Results Update (Q3FY17 AND 9MFY17) Key Financial Highlights Income Statement Highlights for Quarter ended December 31, 2016 (Q3FY17) PAT of ` 8,826 million compared to ` 6,757 million in Q3FY16 representing an increase of 30.6% NII of ` 15,075 million compared to ` 11,570 million in Q3FY16 representing an increase of 30.3% Non Interest Income of ` 9,983 million compared to ` 7,461 million in Q3FY16 representing an increase of 33.8% Total Net Income (NII and Non Interest Income) of ` 25,058 million compared to ` 19,031 million in Q3FY16 representing an increase of 31.7% Operating Profit of ` 14,538 million compared to ` 11,496 million in Q3FY16 representing an increase of 26.5% Non Interest Income to Total Net Income ratio of 39.8% Cost to Income ratio of 42.0% Yield on advances of 10.9% Cost of funds of 6.6% Net Interest Margin (NIM) of 3.5% Return on Average Assets of 1.8% (annualized) Return on Equity of 22.3% (annualized) Basic EPS of ` 20.9 and Diluted EPS of ` 20.4 Income Statement Highlights for Nine Months ended December 31, 2016 (9MFY17) PAT of ` 24,160 million compared to ` 18,374 million in 9MFY16 representing an increase of 31.5% NII of ` 42,702 million compared to ` 33,253 million in 9MFY16 representing an increase of 28.4% Non Interest Income at ` 27,867 million compared to ` 19,093 million in 9MFY16 representing an increase of 46.0% Total Net Income of ` 70,570 million compared to ` 52,346 million in 9MFY16 representing an increase of 34.8% Operating Profit of ` 41,465 million compared to ` 30,770 million in 9MFY16 representing an increase of 34.8% Non Interest Income to Total Net Income ratio of 39.5% Cost to Income ratio of 41.2% Yield on advances of 10.9% Cost of funds of 6.8% Net Interest Margin (NIM) of 3.4% Return on Average Assets of 1.8% (annualized) Return on Equity of 21.5% (annualized) Basic EPS of ` 76.4 and Diluted EPS of ` 74.4 Balance Sheet Highlights as at December 31, 2016 Advances at ` 1,170.9 billion; growth of 38.7% y-o-y Deposits at ` 1,323.8 billion; growth of 30.5% y-o-y; CD ratio stands at 88.5% CASA at ` 441.3 billion; growth of 63.3% y-o-y; CASA ratio of 33.3% Total Assets at ` 1,948.3 billion; growth of 31.9% y-o-y Gross NPA at 0.85% of Gross Advances; Net NPA at 0.29% of Net Advances Specific loan loss coverage ratio of 66.0% As per Basel III, Total Capital Funds* (Tier I + Tier II) of ` 268.6 billion (` 231.2 billion as at Sept 30, 2016) As per Basel III, Capital Adequacy Ratio* of 16.9% (Tier I at 12.2%) Monthly Average Liquidity Coverage Ratio of 88.0% for the quarter, well above the regulatory requirement of 70% Total Risk Weighted Assets (RWA) stands at ` 1,590.0 billion as on Dec 31, 2016. (` 1,210.8 billion as on Dec 31, 2015) Book value per share of ` 384.1 representing growth of 18.8% y-o-y (` 323.3 as at Dec 31, 2015) Total headcount stands at 19,400 ( 13,477 as on Dec 31,2015) Branch network increased to 964 from 750 Branches as of Dec 31, 2015, an increase of 214 branches Total ATM network stands at 1,757 as on December 31, 2016, of which 502 are Bunch Note Acceptors (BNA)/Recyclers. * including profits adjusted for prorated dividends Page 1 of 7
Summary Results & Prior Period Comparison ` Million Q3FY17 Q3FY16 Growth Q2FY17 Growth 9MFY17 9MFY16 Growth Net Interest Income 15,075 11,570 30.3% 14,462 4.2% 42,702 33,253 28.4% Non Interest Income 9,983 7,461 33.8% 8,879 12.4% 27,867 19,093 46.0% Total Net Income 25,058 19,031 31.7% 23,340 7.4% 70,570 52,346 34.8% Operating Expense 10,520 7,534 39.6% 9,481 11.0% 29,104 21,576 34.9% Operating Profit 14,538 11,496 26.5% 13,860 4.9% 41,465 30,770 34.8% Provisions & Contingencies 1,154 1,479-22.0% 1,617-28.6% 4,837 3,498 38.3% Provision for Tax 4,558 3,259 39.8% 4,228 7.8% 12,469 8,898 40.1% Profit After Tax 8,826 6,757 30.6% 8,015 10.1% 24,160 18,374 31.5% Income and Profitability trends for last 5 quarters ` Million Q3FY17 Q2FY17 Q1FY17 