National Development Bank Plc · CSELK:NDB.N0000
National Development Bank — Q1 2017 Earnings Presentation
22 slides from National Development Bank's earnings presentation, May 5, 2017
Slide 1: Investor Update – Q1 2017
Investor Update – Q1 2017 National Development Bank PLC 05 May 2017 : 1400 hrs : Colombo Sri Lanka December - 2016
Slide 2: Corporate Participants
Corporate Participants Presented by Dimantha Seneviratne Chief Executive Officer Panelists Buwaneka Perera - VP-Corporate Banking Raj Aboobucker – VP-Retail Banking Niran Mahawatte – VP-Treasury Sanjaya Perera - VP-Branch Network Management Ms. Suvendrini Muthukumarana - AVP-Finance & Planning 2
Slide 3: Forward Looking Statements
Forward Looking Statements This document has been prepared by National Development Bank PLC (“NDB”, “Bank” or the “Group”) solely for use at its presentation to potential & current investors. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclos
Slide 4: Agenda
Agenda 1. Business Overview 2. Recognition 3. Macro Economic & Industry Analysis 4. Financial Performance 5. Q&A 4
Slide 5: Business Overview
Business Overview A unique banking and capital markets group structure 58.7% Property management Licensed commercial banking 100% 77.8% 99.9% Investment banking 100% Investment banking (Bangladeshi arm) Wealth management Full service investment banking 100% Investment advisory & securities trading 6
Slide 6: Business Overview: Physical and Virtual Channels
Business Overview An equitable mix of physical and virtual channels 106 branches Latest addition at Kottawa on 04 May 2017 118 ATMs including 12 off-site ATMS Internet banking NDB Mobile Banking Rapid on-boarding recorded since the launch of the App in Q1 2016 Social media sites Accessible via a hos
Slide 7: Recognition
Recognition Awards that the Bank & the Group Companies have won YTD 2017 Global Banking & Finance Review of UK • Best Mobile Banking Application – Sri Lanka 2017 • Best SME Bank – Sri Lanka 2017 • Best Investor Relations Bank – Sri Lanka 2017 Bank CMO Golden Globe Brand Excellence Awards held in Kua
Slide 8: Macro Economic & Industry Analysis
Macro Economic & Industry Analysis Global economy • Global economic activity picking up with a long-awaited cyclical recovery in investments, manufacturing, and trade • World growth expected to rise from 3.1% in 2016 to 3.5% in 2017 Sri Lankan economy • Upward trend in inflation recorded up to March
Slide 9: Financial Performance – Q1 2017
Financial Performance – Q1 2017
Slide 10: Q1 2017 Performance Summary
Q1 2017 Performance Summary Q1-17 Q1-16 Growth Net Operating Income 3,631 2,846 28% Profitability Operating Expenses 1,718 1,568 10% (LKR Mn) Profit after Tax 1,159 797 45% Q1-17 FY2016 Growth Total Assets 347 335 4% Financial Total Loans 241 228 6% Position (LKR Bn) Total Deposits 228 204 12% Cost
Slide 11: Income Statement
Income Statement LKR Mn Q1-2017 Q1-2016 Variance % Net Interest Income 2,334 1,979 355 18 Other Income 1,431 1,404 27 1.9 Operating Income 3,765 3,383 382 11 Impairment 134 537 (403) (75) Operating Expenses 1,718 1,568 150 10 Operating Profit 1,912 1,278 634 50 Tax 753 481 272 57 PAT 1,159 797 362 4
Slide 12: Revenue Analysis
