Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q3 FY2019 Earnings Presentation
39 slides from Indusind Bank's earnings presentation, Jan 10, 2019
Slide 1: Cover letter to stock exchanges
Induslnd Bank January 10, 2019 Thc Asst. Vice Prcsidcnt Thc Dcputy ()cncral Manager Listing Departmcnt Corporatc Ilclationship Dcpt. National Stock l),xchangc of India Ltd. BSU, Ltd. Exchange Plaza, 5rh l;loor 1't Floor, Now Trading Ring Plot No. C/1, G Illook I{otunda I}uilding, P. J. 'l owers B an
Slide 2: Investor Presentation Q3-2018-19
Investor Presentation Q3-2018-19 January 9, 2019
Slide 3: Q3 – FY19 Performance Highlights
FY 18-19 tracking towards PC4 targets Q3 – FY19 Performance Highlights Q3 FY19 marked by strong QoQ growth in headline numbers Core fee up by 18% YoY; 4% QoQ ; Total Fee up 24% YoY Efficiency ratio at 43.65% remains well within target Credit growth (35% up) and Deposit growth (20% up) well
Slide 4: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome Q3-FY19 Outcome Loan Growth 25% - 30% 35% CASA Ratio 40% 44% Revenue Exceed Balance Resulting in 22% Growth Sheet Growth RoRWA > 2.4% 1.99%* Branch 2,000 1,558** Network Customer Base Double to >20mn On track *Pre contingent provision 2.33% ** includes
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE# 1.96% 1.91% 1.89% 1.90% 18.04% 1.86% 17.63% * 17.25% 3.99% 3.97% 3.92% 3.84% 3.83% * 16.96% 16.56% * * Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 *pre contingent provisio
Slide 6: Ratings
Ratings CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND A1+ for Shor
Slide 7: Financial Performance
Financial Performance ° IndusiInd Bank
Slide 8: Steady Headline Numbers for Q3-FY19
Steady Headline Numbers for Q3-FY19 Y-o-Y Growth Q-o-Q Growth Net Interest 21% 4% Rs 2,288 crs Income Total Fee Income Rs 1,469 crs 24% 12% Revenue Rs 3,757 crs 22% 7% Operating Profit Rs 2,117 crs 27% 6% Net Profit Rs 985 crs 5% 7% Net Profit (pre contingent Rs 1,151 crs 23% 5% provision) 7
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 1,73,169 crs 35% 6% Corporate Rs 97,613 crs 34% 4% Advances excl MFI Microfinance Rs 7,523 crs 187% 24% Advances Consumer Finance Rs 68,033 crs 28% 7% Advances Deposits Rs 1,75,701 crs 20% 4% CASA Rs 76,549 crs 22% 4% SA Rs 50,023 crs 18% (2%)
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q3FY19 Q3FY18 Y-o-Y (%) Q2FY19 Q-o-Q (%) Capital & Liabilities Capital 602 600 - 601 - Reserves and Surplus 25,798 22,340 15% 24,763 4% Deposits 1,75,701 1,46,086 20% 1,68,220 4% Borrowings 44,536 23,367 91% 42,828 4% Other Liabilities and Provisions 9,562
Slide 11: Profit and Loss Account – Q3FY19
Profit and Loss Account – Q3FY19 (Rs Crs) Q3FY19 Q3FY18 Y-o-Y (%) Q2FY19 Q-o-Q (%) Net Interest Income 2,288 1,895 21% 2,204 4% Other Income 1,469 1,187 24% 1,317 12% Total Income 3,757 3,082 22% 3,521 7% Operating Expenses 1,640 1,417 16% 1,529 7% Operating Profit 2,117 1,665
Slide 12: Profit and Loss Account – 9M FY19
Profit and Loss Account – 9M FY19 (Rs Crs) 9M-FY19 9M-FY18 Y-o-Y (%) Net Interest Income 6,614 5,490 20% Other Income 4,088 3,542 15% Total Income 10,702 9,032 18% Operating Expenses 4,681 4,145 13% Operating Profit 6,021 4,887 23% Provisions & Contingencies 1,547 840 84% Profit before T
Slide 13: Key Financial Indicators
Key Financial Indicators Q3FY19 Q2FY19 Pre one off Q3FY19 Q3FY18 Q2FY19 Pre one off contingent contingent provision provision Return on Assets 1.62% 1.90% 1.96% 1.59% 1.89% ROE (On average equity) 15.44% 18.04% 16.96% 14.85% 17.63% Cost / Income Ratio 43.65% 43.65% 45.98% 43.41% 43.41% Net Interest
Slide 14: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 1,73,169 1,73,169 1,63,144 1,44,954 1,13,081 55% 61% 61% 88,419 60% 68,788 60% 59% 59% 39% 45% 40% 39% 41% 40% 41% FY15 FY16 FY17 FY18 Sep-18 Dec-18 Dec-18 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) (
Slide 15: Diversified Corporate Loan Book
Diversified Corporate Loan Book NBFCs (other than HFCs ) 4.63% Microfinance 4.34% Gems and Jewellery 4.11% Power Generation 3.86% Real Estate 3.84% Constn related to infra.- EPC 2.73% Steel 2.38% Lease Rental 2.36% Roads/other infra projects 2.14% Services 2.09% Petroleum & Products 1.58% Food Bever
Slide 16: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P E 22% R C 20% E Investment Grade Sub Investment Grade N 18% T 16% O F 14% Unsecured Non Fund Based % R Secured Non Fund Based % A 12% Unsecured Fund Based % T E Secured Fund Based % 10% D P 8% O R 6% T F 4% O L I 2% O 0% IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+ (A
Slide 17: Behavioural Scoring affirms quality of Vehicle Financing Portfolio
Behavioural Scoring affirms quality of Vehicle Financing Portfolio • Behavioural Score (B-score) measures post disbursement credit quality using long range historical data. • B-score assesses every borrower risk using Current and Historical DPD, LTV, Geography, Loan tenor, Customer type, etc. • B-sc
