Hdfc Bank Limited · NSE:HDFCBANK

Hdfc Bank — Q4 2023 Earnings Presentation

22 slides from Hdfc Bank's earnings presentation, Apr 15, 2023

  1. Slide 1: Q4FY23 Earnings Presentation

    Q4FY23 Earnings Presentation April 2023

  2. Slide 2: HDFC Bank at a glance

    LEADERSHIP HDFC Bank at a glance Prominence Market share Reach Social impact #1 ~11% 83 mn ₹8 bn Private sector bank in India* Advances^ Customer base CSR spend US$ 100+ bn ~10% 7.8k+ > ₹500 bn Market capitalisation Deposits Banking branches Contribution to exchequer 170k+ 47% 23k+ 52% Employees POS

  3. Slide 3: Consolidated Income Statement

    CONSOLIDATED Consolidated Income Statement ₹ bn Q4FY22 Q4FY23 YoY FY22 FY23 YoY Net Interest Income 203.5 249.4 23% 773.5 929.7 20% Non-Interest Income 83.8 96.1 15% 317.6 339.2 7% Net revenue 287.3 345.5 20% 1,091.1 1,268.9 16% Operating expenses 110.1 145.9 33% 403.1 515.3 28% PPOP 177.2 199.6 13%

  4. Slide 4: Key Financial Parameters for Q4FY23

    HDFC BANK STANDALONE Key Financial Parameters for Q4FY23 Total advances increased by Net profit up by 20% to 16.9% to ₹ 16,142 bn ₹ 120 bn Deposits up by 20.8% to Gross NPA 1.12% ₹ 18,834 bn; CASA 44% Net interest margin^ at 4.1% Return on Assets at 2.2% Cost-to-income ratio at 42% Capital adequacy

  5. Slide 5: Income Statement

    STANDALONE Income Statement P&L (₹ bn) Q4FY22 Q4FY23 YoY FY22 FY23 YoY Net Interest Income 188.7 233.5 24% 720.1 868.4 21% Non-Interest Income 76.4 87.3 14% 295.1 312.2 6% Net revenue 265.1 320.8 21% 1,015.2 1,180.6 16% Operating expenses 101.5 134.6 33% 374.4 476.5 27% PPOP 163.6 186.2 14% 640.8 70

  6. Slide 6: Growth in advances and deposits

    BUSINESS GROWTH Growth in advances and deposits Total advances* Deposits ₹ bn ₹ bn 15,205 16,142 18,834 13,805 17,332 15,592 Mar'22 Dec'22 Mar'23 Mar'22 Dec'22 Mar'23 YoY growth 21% 20% 17% YoY growth 17% 20% 21% YoY growth gross of IBPC/BRDS transfers 21% 24% 21% *Net of transfers through inter-ban

  7. Slide 7: Sustained growth across segments

    LOAN BOOK Sustained growth across segments Growth across all segments Diversified retail loan book Mar’23 Loans (₹ bn) Mar’22 Dec’22 Mar’23 FY’22 YoY FY’23 YoY 2% 2% 8% Retail 5,318 6,066 6,346 15% 19% CRB 4,847 5,733 6,292 30% 30% 27% Wholesale 3,640 3,923 4,097 17% 13% 14% IBPC/BRDS - (516) (592)

  8. Slide 8: Stable and granular deposits

    HIGH QUALITY DEPOSIT FRANCHISE Stable and granular deposits Granular deposits Proportion of CASA deposits 48% 19% 16% 17% 44% 44% 81% 84% 83% 15% 13% 14% 33% 31% 30% Mar'22 Dec'22 Mar'23 Mar'22 Dec'22 Mar'23 Retail Wholesale SA Mix CA Mix Retail anchoring deposit growth 8 Q4FY23 Earnings Presentatio

  9. Slide 9: Long term consistent growth

    BUSINESS GROWTH Long term consistent growth Advances ₹ bn 16,142 13,805 11,433 10,027 8,273 5,586 6,643 3,679 4,676 2,413 3,050 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Deposits ₹ bn 18,834 15,592 13,351 11,475 9,231 7,888 5,464 6,436 3,673 4,508 2,962 FY13 FY14 FY15 FY16 FY17 FY18 FY1

  10. Slide 10: Stable NIM aided by low cost of funds

    CONSISTENT PERFORMANCE Stable NIM aided by low cost of funds Yield and Cost of Funds Stable Net Interest Margin (NIM) 7.7% 7.9% 7.4% 4.3% 4.3% 4.3% 7.0% 7.0% 4.2% 4.2% 4.1% 4.1% 4.1% 4.0% 4.0% 3.5% 3.7% 3.1% 3.3% 3.0% Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3

