YES BANK Results Update (Q1FY17) Key Financial Highlights

Transcription

1 YES BANK Results Update (Q1FY17) Key Financial Highlights Incme Statement Highlights Net Prfit f ` 7,318 millin cmpared t ` 5,512 millin in Q1FY16 representing an increase f 32.8% NII f ` 13,166 millin cmpared t ` 10,598 millin in Q1FY16 representing an increase f 24.2% Nn Interest Incme at ` 9,005 millin against ` 5,452 millin in Q1FY16 representing a increase f 65.2% Ttal Net Incme (Net Interest Incme plus Nn Interest Incme) f ` 22,171 millin cmpared t ` 16,050 millin in Q1FY16 representing an increase f 38.1% Nn Interest Incme t Ttal Net Incme rati f 40.6% Yield n advances f 11.1% Cst f funds f 7.0% Net Interest Margin (NIM) f 3.4% Balance Sheet Highlights Advances at ` 1,059.4 billin; grwth f 33.0% y--y Depsits at ` 1,225.8 billin; grwth f 28.6% y--y; CD rati stands at 86.4% CASA at ` billin; grwth f 63.0% y--y and CASA rati f 29.6%; SA depsits at ` billin; grwth f 81.6% y--y Balance Sheet size f ` 1,772.3 billin; grwth f 27.5% y--y Ttal Capital Funds (Tier I + Tier II) f ` billin as per Basel III (including Q1FY17 Net Prfit, adjusted fr prrated dividends) as at June 30, 2016 Risk Weighted Assets (RWA) as at June 30, 2016 is ` billin; RWA t Ttal Assets at 81.4% as n June 30, 2016 against 81.0% as n June 30, 2015 Key Ratis Capital Adequacy Rati f 15.5% as at June 30, 2016 (CET I at 9.9%; Tier I at 10.3%) (including Q1FY17 Net Prfit, adjusted fr prrated dividends) Return n Average Assets f 1.7% (annualized) in Q1FY17 Return n Equity f 20.7% (annualized) in Q1FY17 Cst t Incme rati f 41.1% Grss NPA at 0.79% f Grss Advances; Net NPA at 0.29% f Net Advances Specific lan lss cverage rati f 64.2% Mnthly average Liquidity Cverage rati f 83.1% fr the quarter, well abve the regulatry requirement f 70% Bk value per share f ` (` as at June 30, 2015) Basic EPS f ` 17.4 and Diluted EPS f ` 17.0 (nt annualized) Netwrk Expansin Ttal headcunt stands at 16,421 as at June 30, 2016, an increase f 1,421 emplyees in the quarter and 4,878 incremental emplyees as cmpared t June 30, 2015 Ttal netwrk nw stands at 900 Branches and 1,680 ATMs; f which 428 are Bunch Nte Acceptr (BNA)/cash recyclers Page 1 f 6

2 Summary Results & Prir Perid Cmparisn ` Millin Q1FY17 Q1FY16 Grwth Q4FY16 Grwth Net Interest Incme 13,166 10, % 12, % Nn Interest Incme 9,005 5, % 8, % Ttal Net Incme 22,171 16, % 20, % Operating Expense 9,103 6, % 8, % Human Resurce Cst 4,074 2, % 3, % Other Operating Expenses 5,030 4, % 4, % Operating Prfit 13,068 9, % 12, % Prvisins & Cntingencies 2, % 1, % Prvisin fr Tax 3,683 2, % 3, % Prfit After Tax 7,318 5, % 7, % Incme and Prfitability trends fr last 5 quarters ` Millin Q1FY17 Q4FY16 Q3FY16 Q2FY16 Q1FY16 Net Interest Incme 13,166 12,414 11,570 11,085 10,598 Nn Interest Incme 9,005 8,028 7,461 6,181 5,452 Crprate Trade & Cash Management 1,112 1,412 1,119 1,009 1,071 Frex, Debt Capital Markets & Securities 2,023 1,163 1,025 1, Crprate Banking Fees 4,096 3,638 3,802 2,197 2,069 Retail Banking Fees 1,774 1,816 1,515 1,451 1,341 : Trade & Remittance : Facility / Prcessing Fee : Third Party Sales : Interchange Incme : General Banking Fees Ttal Net Incme 22,171 20,442 19,031 17,266 16,050 Operating Expense 9,103 8,188 7,534 7,074 6,967 Human Resurce Cst 4,074 3,528 3,426 3,128 2,885 Other Operating Expenses 5,030 4,659 4,108 3,947 4,082 Operating Prfit 13,068 12,255 11,496 10,191 9,083 Net Prfit 7,318 7,021 6,757 6,104 5,512 EPS (`) % Nn Interest Incme t Ttal Net Incme 40.6% 39.3% 39.2% 35.8% 34.0% Cst t Incme rati 41.1% 40.1% 39.6% 41.0% 43.4% NIM 3.4% 3.4% 3.4% 3.3% 3.3% RA (Annualized) 1.7% 1.8% 1.8% 1.7% 1.6% RE (Annualized) 20.7% 20.5% 20.5% 19.4% 18.4% N. f Branches Summary Balance Sheet & Prir Perid Cmparisn fr last 5 quarters ` Millin Jun Mar Dec Sep Jun Page 2 f 6 y--y grwth Assets 1,772,289 1,652,634 1,477,540 1,447,835 1,390, % Advances 1,059, , , , , % Investments 460, , , , , % Sharehlders Funds 145, , , , , % Ttal Capital Funds* 223, , , , , % Brrwings 319, , , , , % Depsits 1,225,811 1,117,195 1,014, , , % CASA 362, , , , , % *Including Q1 Net Prfit, adjusted fr prrated dividends

