Q Earnings Disclosure

Transcription

1 Q Earnings Disclosure 17 October 2017

2 Forward Looking Statements This presentation may contain statements that constitute forward-looking statements about the Company, within the general meaning of the term and within the meaning of applicable securities laws, including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations. These statements may appear in a number of places in this document and may include statements regarding our intent, belief or current expectations regarding our customer base, estimates regarding future growth in our different business lines, market share, financial results and other aspects of our activity and situation relating to the Company. The forward looking statements in this document can be identified, in some instances, by the use of words such as expects, anticipates, intends, believes, and similar language or the negative thereof or by the forward-looking nature of discussions of strategy, plans or intentions. Such forward-looking statements, by their nature, are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Neither this presentation nor any of the information contained herein constitutes an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities. Finally, be advised that this document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information.

3 YTD Q3 (Jan Sep 2017) Performance Highlights 35% NET PROFIT AFTER TAX BDT 1,809mn, 35% YoY growth 29% OPERATING INCOME BDT 4,863mn, 29% YoY growth 13% CUSTOMER ADVANCES BDT 8,341mn growth in Customer Assets in 2017 till Q3

4 YoY Performance Metrics: YTD Q3 (Jan-Sep) Customer Assets Customer Deposits Net Interest Income Fee & Other Income 60,630 70,605 47,017 59,460 2,786 3, % 26% 9% 46% Investment Income Operating Income Operating Profit Net Profit 924 3,778 4,863 2,332 3,131 1,343 1, % 29% 34% 35%

5 YoY Shareholder Returns: YTD Q3 (Jan-Sep) Earnings Per Share Return on Asset (Annualized) % 2.75% 18% 0.36% BDT Book Value Per Share BDT Return on Equity (Annualized) 21.98% 22.90% 43% 0.91%

6 Loan Portfolio remained flat in Q3 amid festive season Balance Sheet Customer Advances 74,648 77,458 76,688 79,359 87,993 89,735 96,211 58,390 60,547 60,630 62,265 67,651 70,192 70,605 4% 1% 3% 11% 2% 7% 4% 0.1% 3% 9% 4% 1%

7 Deposit growth continued Customer Deposits 44,926 48,573 47,017 47,475 51,319 52,150 59,460 Deposits now contribute 83% to the total funding basket 8% 3% 1% 8% 2% 14%

8 Portfolio Growth driven by SME & Home Loans Portfolio Composition: 30 September 2017 Portfolio Growth in 2017 Consumer 23,839 35% Corporate 13,314 19% 5,254 2,424 SME 31,308 46% 20% 11% -1% (92) SME Consumer Corporate SME Consumer Corporate

9 Slight decrease in NPL% as tighter controls are being put in place 3.06% 3.01% 3.22% 2.98% 2.79% 2.84% 2.83%

10 Significant Increase in Operating Income Net Interest Income ,065 1,015 Net Interest Income fell QoQ as margin correction continues throughout the year Operating Income Operating Income rose 13% QoQ with significant growth in Investment Income recorded during the quarter 1,263 1,269 1,246 1,388 1,639 1,516 1,707

11 Controlled Cost/Income Ratio Operating Expense Cost / Income Ratio 41% 40% 37% 39% 34% 35% 34% Opex fell slightly from the last quarter, when few one-off expenditures were incurred, to the normal level Cost to income ratio for the quarter shows significant improvement due to lower Opex coupled with 13% QoQ growth in Operating Income

12 QoQ Shareholder Returns Earnings Per Share Return on Asset (Annualized) % 2.8% 2.5% 2.3% 2.9% 2.7% 2.9% Book Value Per Share Return on Equity (Annualized) % 26.4% 22.6% 20.9% 24.2% 22.2% 24.3%

13 Non-Financial Highlights: Q CUSTOMER ACQUISITION 2,784 new customers added to take total number of customers in the group to 48,128 WEALTH MANAGEMENT Reshaped Wealth Management team aiming to increase the % of retail customers in both deposits and other Wealth Management customer base STRUCTURED FINANCE Raised BDT 4,000 million for Standard Bank coupon bearing nonconvertible subordinated bond PEOPLE & CULTURE Training to employees: 6,493 hours Launched IDLC Sales Academy an internal training & certification system for sales employees TECHNOLOGY Centralized operational platform went live in Q3 Several process improvement efforts, aimed at increasing efficiency, are ongoing KHUSHIR KHEYA First online Volunteer-based Community Service platform in the industry launched in Q3

14 Outlook Further margin correction is expected in the last quarter as interest rates are expected to keep a slight increasing trend till Q while market competition keeps lending rates flat Retail businesses (predominantly SME & Home Loan) will dominate the growth in the coming years despite increased competition and pressure on margins. A large share of the growth is expected to come from markets outside Dhaka & Chittagong Amid compressed margins and stiff competition, improvement in customer service, portfolio quality and operating efficiency will be the key winning factors. Several initiatives undertaken in all these areas are expected to deliver results in the next couple of years

15 Q & A