Fino Payments Bank Ltd. · NSE:FINOPB
Fino Payments Bank — Q3 FY2024 Earnings Presentation
45 slides from Fino Payments Bank's earnings presentation, Jan 31, 2024
Slide 1: Regulation 30 cover letter to stock exchanges
January 31, 2024 BSE Limited National Stock Exchange of India Limited P.J. Towers, Exchange Plaza, 5th Floor, Plot No. C/1, G Dalal Street, Block, Bandra - Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai - 400 051 (Scrip Code: 543386) (Symbol: FINOPB) Dear Sir/Madam, Sub: Investor Presentation und
Slide 2: Q3'24 and 9M'24 Investor Presentation
Classification: Confidential Fikar Not Fino Matlab FINO PAYMENTS BANK Q3’24 and 9M’24 Investor Presentation #HarDinFino… Scan to open bank account Classification: Confidential
Slide 3: Table of Contents
Classification: Confidential Strategic Update Table of Contents Financial Highlights Fino 2.0 – Digital Update Product Performance SFB Strategy #HarDinFino… Classification: Confidential 2
Slide 4: Strategic Update
Classification: Confidential Strategic Update Scan to open bank account Classification: Confidential 3
Slide 5: Journey So Far
Classification: Confidential Journey So Far Applied for Small Finance Bank license #HarDinFino… Classification: Confidential 4
Slide 6: Three Phases of our Business
Classification: Confidential Three Phases of our Business Phase I: Phase II: Phase III: Transaction Acquisition Monetization Build Distribution Network: Customer Base at 10 million+ Fino 2.0+ : Simplified digital Merchant base to ~1.7 million solutions for customer friendly 68% YOY growth in
Slide 7: Business Snapshot – Q3'24
Classification: Confidential Business Snapshot – Q3’24 Reached milestone of 2 Crossed 1 Crore+ Customer Lakh Digital Savings Base Accounts Contributed 1.23% to the CASA & CMS – high margin UPI transaction ecosystem products growing volume Digital throughput Launched QR based merchant contributed 41%
Slide 8: Performance Snapshot
Classification: Confidential Performance Snapshot Q3’24 YoY 9M’24 YoY Revenue ₹ 370.2 Cr 18% ₹ 1,077.1 Cr 19% PAT ₹ 22.8 Cr 19% ₹ 61.0 Cr 42% Digital Throughput ₹ 38.2k Cr 184% ₹ 89.7k Cr 169% Throughput ₹ 93.3k Cr 42% ₹ 255.7k Cr 37% #HarDinFino… Classification: Confidential 7
Slide 9: 9M'24 > FY'23
Classification: Confidential 9M’24 > FY’23 9M’24 FY’23 z Throughput ₹ 2,55,698 Cr ₹ 2,55,011 Cr CMS Throughput ₹ 47,625 Cr ₹ 46,144 Cr Digital Throughput ₹ 89,661 Cr ₹ 48,965 Cr CASA Renewal Revenue ₹ 87.9 Cr ₹ 73.1 Cr EBITDA ₹ 137.2 Cr ₹ 136.1 Cr #HarDinFino… Classification: Confidential 8
Slide 10: Q3'24 Key Business Highlights (YoY)
Classification: Confidential Q3’24 Key Business Highlights (YoY) Revenue EBITDA PAT RoE ₹ 370.2 Crs ₹ 50.5 Crs ₹ 22.8 Crs 15.4% 17.9% 29.6% 19.4% 44 bps Digital CMS Txn. Count Throughput Throughput Throughput 56.7 Crs ₹ 93.3k Crs ₹ 38.2k Crs ₹ 17.3k Crs 75.4% 41.6% 184.2% 30.4% Capital Adequacy Rati
Slide 11: 9M'24 Key Business Highlights (YoY)
Classification: Confidential 9M’24 Key Business Highlights (YoY) Revenue EBITDA PAT RoE ₹ 1,077.1 Crs ₹ 137.2 Crs ₹ 61.0 Crs 14.2% 18.8% 47.5% 41.9% 271 bps Digital CMS Txn. Count Throughput Throughput Throughput 149.2 Crs ₹ 255.7k Crs ₹ 89.7k Crs ₹ 47.6k Crs 74.0% 36.5% 168.9% 44.8% Capital Adequac
Slide 12: Investing in Technology
Classification: Confidential Investing in Technology Architecture & AI, ML & Risk and DIY Journey & Infrastructure Builder Tools Security Digitalization Redesigning of AI & ML for AML Incremental Enhanced UPI architecture to and fraud security layers to solutions to have high monitoring dete
