Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Q1 FY2025 Earnings Presentation
40 slides from Hdfc Bank's earnings presentation, Jul 20, 2024
Slide 1: Q1FY25 Earnings Presentation
Q1FY25 Earnings Presentation July 20, 2024
Slide 2: Key performance metrics for Q1 FY25
Key performance metrics for Q1 FY25 ➢ Deposits average ↑ ₹ 1.00 tn in the quarter (↑ 4.6%) ; EOP (↓ 0.03%) ✓ Average CASA ↑ ₹ 0.26 tn (↑ 3.3%) ; EOP (↓ 5.0%) ✓ Average Time deposits ↑ ₹ 0.73 tn (↑ 5.2%) ; EOP (↑ 3.0%) ➢ Average advances under management ↑ ₹ 0.20 tn (↑ 0.8%) ; EOP (↓ 0.03%) ➢ Asset q
Slide 3: Key financial parameters for Q1 FY25
STANDALONE Key financial parameters for Q1 FY25 Average advances under Profit after tax of ₹ 162 bn, EPS management at ₹ 25,327 bn, for the quarter ₹ 21.3 ↑ 0.8% QoQ Average deposits at ₹ 22,831 bn, Gross NPA at 1.33%, ex-agri ↑ 4.6% QoQ ; average CASA 36% 1.16% Net interest margin of 3.47% Return o
Slide 4: Consolidated income statement
CONSOLIDATED Consolidated income statement P&L (₹ bn) Q1 FY24 Q4 FY24 Q1 FY25 QoQ YoY Net revenue 350.6 807.0 724.2 (10.3%) 106.6% Operating expenses 151.8 491.3 465.5 (5.3%) 206.7% Provisions 32.9 138.1 31.4 (77.3%) (4.6%) Profit before tax 165.9 177.6 227.3 28.0% 37.0% Consolidated profit 123.7 17
Slide 5: Income statement
STANDALONE Income statement P&L (₹ bn) Q1 FY24 Q4 FY24 Q1 FY25 QoQ YoY Net interest income 236.0 290.8 298.4 2.6% 26.4% Non-interest income 92.3 181.7 106.7 (41.3%) 15.6% Net revenue 328.3 472.5 405.1 (14.3%) 23.4% Operating expenses 140.6 179.7 166.2 (7.5%) 18.2% Provisions 28.6 135.1 26.0 (80.8%)
Slide 6: Abridged balance sheet
STANDALONE Abridged balance sheet Balance sheet (₹ bn) Q1FY24 Q4FY24 Q1FY25 QoQ Net Advances 16,157 24,849 24,635 (214) Investments 5,658 7,024 7,088 64 Government and debt securities 5,609 6,853 6,882 29 Equity and other securities 49 171 206 35 Cash & equivalent 1,607 2,192 1,818 (374) Fixed and o
Slide 7: Growth in average deposits and advances
BUSINESS GROWTH : AVERAGES Growth in average deposits and advances Average Deposits Average advances under management h 25.2% h 54.1% ₹ bn ₹ bn ex-merger h 16.9% ex-merger h 16.7% h 0.8% h 4.6% 24,414 25,125 25,327 21,836 22,831 23,266 20,385 21,171 18,240 16,439 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar
Slide 8: Growth in deposits and advances
BUSINESS GROWTH Growth in deposits and advances Deposits Gross advances h 24.4% h 52.6% ₹ bn ₹ bn ex-merger h 16.5% ex-merger h 14.9% 23,798 23,791 24,693 25,078 24,869 21,729 22,140 23,546 19,131 16,300 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 8 HDFC Bank Presentation Q
Slide 9: Retail branch driving deposits
HIGH QUALITY DEPOSIT FRANCHISE Retail branch driving deposits Retail / Wholesale Proportion of CASA deposits Post-merger Post-merger ₹ bn 42% 38% 38% 38% 17% 17% 16% 16% 16% 36% 83% 83% 84% 84% 84% 5,987 5,799 5,964 5,606 5,700 3,100 2,673 2,523 2,477 2,558 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Jun'23
Slide 10: Mix across segments
LOAN BOOK Mix across segments Balancing growth Composition of retail loans Jun’24 Loans (₹ bn) Mar'24 Jun'24 QoQ Retail 12,627 12,817 1.5% 15% 11% Retail Mortgages 7,744 7,880 1.8% Retail Non-Mortgages 4,883 4,937 1.1% 8% CRB 8,056 8,128 0.9% 5% Corporate and other wholesale 5,075 4,805 (5.3%) Advan
Slide 11: Branch expansion and customer relationships
