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INVESTOR PRESENTATION
Q2FY10 Update
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Key Financial Highlights Q2FY10 and H1FY10
Net Profit after Tax of Rs. 1,117.1 million in Q2FY10
compared to Rs. 636.2 million in Q2FY09 representing an
increase of 75.6%; Net Profit after Tax of Rs. 2,117.8 million in
H1FY10 compared to Rs. 1,179.5 million in H1FY09
representing an increase of 79.6%
Net Interest Income (NII) of Rs. 1,599.4 million in Q2FY10
compared to Rs. 1,225.9 million in Q2FY09 representing an
increase of 30.5%; NII of Rs. 3,236.7 million in H1FY10
compared to Rs. 2,355.5 million in H1FY09 representing an
increase of 37.4%
Q2FY10 and H1FY10 - Revenue and Profit growth
Rs. million Q2FY10 Q2FY09 % g H1FY10 H1FY09 % g
Net Interest Income 1,599 1,226 30.5% 3,237 2,355 37.4%
Non Interest Income 1,516 918 65.0% 2,968 1,857 59.8%
Total Net Income 3,115 2,144 45.3% 6,205 4,212 47.3%
Operating Expense 1,197 1,049 14.1% 2.309 1,980 16.6%
Operating Profit 1,918 1,095 75.2% 3,896 2,232 74.5%
Provisions & Contingencies 234 123 90.2% 689 431 59.9%
Provision for Tax 567 336 68.6% 1,089 622 74.9%
Net Profit after Tax 1,117 636 75.6% 2,118 1,179 79.6%
2
Total income (NII plus Non Interest Income) of Rs. 3,115.3
million in Q2FY10 compared to Rs. 2,144.3 million in Q2FY09
representing an increase of 45.3%; Total Income of Rs. 6,204
million in H1FY10 compared to Rs. 4,212.9 million in H1FY09
representing an increase of 47.3%
Operating Profit of Rs. 1,918.0 million in Q2FY10 compared
to Rs. 1,095.5 million in Q2FY09 representing an increase of
75.2%; Operating Profit of Rs. 3,896.0 million in H1FY10
compared to Rs. 2,232 million in H1FY09 representing an
increase of 74.5%
Robust growth in both NII and Non Interest Income; Q2FY10 PAT up by 75.6% y-o-y
Non Interest income to Total Income ratio of 48.7% in Q2FY10;47.8% in H1FY10
Cost to Income ratio of 38.4% in Q2FY10; 37.2% in H1FY10
Non Interest Income constitutes the following
Business Segment Q2FY10
Financial Markets 33%
Transaction Banking 23%
Financial Advisory 37%
3rd Party Distribution, Retail Fees and Others 7%
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Key Financial Highlights Q2FY10 and H1FY10
Advances at Rs. 162.9 billion as at Sep 30, 2009; Growth of 41.5%y-o-y
Gross yield on advances of 11.1% in Q2FY10; 12.7% in Q2FY09
Deposits at Rs. 193.7 billion as at Sep 30, 2009; Growth of 35.1% y-
o-y
Cost of funds of 7.2% in Q2FY10; 9.2% in Q2FY09
Net Interest Margin of 3.1% in Q2FY10; 2.9% in Q2FY09
H1FY10 - Balance sheet growth
Rs. million Sep 30, 2009 Sep 30 2008 % g
Advances 162,943 115,149 41.5%
Investments 69,814 51,452 35.7%
Total Assets 263,701 193,545 36.2%Shareholder's Funds 18,443 14,383 28.2%
Tier I + Tier II Capital 36,081 27,455 31.4%
Deposits 193,651 143,384 35.1%
3
. .
(annualized) in Q2FY09
Return on Equity of 25.0% in Q2FY10; 18.1% (annualized) inQ2FY09
Basel II Capital Adequacy Ratio of 17.3% at Sep 30, 2009 (Tier I at9.4%)
Total Capital Funds (Tier I + Tier II) of Rs. 36.1 billion as at Sep30, 2009 (Rs. 27.5 billion as at Sep 30, 2008)
Book value per share of Rs. 61.85 as at Sep 30, 2009
Basic EPS of Rs. 3.76 and Diluted EPS of Rs. 3.68 for Q2 FY10
Profitable Balance Sheet growth; Net NPAs of only 0.08%
Gross NPA at 0.31% to Gross Advances as at Sep 30,2009
Net NPA at 0.08% to Net Advances as at Sep 30, 2009
Total loan loss coverage ratio of 266.0%; Specific loanloss coverage ratio of 74.9% as at Sep 30, 2009
Bank restructured Rs. 450 million of loans (0.28% ofGross Advances as at Sep 30, 2009) during Q2FY10.
