Q1 FY19 Investor Update - LIC Housing Finance Update Q1FY19.pdf · 3 Q1 FY19 PAT at Rs 567.94 cr as...
Transcript of Q1 FY19 Investor Update - LIC Housing Finance Update Q1FY19.pdf · 3 Q1 FY19 PAT at Rs 567.94 cr as...
Q1 FY19 Investor Update
1989
1994
2002
2004
2009
2011
2012
2013
Incorporated
IPO
AAA Rating
GDR Issue
Crossed Rs. 500 crs profit
Crossed Rs. 50,000 Cr loan portfolio
• Best HFC by CNBC TV 18
• Construction Industry Award
•Crossed Rs. 1000 cr profit &
Rs 75,000 Cr assets
20152014
• Best HFC by
ABP News
•Crosses Rs 1
lakh cr in portfolio
•Best Housing
Finance Co. by
BFSI Awards
• Best data quality
in HFC
by CIBIL
LICHFL: A Journey of 29 Years…
•Business Today-
Best CEO Award
• Business World -
Most Respected Co
Award
•Outlook Money-Best
HFC
•Best HFC by ABP
News
•Best Data Quality by
CIBIL
•Asia Pacific
Entrepreneurship
Award
•Power Brands
Awards by Franchise
India
2016
2017
•Crosses 150,000 cr in assets
•Outlook Money-Best HFC
•Business Today BFSI Best
CEO
•NSE for highest Debt
Issuance
2
3
Q1 FY19 PAT at Rs 567.94 cr as against Rs 479.65 cr up 18 %
Q1 FY19 Revenue from operations up by 11% to Rs 4019 cr
Outstanding Loan portfolio up by 15% to Rs. 168652cr
Individual Loan Portfolio up by 13% to Rs.160266 cr
Q1FY19 Disbursements Rs. 9594 cr against Rs. 8699cr a growth of 10%
Individual Loan Disbursements Rs.8704 cr against Rs.8286 cr
Net Interest Income Rs . 980.03 cr up by 6.60%
Net Interest Margins 2.34 % for Q1 FY19 as against 2.52 % for Q1FY18
Gross NPAs at 1.21% as against 0.72% as on 30.6.2017
Individual Loans Gross NPAs at 0.81%
Executive Summary – Q1/FY19
4
Disbursement (Rs. Cr) CAGR 18%
Profit After Tax (Rs. cr) CAGR 11%Income (Rs. cr) CAGR 13%
Loan Portfolio (Rs.cr) CAGR 16%
Update – last 5 years
2527130327
3615141541
49378
0
10000
20000
30000
40000
50000
2014 2015 2016 2017 2018
91341108361
125173144534
0
25000
50000
75000
100000
125000
150000
2014 2015 2016 2017 2018
933510799
12485 14080
0
5000
10000
15000
2014 2015 2016 2017 2018
1317 13861661 1931 1990
0
500
1000
1500
2000
2500
2014 2015 2015 2017 2018
166363
15073
5
Gross & Net NPAs
Operating Expense to Total Income
Total Provisions* (Rs cr)
Profit per employee (Rs. lacs)
* Provisions Including Provisions on Std. Assets
Update – last 5 years
0.67%
0.46% 0.45%0.43%
0.78%
0.39%
0.22% 0.22%0.14%
0.43%
0%
1%
2014 2015 2016 2017 2018
Gross
Net 707 704820
10381249
0
250
500
750
1000
1250
1500
2014 2014 2016 2017 2018
87.00 87.2996.23 105.34 94.62
0.00
50.00
100.00
2014 2015 2016 2017 2018
3.35% 3.46% 3.75%4.34% 4.30%
0%
5%
2014 2015 2016 2017 2018
6
EPS (Rs) (Rs 2/- pd up)
Return on Avg Equity
Book Value (Rs)(Rs 2/- pd up)
Return on Avg Loan Assets
Update – last 5 years
26.10 27.47 32.9138.26 39.42
0
10
20
30
40
50
2014 2015 2016 2017 2018
149.00 154.94 181.25219.49
251.49
0
100
200
300
2014 2015 2016 2017 2018
1.56% 1.39% 1.44% 1.43%1.30%
0%
1%
2%
2014 2015 2016 2017 2018
19.00% 18.00%20.00% 19.00%
17.00%
0%
10%
20%
2014 2015 2016 2017 2018
24 New Marketing Offices opened in FY 2019
• 9 Regional Offices
• 23 Back Offices
• 273 Marketing Offices
• Rep offices in Dubai & Kuwait
• Coverage of more than 450 centres
• 2068 Employees
Back offices
Operating offices
Regional offices
Corporate office
Nagercoil
ThiruvananthapuramKottayam
Ernakulam
Kozhikode
Thrissur
Tirumangalam
Madurai
Thanjavur
Pondicherry
Tiruchirapalli
Coimbatore
Salem
Vellore
ChennaiHosurMysore