Slide 13: Geographical Presence
Classification: Confidential Geographical Presence (in 000’s) Jammu & Kashmir 3.7 Himachal Pradesh 5.7 Punjab 43.3 Meghalaya 2.5 Uttarakhand 9.6 Haryana 43.9 Sikkim 3.2 Assam 31.1 35.7 Uttar Pradesh 289.3 Merchants Branches & Delhi (‘000) CSPs Tripura 6.1 Rajasthan 120.2 Bihar 243.8 Merchant/ Mix Co
Slide 14: Financial Highlights
Classification: Confidential Financial Highlights Scan to open bank account Classification: Confidential 13
Slide 15: Bank Level Profit & Loss
Classification: Confidential Bank Level Profit & Loss Particulars Q3’24 Q2’24 Q3’23 QoQ (%) YoY (%) 9M’24 9M’23 YoY (%) (₹ Crs) Revenue 370.2 358.6 314.1 3% 18% 1,077.1 906.5 19% Product Cost 248.0 240.2 213.3 3% 16% 726.5 624.3 16% Net Revenue 122.2 118.3 100.8 3% 21% 350.6 282.2 24% Net Revenue Ma
Slide 16: Financial Highlights – Revenue & EBITDA
Classification: Confidential Financial Highlights – Revenue & EBITDA Revenue (₹ Crs) 370.2 17% CAGR 24% CAGR 1,077.1 314.1 906.5 275.2 723.6 228.7 559.2 Q3'21 Q3'22 Q3'23 Q3'24 9M'21 9M'22 9M'23 9M'24 EBITDA (₹ Crs) 53% CAGR 54% CAGR 137.2 50.5 38.9 93.0 25.9 55.0 14.1 37.7 6.2% 9.4% 12.4% 13.6% 6.7
Slide 17: Financial Highlights – PAT & Cost to Income
Classification: Confidential Financial Highlights – PAT & Cost to Income PAT (₹ Crs) 22.8 61.0 52% CAGR 68% CAGR 19.1 Highest 43.0 14.1 Profitability in Quarter 25.1 6.5 12.9 2.9% 5.1% 6.1% 6.2% 2.3% 3.5% 4.7% 5.7% Q3'21 Q3'22 Q3'23 Q3'24 9M'21 9M'22 9M'23 9M'24 Cost to Income (%) (1.2%) 32.8% (5.9%
Slide 18: Transaction And Subscription & others
Classification: Confidential Revenue Mix Across Parameters QoQ 35% Open Banking Own Banking 65% Own and Open Banking 33% 35% 31% 31% Channel Q4’23 Q1’24 Q2’24 Q3’24 67% 65% 69% 69% Subscription & others 36% Transaction And 34% 34% 35% Q4’23 Q1’24 Q2’24 Q3’24 66% 66% 64% 65% Transaction Income 27%Sub
Slide 19: Product Revenue Mix
Classification: Confidential Product Revenue Mix ( ₹ Crs) Q3’23 v/s Q3’24 9M’23 v/s 9M’24 370.2 1,077.1 314.1 11%, 41.8 11%, 117.3 906.5 8%, 28.8 5%, 55.4 9%, 28.1 8%, 71.3 1%, 5.1 9%, 95.9 1%, 2.6 9%, 32.0 10%, 30.3 10%, 94.7 31%, 337.4 31%, 114.3 34%, 106.9 35%, 318.8 6%, 23.6 8%, 83.9 10%, 30.7 1
Slide 20: Product Portfolio – Growth & Margins
Classification: Confidential Product Portfolio – Growth & Margins Q3’24 Revenue 9M’24 Revenue Q3’24 9M’24 Product Drivers (₹ Crs); (₹ Crs); Margins Margins YoY Growth YoY Growth High growth high margin; 73.7 215.8 CASA customer ownership; path to 55% 54% 35% 44% annuity CMS High growth high margin 3
Slide 21: Overall PAT & ROE
Classification: Confidential Overall PAT & ROE Profit After Tax (₹ Crs) PAT for Q3’24 at ₹ 22.8 Cr 6.5 7.6 7.9 14.1 17.6 10.1 13.8 19.1 22.1 18.7 19.5 22.8 3.1 19% growth over Q3’23 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Return on Equity 20.7% 20.0% 18.7% 17.7%
Slide 22: Fino 2.0 Digital Update
Classification: Confidential Fino 2.0 Digital Update Scan to open bank account Classification: Confidential 21
Slide 23: Digital Journey
Classification: Confidential Digital Journey (QoQ Growth) 79k+ digital accounts opened in Q3’24 ( 59%) 42.5 Cr UPI transactions in Q3’24 ( 15%) Contributing 1.23% of overall UPI ecosystem volume 35.6 lakh average digitally active customers in Q3’24 ( 11%) Launched QR based merchant acquiring model,