Slide 18: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 90,000 42.3% 42.9% 44.0% 43.4% 43.6% 43.6% 50% 80,000 44% Focus on target market segments 70,000 38% 60,000 Government business 76,549 50,000 66,729 68,980 73,375 33% Capital market flows 40,000 59,776 62,616
Slide 19: Other Income
Other Income (Rs Crs) Q3FY19 Q3FY18 Y-o-Y (%) Q2FY19 Q-o-Q (%) Core Fee 1,266 1,077 18% 1,218 4% Securities/MM/FX 203 110 85% 99 105% Trading/Others Total 1,469 1,187 24% 1,317 12% 18
Slide 20: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q3FY19 Q3FY18 Y-o-Y(%) Q2FY19 Q-o-Q(%) Trade and Remittances 155 127 22% 151 3% Foreign Exchange Income 275 202 36% 223 23% Distribution Fees (Insurance, MF, 268 256 5% 280 (4%) Cards) General Banking Fees 91 70 30% 91 - Loan Fees 276 24
Slide 21: Yield / Cost Movement
Yield / Cost Movement 11.52% 11.44% 9.64% 9.48% Yield on Assets Yield on Advances 6.74% 6.54% 5.81% 5.64% Cost of Deposits Cost of Funds Q3FY19 Q2FY19 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q3FY19 Q2FY19 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 22: Credit Cost
Credit Cost (Rs Crs) FY15 FY16 FY17 FY18 Q1FY19 Q2FY19 Q3FY19 9MFY19 Corporate Bank 144 258 401 468 80 59 158 297 Consumer Finance 195 244 303 433 129 141 148 418 Gross Credit Costs 339 502 704 901 209 200 306 715 Gross Credit Costs 49 57 62 62 14 12 18 41 (Basis Points on Advances) Net Credit Cost
Slide 23: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q3FY19 Q2FY19 Corporate Consumer Total Corporate Consumer Total Opening Balance 1,061 720 1,781 1,110 631 1,741 Additions 458 348 806 93 326 419 Deductions 316 303 619 142 237 379 Gross NPA 1,203 765 1,968* 1,061 720 1,781* Net NPA
Slide 24: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small LAP/HL/ Q3-FY19 Utility TW Cars Tractor Cards Total Vehicle Equip. CV PL Gross NPA 245 45 52 40 158 52 57 48 68 765 Gross NPA % 1.05% 1.32% 0.76% 1.32% 3.60% 0.82% 0.41% 1.46% 1.90% 1.12% Com. Const. Small LAP/HL/ Q2-FY19 Utility TW Cars
Slide 25: CRAR
CRAR (Rs Crs) 31 Dec 18 30 Sept 18 Basel – III Basel – III Credit Risk, CVA and UFCE 1,75,042 1,66,588 Market Risk 7,973 8,617 Operational Risk 18,840 18,840 Total Risk Weighted Assets 2,01,855 1,94,045 Core Equity Tier 1 Capital Funds 25,809 24,897 Additional Tier 1 Capital Funds 2,000 2,000 Tier 2
Slide 26: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Mar. 31, June 30, Sept. 30, Dec. 31, Particulars 2018 2018 2018 2018 Branches/Banking 1,400 1,410 1,466 1,558* Outlets ATMs 2,203 2,285 2,372 2,453 *includes 208 specialized branches and 65 Banking outlets • Branch/Repr
Slide 27: Shareholding Pattern
Shareholding Pattern December 31, 2018 NRIs/ Director/ Others, 2.69 GDR issue, 10.74 Promoters, 14.99 Individuals, 6.46 MFs / Banks/ Insurance Co, 8.95 Private Corporates, 8.28 *FIIs, 47.89 *includes FPIs 26
Slide 28: New Initiatives
New Initiatives 27 IndusiInd Bank
Slide 29: Nexxt Card Product Launch
Nexxt Card Product Launch 28 IndusiInd Bank
Slide 30: Nexxt Card – An Industry First Card with buttons
Nexxt Card – An Industry First Card with buttons An industry first - A one-of-a- kind battery powered interactive Card launched in the Indian market offering absolute flexibility when making payments at POS. • The Card plastic has buttons for payment options. Each button corresponds to a different p
Slide 31: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards 30
Slide 32: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank has been awarded with the Stars of the Industry Awards - Excellence in CSR Promoting Employment for the Physically Challenged Best Use of CSR Practices in Banking and Finance 31
Slide 33: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank has been awarded by Ashok Leyland for being the No. 1 Financier for FY 2017-18 32
Slide 34: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank has been awarded with the IBA Banking Technology Awards 2018 Winner in the category Medium Banks: • Best Payment Initiatives • Best IT Risk and Cyber Security Initiatives 33
Slide 35: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank has been awarded with the IBA Banking Technology Awards 2018 Runner up in the category Medium Banks: • Technology Bank of the Year • Best Financial inclusion Initiatives 34
Slide 36: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank has been awarded with the12th Edition Express Logistics & Supply Chain Leadership Awards Best-in-Class Client & Supplier Collaboration 35
Slide 37: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank has been awarded with the Gold Award at the Apex India CSR Excellence Award in CSR Banking category IndusInd Bank adjudged Winner of Nationa Payments Excellence Awards 2017 in category ‘B’ Banks for excellent performance in NPS ATM Network 36
Slide 38: Thank You
Thank You
Slide 39: Disclaimer
Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No in