Federal Bank Ltd. (india) · NSE:FEDERALBNK
Federal Bank Ltd. (india) — The Federal Bank — Q4 FY2023 Earnings Presentation
40 slides from Federal Bank Ltd. (india)'s earnings presentation, May 5, 2023
Slide 1: Investor Presentation Intimation to Stock Exchanges
Secretarial Department SEC/LODR/49/2023-24 05.05.2023 The Manager The Manager The National Stock Exchange of India Limited Exchange Department of Corporate Services Plaza, Bandra-Kurla Complex, BSE Limited, Bandra (E), Mumbai - 400 051 Phiroze Jeejeebhoy Towers, Floor 25, Dalal Street, Mumbai- 400 0
Slide 2: Investor Information Q4 FY 2023
Investor Information ee Q4 FY 2023
Slide 3: Disclaimer
Disclaimer This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from th
Slide 4: Consistently delivering robust improvement in key return ratios
Consistently delivering robust improvement in key return ratios Strong Momentum in Credit Growth Continues Profitability Highest Ever • Overall credit growth of 20% YoY • Annual Net Profit crosses landmark of 3000cr • Retail book up by 18% YoY ➢ Net Profit • Highest ever Quarterly Operating Profit a
Slide 5: Key Ratios
Key Ratios RoA RoE Net Interest Margin 17.48 15.91 14.36 1.45 1.33 12.70 11.93 3.49 1.21 3.31 1.10 3.16 3.22 3.30 1.03 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Cost to Income Ratio 0.96 NNPA PCR 0.94 59.89 0.78 69.19 70.0
Slide 6: Key Revenue Parameters
Key Revenue Parameters ₹ in Cr Net Interest Income Other Income 1957 734 1909 1762 610 1605 534 1525 465 453 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Fee Income Net Profit 540 543 542 903 804 453 441 704 601 541 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q
Slide 7: Key Indicators
Key Indicators Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Book Value 88.75 91.59 93.00 96.74 101.22 (Per Share in ₹) Shareholder Value EPS 10.43 11.46 13.26 15.09 17.30 (annualized) CASA + Deposits <2 Cr 92% 92% 91% 88% 85% Granularity (% of Total Deposits) ROA 1.03 1.10 1.21 1.33 1.45 Profitability Ro
Slide 8: Asset Quality Trends
Asset Quality Trends 2.62 2.61 Amt in Rs. Cr. 2.48 Asset quality continues to 2.28 2.24 2.22 remain robust across all 2.01 2.01 1.96 139 116 1.98 segments 1.71 1.67 1.73 1.76 69 66 1.78 1.59 1471 60 1.6 161 1502 1393 0 1420 0 1262 1.28 1229 1.14 1.08 160 1593 1205 1 545 411 394 315 286 Provision Cov
Slide 9: Fresh Slippages Break up
Fresh Slippages Break up Fresh Slippages Restructured Q3 FY23 Q4 FY23 Q4 Q1 Q2 Q3 Q4 TYPE Of which Of which FY22 FY23 FY23 FY23 FY23 Balance Balance Bonds Bonds Retail 86 204 123 181 143 STANDARD 3040 60 2830 60 Agri 147 89 98 66 139 Net NPA 695 81 642 78 TOTAL 3735 141 3473 138 BuB 68 107 77 55 91
Slide 10: Asset Quality: Rating Distribution (Corporate Advances)
Asset Quality : Rating Distribution (Corporate Advances) External Rating of Corporate Advances External Rating of Corporate Advances Rating Q3 FY23 Q4 FY23 Q4 FY23 12% A & above 79% 77% 2% 9% BBB 9% 9% 3% 9% 9% < BBB 3% 2% Q3 FY23 Others 9% 12% 79% Internal Rating of ‘others’ (Externally unrated Cor
Slide 11: Asset Quality: Rating Distribution
Asset Quality : Rating Distribution (Advances excluding Corporate advance) Rating Q3 FY23 Q4 FY23 5% Q4 FY23 5% 18% FBR1 5% 5% 30% 18% 30% FBR2/FBR3 18% 18% Q3 FY23 17% FBR4 17% 17% 17% 30% FBR5/FBR6 30% 30% 30% Staff 3% 3% 1) FBR1 2) FBR2/FBR3 3) FBR4 4) FBR5/FBR6 5) OTHERS Gold, Advance against 27
Slide 12: Comparison: Y-o-Y (12 M)
Comparison : Y-o-Y (12 M) RETAIL WHOLESALE Retail Agri BuB CVCE COB CIB Advances 17% 21% 13% 71% 18% 23% 47863 -> 56077 19228 -> 23355 12529 -> 14173 1275 -> 2186 14651 -> 17274 52094 -> 64311 CASA CASA Ratio NRE Deposits Total Deposits -426 Deposits 4% bps 5% 17% 67121 -> 69741 36.94 -> 32.68 67416
Slide 13: Comparison: Q-o-Q (3 M)