  11. Slide 11: Product mix impacts NIM; RoA remains consistent

    BUSINESS MIX Product mix impacts NIM; RoA remains consistent Loan mix Covid19 Pandemic 57% 57% 54% 56% 54% 52% 53% 53% 52% 53% 50% 48% 48% 50% 47% 43% 46% 47% 47% 44% 43% 46% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Retail/Wholesale mix as per Basel classification Retail (%) Wholesale

  12. Slide 12: Granular and well diversified fee income

    STRONG NON-FUNDED REVENUE Granular and well diversified fee income Fee Income Mix Retail Fee Income Mix 6% 8% 7% 7% 6% 19% 22% 20% 20% 17% 34% 35% 35% 33% 36% 94% 92% 93% 93% 94% 22% 20% 22% 22% 21% 25% 23% 23% 23% 28% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Retail Whol

  13. Slide 13: Efficiency in growth

    CONTINUING INVESTMENTS Efficiency in growth Cost to Income Ratio New branches – investing for future 42.0% 40.6% 39.2% 39.6% 38.3% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 684 638 563 41.0% 40.4% 36 39.7% 121 38.6% 36.3% 36.9% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Net Branch Addition FY18 FY19 FY20 FY21 FY22

  14. Slide 14: Consistent performance across cycles

    PROFITABILITY Consistent performance across cycles Profit after tax ₹ bn 441 370 263 311 175 211 102 123 145 67 85 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Earnings per share Book value per share 502 FY23 Consolidated EPS: ₹ 83 79 FY23 Consolidated BPS: ₹ 519 433 67 370 57 48 312 274 3

  15. Slide 15: Resilient asset quality

    RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment 1.8% 1.7% 1.6% 1.2% 1.2% 1.1% 1.2% 1.2% 1.2% 1.1% 1.1% 1.0% 0.5% 0.5% 0.5% 0.3% 0.3% 0.3% Q4 Mar'22 Q3 Dec'22 Q4 Mar'23 Mar'22 Dec'22 Mar'23 GNPA NNPA Retail CRB CRB (ex-Agri) Wholesale Stable asset quality; high provision

  16. Slide 16: Strong returns and healthy capital ratios

    BALANCE SHEET PRODUCTIVITY Strong returns and healthy capital ratios Return on Assets Capital adequacy 19.4% 19.3% 18.9% 17.9% 18.1% 18.0% 17.1% 17.1% 17.2% 17.1% 2.1% 2.0% 2.2% 2.2% 1.8% Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Total Capital Tier 1 Capita

  17. Slide 17: Balance sheet and capital productivity

    STRONG FRANCHISE Balance sheet and capital productivity Consistent growth in assets and RoA ₹ bn 2.1 25,000 1.8 1.9 2.0 2.0 1.9 1.9 1.9 1.9 2.0 2.0 2.0 20,000 15,000 10,000 5,000 - FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Assets RoA % Capital positioned for growth with consistent

  18. Slide 18: Branch expansion and customer relationships driving growth

    BUILDING FRANCHISE STRENGTH Branch expansion and customer relationships driving growth Branch network Customer base #s # mn 7,821 83 71 6,342 62 5,254 5,608 56 4,971 49 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Distribution strength enables Large customer base with potent

  19. Slide 19: Subsidiaries – Q4FY23 Update

    GROUP COMPANIES Subsidiaries – Q4FY23 Update HDB Financial Services Limited • 11.9 million customers serviced through a network of 1,492 branches across 1054 cities/towns • Healthy momentum in disbursements across all three business segments with growth of 53.7% Y-o-Y and 20.6% sequentially • Q4FY20

  20. Slide 20: ESG at HDFC Bank

    ESG – A WAY OF LIFE ESG at HDFC Bank ESG Vision Governance Ratings • ESG Policy framework approved by the Board Best In class on ESG Standards • ESG governed by CSR & ESG committee of the Board and driven by Approach management committees and cross functional working groups As of August 2022 To make

  21. Slide 21: Safe Harbour Statement

    SAFE HARBOUR STATEMENT Certain statements are included in this release proceedings in India and in other jurisdictions we and political conditions, instability or uncertainty which contain words or phrases, such as ‘will’, are or become a party to, the future impact of new in India and other countri

  22. Slide 22: Thank You

    THANK YOU 22 Q4FY23 Earnings Presentation

HDFC Bank — Q4 2023 Earnings Presentation on 6ix