Total restructured advances of Rs. 1,559 million (0.96%of Gross Advances as at Sep 30, 2009)
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Key Business Highlights
Steady growth in Net Interest Income (NII)
Steady growth in NII on account of growth in Advances &Investments and improving margins
Advances grew by 41.5% y-o-y while Investments grew by35.7% y-o-y.
NIM for Q2FY10 increased to 3.1% from 2.9% in Q2FY09
Resilient Non Interest Income streams
Non Interest Income rew b 65.1% to Rs. 1,516 million in
INR million
2,000 Net Interest Income Non Interest IncomeINR million
-
50,000
100,000
150,000
200,000
Q2FY07 Q2FY08 Q2FY09 Q2FY10
Advances Non-Funded Trade Exposure
4
Q2FY10 (48.7% of Total Income) compared to Rs. 918.4 millionin Q2FY09 (42.8% of Total Income).
Non interest income streams like Financial Advisory,Transaction Banking, Financial Markets and Third partydistribution, retail fees & others continued the upward trendshowing impressive improvements y-o-y.
Financial advisory income in particular for Q2FY10 grew byover 100% as compared to Q2FY09
Superior Shareholders returns
Amongst the highest RoE (25.0% annualized) and RoA (1.86%annualized) in the banking industry during Q2FY10
Consistently generating superior shareholder returns - RoE of more than 20% for 4th consecutive quarter
-
500
1,000
,
Q2FY07 Q2FY08 Q2FY09 Q2FY10
-
500
1,000
1,500
2,000
2,500
Q2FY07 Q2FY08 Q2FY09 Q2FY10
Operating Profit Net Profit
INR million
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Key Business Highlights
Capital Funds
CRAR of 17.3% and Tier I of 9.4% as at Sep 30, 2009
Total Capital Funds stand at Rs. 36.1 billion as at Sep 30, 2009 (Rs. 27.5 billion as at Sep 30, 2008)
Healthy Asset Profile
Gross NPA as a proportion of Gross advances reduced by 17 bpsq-o-q to 0.31% (0.48% in Q1FY10) while Net Non PerformingAssets as a proportion of Net advances reduced by 16 bps q-o-q
INR million
1400
Specific Provision General Loan Loss Provision Gross NPA
5
Efficient processes and risk management procedures in place thus ensuring a high quality asset profile
. . , . .
respectively as at Sep 31, 2008).
Adequate credit provisioning buffer; specific provision stands atRs. 375 million (75% of Gross NPA) while Total Loan LossProvision (Specific Provision + General Loan Loss Provision)stands at Rs. 1,331 million (266% of Gross NPA)
Bank restructured Rs. 450 million of advances (0.28% of Gross
Advances) during the quarter. Total restructured advances wereRs. 1,559 million (0.96% of Gross Advances) as at Sep 30, 2009.
Efficient Cost Control
Continued management focus on cost control resulted in Cost to Income ratio of 38.4% in Q2FY10 compared to 48.9% inQ2FY09; amongst the lowest in the Banking industry.