Comparison : Q-o-Q (3 M) RETAIL WHOLESALE Retail Agri BuB CVCE COB CIB -0.46% Advances 4% 6% 19% 3% 3% 53936 -> 56077 22050 -> 23355 14238 -> 14173 1841 -> 2186 16795 -> 17274 62183 -> 64311 CASA CASA Ratio NRE Deposits Total Deposits -156 Deposits 1% bps 3% 6% 68967 -> 69741 34.24 -> 32.68 68834 ->
Slide 14: Digital Migration
Digital Migration 4 < fo} 1 8 3 3 38 | 90% || 218K ||%37.3K 2S > S| | SHARE OF DIGITAL | |¢R WORTH MONTHLY CR WORTH MONTHLY = TRANSACTION MOBILE BANKING | |CORPORATE DIGITAL TRANSACTIONS PRODUCTS VOLUME 4 4 5 ‘a \S ‘a S (0) 80° ~ ==|| 149% 285 % a Ss YOY GROWTH ACCOUNTS ae IN UPI RPA PROCESSES OPENE
Slide 15: Fintech Landscape
Fintech Landscape FEDERAL BANK YOUR PERFECT BANKING PARTNER 3 Pine Labs EMIon POS Checkout EES acd hed EMIon PG Checkout mashreq vico Blockchain for coss border @€ Fipple remittances Goss Border remittances Sp Lali ‘GROUP INTERNATIONAL, Full stack for Neo Banks EMI on Checkout Cross border inward re
Slide 16: Major Initiatives
Major Initiatives Current Account Opening Portal Digital Personal Loan Portal aims to reduce the effort and time put in by the Launch of Digital Personal Loan platform that will cater branch team in opening of Current Accounts. to both New to Bank (NTB) and Existing to Bank (ETB) customers (other t
Slide 17: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships Card Programs under CUG 16
Slide 18: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 17
Slide 19: Innovation and Growth through Partnerships: Digital Personal Loans
Innovation and Growth through Partnerships Number of Accounts opened Digital Personal Loans 13.58x ❖ Bank is live Paisa Bazaar for NTB 3x personal Loans x ❖ Launched Cross Sell of Personal Loans on the the Fi platform Oct'22 Dec'22 Mar'23 ❖ The proposition is positioned for Growth in PL Balance( Amo
Slide 20: Innovation and Growth through Partnerships
Innovation and Growth through Partnerships 19
Slide 21: Digital Migration
Digital Migration *MONTH WISE DATA 20
Slide 22: Card Spends, Digital Lending and Corporate migration
Card Spends, Digital Lending and Corporate migration 1,00,000 90,761 95,044 87,922 3,000 80,557 80,000 70,465 2,500 2,586 2,619 2,365 2,000 60,000 1,500 40,000 1,480 1,000 1,278 20,000 500 - - Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 No. of Loans(As on Date) Disbursements in Crores 21
Slide 23: Business Parameters
aheeeerataetieor Business Parameters 22
Slide 24: Liability: Trends
Liability : Trends ₹ in Cr CASA Ratio 36.94% 36.84% 36.41% Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 34.24% 32.68% 118993 112363 107073 104594 104086 70120 69351 69238 67913 67471 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 CA & SA CASA + Demand Dep Other Retail Dep 54510 56242 55803 55936 55452 Remittanc
Slide 25: Credit Portfolio Distribution
Credit Portfolio Distribution ₹ in Cr TOTAL LOAN BOOK 1% 8% 10% 13% 54% 36% 32% 46% Retail Wholesale Retail Agri BuB CV/CE CoB CIB Yield on Advances 8.78 9.13 81585 75169 78977 66744 70308 Q3 FY23 95791 80895 84083 88789 92066 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 24
Slide 26: Retail Banking
Retail Banking ₹ in Cr Retail Loan Book (Excl Agri, BuB & CV/CE) Housing LAP Gold Auto Personal Other 6617 6936 6386 5975 6124 1957 2393 24% 1751 1727 1832 5129 5448 59% 4229 4448 4850 4760 4313 5167 5260 4526 9573 9984 15% 8453 8762 9176 2% 22929 23644 24935 25901 27003 Q4 FY22 Q1 FY23 Q2 FY23 Q3 F
Slide 27: Gold Loan Portfolio Trends
Gold Loan Portfolio Trends Gold Loan Portfolio (Rs Cr) Number of outstanding accounts (Lakh) 19841 13.39 19520 13.18 13.27 19299 18469 12.61 12.10 17316 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Tonnage 55.17 52.87 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 55.82 55.16 Q4
Slide 28: Wholesale Banking