Q4FY16 Q3FY16 Net Interest Income 15,075 14,462 13,166 12,414 11,570 Non Interest Income# 9,983 8,879 9,005 8,028 7,461 Corporate Trade & Cash Management 995 1,034 1,112 1,412 1,119 Forex, Debt Capital Markets & Securities 3,077 2,992 2,023 1,163 1,025 Corporate Banking Fees 3,406 2,757 4,096 3,638 3,802 Retail Banking Fees 2,143 2,096 1,774 1,816 1,515 : Trade & Remittance 588 719 709 580 529 : Facility / Processing Fee 235 227 164 248 175 : Third Party Sales 304 277 222 307 184 : Interchange Income 517 456 369 347 360 : General Banking Fees 499 415 310 335 267 Total Net Income 25,058 23,340 22,171 20,442 19,031 Operating Expense 10,520 9,481 9,103 8,188 7,534 Human Resource Cost 4,675 4,334 4,074 3,528 3,426 Other Operating Expenses 5,846 5,147 5,030 4,659 4,108 Operating Profit 14,538 13,860 13,068 12,255 11,496 Net Profit 8,826 8,015 7,318 7,021 6,757 EPS (`) 20.9 19.0 17.4 16.7 16.1 % Non Interest Income to Total Net Income 39.8% 38.0% 40.6% 39.3% 39.2% Cost to Income ratio 42.0% 40.6% 41.1% 40.1% 39.6% NIM 3.5% 3.4% 3.4% 3.4% 3.4% RoA (Annualized) 1.8% 1.8% 1.7% 1.8% 1.8% RoE (Annualized) 22.3% 21.4% 20.7% 20.5% 20.5% No. of Branches 964 950 900 860 750 Headcount 19,400 18,531 16,421 15,000 13,477 #Below breakup excludes ` 362 Million Recovery from Write Off Summary Balance Sheet & Prior Period Comparison for last 5 quarters ` Million Dec 31 2016 Sep 30 2016 Jun 30 2016 Mar 31 2016 Dec 31 2015 y-o-y growth Assets 1,948,280 1,873,088 1,772,289 1,652,634 1,477,540 31.9% Advances 1,170,870 1,102,162 1,059,420 982,099 843,962 38.7% Investments 497,485 495,739 460,965 488,385 456,354 9.0% Liabilities 1,948,280 1,873,088 1,772,289 1,652,634 1,477,540 31.9% Shareholders Funds 162,471 153,702 145,369 137,866 135,613 19.8% Total Capital Funds* 268,648 231,172 223,943 218,744 195,252 37.6% Borrowings 369,212 345,885 319,363 316,590 266,671 38.5% Deposits 1,323,758 1,280,238 1,225,811 1,117,195 1,014,372 30.5% CASA 441,264 387,840 362,883 313,428 270,194 63.3% *Including Profits, adjusted for prorated dividends Page 2 of 7
PORTFOLIO & ASSET QUALITY DISCLOSURES PART A - PORTFOLIO DISCLOSURES Break-up of Advances: Corporate Banking 68.9% and Retail & Business Banking 31.1% Business Segment As on Dec 31, 2016 As on Dec 31, 2015 A) Corporate Banking (8 segmental relationship groups) 68.9% 67.2% B) Retail & Business Banking 31.1% 32.8% of which: i) Business Banking (Medium Enterprises) 10.7% 12.7% ii) Micro & Small Enterprises 11.8% 10.6% iii) Consumer Banking (Urban and Rural) 8.6% 9.5% Total 100.0% 100.0% Sectoral Distribution: Social & Commercial Infrastructure 2.8% Vehicles, Parts & Equipments 2.7% Petroleum, Coal and Other Fuels 2.7% Paper & Paper Products 0.4% Other Real Estate ( LRD/ Non CRE etc) 0.9% Other Metal & Metal Products 2.2% Other Industries 13.7% Rubber, Plastic & Products 0.7% Roadways 1.0% Railways 0.1% Telecommunication 5.1% Technology/ ITES 1.4% Travel, Tourism & Hospitality 3.0% Textiles 0.9% Water Sanitation 0.0% Waterways 1.7% Agri and Allied 3.1% All Engg 3.0% Aviation (Airports) 0.9% Beverages 0.3% Cement 1.5% Chemical Products (Dyes, Paints, etc.) 1.0% Commercial Real Estate 6.6% Diversified 2.0% Other Financial Services 3.0% Drugs & Pharmaceuticals 2.5% NBFC 1.9% Mining & Quarrying 0.5% Media & Entertainment 2.3% Electricity 9.8% Educational Services 0.9% Iron & Steel 1.8% Housing Finance Co. 1.9% Healthcare & Hospitals (Non Infra) 1.1% Glass & Glassware 0.1% Gems and Jewellery 1.3% Granular & Retail 7.2% EPC 6.1% Food Processing 2.3% Gas storage and pipeline 0.2% Overall portfolio is well distributed with significant deployment in focused knowledge sectors, where the Bank has developed considerable sectoral expertise with specialized Relationship Managers, Product Managers and Risk Managers Sensitive Sector Disclosure: (Internal Ratings mapped to external ratings) Sector/ Rating Break-up Sector/ Rating Break-up (A) Electricity 9.8% AAA/AA rated investments 0.4% (B) Iron & Steel 1.8% T&D 1.3% A or above rated 1.3% Renewable Exposures(Green- Financing) Non-Renewable 4.3% of which 2.2% is operational 3.9% all operational (C) EPC 6.1% Exposure to SEBs Nil A or above rated 3.8% Page 3 of 7