BUILDING FRANCHISE STRENGTH Branch expansion and customer relationships Branch network Customer base #s # mn Post-merger Post-merger 7,860 7,945 8,091 8,738 8,851 18% 18% 18% 18% 18% 34% 34% 34% 34% 34% 20% 20% 20% 20% 20% 95.1 28% 28% 28% 28% 28% 92.6 93.2 90.4 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Me
Slide 12: Capital and liquidity metrics
Capital and liquidity metrics Capital adequacy Liquidity coverage ratio Post-merger Post-merger 19.5% 19.3% 18.9% 18.8% 18.4% 126% 123% 17.8% 121% 115% 17.3% 110% 16.9% 16.8% 16.8% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Total Capital Tier 1 Capital 12 HDFC Bank Present
Slide 13: Net revenues
STANDALONE Net revenues Net revenue Net revenue mix ₹ bn Post-merger Post-merger 28% 28% 28% 27% 26% 473 381 396 405 328 72% 72% 72% 73% 74% Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24* Q1 Jun'24 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24** Q1 Jun'24 YoY 27% 33% 26% 48% 23% Net Interest Income Non Interest
Slide 14: Net interest income
STANDALONE Net interest income Net interest income Net interest margin (NIM) ₹ bn Post-merger Post-merger +3 bps 4.3% 4.1% (3.47%) 3.6% 3.6% 3.6% 3.7% 3.4% 3.4% 3.4% 3.5% 285 291 298 274 236 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 YoY 21% 3
Slide 15: Yield on assets and cost of funds
STANDALONE Yield on assets and cost of funds Yield on assets and cost of funds Key balance sheet mix Post-merger Particulars Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Advances mix 8.2% 8.3% 8.4% 8.4% 8.1% Retail 38% 48% 48% 49% 50% Mortgage 11% 29% 29% 30% 31% Non-Mortgages 27% 19% 19% 19% 19% 4.8% 4.9% 4.
Slide 16: Other income
STANDALONE Other income Other income Fee income mix Post-merger ₹ bn Post-merger 182 7% 8% 6% 6% 7% 15 18% 17% 15% 18% 20% 111 76 107 107 34% 33% 35% 33% 92 15 34% 15 20 11 10 15 11 2 6 12 12 14 13 19% 21% 20% 19% 20% 69 69 80 70 63 21% 22% 26% 23% 19% Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 * Q1 Ju
Slide 17: Operating expenses
STANDALONE Operating expenses Operating expenses Cost efficiency ₹ bn Post-merger Post-merger 42.8% ^ 180 40.4% 40.3% 41.3% 41.0% 166 160 154 141 111 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 109 102 106 93 Cost to income ratio Post-merger 69* 2.4% 2.0% ^ 1.9% 52 54 58 1.9% 1.9% 48 Q1 Jun'23
Slide 18: Resilient asset quality
RISK MANAGEMENT Resilient asset quality Gross NPA and Net NPA GNPA by Segment Post-merger Proforma 1.7% 1.8% 1.8% 1st July’23 : 1.41% 1.3% 1.3% 1.6% 1.3% 1.2% 1.2% 1.2% 1.2% 0.8% 0.8% 0.3% 0.4% 0.3% 0.3% 0.3% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Mar'24 Jun'24 GNPA NNPA Retail CRB CRB (ex-Agri) Corpora
Slide 19: Movement of NPAs
RISK MANAGEMENT Movement of NPAs ₹ bn (Ex-agri 112 bps) 124 bps 35 133 bps (Ex-agri 116 bps) 79 26 - (Ex-agri ₹ 61 bn) 312 330 GNPA as on Mar'24 Slippages Upgrades & Recoveries Write offs GNPA as on Jun'24 ₹ bn (Ex-agri 111 bps) 126 bps 73 45 124 bps (Ex-agri 112 bps) - 26 - (Ex-agri ₹ 64 bn) 310 31
Slide 20: Credit cost and stock of provisions
RISK MANAGEMENT Credit cost and stock of provisions Credit cost Stock of provisions Post-merger Post-merger ₹ bn 610 608 70 bps 492 501 106 104 51 bps 49 bps 49 bps 101 104 124 124 42 bps 42 bps 326 15 15 34 bps 35 bps 29 bps 71 142 150 149 145 27 bps 15 97 235 233 231 235 143 Q1 Jun'23 Q2 Sep'23 Q3
Slide 21: Profitability
Profitability Standalone profit after tax Earnings per share* ₹ bn ₹ Post-merger 21.4 21.1 21.6 21.7 21.3 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 EPS Standalone ₹ 160 164 165 162 22.2 22.2 22.7 23.2 21.7 120 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 EPS Consolidated # bn 7.56 7.59