Mangalore
Bengaluru
Panjim
Vashi
Mumbai
NelloreHubliTirupati
Bellary
Anantapur
Kurnool
Guntur
Kakinada
Vijayawada
Hyderabad Rajahmundry
Visakapatnam
Warangal
Bhubaneshwar
Kolkata
Silchar
Guwahati
Siliguri
Gangtok
Patna
ShimlaJalandharAmritsar
LudhianaChandigarh
Dehradun
HaldwaniKarnal
Bareilly
Ghaziabad
New Delhi
AgraLucknow
Kanpur
JaipurAjmer
Gwalior
Bikaner
Jodhpur
Rajkot
Udaipur
Ahmedabad
Vadodara Indore
Bhopal
Allahabad
Jabalpur
Varanasi
Ranchi
Jamshedpur
RourkelaBilaspur
RaipurNagpurJalgaonSurat
Vapi
AurangabadNasik
Kalyan
ThaneJogeshwari
Pune
Kolhapur
Belgaum
Gulburga
Nallasopara
Kota
Hassan
Erode
Kannur
Kollam
Palghat
Gandhidham
Satara
Durg-Bhilai
Gorakhpur
Meerut
Behrampur
Cuttack
Dhanbad
Durgapur
Jorhat
Malda
GurgaonFaridabad
Noida
AmbalaBhatinda
HisarPatiala
Large geographic presence
Year No of
Marketing
Offices
No of Back
offices
No of
Regional
Offices
No of
Employees
Lon
Portfolio
Rs cr
2003 105 - 6 870 7772
2008 125 14 6 985 21936
2013 194 16 7 1446 77812
2018 249 23 9 2103 166363
Widening footprint…improved efficiencies
7
HOME LOAN AGENTS (HLAs)
(Agents of LIC)
DIRECT SALES AGENTS (DSAs)
(Small Firms/Companies etc)
CUSTOMER RELATIONS
ASSOCIATES (CRAs)
(Individual Agents of the Company)
273Marketing Offices
49 branches of
LICHFL Financial Services(100% subsidiary of LICHFL)
Distribution Network
Total No of Agents > :
growth of 12% y-o-y
8
87%
13%
Customer Type
Salaried Self Employed
65%
17%
7%5%
6%
Originations by source
HLA DSA CRA DIRECT LICHFLFSL
46%85
Offices
54%188
Offices
Top 7 cities & Others
Top 7 cities Others
9
Origination Pattern &
Average Ticket Size
₹ 18.0
₹ 19.0
₹ 20.0
₹ 21.0
₹ 22.0
₹ 23.0
₹ 24.0
Q1 FY18 Q1 FY19
Incremental Ticket Size(Rs. lacs)
10
Loan Book Composition
30.6.201730.06.2018
Retail Home Loans
79%
Retail LAP/ LRD/etc
16%
Developer Loans
5%
O/s Portfolio Rs.168652 cr O/s Portfolio Rs. 147051 cr
11
Installment to Net Income RatioOn Incremental Sanctions
For FY 16 33.25%
For FY17 32.12%
For FY18 31.00%
For Q1FY19 31.71%
Loan To Value RatioOn Incremental Sanctions
For FY 16 47%
For FY17 45%
For FY18 44%
For Q1FY19 46%
Pure Floating Rate LoansTo Outstanding Portfolio
As of FY 16 47%
As of FY17 70%
As of FY18 74%
As of Q1FY19 83%
PrepaymentLump Sum/ opening book
For FY 16 11.9%
For FY17 10.9%
For FY18 11.0%
For Q1FY19 10.7%
Individual Loans – Portfolio Stats
12
Housing Finance regulator National Housing Bank has directed HFC’s to
comply with provisions of IND AS as notified by the Ministry of Corporate
Affairs(MCA) with effect from April 1, 2018.
In line with the above directions, results of Q1 FY 18-19 of LICHFL are
prepared and published complying with IND AS provisions. Additionally
figures of Q1 FY 17-18 have been restated as per IND AS.
IND AS Transition
13
Key Impacts due to IND AS
Existing Indian GAAP IND AS
Effective Interest rate Loan Processing fees are
recognized upfront in P&L
and Cost related to Loans
are debited in P&L .
Under IND AS these fees
will be amortized over the
life of the loan using
Effective Interest Rate
method.
Asset Classification &
Provisioning
Rule-based, incurred loss
model
Expected Credit Loss
(ECL) model based on
expected future credit
losses
Interest Income on NPA The RBI guidelines require
interest income on NPA to
be recognized on
realization basis.
Under IND AS 109,
interest income is
generally recognized
depending on the stage in
which the loan is.
