65,564 69,481 1,33,314 1,35,046 5.97 3.99 1.30 Interest Expenses 38,633 37,926 38,298 78,491 76,
Slide 21: Total Income
Total Income Quarter ended Half Year Ended Growth (%) Q2FY22 Q2FY22 H1FY22 Particulars, In Rs crs Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 over over over Q1FY22 Q2FY21 H1FY21 Interest on Loans 43,378 41,144 42,317 87,479 83,460 2.85 -2.45 -4.59 Interest on Resources 20,763 21,405 22,306 41,262 43,711 4.21
Slide 22: Fee Income Break Up
Fee Income Break Up Quarter ended Half Year Ended Growth (%) Q2FY22 Q2FY22 H1FY22 Particulars, In Rs crs Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 over over over Q1FY22 Q2FY21 H1FY21 Loan Processing Charges 1,296 788 1,049 2,121 1,837 33.03 -19.09 -13.39 Commission on Govt. Business 939 890 933 1,803 1,822
Slide 23: Total Expenses
Total Expenses Quarter ended Half Year Ended Growth (%) Q2FY22 Q2FY22 H1FY22 Particulars, In Rs crs Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 over over over Q1FY22 Q2FY21 H1FY21 Interest on Deposits 35,849 34,793 35,183 72,688 69,976 1.12 -1.86 -3.73 Interest on Borrowings 1,429 1,750 1,675 3,151 3,425 -4.
Slide 24: Overheads
Overheads Quarter ended Half Year Ended Growth (%) Q2FY22 Q2FY22 H1FY22 Particulars, In Rs crs Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 over over over Q1FY22 Q2FY21 H1FY21 Rent, Taxes and Lighting 1,308 1,085 1,354 2,360 2,439 24.86 3.55 3.33 Depreciation 820 796 811 1,640 1,607 1.95 -1.11 -2.03 Printing
Slide 25: Provisions & Profit
Provisions & Profit Quarter ended Half Year Ended Growth (%) Q2FY22 Q2FY22 H1FY22 Particulars, In Rs crs Q2FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 over over over Q1FY22 Q2FY21 H1FY21 Operating Profit 16,460 18,975 18,079 34,521 37,054 -4.72 9.84 7.34 Loan Loss 5,619 5,030 2,699 15,040 7,729 -46.33 -51.96 -
Slide 26: Capital Adequacy & Asset Quality
Capital Adequacy & Asset Quality
Slide 27: Well-capitalized bank with adequate liquidity
Well-capitalized bank with adequate liquidity Capital ratios (%) 14.72% 13.74% 13.66% 13.96% 13.35% 2.82 2.30 11.475 2.34 2.33 2.33 1.41 1.26 1.42 1.41 1.26 7.975 11.90 11.44 11.63 11.32 11.02 10.49 10.02 9.91 9.76 10.37 Sep-20 Mar-21 Jun-21 Sep-21 Sep-21 (Proforma-including profits of H1FY22) CET-1
Slide 28: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, in Rs crs Net NPA, in Rs crs 1,49,092 1,34,259 1,25,863 1,26,389 1,23,942 1,17,244 51,871 43,153 36,451 36,810 37,119 29,032 Mar 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Mar 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Cumulative for the Period (%) Sep 20 Dec 20 Mar 21 Jun 21 Se
Slide 29: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Opening Level of Gross NPAs 1,29,661 1,25,863 1,17,244 1,49,092 1,26,389 1,34,259 Total Reductions 6,883 8,906 12,905 52,035 8,428 14,609 of which : Recovery + Upgradation 4,038 5,657 4,329 17,632 4,969 7,407
Slide 30: Movement of NPAs and AUCA (3/4)
Movement of NPAs and AUCA (3/4) Rs. In Crores Movement of NPAs (incl. Advances under Collection) Mar 19 Mar 20 Mar 21 Sep 21 Opening Level of GNPA + AUCA 3,27,653 3,09,755 3,16,684 3,00,496 Gross Addition (Increase in O/s + Slippages) 39,740 54,510 29,332 20,590 Total GNPA + AUCA + Additions 3,67,39
Slide 31: Asset Quality (4/4)
Asset Quality (4/4) As on Sep 21 Rs. in Crores Slippages SMA 1 & SMA 2 Accounts with exposure above Rs. 5 cr: CRILC data 20,781 19,842 17,946 15,666 11,986 11,519 11,303 12,546 3,389 3,326 6,843 6,690 2,351 4,176 8,597 7,977 5,400 4,676 4,339 H1FY21 (incl. H1FY22 Q1FY22 Q2FY22 Sep-20 Dec-20 Mar-21 J
Slide 32: Digital Journey
Digital Journey
Slide 33: Accelerating digital agenda (1/5)
Accelerating digital agenda (1/5) YONO – Our flagship digital offering 1 Customer facing digital bank catering to banking and lifestyle needs on mobile App/Customer portal Digital bank “Seamless Omni-channel Fund Bill pay/ Fixed One view of all customer experience” transfer Recharge deposit SBI acco
Slide 34: Accelerating digital agenda (2/5)
Accelerating digital agenda (2/5) YONO Business has re-imagined key customer journeys to provide a superior user experience Corporate Internet Single-sign-on across all business banking Banking 1 applications with unified profile management Unified dashboard view across banking 2 applications Fully
Slide 35: Accelerating digital agenda (3/5): YONO Key objectives