Slide 24: Digital – Building Momentum
Classification: Confidential Digital – Building Momentum Avg. Digitally Active Customers (in lakhs) Throughput Contribution (QoQ) Revenue (₹ Crs) Digital Physical Throughput (in Cr) 93,323 1,00 ,000 1,00 ,000 1.5x Times 35.6 37. 0 90,0 00 86,568 90,0 00 11x Times 28.8 35. 0 41% 75,806 38% 80,0 00 80
Slide 25: Digital – Cash to UPI Transition
Classification: Confidential Digital – Cash to UPI Transition India Retail Payments Statistics* Fino’s Retail Payments Statistics Cash Withdrawl UPI Cash Withdrawl UPI 70% 68% 65% 62% 63% 60% 64% 74% 56% 59% 66% 52% 54% 56% 44% 48% 46% 44% 34% 40% 41% 38% 37% 35% 36% 26% 32% 30% Q1'23 Q2'23 Q3'23 Q4
Slide 26: Digital – Product Evolution & Q4'24 Plan
Classification: Confidential Digital – Product Evolution & Q4’24 Plan Q1’24 Q3’24 First savings account open banking 6 new partners added to our UPI partner merchant stack More partners integrate with our UPI Introduction of UPI Lite and Credit stack Card linking on UPI Introduction of UPI
Slide 27: Product Performance
Classification: Confidential Product Performance Scan to open bank account Classification: Confidential 26
Slide 28: CASA Momentum Continues – Q3 YoY
Classification: Confidential CASA Momentum Continues – Q3 YoY No. of CASA Accounts Average Deposits Accounts Opened per Day (₹ Crs) (in Lakhs) 101.3 62% CAGR 37% CAGR 8,434 55% CAGR 1,358 8,231 69.7 955 5,650 41.6 574 23.8 362 3,281 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q
Slide 29: CASA Momentum Continues – 9M YoY
Classification: Confidential CASA Momentum Continues – 9M YoY No. of CASA Accounts Average Deposits Accounts Opened per Day (₹ Crs) (in Lakhs) 101.3 62% CAGR 41% CAGR 8,478 57% CAGR 1,290 7,770 69.7 853 713 41.6 4,918 23.8 333 3,011 9M'21 9M'22 9M'23 9M'24 9M'21 9M'22 9M'23 9M'24 9M'21 9M'22 9M'23 9
Slide 30: Customer Stickiness – Q3 YoY
Classification: Confidential Customer Stickiness – Q3 YoY Renewal Income (₹ Crs) Customer Average Balance (₹) 129% CAGR 31.4 17% CAGR 1,098 1,015 18.7 845 682 7.9 2.6 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Debit Card Spends (₹ Crs) Debit Card Spends Per Transaction (₹) 65% CAGR 2,208 8% CAG
Slide 31: Customer Stickiness – 9M YoY
Classification: Confidential Customer Stickiness – 9M YoY Renewal Income (₹ Crs) Customer Average Balance (₹) 169% CAGR 87.9 18% CAGR 1,001 874 47.6 711 607 16.8 4.5 9M'21 9M'22 9M'23 9M'24 9M'21 9M'22 9M'23 9M'24 Debit Card Spends (₹ Crs) Debit Card Spends Per Transaction (₹) 85% CAGR 6,601 11% CAG
Slide 32: CMS – High Margin Product – Q3 YoY
Classification: Confidential CMS – High Margin Product – Q3 YoY CMS Clients Throughput (₹ Crs) Avg. Revenue per Txn (₹) 37% CAGR 200 17,272 27% CAGR 65% CAGR 162 172 138 13,248 127 92 79 77 6,074 3,830 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Q3'21 Q3'22 Q3'23 Q3'24 Diversified clientele acro
Slide 33: CMS – High Margin Product – 9M YoY
Classification: Confidential CMS – High Margin Product – 9M YoY CMS Clients Throughput (₹ Crs) Avg. Revenue per Txn (₹) 37% CAGR 200 32% CAGR 87% CAGR 47,625 155 172 121 32,883 127 91 67 77 16,021 7,318 9M'21 9M'22 9M'23 9M'24 9M'21 9M'22 9M'23 9M'24 9M'21 9M'22 9M'23 9M'24 52 Clients with throughpu
Slide 34: CMS: Sector Diversification – Q3 YoY