Wholesale Banking CoB Corporate (CIB) Credit Substitutes ₹ in Cr 4105 4025 3439 2707 2241 75% 20% 62182 64311 58929 52094 54960 5% 14651 15349 16240 16795 17274 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 WHOLESALE BANKING • Corporate Banking book grew by 23% YoY with self-funding ratio at 27% • Commerc
Slide 29: Other Income: Distribution
Other Income : Distribution Other Income Distribution : Vertical Wise (In Cr) 1000 734 610 1 800 534 465 453 2 82 600 1 5 0 80 6 166 4 25 117 118 400 100 100 200 410 409 485 356 327 0 Q4 FY 22 Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Retail Wholesale Treasury Others Total Other Income Distribution : Item
Slide 30: Fee Income/Other income
Fee Income/Other income ₹ in Cr Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Loan Processing Fee 105 103 125 129 132 Fee Income (Y-o-Y) Exchange, Commission, Brokerage& Other Fee 280 275 321 334 384 Income 542 Net Profit on Forex 68 63 94 80 26 453 20% Transactions Fee Income 453 441 540 543 542 Profit o
Slide 31: Select Segments: Mar 2023
Select Segments : Mar 2023 HIGH MARGIN SEGMENTS Bank‘s select high yielding portfolio share in total advance grew to 20.69% in Mar’23 from 19.76% in Mar’22. Revenue share from these select segments increased to 19.32% from 17.23% as of Mar’23. Select Segments and Growth (YoY) Business Share 20.7% 19
Slide 32: Distribution: Deriving Efficiency from Footprint
Distribution : Deriving Efficiency from Footprint 1 1 Branches Digital 29 1 3 22 27 Customers @ 25 8 13 Core BC led 2 Sales /Relationship 8 2 Channel Distribution (Bank owned) 54 33 1 9 13 1 3 2 25 101 27 Direct Sales Agents /Connectors 13% 17% Q4 FY23 6 13% 17% 31 Q2 FY23 Q3 FY23 Q4 FY23 110 Q3 FY2
Slide 33: CRAR – How strong is your Bank?
CRAR – How strong is your Bank? ₹ in Cr Q3 FY23 Q4 FY23 Risk Weighted Assets Credit Risk 126668 138753 Market Risk 5219 5027 Operational Risk 13136 13136 Total RWA 145023 156916 Tier-1 Capital Funds 17590 20431 Tier-II Capital Funds 1775 2813 Total Capital Funds 19365 23245 CRAR 13.35% 14.81% Tier-I
Slide 34: Annexures
FEDERAL BANK Annexures 33
Slide 35: Balance Sheet & Shareholding Pattern
Balance Sheet & Shareholding Pattern ₹ in Cr Q3 FY23 Q4 FY23 LIABILITIES Capital 423 423 Share Holding Pattern Reserves & Surplus 20165 21083 Deposits 201408 213386 29% Borrowings 19676 19319 Other Liabilities & Provisions 8801 6130 2% 34% TOTAL 250472 260342 ASSETS 27% Cash & Balance with RBI 13967
Slide 36: Financials
Financials ₹ in Cr Q4 FY22 Q3 FY23 Q4 FY23 Q-o-Q Y-o-Y Interest Income 3483 4433 4721 6.5% 35.5% Interest Expenses 1958 2477 2811 13.5% 43.6% Net Interest Income 1525 1957 1909 -2.4% 25.2% Other Income 465 534 734 37.4% 57.8% Operating Expense 1192 1216 1309 7.6% 9.8% Total Income 3948 4967 5455 9.8
Slide 37: Top Sectors in Wholesale Advance Portfolio
Top 10 Sectors in Wholesale Advance Portfolio Top 10 Sector wise exposure as a % of Total Advance CONTRACTORS 1.38% ITEMS FOR CONSUMPTION/ PERSONAL/ 1.39% 31.03.2023 HOUSEHOLD USE POWER GENERATION & TRANSMISSION 1.63% CHEMICALS 1.84% FOOD PRODUCTS 1.90% TEXTILES INCLUDING JUTE & COIR 2.35% REAL ESTA
Slide 38: Investments / Subsidiaries & JVs
Investments / Subsidiaries & JVs Major Investments Entity % of stake Federal Operations & Services Limited (FedServ) 100.00% Fedbank Financial Services Limited 73.22% Ageas Federal Life Insurance Company Limited 26.00% Equirus Capital Private Ltd 19.79% Subsidiaries & JVs Ageas Federal Life Insuranc
Slide 39: External Ratings
External Ratings Fixed Deposit A1+ (Short term) Fixed Deposit AA+ Certificate of Deposit A 1+ India Ratings & Research IND AA Tier 2 (Capital) Bonds Pvt Ltd, CARE CARE AA • Fixed Deposits (short term) and Certificate of Deposits enjoy highest rating in that class. 38
Slide 40: Thank You
Thank You AE A aA og