hnb plc investor update€¦ · q3 2014 q4 2014 q1 2015 q2 2015 q3 2015 9 m 2014 9 m 2015 bank...
TRANSCRIPT
HNB PLC Investor Update
Financial Highlights – 9 M Group P&L (LKR Mn)
Sept 2015 Sept 2014 % Change
Net Interest Income 21,822.8 18,890.8 16%
Net Fee Income 4,023.0 3,332.3 21%
Other Income 5,009.6 5,105.7 (2%)
Total Income 30,855.4 27,328.8 13%
Impairment Charge (1,777.3) (2,564.2) (31%)
Operating Expenses (16,736.1) (14,284.8) 17%
VAT & NBT (2,052.5) (1,740.5) 18%
PBT 10,289.5 8,739.2 18%
Corporate Tax (3,004.8) (2,508.9) 20%
PAT attributable to Equity holders
6,982.0 6,166.8 13%
2
Financial Highlights – Group Balance Sheet (LKR Mn)
Sept 2015 Dec 2014 % Change
Total Assets 704,364.6 600,056.2 17%
Net Loans 469,731.8 401,062.7 17%
Liabilities 631,721.4 530,417.5 19%
Deposits 505,024.3 425,620.4 19%
3
Financial Highlights – Bank P&L and Balance Sheet
P & L 9 M 2015 9 M 2014 % Change
Net Interest Income 19,369.0 18,340.3 6%
Net Fee Income 4,151.4 3,602.5 15%
Other Income 1,866.8 1,979.6 (6%)
• Trading 791.0 (680.0) 216%
• Investment 217.0 1,093.0 (80%)
• Other Operating Income 858.8 1,566.6 (45%)
Impairment Charge (1,716.8) (2,564.2) (33%)
Operating Expenses (12,301.4) (11,449.9) 7%
PBT 9,503.6. 8,167.7 16%
Corporate Tax (2,674.1) (2,479.2) 8%
PAT 6,829.5 5,688.5 20%
4
Continuing pressure on margins
5
4.95%
5.22%
4.73% 4.82%
4.43%
5.03%
5.53%
5.12%
5.26%
4.92%
5.19%
4.63%
5.12% 5.05%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 9 M 2014 9 M 2015
Bank Group Bank Group
Interest movement in the last 4 months
6
6.25
6.75
7.25
7.75
8.25
8.75
9.25
9.75
July August September October
AWPLR
I Yr T Bill
5 year T Bond
Growth in Fee Income (LKR Mn)
Cumulative 2015 Cumulative 2014 % growth YoY
Net Fee Income 4,023.0 3,332.3 21%
Main fee drivers :
Trade Finance
Electronic Channels
Leasing
Guarantees
7
LKR Mn
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
Fee & Commission Income
0.5% Growth
4.2% Growth 11.1%
Growth
11.5% Growth
Containing increase in Operating Expenses
8
LKR Mn
-
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
4.2% 2.2% 1.4%
4.3%
1.7%
7.3% 3.5%
7.4%
-
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
16,000.0
18,000.0
20,000.0
9 M 2014 9 M 2015
Bank
Group
7.4%
LKR Mn 17.2%
Total Deposit Growth
9
LKR Mn
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
2011 2012 2013 2014 9m 2014 9m 2015
Low cost deposit base funding growth
10
CAGR 13%
LKR Mn
Other
Deposits
56%
CASA
44%
LKR CASA Mix
-
50,000.00
100,000.00
150,000.00
200,000.00
2011 2012 2013 2014 9 M 2014 9 M 2015
Foreign Funding
11
Landmark Agreement with the Asian Development Bank (ADB) to secure
USD 100 MN in 7 year Senior Debt in May 2015
USD 35 Mn 6 year Senior long term Loan in September from DEG Germany for SME funding
USD 50 Mn 5 year Senior Long Term Loan from PROPARCO based in France for SME and Agri funding purposes signed in November
A Total of USD 185 MN raised in 2015 through Foreign sources
Sound growth in advances
30.4% YOY growth in advances net of gold backed loans
12
LKR Mn
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
500,000.00
2011 2012 2013 2014 9 M 2014 9 M 2015
PFS
25%
SME &
Micro
28%
Corporate
47%
Segmental Distribution
13
3.71%
3.16%
3.65%
3.24%
2.98%
Q 3 2014 Q 4 2014 Q 1 2015 Q 2 2015 Q 3 2015
NPA Ratio
-
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
Q 3 2014 Q 4 2014 Q 1 2015 Q 2 2015 Q 3 2015
NPA Amount
Provision
NPA VS Provision
Asset Quality
LKR Mn
9M DuPont Analysis
14
9 M 2015 9 M 2014 9 M 2015 9 M 2014
Bank Group
NII/ Avg Assets 4.12% 4.58% 4.46% 4.60% Other Income / Avg Assets 1.28% 1.40% 1.85% 2.06%
Net Income/ Avg Assets 5.40% 5.98% 6.31% 6.66% Operating Cost/ Avg Assets -2.62% -2.86% -3.42% -3.48%
Provisions / Avg assets -0.37% -0.64% -0.36% -0.63%
Taxation/ Avg assets -0.97% -1.05% -1.03% -1.04%
Return on Avg Assets 1.45% 1.42% 1.43% 1.50%
Equity Multiplier 10.07 9.87 9.41 9.04
Return on Avg Equity 14.62% 14.03% 13.43% 13.59%
Shareholder Value Creation
12 Month Share Price
PE of 9.47x Industry PE 11.3x
PBV of 1.36x Industry PBV 1.5x
Total Shareholder Return continues to be well above ASPI growth which has been negative over the past 12 months
Voting – 10.7%
Non Voting – 23.1%
15
2014 2015
75
95
115
135
155
175
195
215
235
255
11/12/14 12/12/14 1/12/15 2/12/15 3/12/15 4/12/15 5/12/15 6/12/15 7/12/15 8/12/15 9/12/15 10/12/15
Voting
Non Voting
Key Achievements in 2015
Awarded as the ‘Best Retail Bank in Sri Lanka’ by the Asian Banker for the7th time.
ACCA Sustainability Reporting – Gold Award in the Banking Category.
HRM ‘Gold’ Award at the HRM Awards 2014 organized by the Association of Human Resource Professionals
The Golden Globe Tigers Awards – For Excellence & Leadership in Branding & Marketing (HNB MOMO).
16
Thank you
17