State Bank Of India · NSE:SBIN
State Bank Of India — Q1 2022 Earnings Presentation
46 slides from State Bank Of India's earnings presentation, Aug 4, 2021
Slide 1: Q1FY22 Analyst Presentation
Q1FY22 Analyst Presentation 04.08.2021
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 Marginal increase in wholesale short term rates for High Frequency Activity Indicators Corporates 2.20 • Vehicle sales, diesel consumption, electricity consumption, 2.30 5.50 2.10 1.93 1.89 imports, airport passenger traffic, e-way bill & RTO revenue 1.79 5.00 1.71 1.90 col
Slide 5: Performance Highlights
Performance Highlights
Slide 6: Key trends in Q1FY22
Key trends in Q1FY22 Improving profit metrics – operating profit up 14.85% YoY excluding one-time gain in Q1FY21 Non-interest income growth at 24.28% driven by fee income growth of 20.86% YoY Asset quality outcomes –braving the impact of CoVID 19 second wave Slippages at Rs 15,666 cr (2.47%), of whi
Slide 7: Key Indicators
Key Indicators Current Account Savings Account For the YoY Rs. in Crores 11.75% 10.55% Growth Q1FY21 Q1FY22 2,28,353 14,30,881 2,04,334 12,94,384 Net Interest Income 26,642 27,638 3.74% Net Interest Margin – 3.24 3.15 -9 bps Profit & Domestic (%) Loss Jun 20 Jun 21 Jun 20 Jun 21 Operating Profit * 1
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 Jun – 2020 Jun - 2021 • Corporate segment growth to follow investment cycle Retail Pers., 36.7% Reta
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 Jun 2021 Leadership across all segments Personal Retail Portfolio of Rs 8.7 lakh crore NPA ratio at 1.28% As a % of Dom. Adv. Jun 20: 36.69 Jun 21: 40.44 Hom
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 Jun 21 Jun 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 Jun 2020 Jun 2021 CA, 6.18% CA, 6.33% 72% of new savings accounts opened through YONO in Q1FY22 SA, TD, SA, TD, 39.16% 54.66% 39.64% 54.03% CASA: 45.34% CASA: 45.97% Rs.in crs Particulars
Slide 12: Asset Quality: Slippages and Restructuring
Credit Deposit Net Interest Non-Interest Operating Growth Growth Asset Quality Income Income Expenses Provisions Slippages and Restructuring Rs. in Crores Q1FY22 slippages 15,666 Restructuring 2.0 - applications approved 5,246 Restructuring 2.0 - applications pending 2,056 Retail Personal SME Total
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 3.24 3.29 3.31 3.26 3.15 3.01 3.07 3.09 3.04 6.55 2.92 6.47 6.42 6.32 6.10 1.13 1.15 1.13 1.10 1.06 Jun-20 Sep-20 Dec-20 Mar-21 Jun 21 Jun-20 Sep
Slide 14: Non-Interest Income
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Q1FY22 • Recovery from AUCA accounts at Rs 2,805 cr Profit/ Loss on sale of investments, 17.8% Forex income, 8.0% Fee income, 45.8% • Non – Interest Income growth driven by growth in fee
Slide 15: Non-Interest Income: Treasury Operations
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Treasury Operations Jun 20 Jun 21 Others, 8.7% Others, 7.2% Corporate Bonds, 17.7% Corporate Bonds, 20.3% G-Sec and T Bill, SDLs, 8.3% 49.9% G-Sec and T Bill, SDLs, 56.9% 11.5% CP, 9.9% C
Slide 16: Operating Expenses
Credit Deposit Asset Net Interest Non-Interest Operating Provisions Growth Growth Quality Income Income Expenses Q1FY22 • Cost to Income Ratio improved by 171 bps in Q1FY22 over FY21 Overheads, 38.7% Salary, 42.5% • Cost improvements continue, overheads to income down 47 bps in Q1FY22 over FY21 Reti
Slide 17: Provisions