Investment in Mutual
Fund, G-Secs. & Debt
Securities
Accounted at cost and
provision for diminution
charged to P&L
Accounted at fair value
through P&L
14
Executive Summary-Q1/FY19
Var Q1FY19 Q1FY18
Interest Income on Individual Loans 8.15% 3722.76 3442.24
Interest Income on Project Loans 60.94% 282.20 175.35
Total 10.71% 4004.96 3617.59
Other Income 49.60% 32.00 21.39
Gross Income 11.03% 4050.95 3648.24
Interest Expenses 12.11% 3024.93 2698.22
Net Interest Income 6.60% 980.03 919.37
Salary & Other Establishment Exp. (16.59%) 74.24 89.01
Provisions for Expected Credit Loss (21.18%) 160.75 203.97
Profit before Tax 20.44% 788.40 654.59
Income Tax Provision including Deferred Tax 26.02% 220.46 174.94
Net Profit 18.41% 567.94 479.65
Executive Summary-Q1/FY19
Var Q1FY19 Q1FY18
Disbursements 10% 9594 8699
Outstanding Portfolio
Individual 13% 160265 141440
Project 49% 8387 5611
Total 15% 168652 147051
Net Interest Margins(%) 2.34% 2.52%
Borrowings during the Qtr. (Rs. Cr.) 47% 20011 13620
Weighted average cost of funds 8.29% 8.50%
Yield on advances annualised 10.19% 10.58%
Spreads 1.90% 2.08%
16
PAT Reconciliation
Particulars Q1 FY18
(INR Crore)
Net Profit as per IGAAP 470.06
Add / (Less) : Adjustments as per IND AS on account of:
Adjustment on account of Effective Interest Rate (EIR) on financial assets and
liabilities recognized at amortized cost /net interest on credit impaired loans
23.14
Adjustment on account of Expected Credit Loss(ECL) (65.07)
Reversal of Deferred Tax liability (DTL) on 36(1)(viii) for the quarter 51.37
Other Adjustments 0.15
Net Profit after Tax as per IND As 479.65
Other Comprehensive Income (Net of Tax) (0.47)
Total Comprehensive Income (Net of Tax as per Ind AS) 479.18
17
Q1 FY2019 Q1FY 2018
Return on Average Equity (%) 18% 17%
Return on Average Assets (%) 1.4% 1.3%
Earnings per share (on Rs 2 pd up) 11.25 9.50
Capital Adequacy Ratio
Tier I
Tier II
Total
March 2018
13.06
2.43
15.49
March 2017
13.35
2.29
15.64
Financial Highlights
18
Outstanding Borrowings – Rs.147735 cr
Source Wtd
Avg
Cost
(%)
Banks 8.25%
Non Convertible Debenture 8.37%
National Housing Bank 8.13%
Sub. Bonds & Upper Tier II 9.18%
Commercial Paper 7.53%
Deposits 7.90%
Total 8.29%
as on 30.6.2018
Liability Profile
During Q1FY19, Borrowings were Rs. 20011 cr @ 7.89%
Bank & Others11.5%
NCD74.25%
SUB DEBT & UPPER TIER II
1.70%
Deposits4.70%
NHB1.25% CP
6.60%
19
Change in Liability Mix- last 5 yrs
Wtd. Avg. cost
of Funds
Bank funding has
reduced from
32% in FY12 to
25% in FY14.
Retail Deposits
increased to 2.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 FY19 FY18 FY17 FY16 FY15
Others
Deposit
NHB
Bank
NCD
8.29% 8.31% 8.59% 9.14% 9.48%
20
Yield & Cost of Funds on portfolio
Q1 FY18 Q1 FY19
Yield on Advances onPortfolio
10.58% 10.19%
Wtd Avg cost of funds onTotal Borrowed Funds
8.50% 8.29%
NIMs 2.52% 2.34%
10.58%10.19%
8.50% 8.29%
2.52%
2.34%
2.00%
2.10%
2.20%
2.30%
2.40%
2.50%
2.60%
2.70%
2.80%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
21
NIMs
2.19%
2.41%
2.61%
2.52%
2.34%
2.00%
2.50%
3.00%
Q1
FY
15
Q1
FY
16
Q1
FY
17
Q1
FY
18
Q1
FY
19
22
Classification of Assets
Exposure At Default % June-18 June-17Stage 1 94.96% 95.69%Stage 2 3.83% 3.59%Stage 3 1.21% 0.72%
Total 100% 100%
ECL Provision June-18 June-17Stage 1 Rs. 189.92 cr Rs. 142.67 crStage 2 Rs. 73.99 cr Rs. 78.15 crStage 3 Rs. 652.43 cr Rs. 493.69 cr
23
DISCLAIMER
This presentation is made purely for information. We have attempted to provide relevantinformation which we believe will help in knowing the Company. The users may use their ownjudgment and are advised to make their own calculations before deciding on any matter basedon the information given herein.
While every care is taken to verify the accuracy of the information given in this presentation,neither the Company nor its officials would in any way be liable for any action taken or nottaken by the viewers or the users of this presentation or for any claims, losses etc.
Thank you