IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q4 FY18 Earnings Presentation
34 slides from IndusInd Bank's earnings presentation, Apr 19, 2018
Slide 1: Investor Presentation
Investor Presentation April 19, 2018
Slide 2: Q4 – FY18 Performance Highlights
FY 17-18 tracking well towards PC4 targets Q4 – FY18 Performance Highlights Q4 PAT growth up by 27%, despite lower trading gains NIM remained stable at 3.97%; MCLR raised by 40 bps this quarter Credit growth (28% up) and Deposit growth (20% up) well above industry growth GNPA stable at 1.1
Slide 3: Planning Cycle 4 (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome FY18 Outcome Loan Growth 25% - 30% 28% CASA Ratio 40% 44% Revenue Exceed Balance Resulting in 20% Growth Sheet Growth RoRWA > 2.4% 2.28% Branch 2,000 1,400 Network Customer Base Double to >20mn On track 3
Slide 4: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 1.86% 1.86% 1.90% 1.96% 1.86% 1.90% 16.96% 16.56%16.48% 3.99% 4.00% 4.00% 3.99% 3.97% 3.99% 16.17% 16.48% 15.26% FY17 Q1FY18Q2FY18Q3FY18Q4FY18 FY18 FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 FY18 FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 FY18 *on aver
Slide 5: Ratings
Ratings CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND A1+ for Shor
Slide 6: Financial Performance
Financial Performance oy le ae 6 IndusiInd Bank
Slide 7: Steady Headline Numbers for Q4-FY18
Steady Headline Numbers for Q4-FY18 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 2,008 crs 20% 6% Income Core Fee Income Rs 1,113 crs 12% 3% Revenue Rs 3,216 crs 12% 4% Operating Profit Rs 1,769 crs 13% 6% Net Profit Rs 953 crs 27% 2% 7
Slide 8: Steady Headline Numbers for FY 2017-18
Steady Headline Numbers for FY 2017-18 Y-o-Y Growth Net Interest Rs 7,498 crs 24% Income Core Fee Income Rs 4,177 crs 20% Revenue Rs 12,248 crs 20% Operating Profit Rs 6,656 crs 22% Net Profit Rs 3,606 crs 26% 8
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 1,44,954 crs 28% 13% Corporate Rs 87,715 crs 30% 16% Advances Consumer Finance Rs 57,239 crs 26% 8% Advances Deposits Rs 1,51,639 crs 20% 4% CASA Rs 66,729 crs 43% 7% SA Rs 45,888 crs 70% 9% Borrowings Rs 38,289 crs 71% 64% 9
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q4FY18 Q4FY17 Y-o-Y (%) Q3FY18 Q-o-Q (%) Capital & Liabilities Capital 600 598 - 600 - Reserves and Surplus 23,242 20,048 16% 22,341 4% Deposits 1,51,639 1,26,572 20% 1,46,086 4% Borrowings 38,289 22,454 71% 23,367 64% Other Liabilities and Provisions 7,856 8
Slide 11: Profit and Loss Account – Q4FY18
Profit and Loss Account – Q4FY18 (Rs Crs) Q4FY18 Q4FY17 Y-o-Y (%) Q3FY18 Q-o-Q (%) Net Interest Income 2,008 1,668 20% 1,895 6% Other Income 1,208 1,211 - 1,187 2% Total Income 3,216 2,879 12% 3,082 4% Operating Expenses 1,447 1,307 11% 1,417 2% Operating Profit 1,769 1,572 13% 1,6
Slide 12: Profit and Loss Account – FY 2017-18
Profit and Loss Account – FY 2017-18 (Rs Crs) 2017-18 2016-17 Y-o-Y (%) Net Interest Income 7,498 6,063 24% Other Income 4,750 4,171 14% Total Income 12,248 10,234 20% Operating Expenses 5,592 4,783 17% Operating Profit 6,656 5,451 22% Provisions & Contingencies 1,175 1,091 8% Profit bef
Slide 13: Key Financial Indicators
Key Financial Indicators FY17 Q4FY17 Q3FY18 Q4FY18 FY18 Return on Assets 1.86% 1.74% 1.96% 1.86% 1.90% ROE (On average equity) 15.26% 15.12% 16.96% 16.56% 16.48% Cost / Income Ratio 46.74% 45.38% 45.98% 44.98% 45.65% Net Interest Margin 3.99% 4.00% 3.99% 3.97% 3.99% Net NPA 0.39% 0.39% 0.46% 0.51% 0
Slide 14: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 144,954 144,954 128,542 113081 88419 60% 54% 68788 59% 60% 55102 59% 59% 55% 40% 46% 40% 41% 45% 41% 41% FY14 FY15 FY16 FY17 Dec-17 Mar-18 Mar-18 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) (Rs crs) Sm
Slide 15: Diversified Corporate Loan Book
Diversified Corporate Loan Book Gems and Jewellery 5.18% Power Generation 4.13% Lease Rental 3.01% Microfinance 2.84% Real Estate 2.77% Constn related to infra.- EPC 2.75% Services 2.24% Steel 1.59% Food Beverages and Food processing 1.40% Petroleum & Products 1.16% Contract Construction-Civil 1.07%
Slide 16: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P E 22% R C E 20% Investment Grade Sub Investment Grade N T 18% O 16% F Unsecured Non Fund Based % R 14% A Secured Non Fund Based % T 12% Unsecured Fund Based % E Secured Fund Based % D 10% P 8% O R T 6% F O 4% L I 2% O 0% IB1 IB2+ IB2 IB2- IB3+ IB3 (A) IB3- IB4+ I