Accelerating digital agenda (3/5) YONO – Key objectives Deliver world class customer Productivity gains through digital experience – Through end-to-end redesign of processes distinctive, omni-channel and seamless customer journeys 1 2 3 4 Orchestrate the digital ecosystem Achieve growth through digi
Slide 36: Accelerating digital agenda (4/5)
Accelerating digital agenda (4/5) YONO – Delivering significant impact across metrics 8.93 Cr. ~27.6 K 4.28 Cr.+ 1.20 Cr. Cumulative NewDownloads digital SB accounts across Average Daily logins by Registered Users opened Androidper andday iOS Customers (since inception) (Q2FY22) ~7,875 Cr / 22.61 La
Slide 37: Accelerating digital agenda (5/5)
Accelerating digital agenda (5/5) Digital Leadership across channels Leadership across channels - Market share (As per latest available data) Mobile Banking Mobile Banking Debit card spends POS terminals ATMs No. of Transactions Transaction value 30.40% 15.86% 26.65% 24.51% 23.53% Presence across mu
Slide 38: Analytics – Creating a Next-Gen Bank (1/4)
Analytics – Creating a Next-Gen Bank (1/4) Functionalities Being Delivered Using AI / ML Business Booked Using Analytical Models (Rs. In Crs) Business Garnered via Analytics in FY22 (April-September 2021) Business Area Business in Rs crs Personal Banking 16,302 Agriculture 1,637 38,657 MSME 952 18,8
Slide 39: Analytics – Creating a Next-Gen Bank (2/4)
Analytics – Creating a Next-Gen Bank (2/4) AI-based Advances Made in Q2FY22 Intelligent ✓ AI based EWS deployed for Personal, SME and Corporate Customers Early Warning Signal ✓ Holistic examination of customer behaviour data over the years (EWS) for Loan Monitoring ✓ Incorporates both internal and e
Slide 40: Analytics – Capabilities (3/4)
Analytics – Capabilities (3/4) Policies Projects Techniques • Data & Model Governance policy, • 57 Analytics Projects in FY21 • Private Cloud Deployed AI/ML Tools Control Structure in place • 100% In-house, Experienced Team • GPU modelling, Auto-ML reduces TAT • Forward-looking Ethics Document in •
Slide 41: Analytics – Outcome (4/4)
Analytics – Outcome (4/4) ~60% of BANCA Channel In-House Data BI Dashboards Credit Cards Issued Through ML Model Scientists ~400 & Data Engineers ❶ 43 Interactive Data Personal Loans Worth Analytics Interfaces Warehouse ~₹ 43,000 Cr. Disbursed Across Business, Risk ❹ ❷ ~1.15 PB Data through E2E digi
Slide 42: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 43: Financial Inclusion
Financial Inclusion As on Sep 2021 No. of BC outlets Transactions in BC Channel Deposits in FI Channel 1,80,000 31.50 57,000 2,842 2,777 3,000 2,532 26.65 30 47,000 2,500 23.93 25 1,20,000 37,000 2,000 20 70,786 27,000 1,500 15 66,508 46,331 45,701 58,905 60,000 1,34,892 40,943 1,06,278 1,13,145 10
Slide 44: SBI's ESG Snapshot
SBI’s ESG Snapshot ✓ Responsible finance integral aspect of Bank’s strategy. Lines of credits availed Leadership in : from World Bank, KfW etc. being used to fund projects with positive environmental ▪ ▪ Access to Finance Privacy & Data Security A ESG – an & social impacts. integral ✓ ESG further in
Slide 45: SBI's Sustainability Framework
SBI’s Sustainability Framework Responsible Digital Agenda People Practices Financial Inclusion Carbon Neutrality Journey Investment Customer Service Points Internal Commitment Green Bonds & Loan YONO Fighting the Pandemic 70,000+ Customer Service To achieve carbon neutral status Over 1.6 million tCO
Slide 46: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 47: SBI Subsidiaries – Significant value created across financial services
SBI Subsidiaries – Significant value created across financial services Listed Subsidiaries and Investments H1FY22 – PAT H1FY22 – RoE SBI Stake Value per share of SBI Subsidiaries - listed (in Rs. Crore) (in %) (in %) (Rs) # SBI Card 650 19.40 69.34 78.2 SBI Life 470 8.82 55.49 72.5 Other select list
Slide 48: SBI Group Financials – H1FY22
SBI Group Financials – H1FY22 Rs. In crores Growth Rs. In crores Half Year Ended Half Year Ended (%) H1FY21 H1FY22 YoY H1FY21 H1FY22 Interest Earned 1,39,983 1,41,989 1.43 ROA (%) 0.46 0.66 Non-Interest Income 44,742 52,421 17.16 Total Income 1,84,725 1,94,410 5.24 Interest Expended 79,325 76,887 -3
Slide 49: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Sep 20 Sep 21 Sep 20 Sep 21 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,44,829 2,67,508 9.26 2,65,402 2,91,572 9.86 Minority Interest 8,913 10,448 17.23 Deposits 34,70,462 38,09,630 9.77 35,05,182 3
Slide 50: Thank You
Thank You