Credit Deposit Asset Net Interest Non-Interest Operating Growth Growth Quality Income Income Expenses Provisions • Credit costs at 0.79% for Q1FY22 • PCR (excl AUCA) at 67.86%, legacy book well provided • Non NPA provisions at Rs 29,816 cr, ~69% of Net NPA at end of Q1FY22 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 0.57 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 Growth (%) Q1FY22 over Q1FY22 over Particulars, In Rs cr Q1FY21 Q4FY21 Q1FY22 Q4FY21 Q1FY21 Interest Income 66,500 65,102 65,564 0.71 -1.41 Interest Expenses 39,859 38,035 37,926 -0.29 -4.85 Net Interest Income 26,642 27,067 27,638 2.11 3.74 Non Interest Income
Slide 21: Total Income
Total Income Quarter ended Growth (%) Q1FY22 over Q1FY22 over Particulars, In Rs cr Q1FY21 Q4FY21 Q1FY22 Q4FY21 Q1FY21 Interest on Loans 44,101 40,214 41,144 2.31 -6.71 Interest on Resources 20,500 21,743 21,405 -1.55 4.41 Other Interest income 1,899 3,145 3,016 -4.11 58.79 Total Interest Income 66,
Slide 22: Fee Income Break Up
Fee Income Break Up Quarter ended Growth (%) Q1FY22 over Q1FY22 over Particulars, In Rs cr Q1FY21 Q4FY21 Q1FY22 Q4FY21 Q1FY21 Loan Processing Charges 825 2,085 788 -62.18 -4.42 Commission on Govt. Business 863 972 890 -8.47 3.05 Commission on LC/BG 676 1,180 823 -30.27 21.60 Cross Selling 309 725 42
Slide 23: Total Expenses
Total Expenses Quarter ended Growth (%) Q1FY22 over Q1FY22 over Particulars, In Rs cr Q1FY21 Q4FY21 Q1FY22 Q4FY21 Q1FY21 Interest on Deposits 36,839 34,626 34,793 0.48 -5.56 Interest on Borrowings 1,722 1,860 1,750 -5.89 1.63 Other Interest paid 1,297 1,549 1,383 -10.73 6.60 Total Interest Expenses
Slide 24: Overheads
Overheads Quarter ended Growth (%) Q1FY22 Q1FY22 Particulars, In Rs cr Q1FY21 Q4FY21 Q1FY22 over over Q4FY21 Q1FY21 Rent, Taxes and Lighting 1,052 1,539 1,085 -29.55 3.05 Depreciation 820 832 796 -4.36 -2.96 Printing and Stationery 84 181 89 -50.68 6.08 Postage & Telecommunications 48 96 99 3.62 109
Slide 25: Provisions & Profit
Provisions & Profit Quarter ended Growth (%) Q1FY22 over Q1FY22 over Particulars, In Rs cr Q1FY21 Q4FY21 Q1FY22 Q4FY21 Q1FY21 Operating Profit 18,061 19,700 18,975 -3.68 5.06 Loan Loss 9,420 9,914 5,030 -49.27 -46.61 Standard Assets 282 2,259 1,578 -30.15 459.05 Investment Depreciation 1,231 613 517
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 (%) 13.74% 13.66% * 13.40% 2.05 2.30 11.475 2.34 1.21 1.42 1.41 7.975 11.44 11.32 10.14 11.35 10.02 9.91 Jun-20 Mar-21 Jun-21 CET-1 AT-1 Tier-2 Min regulatory CET1 ratio Min regulatory Total Capital ratio RWA to Total Assets (%) Jun 20 Mar
Slide 28: Asset Quality (1/4)
Asset Quality (1/4) Gross NPA, in Rs cr Net NPA, in Rs cr 1,49,092 1,29,661 1,25,863 1,34,259 1,26,389 1,17,244 51,871 42,704 43,153 36,451 36,810 29,032 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Cumulative for the Period (%) June 20 Sep 20 Dec 20 Mar 21 Jun
Slide 29: Asset Quality (2/4)
Asset Quality (2/4) Rs. in Crores Movement of NPAs: Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Opening Level of Gross NPAs 1,49,092 1,29,661 1,25,863 1,17,244 1,49,092 1,26,389 Total Reductions 23,341 6,883 8,906 12,905 52,035 8,428 of which : Recovery + Upgradation 3,608 4,038 5,657 4,329 17,632 4,969
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 Jun 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 16,298 Total GNPA + AUCA + Additions 3,67,39
Slide 31: Asset Quality (4/4)
Asset Quality (4/4) As on Jun 21 SMA 1 & SMA 2 Fresh Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Accounts with exposure above Rs. 5 cr: CRILC data Slippages Corporate 213 981 0 6,558 7,752 1,008 17,946 SME 990 -251 0 4,897 5,636 6,416 11,986 12,546 11,519 11,303 AGRI 468 1,833 0 7,246 9,547 2,920 3,389
Slide 32: Digital Journey
Digital Journey
Slide 33: Accelerating digital agenda (1/2)
Accelerating digital agenda (1/2) YONO – Our flagship digital offering Digital Channel – Achieving Continuous growth in share of New Initiatives business (Performance in Q1FY22) Savings Bank account ~39.53 Mn cumulative registrations opening through Video YONO (~2.4 Mn during Q1FY22) KYC: Adoption ~