3 PART A - PORTFOLIO DISCLOSURES PORTFOLIO & ASSET QUALITY DISCLOSURES Break-up f Advances: Crprate Banking 67.5% and Retail & Business Banking 32.5% A) Crprate Banking Business Segment (8 segmental relatinship grups) As n Jun 30, 2016 As n Mar 31, 2016 As n Jun 30, % 65.1% 68.0% B) Retail & Business Banking 32.5% 34.9% 32.0% f which: i) Business Banking (Medium Enterprises) 11.0% 11.1% 14.1% ii) Micr & Small Enterprises 12.1% 13.0% 10.6% iii) Cnsumer Banking (Urban and Rural) 9.4% 10.8% 7.3% Ttal 100.0% 100.0% 100.0% Sectral Distributin: Overall prtfli is well distributed with significant deplyment in YES BANK fcused knwledge sectrs, where the Bank has develped cnsiderable sectral expertise with specialized Relatinship Managers, Prduct Managers and Risk Managers Other Real Estate ( LRD/ Nn CRE etc) 1.2% Rubber, Plastic & Prducts 0.6% Other Metal & Metal Prducts 2.4% Radways 1.0% Petrleum, Cal and Other Fuels Paper & Paper 3.2% Prducts 0.8% Scial & Cmmercial Infrastructure Water Sanitatin 0.1% 2.6% Vehicles, Parts & Equipments 2.7% Railways 0.4% Technlgy/ ITES 1.4% Telecmmunicatin 6.1% Travel, Turism & Hspitality 3.1% Textiles 0.9% Waterways 1.3% Agri and Allied 3.3% All Engg 3.0% Aviatin (Airprts) 0.7% Beverages 0.3% Cement 1.1% Chemical Prducts (Dyes, Paints, etc.) 1.0% Cmmercial Real Estate 6.7% Other Industries 12.8% Diversified 1.6% Other Financial Services 3.3% Drugs & Pharmaceuticals 2.5% NBFC 1.3% Mining & Quarrying 0.5% Educatinal Services 0.9% Media & Entertainment 2.6% Irn & Steel 1.9% Husing Finance C. 0.4% Healthcare & Hspitals (Nn Infra) 1.1% Granular & Retail 8.5% Glass & Glassware 0.1% Gems and Jewellery 1.4% EPC 5.6% Fd Prcessing 2.8% Gas strage and pipeline 0.3% Electricity 9.3% Sensitive Sectr Disclsure: (Internal Ratings mapped t external ratings) Sectr/ Rating Break-up Sectr/ Rating Break-up (A) Electricity 9.3% AAA/AA rated investments 1.0% Page 3 f 6 (B) Irn & Steel 1.9% T&D 1.5% A r abve rated 1.3% Renewable Expsures(Green- Financing) Nn-Renewable 2.8% f which 2.2% is peratinal 4.0% all f which is peratinal (C) EPC 5.6% Expsure t SEBs Nil A r abve rated 3.8%