Slide 17: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick 80,000 50% Expanding branch network 42.3% 42.9% 44.0% 70,000 44% Focus on target market segments 37.1% 36.9% 37.8% 60,000 38% Government business 50,000 66,729 33% 40,000 59,776 62,616 Capital market flows 50,501 27% 30,000 44,162 46,
Slide 18: Other Income
Other Income (Rs Crs) Q4FY18 Q4FY17 Y-o-Y (%) Q3FY18 Q-o-Q (%) Core Fee 1,113 996 12% 1,077 3% Securities/MM/FX 95 215 (56%) 110 (14%) Trading/Others Total 1,208 1,211 - 1,187 2% 18
Slide 19: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q4FY18 Q4FY17 Y-o-Y(%) Q3FY18 Q-o-Q(%) FY18 FY17 Y-o-Y(%) Trade and Remittances 153 120 26% 127 20% 540 439 23% Foreign Exchange 197 170 16% 202 (2%) 779 655 19% Income Distribution Fees 273 241 13% 256 7% 976 715 37% (Insurance, MF, C
Slide 20: Yield / Cost Movement
Yield / Cost Movement 11.08% 11.04% Yield on Assets 9.06% 9.02% Yield on Advances 5.98% 5.93% Cost of Deposits 5.09% 5.03% Cost of Funds Q4FY18 Q3FY18 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q4FY18 Q3FY18 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 21: Credit Cost
Credit Cost (Rs crs) FY15 FY16 FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 FY18 Corporate Bank 144 258 401 107 140 74 146 468 Consumer Finance 195 244 303 103 82 113 136 433 Gross Credit Costs 339 502 704 210 222 187 282 901 Gross Credit Costs 49 57 62 18 18 15 19 62 (Basis Points on Advances) Net Credit Cost
Slide 22: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q4FY18 Q3FY18 Corporate Consumer Total Corporate Consumer Total Opening Balance 914 585 1,499 823 523 1,346 Additions 539** 321 860 142 266 408 Deductions 400** 254 654 51 204 255 Gross NPA 1,053 652 1,705* 914 585 1,499* Net NPA 74
Slide 23: Divergence of NPA
Divergence of NPA (Rs crs) Divergence of NPA 1,350.20 Of Which: Large standard cement M&A “bridge loan” provided for in a) 518.52 March 2017 and fully repaid in June 2017 b) Loans fully repaid on original due dates 257.80 Loans classified as NPA prior to Divergence report and c) 236.00 already inclu
Slide 24: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs crs) Com. Const. Small LAP/HL/ Q4-FY18 Utility TW Cars Tractor Cards Total Vehicle Equip. CV PL Gross NPA 197 37 59 32 140 36 72 35 44 652 Gross NPA % 0.99% 1.28% 1.07% 1.27% 3.81% 0.67% 0.59% 1.29% 1.61% 1.13% Com. Const. Small LAP/HL/ Q3-FY18 Utility TW Cars
Slide 25: Quality of Loan Book Robust
Quality of Loan Book Robust Gross NPA flat at 1.17% Credit cost flat Y-o-Y at 62 bps inspite of one-offs Restructured book down to 5 bps GNPA + Restructured down from 1.31% in Q3-FY18 to 1.23% in Q4-FY18 ARC Sale / SRs at Rs. 473 crs (0.30%) in Q4-FY18 as against Rs. 450 crs (0.35%) in Q3
Slide 26: CRAR
CRAR (Rs Crs) 31 Mar 18 31 Dec 17 Basel – III Basel – III Credit Risk, CVA and UFCE 1,44,549 1,34,957 Market Risk 9,767 9,603 Operational Risk 18,840 14,824 Total Risk Weighted Assets 1,73,156 1,59,384 Core Equity Tier 1 Capital Funds 23,243 22,423 Additional Tier 1 Capital Funds 2,000 2,000 Tier 2
Slide 27: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure June 30, Sept. 30, Dec. 31, Mar. 31, Particulars 2017 2017 2017 2018 Branch 1,210 1,250 1,320 1,400* Network ATMs 2,090 2,146 2,162 2,203 *includes 172 specialized branches Note: Numbers given above are total • Branch/R
Slide 28: Shareholding Pattern
Shareholding Pattern March 31, 2018 Individuals MFs / Banks/ 6.4% Insurance Co Promoters 10.0% 15.0% Private Corporates 9.1% NRIs/ Director/ Others 2.3% GDR issue 10.8% *FIIs 46.4% *includes FPIs 28
Slide 29: Accolades
Accolades ) le ey IndusiInd Bank
Slide 30: Accolades
Accolades Accolades Business Today's Best CEO Award The Best CEO Award to Mr. Romesh Sobti, Managing Director and CEO TransUnion CIBIL Data Quality Award 2018 Best Data Quality Commercial Bureau Amongst Private Banks 30
Slide 31: Accolades
Accolades Accolades Abby Awards 2017 #TheOtherMenInBue Campaign Silver - Cause Marketing Silver - Digital and Mobile Games Online Bronze - Integrated Marketing The INFHRA's FM Excellence Conference & Award 2017-18 For Outstanding demonstration in Safety & Security 31
Slide 32: Accolades
Accolades Accolades IBA Banking Technology Awards 2018 Winner under Category – Best IT Risk and Cyber Security Initiatives Winner under Category – Best Payment Initiatives Runner-up under Category – Best Financial Inclusions Initiatives Runner-up under Category – Best Technology Bank 32
Slide 33: Thank you
Thank you ./ “8 IndusInd Bank
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No in