Slide 34: Accelerating digital agenda (2/2): Q1FY22 Highlights
Accelerating digital agenda (2/2) : Q1FY22 Highlights YONO – Our flagship digital offering Account opening Digital Lending (PAPL) 9.64 lac + ~1.46 lac SB accounts opened through YONO No of New PAPL A/c opened ~15,077 avg. daily accounts opened INR 2,429.87 Cr PAPL disbursement 94.81 % Migration* Cro
Slide 35: Accelerating digital agenda
Accelerating digital agenda 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 28.85% 16.53% 29.75% 23.67% 22.64% Presence across multiple
Slide 36: Analytics – Intelligence across every function (1/2)
Analytics – Intelligence across every function (1/2) Personalization Superior Underwriting Custom product offers through transaction & AI-imbued underwriting based on cash-flow, demographic analytics demographics, digital presence for lowering risk Personalized product mix for CSP customers
Slide 37: Analytics – Intelligence across every function (2/2)
Analytics – Intelligence across every function (2/2) Improving outcomes Loans issued in Q1FY22 ( in numbers) Leverage advanced analytics for deeper & better insights on data 1,46,018 Explore data potential for business development 44,122 Pre approved personal loans Personal gold loans Equip operatin
Slide 38: Financial Inclusion & Sustainability
Financial Inclusion & Sustainability
Slide 39: Financial Inclusion
Financial Inclusion As on Jun 2021 Transactions in BC Channel No. of BC outlets 18.29 20 11.57 12.44 Enhance 15 Improve 10 market delivery 5 60,00 0 Jun 20 62,259 share 0 65,155 -5 52,757 55,454 -10 -15 Generate higher Jun 21 71,705 - -20 returns Q1FY20 Q1FY21 Q1FY22 Transaction Amount (in Rs. Cr) N
Slide 40: SBI ESG: Portfolio, Ratings and Framework
SBI ESG: Portfolio, Ratings and Framework Responsible finance integral aspect of Bank’s strategy MSCI ESG is integrated in our lending decisions ESG RATINGS A ESG – an Climate risk included as a risk factor in integral key risk assessments within the Bank part of our lending Engaging with ex
Slide 41: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance (ESG) Practices SBI Youth for India Fellowship Sustainability Awareness Workforce An online tutorial on Sustainability - “ASTITVA” 12-month program for youth to join hands Diversity launched for employees. More than 95% of eligible with rural communities and undert
Slide 42: Subsidiaries, Group Financials & Balance Sheet
Subsidiaries, Group Financials & Balance Sheet
Slide 43: SBI Subsidiaries – Significant value created across financial services
SBI Subsidiaries – Significant value created across financial services Listed Subsidiaries and Investments Q1FY22 – PAT Q1FY22 – RoE SBI Stake Value per share of SBI Subsidiaries - listed (in Rs. Crore) (in %) (in %) (Rs) # SBI Card 305 18.7 69.4 76.0 SBI Life 223 8.5 55.5 68.8 Other select listed N
Slide 44: SBI Group Financials – Q1FY22
SBI Group Financials – Q1FY22 Rs. In crores Growth Rs. In crores Quarter Ended Quarter Ended (%) Q1FY21 Q1FY22 YoY Q1FY21 Q1FY22 Interest Earned 69,940 68,960 -1.40 ROA (%) 0.45 0.61 Non-Interest Income* 19,412 24,307 25.22 Total Income 89,352 93,267 4.38 ROE (%) 9.01 12.67 Interest Expended 40,301*
Slide 45: Balance Sheet
Balance Sheet Liabilities Rs. in Crores SBI SOLO SBI GROUP YOY YOY Jun 20 Jun 21 Jun 20 Jun 21 Growth (%) Growth (%) Capital 892 892 0.00 892 892 0.00 Reserves and Surplus 2,40,763 2,60,388 8.15 2,60,691 2,83,092 8.59 Minority Interest 8,677 9,915 14.27 Deposits 34,19,363 37,20,987 8.82 34,53,116 37
Slide 46: Thank You
Thank You