Slide 22: Stake held in key subsidiary entities – June 30, 2024
GROUP COMPANIES Stake held in key subsidiary entities – June 30, 2024 Investment No. of shares % Stake PAT of the Book value EPS (FTQ) Entity Amount outstanding held by company per share (₹) (₹ bn) by entity (mn) HDFC Bank (FTQ) (₹ bn) (₹) HDB Financial Services 35 793.1 94.64% 5.8 179.8 7.3 HDFC Li
Slide 23: Subsidiaries – Q1FY25 update – HDB Financial Services
GROUP COMPANIES Subsidiaries – Q1FY25 update – HDB Financial Services • 94.64% stake held by the Bank as of June 30, 2024 • 16.5 million customers serviced through a network of 1,727 branches across 1,154 cities/towns ‒ 1 million customers and 45 branches added during Q1 FY25 • Disbursement momentum
Slide 24: Subsidiaries – Q1FY25 update – HDFC Life Insurance
GROUP COMPANIES Subsidiaries – Q1FY25 update – HDFC Life Insurance • 50.37% stake held by the Bank as of June 30, 2024 • 253k individual policies sold during the quarter up 22% from prior year; overall 14 mn lives insured during the quarter • Individual weighted received premium market share of 17%
Slide 25: Subsidiaries – Q1FY25 update – HDFC AMC
GROUP COMPANIES Subsidiaries – Q1FY25 update – HDFC AMC • 52.52% stake held by the Bank as of June 30, 2024 • Quarterly average AUM of ₹ 6.7 trillion; 11.4% market share • 64% of quarterly average AUM is equity oriented with 61% in actively managed equities • 10.7 million unique investors; 23% penet
Slide 26: Subsidiaries – Q1FY25 update – HDFC ERGO General Insurance
GROUP COMPANIES Subsidiaries – Q1FY25 update – HDFC ERGO General Insurance • 50.48% stake held by the Bank as of June 30, 2024 • Q1FY25 Gross direct premium market share of 5.2% in overall industry and 7.8% amongst private sector insurers • Retail mix in business 63% for the quarter ended June 30, 2
Slide 27: Subsidiaries – Q1FY25 update – HDFC Securities
GROUP COMPANIES Subsidiaries – Q1FY25 update – HDFC Securities • 95.19% stake held by the Bank as of June 30, 2024 • 5.7 million customers serviced through a network of 150 branches across 115 cities • Around 95% of the active clients utilized the services offered through company’s digital platforms
Slide 28: ESG at HDFC Bank
ESG INITIATIVES ESG at HDFC Bank Environmental Social Governance Ratings • Target to be carbon neutral by • Leading responsibly • Commitment to principles of FY32 • Taking banking to the unbanked; independence, • Supporting businesses; accountability, responsibility, • Commitment to have all new tra
Slide 29: Balance sheet and capital productivity
COMPOUNDING VALUE Balance sheet and capital productivity Growth in assets and RoA ₹ bn 40,000 2.1 1.9 2.0 2.0 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.0 1.9 30,000 20,000 10,000 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Q1 Jun'24 Assets RoA % Healthy capital position and RoE 25.0 20.9 20.1
Slide 30: Book value performance
COMPOUNDING VALUE Book value performance Standalone book value per share h 15% ₹ h 17% 603 580 556 525 534 502 480 433 451 456 Q4 Mar'22 Q1 Jun'22 Q2 Sep'22 Q3 Dec'22 Q4 Mar'23 Q1 Jun'23 Q2 Sep'23 Q3 Dec'23 Q4 Mar'24 Q1 Jun'24 Consolidated book value per share h 15% ₹ h 17% 625 601 576 543 553 519 4
Slide 31: Appendix
APPENDIX 31 HDFC Bank Presentation Q1 FY2025 HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.