PART B ASSET QUALITY DISCLOSURES Gross NPA at ` 10,059 million (0.85%) and Net NPA at ` 3,424 million (0.29%) as at Dec 31, 2016 Specific provision coverage ratio of 66.0% Gross Slippages for the quarter were at ` 1,265 million. Recovery / upgrades of ` 275 million and write-offs of ` 98 million Credit Costs at 8 bps for Q3FY17 The total Standard Restructured Advances as a proportion of Gross Advances was at 0.42% (` 5,002 million) as at Dec 31, 2016, down from 0.67% (` 5,683 million) as at Dec 31, 2015. No additional restructuring during the quarter. Net Security Receipts (SRs) stand at 0.22% (` 2,588 million) of Gross Advances as at Dec 31, 2016. No sale to ARC during the quarter Standard SDR Advances outstanding at 0.16% (` 1,935 million) to Gross Advances as at Dec 31, 2016 from two SDR accounts, of which one was restructured during the quarter. Total outstanding Investment in SDR stand at 0.01% (` 114 million) of Gross Advances as at Dec 31, 2016 5:25 refinancing exposure of 0.09% (` 1,031 million) of Gross Advances as at Dec 31, 2016. No additional account was refinanced through 5:25 during the quarter Trend of key Asset Quality parameters: As a % of Advances Dec 31, Sep 30, June 30, Mar 31, Dec 31, 2016 2016 2016 2016 2015 A 1. Gross NPA % 0.85% 0.83% 0.79% 0.76% 0.66% 2. Net NPA % 0.29% 0.29% 0.29% 0.29% 0.22% 3. Provision Coverage Ratio 66.0% 64.8% 64.2% 62.0% 66.5% B Restructured Advances % 0.42% 0.46% 0.49% 0.53% 0.67% C Security Receipts (Net) % 0.22% 0.23% 0.19% 0.20% 0.25% D Standard SDR s 0.17% 0.03% 0.03% - - E 5-25 Refinancing 0.09% 0.09% - - - Rating breakup of Corporate Banking exposures spread across 8 segmental corporate relationship groups: As a % of Total Exposure Dec 31, Sep 30, June 30, Mar 31, Dec 31, 2016 2016 2016 2016 2015 AAA 17.1% 17.8% 18.4% 18.4% 19.4% AA 19.5% 19.9% 17.6% 18.5% 17.6% A 39.6% 39.6% 40.4% 39.6% 38.9% BBB 22.1% 21.1% 21.8% 21.7% 21.8% BB and Below 1.7% 1.6% 1.8% 1.8% 2.3% Total 100.0% 100.0% 100.0% 100.0% 100.0% Profile of the Bank s International and Domestic Ratings: Rating Agency Long-term Outlook Short-term International Moody's Baa3 Stable Prime-3 Domestic Basel III AT1 Tier II Infra Bonds ICRA AA+ AA+ Stable A1+ CARE AA AA+ AA+ Stable India Ratings AA AA+ Stable Page 4 of 7
DIVERSIFIED LIABILITIES FRANCHISE CASA deposits grew 63.3% y-o-y to ` 441.3 billion as at Dec 31, 2016. CASA ratio stands at 33.3% as of Dec 31, 2016 from 26.6%as at Dec 31, 2016 (6.7% improvement in one year). Robust growth of 64.3% in SA deposits to ` 293.5 billion while CA deposits grew 61.5% to ` 147.8 billion as of Dec 31, 2016. Total Retail Deposits (CASA + Retail FDs) now constitute 59.2% as of Dec 31, 2016 YES Bank Rating Profile YES Bank continues to maintain strong credit ratings across International and Domestic Rating agencies YES Bank was upgraded by MSCI ESG Research to AAA Rating from AA rating. The MSCI ESG Report has highlighted s key strengths in Financial Product Safety, Corporate Governance, and Financial System Instability, and has also highlighted that there are no significant risks for the Bank from an ESG perspective Moody s reaffirmed Bank s Long-term international rating of Baa3 which is in line with the Sovereign Rating of India During the quarter, Domestic Rating agencies CARE and India Ratings assigned AA rating for Bank s Basel III compliant Additional Tier I instrument Domestic Rating agencies, ICRA, CARE, India Ratings and Brickworks (as applicable), have Long-Term ratings of AA+ for the Bank s Basel III compliant Tier II instruments as well as for Infrastructure Bonds SOCIAL MEDIA According to The