4 PART B ASSET QUALITY DISCLOSURES Grss Slippages fr the quarter were at ` 2,996.2 millin. Recvery / upgrades f ` 1,856.7 millin and writeffs f ` millin Grss NPA at ` 8,445.6 millin (0.79% f Grss Advances) and Net NPA at ` 3,023.9 millin (0.29% f Net Advances) as at June 30, 2016 Specific prvisin cverage rati f 64.2%. Credit Csts at 15 bps fr Q1FY17. The ttal Standard Restructured Advances as a prprtin f Grss Advances was at 0.49% (` 5,229 millin) as at June 30, 2016, dwn frm 0.71% (` 5,671 millin) as n June 30, N additinal restructuring during the quarter. The restructured lans have been perfrming in line with expectatins and the Bank des nt anticipate any material slippages in this bk. Net Security Receipts (SRs) stand at ` 1994 millin (0.19% f Grss Advances, cmprising 10 brrwers) as n June 30, 2016, dwn frm ` 2210 millin (0.28% f Grss Advances) as n June 30, There has been n sale t ARC during the quarter. During the quarter bank had ne instance f Standard asset Strategic Debt Restructuring resulting int an utstanding expsure fr SDR at nly 0.03% (` 343 millin) t Grss Advances as n June 30, 2016 The Bank has nt refinanced any lan thrugh 5-25 rute Trend f key Asset Quality parameters: As a % f Advances June 30, Mar 31, Dec 31, Sept 30, June 30, A 1. Grss NPA % 0.79% 0.76% 0.66% 0.61% 0.46% 2. Net NPA % 0.29% 0.29% 0.22% 0.20% 0.13% 3. Prvisin Cverage Rati 64.2% 62.0% 66.5% 67.7% 71.0% B Restructured Advances % 0.49% 0.53% 0.67% 0.71% 0.71% C Security Receipts (Net) % 0.19% 0.20% 0.25% 0.27% 0.28% Rating breakup f Crprate Banking expsures spread acrss 8 segmental crprate relatinship grups: As a % f Ttal Expsure June 30, Mar 31, Dec 31, Sept 30, June 30, AAA 18.4% 18.4% 19.4% 19.2% 19.0% AA 17.6% 18.5% 17.6% 17.8% 15.8% A 40.4% 39.6% 38.9% 38.6% 40.9% BBB 21.8% 21.7% 21.8% 21.9% 22.0% BB and Belw 1.8% 1.8% 2.3% 2.5% 2.4% Ttal 100.0% 100.0% 100.0% 100.0% 100.0% Prfile f the Bank s Internatinal and Dmestic Ratings: Rating Agency Lng-term Outlk Shrt-term Internatinal Mdy's Baa3 Stable Prime-3 Dmestic Tier II Infra Bnds ICRA AA+ AA+ Stable A1+ CARE AA+ AA+ Stable Page 4 f 6

5 DIVERSIFIED LIABILITIES FRANCHISE CASA depsits grew 63.0% y--y t ` billin as at June 30, CASA rati increased t 29.6% as f June 30, 2016 frm 23.4%as at June 30, 2015 (6.2% imprvement in ne year). Rbust grwth f 81.6% in SA depsits t ` billin while CA depsits grew 32.2% t ` billin as f June 30, Ttal Retail Depsits (CASA + Retail FDs) nw cnstitute 55.3% as f June 30, 2016 DIGITAL BANKING YES BANK cntinues investing significantly in new-age mediums and digital technlgies t achieve a heightened custmer engagement and experience. Sme f the Bank s key digital initiatives revlutinizing payments ecsphere are as fllws: YES Mney prgram: One f the largest Dmestic Remittance prgram encmpassing ver 5.1 millin custmers with a cumulative transactin thrughput f 130 billin. Over 2.4 millin YES BANK c-branded Virtual prepaid Cards issued n the MasterCard platfrm since launch in January 2016, the largest virtual prepaid card prgram in the wrld. Over 34 millin YES BANK pwered Freecharge Wallets issued since launch in September Launched QR Cde based Prximity Payments in cllabratin with Click & Pay. SOCIAL MEDIA Accrding t the recent ranking by The Financial Brand publicatin, YES BANK is ranked amngst the Tp 5 Glbal Bank Brands n Scial Media. As per the same reprt, YES BANK is the highest fllwed Glbal Bank Brand n Twitter with ver 1 millin fllwers, and als the Fastest Grwing Glbal Bank Brand n Facebk with mre than 3.5 millin Page Likes. YES BANK is als the Highest Fllwed Bank Brand n Instagram in India with ver 2 lakh fllwers. YES BANK is the 1 st Bank in India t launch Facebk at Wrk t its wrkfrce & have achieved 100% registratin acrss ver 16,000 emplyees. Nte: Data as f July 25, 2016 Page 5 f 6