Slide 32: Industry-wise distribution
CONSOLIDATED Industry-wise distribution Total Total Industry (₹ bn) Outstanding As a (%) Industry (₹ bn) Outstanding As a (%) (FB + NFB) (FB + NFB) Consumer Loans 10,162 33.8% Telecom 354 1.2% NBFC 1,718 5.7% Coal & Petroleum Products 297 1.0% Financial Institutions 1,156 3.8% Consumer Durables 267
Slide 33: Top borrower exposure as a % of total exposure
Top 20 borrower exposure as a % of total exposure 13.5% 11.0% 11.0% 11.0% 10.5% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 33 HDFC Bank Presentation Q1 FY2025 HDFC Limited merged with HDFC Bank effective July 1, 2023. Prior period numbers are not comparable.
Slide 34: Risk Weighted Assets
Risk Weighted Assets RWA to Total Assets Risk Weight Density* 68% 68% 69% 67% 64% 65% 65% 64% 63% 60% Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 34 HDFC Bank Presentation Q1 FY2025 * Risk Weight Density = RWA / (FB + NFB (post CCF)) HDFC Limited merged with HDFC Bank effec
Slide 35: Corporate rating mix
Corporate rating mix Rating mix % of externally rated wholesale book (corporate & mid corporate) Mar’24 Jun’24 76.5% 76.3% 4.7% 4.5% 7.1% 7.4% 11.7% 11.8% AA and above A BBB BB and below AA and above A BBB BB and below 35 HDFC Bank Presentation Q1 FY2025 HDFC Limited merged with HDFC Bank effective
Slide 36: Shareholding Pattern
HDFC BANK Shareholding Pattern Domestic FIs, Others, 3.1% Jun’24 2.1% Insurance cos, 7.1% Number of shares outstanding : 7,608 mn Resident individuals, Number of resident individual shareholders : 3.60 mn 11.9% FIIs/FPIs, 40.8% Foreign limit utilized : 54.83% Foreign headroom : 19.17% Mutual Funds,
Slide 37: Deposit momentum
Deposit momentum Current Accounts ₹ bn Savings Accounts ₹ bn 542 407 401 458 306 303 324 291 289 273 226 170 189 135 (168) 46 23 (242) (187) (211) (19) (265) (24) (427) Time Deposits ₹ bn ₹ bn Total Deposits 927 1,658 772 1,502 619 1,133 491 527 436 435 444 801 706 639 265 173 147 419 455 314 297 10
Slide 38: Average deposits and advances trend
STANDALONE Average deposits and advances trend ₹ tn ₹ tn 28% 29% 27% 25% 30% 28% 26% 24% 19% 21% 19% 19% 20% 21% 19% 17% 18% 17% 17% 13% 14% 14% 13% 13% 14% 14% 21.2 21.8 22.8 21.7 22.1 23.8 23.8 15.9 16.4 17.2 18.2 20.4 18.8 19.1 13.0 13.5 14.0 14.5 15.1 16.7 17.3 13.5 14.1 14.5 15.6 16.0 Average D
Slide 39: Average deposits and advances trend (ex-merger)
STANDALONE Average deposits and advances trend (ex-merger) ₹ tn ₹ tn 18% 17% 19% 21% 19% 20% 18% 17% 19% 19% 20% 21% 19% 21% 19% 18% 16% 17% 17% 13% 14% 14% 13% 13% 14% 14% 19.7 20.3 21.3 22.3 22.3 15.1 15.9 16.4 17.2 18.2 18.9 16.0 16.7 17.3 18.8 19.1 20.2 20.6 13.0 13.5 14.0 14.5 13.5 14.1 14.5 15
Slide 40: Safe harbour statement
Safe harbour statement Certain statements are included in this release accounting standards, our ability to pay dividends, attacks by the United States, a United States-led which contain words or phrases, such as ‘will’, the impact of changes in banking regulations and coalition or any other country