ING Vysya Bank — Investor Presentation (April 2012)
33 slides from ING Vysya Bank's investor presentation, April 2012
Slide 1: Corporate Presentation
Corporate Presentation April 2012 ING VYSYA BANK LIMITED
Slide 2: Presentation Path
Presentation Path Key Highlights Financial Performance Business Strategy Appendix ING VYSYA BANK LIMITED 2
Slide 3: ING Vysya Bank Limited (IVBL) - Key highlights
ING Vysya Bank Limited (IVBL) - Key highlights Banking franchise with ~8 decades of experience Strong pedigree of investors Diversified distribution with growing footprint Consistent improvement in operating metrics ING VYSYA BANK LIMITED 3
Slide 4: Key Performance Highlights – FY 2012
Key Performance Highlights – FY 2012 Net Profit up 43% to Rs. 4,563 million Net Profit has grown consistently, with this being the tenth quarter of sequential growth; with over 90% compounded growth since March 2006. NIM’s improved from 3.25% to 3.30% Cost income ratio improved from 61.8% to 59.1% O
Slide 5: Key Performance Highlights – Q4 2012
Key Performance Highlights – Q4 2012 Net Interest Income (NII) up 19% year on year to Rs.3,192 million Net Interest Margin was steady at 3.29% Cost income ratio improved from 67.4% to 57.3% Operating Profit up 54% year on year to Rs. 2203 million Net Profit up 39.5% year on year to Rs.1,274 million
Slide 6: Key Performance Metrics
Key Performance Metrics Q4 12 Q4 11 FY 11-12 FY 10-11 CASA Ratio 34.23% 34.64% 34.23% 34.64% Net Interest Margin 3.29% 3.30% 3.30% 3.25% Yield on Advances 11.81% 10.69% 11.53% 10.05% Cost of Deposits 7.27% 6.00% 6.99% 5.25% Other Income / Total Income 38.14% 38.85% 35.66% 39.42% Cost Income Ratio 57
Slide 7: Presentation Path
Presentation Path Key Highlights Financial Performance Business Strategy Appendix ING VYSYA BANK LIMITED 7
Slide 8: Consistent Improvement in Operating Metrics
Consistent Improvement in Operating Metrics Enhanced stakeholder value Return on Equity Return on Assets ROE improved to 12.73% (Mar-12) from ROA improved to 1.09% (Mar-12) from 0.90% (Mar-06) 0.05% (Mar-06) NIM Cost/Income ratio Fee based income NIM increased to 3.30% (Mar-12) Reduced to 59.11% (Ma
Slide 9: Deposit Trends
Deposit Trends Growth in Deposits (Rs Bn) Growth in CASA (Rs Bn) 400 Term Savings Current 125 34.2% 352 CASA (%) Large Inflows 5 350 Core CASA (INR Bn) 34.6% 302 100 300 32.6% 259 249 250 75 27.0% 231 31.5% 205 200 197 5 174 116 154 50 28.9% 105 150 133 182 140 27.0% 84 100 110 60 67 97 56 25 54 45
Slide 10: Advances Trends
Advances Trends Growth in Gross Advances (Rs Bn) Gross Advances Composition (Mar 12) 300 292 Composition YoY Growth QoQ Growth Wholesale Banking 42.5% 22.8% 9.1% 250 241 Business Banking (SME) 31.7% 35.8% 11.9% 200 188 169 ARB (Agriculture) 5.6% 4.4% 17.9% 147 Mortgages 16.1% 6.3% 1.4% 150 122 105 P
Slide 11: Operating Efficiency
Operating Efficiency Yield on Advances & Cost of Deposits Cost/Income Ratio Yield on advances % Cost of deposits % 14% 100% Cost to income ratio % Exceptional items % 11.48% 11.53% 83.4% 12% 10.49% 10.53% 10.05% 80% 72.4% 9.33% 68.0% 64.5% 10% 8.78% 61.8%1 3.3% 56.9% 59.1% 60% 1.5% 8% 1.2% 6% 6.99%
Slide 12: Income & Profit Performance