Revenue Analysis LKR Mn Q1 2017 Q1 2016 % • Top line has demonstrated strong growth, which supported the Gross income 9,986 7,600 31 profitability Total operating income 3,765 3,382 11 --Net interest income 2,334 1,979 18 • NII supported by growth in asset --Net fee and commission income 554 539 3 p
Slide 13: Operating Expenses
Operating Expenses Analysis - Operating expenses LKR Mn Q1 2017 Q1 2016 % 2,000 1,800 Personnel expenses 918 854 7 1,600 697 Depreciation & 1,400 614 Other expenses LKR million 1,200 amortization 103 99 4 1,000 Depreciation and 103 99 Other expenses 697 614 14 800 amortization 600 918 854 Personnel
Slide 14: Balance Sheet
Balance Sheet LKR Mn Q1 2017 FY 2016 % YTD Balance Sheet growth Cash & Cash Equivalents 25,833 20,130 28% • Total assets growth of LKR 13 Investments 73,542 80,599 -9% billion Net Loans & Investments 241,444 227,677 6% • Loans and receivables growth of LKR 14 billion Fixed Assets 2,455 2,447 0% • Cu
Slide 15: Loans & Advances
Loans & Advances 300 Segmental mix of loans – Q1 2017 5 year CAGR - 20% YTD - 6% 250 Other 3% 200 LKR billion 150 188 LCY 180 Corporate 160 FCY Retail & 136 34% 100 SME 108 40% 91 50 73 PIF 23 28 33 45 55 54 59 0 23% 2011 2012 2013 2014 2015 2016 Q1 2017 • Loan growth recorded across the entire port
Slide 16: Asset Quality
Asset Quality Sector-wise NPL ratios A well diversified portfolio Utilities 0.1% Agriculture Construction 1.3% 10% 10% F&B, Hotel and Tourism Metal, Chem and Eng 1.5% Metal, Chem and Eng Retail 1.8% 9% 10% Retail F&B, Hotel and Tourism 2.4% 4% NPL Ratio 8% Rubber and Wood Services 2.8% 7% Services R
Slide 17: Customer Deposits
Customer Deposits 250 5 year CAGR - 20% YTD - 12% 200 LKR billion 150 179 159 LCY 134 100 115 FCY 100 79 50 76 37 51 45 49 6 28 30 0 2011 2012 2013 2014 2015 2016 Q1 2017 Deposits Mix - Q1 2017 0.2% 8% • Impressive deposit growth of LKR 24 billion over end 2016 14% Demand Savings • Continued custome
Slide 18: Capital Adequacy
Capital Adequacy Capital Adequacy Trend Tier I 17.9% Tier I + II Minimum Requirement (Tier I+II) 14.7% 13.0% 12.8% 12.6% 12.4% 11.3% 12.1% 11.1% 10.1% 10.0% 9.2% 9.3% 8.5% 2011 2012 2013 2014 2015 2016 Q1 2017 • The Bank is well capitalized as per the current Basel regulations. • The Bank also meets
Slide 19: Investor Ratios
Investor Ratios Q1 2017 2016 Price per share (LKR) 139.6 156.0 EPS (LKR) 21.25 19.19 ROE (%) 13.96 13.36 ROA (%) 1.03 0.99 Book value per Share (LKR) 149.35 149.8 P/E (times) 6.6 8.1 Price to Book value (times) 0.9 1.0 Share Price Movement Latest share price (04/05) – LKR 143.40 250 Volume 8,000 Pri
Slide 20: Questions & Answers Session
Questions & Answers Session YA NDB bank UNLOCKING OUR POTENTIAL TO UNLEASH YOURS
Slide 21: Post Investor Webinar
Post Investor Webinar.. Edited transcript of this Investor Webinar to be emailed to our Investor Contact database hosted on the Bank’s corporate website/ Investor Relations page Edited video file of the Webinar to be hosted on Bank’s corporate website/ Investor Relations page Bank’s official
Slide 22: Investor Relations Team
Investor Relations Team Reach us; Investor.relations@ndbbank.com T: +94112 448448 (Extn: 3838) www.ndbbank.com/InvestorRelations www.facebook.com/ndbbankplc www.twitter.com/NDBBank www.linkedin.com/ndbbank www.youtube.com/user/NDBBankSL instagram.com/ndbbank
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