6 EXPANSION & KNOWLEDGE INITIATIVES Ttal headcunt stands at 16,421 as at June 30, 2016, an increase f 1,421 emplyees in the quarter and 4,878 incremental emplyees since June The Bank s branch netwrk std at 900 branches as n June 30, 2016, an additin f 40 branches in the quarter. Ttal ATM netwrk stands at 1,680 as n June 30, 2016, f which 428 are Bunch Nte Acceptrs (BNA)/Recyclers. YES BANK has received RBI apprval pst apprval frm the CCEA (Gvt. f India) t raise its Freign Investment Limit t 74%. This has made YES BANK the FIRST Bank in India t have an peratinal fully fungible cmpsite freign wnership limit f 74% YES BANK has received an in-principle apprval frm the Securities & Exchange Bard f India (SEBI) t spnsr a Mutual Fund and t setup an Asset Management Cmpany (AMC), and a Trustee Cmpany. The AMC and the Trust Cmpany shall be set up as whlly wned subsidiaries f YES BANK Limited. This is further t the Reserve Bank f India (RBI) apprval fr AMC granted t YES BANK in Octber 2015 YES BANK has annunced cmmitment f ` 2.5 billin twards tw key fcus areas f livelihd and water security, and envirnment sustainability by 2020 thrugh its fcused and intensified CSR and Sustainability actin. YES BANK has pledged GBP 1 Millin t the Lndn Schl f Ecnmics and Plitical Science (LSE) t supprt the IG Patel Chair named in hnur f the frmer Gvernr f the Reserve Bank f India and frmer Directr f LSE. The funding frm YES BANK will als supprt the wrk f the LSE India Observatry, which was established in 2007 t cntinue t develp and enhance research and prgrammes related t India's ecnmy, plitics and sciety with a specific fcus n Climate Change and Sustainability. AWARDS & RECOGNITIONS YES Bank has been adjudged as Asia s Best Bank fr Crprate Scial Respnsibility at the Eurmney Excellence Awards 2016 held in Hng Kng. YES BANK wn 2 awards at The Asset Triple A Asia Infrastructure Awards 2016, Hng Kng: Best Energy/Renewable Energy Deal Slar, India fr Prbandar Slar Pwer ` 1.3 billin nncnvertible debentures, in which YES BANK acted as sle underwriter. Best Green Bnd Facility within highly cmmended categry in India, fr IFC s ` 3.2 billin green infrastructure bnds n the back f YES BANK s dmestic green bnd issuance YES BANK made its maiden entry int the Frbes Glbal 2000 List f Wrld s Tp Cmpanies YES BANK was the yungest Indian Cmpany n the Frbes 2000 List and als ne f the yungest Banks in the Wrld n this prestigius list. YES BANK was recgnized amng India s Best BFSI Brands by Ecnmic Times Best BFSI Brands 2016 YES BANK received multiple awards at The Asian Banker Awards 2016: Best Trade Finance Bank in India Best Crprate Payments Prject in India fr API Banking implementatin fr Snapdeal, ne f India s leading e-cmmerce players YES BANK received the Best Bank (midsized) Award fr Cyber Defence frm RBI Gvernr Dr. Raghuram Rajan at the IDRBT Banking Technlgy Excellence Awards 2016 Mr. Rana Kapr, MD&CEO was felicitated by the Lndn Business Schl (LBS) India Business Frum 2016 fr Exemplary Cntributin t Entrepreneurship & Innvatin Regd. & Crprate Office: Nehru Centre, 9th Flr, Discvery f India, Dr. A. B. Rad, Wrli, Mumbai Tel: Fax: Nrthern Reginal Crprate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi Tel: Fax: Website: Page 6 f 6