Classification: Confidential CMS: Sector Diversification – Q3 YoY 24% 18% 5% 13% 2% 2% 8% 3% 6% 19% 5% 4% Q3’22 Q3’23 Q3’24 85% 44% 61% Throughput ₹6,074 Cr ₹13,248 Cr ₹17,272 Cr NBFC & MFI E-com (Logistic) CRA Retail Banks Accelerated growth path helped by 11 states with Average monthly throughput
Slide 35: AEPS
Classification: Confidential AEPS Revenue (₹ Crs) Take Rate 30.7 97.9 23.6 83.9 0.35 0.30 Q3'23 Q3'24 9M'23 9M'24 Q3'23 Q3'24 Throughput (₹ Crs) Average Ticket Size (₹) 32,027 10,082 2,732 25,501 2,574 6,837 Q3'23 Q3'24 9M'23 9M'24 Q3'23 Q3'24 Decline in revenue contributed by ecosystem challenges &
Slide 36: Micro-ATM
Classification: Confidential Micro-ATM Revenue (₹ Crs) Take Rate 31.7 94.4 65.2 0.36 0.35 19.1 Q3'23 Q3'24 9M'23 9M'24 Q3'23 Q3'24 Throughput (₹ Crs) Average Ticket Size (₹) 4,205 13,814 3,662 3,790 10,133 3,014 Q3'23 Q3'24 9M'23 9M'24 Q3'23 Q3'24 Continue to be the one of the dominant players in th
Slide 37: Remittance
Classification: Confidential Remittance Revenue (₹ Crs) Take Rate 337.4 114.3 318.8 0.87 0.86 106.9 Q3'23 Q3'24 9M'23 9M'24 Q3'23 Q3'24 Throughput (₹ Crs) Average Ticket Size (₹) 13,281 39,027 2,868 12,360 36,804 2,560 Q3'23 Q3'24 9M'23 9M'24 Q3'23 Q3'24 One of the pioneers in the remittance industr
Slide 38: Fino SFB Strategy
Classification: Confidential Fino SFB Strategy ASSET LIGHT SFB Scan to open bank account Classification: Confidential 37
Slide 39: Proposed SFB Strategy
Classification: Confidential Proposed SFB Strategy LIABILITY BACKED LENDING PAYMENTS ++ MODEL FRANCHISE CONSERVATIVE PRUDENT CREDITCREDIT BOOK CREDIT TO KNOWN DISBURSAL BUILDING MERCHANT / CUSTOMER MONETIZATION THROUGH NFI / NII* (75 : 25) CROSS SELL *Non-Funded Income & Net Interest Income #HarDinF
Slide 40: Fino – Liability Strategy
Classification: Confidential Fino – Liability Strategy Customer Base (in Lakhs) Average Deposits (₹ Crs) 280 7,000 235 191 5,000 150 3,200 101 78 2,200 1,228 1,358 Mar'23 Dec'23 Mar'25 Mar'26 Mar'27 Mar'28 Mar'23 Dec'23 Mar'25 Mar'26 Mar'27 Mar'28 Innovative service propositions to enhance customer
Slide 41: Fino – Asset Strategy
Classification: Confidential Fino – Asset Strategy No. of Merchants (in Lakhs) 26.2 23.7 21.2 18.7 16.9 Dec'23 Mar'25 Mar'26 Mar'27 Mar'28 Lending to “KNOWN Merchant / Customer” MSME Focused Lending : 65% - 70% of Portfolio Liability backed & Analytics based lending Varied Product Offerings – end to
Slide 42: Differentiated SFB
Classification: Confidential Differentiated SFB EXISTING SFB FINO SFB Remarks Payments business continues to be a major NII % of Revenue ~ 88% ~25% contributor to revenue Cost of Funds ~ 7% ~ 3.5% Low Cost Liability – Higher CASA Ratio No. of Branches ~700+ ~ 200+ Optimisation of merchant network fo
Slide 43: Strengths & Opportunities
Classification: Confidential Strengths & Opportunities STRENGTH OPPORTUNITY • Widespread distribution • Unmet credit demand of network: unparalleled rural merchants & customers presence • Complete product suite & • Customer Base: 1 Crore + enhanced customer engagement: incremental annuity income • L
Slide 44: Key Business Partners
Classification: Confidential Key Business Partners #HarDinFino… Classification: Confidential 43
Slide 45: Thank You
Classification: Confidential Scan to locate Mindspace Juinagar, Plot No Gen 2/1/F, Tower 1, 8th Floor, TTC Industrial Area, MIDC Shirwane, Juinagar, Navi Mumbai - 400 706 Email: investor_relations@finobank.com Tel: 022-7104 7000 Thank You Classification: Confidential 44