Financial Brand publication, is ranked amongst the Top 5 Global Bank Brands on Social Media. YES Bank is the Highest Followed Global Bank Brand on Twitter with over 1.5 million followers YES Bank is also the second Highest Liked Global Bank Brands on Facebook with more than 5 million Page Likes Twitter Followers Followers Fans Followers 1,500k [1] 5,123k [2] 219k [1] AXIS Bank 156k [5] 3,293k [4] 64k [3] ICICI Bank 213k [3] 4,875k [3] N.A. HDFC Bank 151k [6] 2,362k [5] 29k [4] Kotak Mahindra Bank 160k [4] 678k [6] N.A. State Bank of India 1,302k [2] 8,485k [1] 215k [2] Note: Data as on Dec 31, 2016 Page 5 of 7
DIGITAL BANKING continues investing significantly in new-age mediums and digital technologies to achieve a heightened customer engagement and experience. Some of the Bank s key digital initiatives revolutionizing payments ecosphere are as follows: is the first Bank to create UPI compliant mobile apps for large E-Commerce players using YES Bank s UPI SDK solution. Over 5 million YES Bank s UPI partnered Apps have been downloaded till date. partnered with PhonePe, a Flipkart Group company, to launch India s first UPI (Unified Payments Interface) based mobile payments app, in a move aimed at significantly disrupting the digital payments landscape across India. Jugnoo, hyperlocal startup, launched UPI enabled payment solution Jugnoo Pay in association with that currently allows Peer to Peer money transfer directly using users respective bank accounts with their mobile number as an identifier with the launch of SIMsePAY is providing mobile banking facilities on feature phone to over 6 lac customer through tie-up with 31 cooperative banks. The offering is based on a frugal sim-sleeve technology, in association with Taisys Technologies, who holds global patent for the same, and has implemented the same successfully in other countries including Kenya and China. is the first bank to implement Bots technology for Customer Acquisition, Cross Sell and Customer Servicing for various businesses. Chat Bots to be used for transactions, cross-sell and as personal banking assistants. implemented a multi-nodal Blockchain transaction to fully digitize vendor financing for Bajaj Electricals. has used the Hyperledger Fabric supported by IBM to design a vendor financing solution which allows Bajaj Electricals (anchor client) to digitize the process for discounting and disbursal of funds to its vendors by integrating seamlessly with s systems. has collaborated with FortyTwo42 Labs, a Global Cyber Security Research Lab setup in India (Vizag and Pune) and Israel (Tel Aviv), as a co-innovation partner for developing next generation Fintech and Cybersecurity Solutions. YES Bank launched YES MOBILE 2.0 mobile Banking app with multiple industry first features, and extensive support for Banking transactions on Apple and Android based SmartWatches. Over 4 million co-branded Virtual Cards issued on the MasterCard platform since launch in January 2016, the largest Virtual Prepaid Card program in the world. Over 47 million powered Freecharge Wallets issued since launch in September 2015 EXPANSION & KNOWLEDGE INITIATIVES Total headcount stands at 19,400 as at December 31, 2016, an increase of 869 employees in the quarter and 5,923 incremental employees since December 31 2015 has become the 1 st organization in India to introduce Gamification Round, a game based evaluation round, in addition to group discussions and interviews for hiring at premium B-Schools The Bank s branch network at 964 branches as on December 31, 2016, an addition of 14 branches in the quarter. Total ATM network stands at 1,757 as on December 31, 2016, of which 502 are Bunch Note Acceptors (BNA)/Recyclers raised ` 30 Billion through private placement of Basel III Compliant Additional Tier-1 (AT1) Bonds. The Bonds carry a coupon rate of 9.50% p.a. raised ` 3.3 Billion (approx USD 50 Million equivalent) from FMO, the Dutch Development Bank, through an issue of a 7-year Green Infrastructure Bonds, on a private placement basis. FMO invested in s bonds through FMO s own sustainable bonds. has launched a unique Customizable Savings Account that gives the customer, the POWER TO CHOOSE.. This unique offering enables the customer to create an account that suits his or her lifestyle and banking preferences, while choosing from a range of products and offerings Page 6 of 7