Income & Profit Performance Net Total Income (Rs Mn) Net Interest Income (Rs Mn) 14,000 3.8% Exceptional income Other income NII 20,000 18,781 NII NIM % 12,083 16,615 10,500 10,065 3.5% 14,501 15,000 8,298 11,973 307 6,698 6,550 7,000 6,496 3.30% 3.2% 10,000 9,170 3.25% 5,895 3.21% 7,313 4,984 6,172
Slide 13: Asset Quality
Asset Quality Gross NPA (Rs Mn) 7,000 5.0% Gross NPA Gross NPA % 6,000 5,572 5,532 5,629 4.09% 4.0% 5,000 4,000 2.55% 3.0% 4,286 3,132 2.96% 3,000 1.38% 2.0% 3,109 2.30% 2,000 1.86% 1.92% 2,032 1.0% 1,000 0 0.0% Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Net NPA (Rs Mn) 3,000 1.76% 2.0% Net NP
Slide 14: Returns to Stakeholders
Returns to Stakeholders Return On Assets Return On Equity 1.25% 1.09% 16% 12.73%* 0.89% 12.03% 11.81%* 1.00% 0.80% 12% 0.74% 12.83% 0.70% 8.34% 11.63% 0.75% 0.52% 8% 0.50% 4% 0.25% 0.90% 0.05% 0.00% 0% Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Slide 15: Presentation Path
Presentation Path Key Highlights Financial Performance Business Strategy Appendix ING VYSYA BANK LIMITED 15
Slide 16: Business Strategy – Grow ahead of Market with better asset quality
Business Strategy – Grow ahead of Market with better asset quality Retail: Focus primarily on growth in Business Banking/SME, Mortgages and selective focus on Gold Loans, Personal Loans and Commercial Vehicles Focused Asset Wholesale: Leverage ING Global relationships to service domestic clients, de
Slide 17: Enhancing Brand Awareness
Enhancing Brand Awareness ING VYSYA BANK LIMITED 17
Slide 18: Retail Asset Momentum
Retail Asset Momentum Retail Advances Evolution (Rs Bn) 175 Business Banking/SME Consumer Finance Others 166.9 2.11x 150 138.0 19.3 125 108.3 17.2 55.3 95.4 100 78.9 19.0 53.4 16.0 75 14.0 43.0 41.9 50 31.4 92.2 67.4 25 37.6 46.4 33.5 0 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 March 2008 Mar 2012 Others O
Slide 19: NTB Business Banking and Mortgages momentum
NTB Business Banking and Mortgages momentum Business Banking/SME Limits Sanctioned (Rs Bn) 3.20x 35 32.7 30 27.6 25 20 16.8 15 10.2 10 5 0 Mar-09 Mar-10 Mar-11 Mar-12 Mortgage Disbursal (Rs Bn) HL:LAP = HL:LAP = HL:LAP = 65:35 HL:LAP = 18 16 89:11 86:14 52:48 14 12 10 8 17.0 6 13.9 12.4 10.5 4 0.90x
Slide 20: Average Retail CASA Growth Momentum
Average Retail CASA Growth Momentum INR Bn Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2'12 Q3'12 Q4’12 Retail Bank CASA Average 65.80 69.20 73.95 77.60 77.81 84.25 83.82 82.83 84.75 CASA New to Bank for the Quarter 3.83 3.72 4.71 3.95 5.26 9.45 4.16 3.94 5.78 (NTB) Feet on Street (FOS) 1,848 1,896 2
Slide 21: Distribution of Branches
Distribution of Branches Geographical Distribution, No. of Branches #, % share 527 510 478 481 63 68 432 30% 32% 44 47 25% 26% 18% 33 89 101 74 77 43 177 180 178 179 179 Population wise Distribution, No. of Branches#, % share 82% 75% 74% 70% 68% 527 510 478 481 17% 179 180 179 179 179 88 91 432 87 8
Slide 22: Wholesale Bank Momentum – Increasing share of Large Corporates and Current Account growth