AWARDS & RECOGNITIONS has been recognized as the Best Mid-Sized Bank in the 21st edition of the Business Today - KPMG India s Best Banks study. This is the 8th year in a row, where has been awarded by Business Today in its annual Banking survey for growing robustly, embracing technology, innovating and reaching out to people at the bottom of the pyramid. YES School of Banking (the Learning & Development unit of ) has been awarded dual international certification in ISO 9001:2008 and ISO 29990:2010, making it the first Learning & Development function in the Indian banking sector to be recognized by this highest level of quality management system has won the Reuters Most Accurate Forecaster Award for 2016 for the Indian economy for providing most accurate predictions of economic indicators in Reuters Poll in January 2016 received the Commendation Certificate for Significant Achievement in Environment Management at the CII ITC Sustainability Awards 2016 for innovative approaches, including policy and practice, to reduce the Bank s environmental impact in December, 2016 was conferred the SKOCH Resilient India Award (Gold) for Innovative Methods of Training in Bancasurrance at the 48th SKOCH Summit in December, 2016 in New Delhi won the Good Corporate Citizen Award 2016 in the Banking and Financial Companies category by Bombay Chamber of Commerce and Industry for manifesting corporate social responsibility towards civic communities and operational excellence, and embedding social and economic dimensions of sustainability in programmes and practices in October, 2016 won the prestigious Golden Peacock Award for Sustainability, 2016, for its nature, scope, and effectiveness of social and economic dimension of sustainability programs and practices, at the Institute of Director s 16th London Global Convention on Corporate Governance and Sustainability held in London in December, 2016 was awarded Certificate of Appreciation in Environment Excellence at the 10th Environment Partnership Summit and Environment Excellence Award 2016 in Service Industry category by Indian Chamber of Commerce, Kolkata in December, 2016 s Sustainability Report was Highly Commended as Asia s Best Integrated Report at the Asia Sustainability Reporting Awards 2016 by CSR Works International, Singapore in November, 2016 Mr. Rana Kapoor, was felicitated as The Extraordinaire: Leadership Par Excellence at the Brand Vision Summit 2016 in Mumbai in December 2016 Mr. Rana Kapoor was felicitated with Banker of the Year for Excellence in Financial Inclusion at the Rural Summit 2016 organized by MART on December 8 in New Delhi. was also recognized for YES SIMsePAY a unique innovation in digital financial inclusion without Internet, based on a frugal sim-sleeve technology Mr. Rana Kapoor was conferred the LMA - Vardhman Award for Entrepreneur of the Year 2015 by Ludhiana Management Association in December, 2016 Mr. Rana Kapoor was conferred the NDIM Business Excellence and Innovative Best Practices Academia Award at the 24 th Founder s Day of New Delhi Institute of Management (NDIM) held in October, 2016 in New Delhi Regd. & Corporate Office: Nehru Centre, 9th Floor, Discovery of India, Dr. A. B. Road, Worli, Mumbai 400 018 Tel: + 91 22 6669 9000 Fax: + 91 22 2492 6464 Northern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021 Tel: + 91 11 6656 9000 Fax: +91 11 4168 0144 Website: www.yesbank.in Page 7 of 7