Wholesale Bank Momentum – Increasing share of Large Corporates and Current Account growth Assets Evolution (Rs Bn) 124.3 2.26x Large Corporates Emerging Corporates 100.6 37.5 (30%) 78.5 31.7 65.1 69.5 26.0 86.9 26.7 25.6 (46%) (70%) 38.4 43.9 52.6 69.0 (54%) Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Curren
Slide 23: Wholesale Bank Momentum
Wholesale Bank Momentum Revenue Momentum* Key Ratios Revenue Trend Fee Income Trend Fee % Cost/Income Ratio 80% 235 68.2% 250 64.5% 216 212 58.8% 199 60% 48.9% 45.8% 200 41.5% 182 196 40% 139 150 165 100 153 100 120 20% 17.9% 19.7% 15.3% 16.0% 13.2% 15.1% 50 0% Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar
Slide 24: Presentation Path
Presentation Path Key Highlights Financial Performance Business Strategy Appendix ING VYSYA BANK LIMITED 24
Slide 25: Banking Franchise with ~8 Decades of Experience
Banking Franchise with ~8 Decades of Experience • Incorporated in 1930, promoted by Vysya • Completed a QIP and a preferential allotment to community raise INR 9.69 Bn • ING Groep NV became the single largest 2011 • Crossed 500 branches and extension counters shareholder in ING Vysya Bank Limited (I
Slide 26: Quality Management Team
Quality Management Team MD & CEO Shailendra Bhandari • Experience in ING : 3 Years • Seasoned banker with 27 years of experience. • Former Managing Director and CEO of Centurion Bank of Punjab from 2004 until 2008 • Former MD and CEO of Prudential ICICI Asset Management from 2000 until 2004; part of
Slide 27: Strong Pedigree of Investors
Strong Pedigree of Investors • ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services • Customer base of ~80 million private, corporate and institutional customers spread across Europe, North and Latin America, Asia and Australia •
Slide 28: Network Distribution
Network Distribution J&K 1 Break-up of 985 Outlets Chandigarh HP 2 1 Particulars No. Branches* 527 Delhi Punjab Uttarkhand - EC’s 10 21 2 13 Assam Satellite Office 28 Haryana 1 5 Bihar ATMs 430 UP 2 21 Rajasthan 4 MP 3 Jharkhand 2 Gujarat 13 WB D&NH 15 1 Chattisgarh Maharashtra 4 Orrisa 48 7 Goa And
Slide 29: Balance Sheet
Balance Sheet Rs Mn CAGR FY 06- FY 11-12 FY 10-11 FY 09-10 FY 08-09 FY 07-08 FY 06-07 FY 05-06 12 (%) Capital and Reserves 39,798 26,243 23,309 17,029 15,357 11,033 10,197 25.5% Deposits 351,954 301,942 258,653 248,895 204,576 154,186 133,353 17.6% Borrowings 56,965 41,469 36,714 31,853 17,467 14,81
Slide 30: Profit & Loss
Profit & Loss Rs Mn CAGR FY 11-12 FY 10-11 FY 09-10 FY 08-09 FY 07-08 FY 06-07 FY 05-06 FY 06-12 Net Interest Income 12,083 10,065 8,298 6,496 4,984 4,456 4,063 20% Other Income 6,698 6,550 5,895 5,477 3,982 2,522 2,110 21% Total Income 18,781 16,615 14,193 11,973 8,966 6,978 6,172 20% Staff expense
Slide 31: Key Ratios
Key Ratios FY 11-12 FY 10-11 FY 09-10 FY 08-09 FY 07-08 FY 06-07 FY 05-06 Net Interest Margin 3.30% 3.25% 3.21% 2.84% 2.77% 2.79% 2.73% Yield on Advances 11.53% 10.05% 10.53% 11.48% 10.49% 9.33% 8.78% Cost of Deposits 6.99% 5.25% 5.33% 6.83% 6.28% 5.27% 4.87% Cost Income Ratio 59.11% 61.75% 55.73% 6
Slide 32: Disclaimer
Disclaimer Certain statements in these slides are forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of
Slide 33: ING VYSYA BANK LIMITED
ING VYSYA BANK ING &® ING VYSYA BANK LIMITED 33