0
200
400
600
800
1000
1200
Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10
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Knowledge Driven Banking
Focus on Growth sectors
Knowledge based approach to lending; Food and
Agribusiness, Engineering, Infrastructure &
Logistics, TMT (Technology, Media & Telecom)
and Lifesciences & Chemicals constitute more than79% of total advances as at Sep 30, 2009
Food andAgribusiness;
18%
Infrastructure& Logistics;
16%
Engineering;Lifesciences
& Chemicals;
TMT; 18%
Others; 21%
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Knowledge driven banking approach ensures a well diversified, highly resilient and a healthy portfolio mix
Advances predicated on Large and Mid Corporates
More than 95% of non-Priority Sector Lending
(non-PSL) towards large (Wholesale Banking) and
mid (Commercial Banking) sized Corporate clients
Fully collateralized SME portfolio constitutes 4.3%of non-PSL advances as at June 30, 2009
Insignificant exposure to Retail AssetsCorporate
andInstitutional
Banking;72.3%
CommercialBanking;
23.2%
BranchBanking;
4.5%
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Well-diversified Liability Franchise
Diversified, granular & sticky liabilities mix from
multiple sources
Steady growth in number of liability accounts (from both
retail and corporate segments); total deposits grew by35.1% y-o-y to Rs. 193.7 billion in Q2FY10
Continuous management focus on increasing CASA
(9.6% of total deposits as on Sep 30, 2009) through
increased branch enetration and cash mana ement
CASA; 9.6% FD - BranchBanking;
13.6%
FD -Corporate
andInstitutional
FD -Commercial
FD - GovtBacked
Institutions;10.1%
Certificate ofDeposits;
18.2%
InstitutionalDeposits;
10.7%
7
products; CASA grew by 43.4% y-o-y to Rs. 18.5 billionin Q2FY10
Number of operational branches stands at 126 across 100
locations as at Sep 30, 2009
Floats from multiple banking relationships across allthree business segments
Cost of funding reduced to 7.2% in Q2FY10 as compared
to 9.2% in Q2FY09
Granular and Relationship driven deposits continue to the bedrock of our Business Strategy
Number of Liability Accounts
Banking;
32.2%
Banking;
5.6%
60000
80000
100000
120000140000
160000
180000
200000
Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10
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KNOWLEDGE CAPITAL
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A Differentiated Approach to Banking
Knowledge Banking
Focuses on the sunrise sectors of the Indian economy
Institutionalized a Development & Knowledge Bankingdivision
Provides industry specific financial solutions which facilitate superior
structuring and tailored financial solutions
One Bank approach ensuring superior cross sell of productsMoney Doctor approach of diagnostic & prescriptive product
structuring
Thought leadership initiatives across emerging sectors Food &
Agribusiness, Infrastructure, IT, Lifesciences among others
Quarterly Update YES BANK launched a customized online solution
9
for the Travel and Tourism sector at the 58th Annual Congress
organized by the Travel Agents Association of India (TAAI) in Dubai.
YES BANK was the Sole Banking Partner to the TAAI convention.
Responsible Banking
Principles of Corporate Social Responsibility and Sustainability
integrated as a key business driver
Triple Bottom Line approach of People, Planet, ProfitQuarterly Update - YES BANK partnered the 20th South Asian
International Fundraising Workshop (SAFRG) organized by the South
Asian Fund Raising Group (SAFRG) from August 8-11, 2009 in Jaipur.
YES BANK partnered Save The Children to support ARAAISH, a
fundraising event for the empowerment of underprivileged children.
Only Bank to receive the Emerging Markets Sustainable Bank of the Year award at the FT/IFC SustainableBanking Awards
Economic principles
Sustainability Zone i.e.combined economic,
environmental, social benefit
Social investments
Pure philanthropy
Pu
re
profit
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RELATIONSHIP CAPITAL
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Corporate and Commercial Banking
Customer Segmentation
Large Corporates with more than INR 10 billionturnover, Government companies and PSUs,
Financial Institutions and Banks, selectmultinational corporations
Typical exposure in the range of INR 300-1000 mn
Business Highlights
Customer Segmentation
Emerging mid-Corporates of India withturnover between INR 1.0 billion and INR 10billion
Typical exposure in the range INR 50-300 mn
Business Highlights
Suite of lain vanilla and structured solutions
Corporate and Institutional Banking Commercial Banking
11
uite o structure an vani a so utions inc u ing
working capital finance, transaction banking,treasury products, corporate finance & investmentbanking
Advances at INR 97.9 billion as at Sep 30, 2009comprising 72.3% of non-PSL advances
Business Strategy
Capitalize on current market conditions toimprove penetration in large and reputed businesshouses to move up the value chain and increasecross-sell
Build long term, comprehensive relationships forthese marquee Corporates
One Bank approach thereby offering complete suite of products to Wholesale and Commercial Banking clients
including working capital finance, transaction
banking, treasury and selective structuredfinance
Advances at INR 31.4 billion as at Sep 30, 2009comprising 23.2% of non-PSL advances
Business Strategy
Selectively identify emerging sectors &companies for long term institutionalization ofrelationship capital by leveraging knowledgebanking approach
Become a privileged growth partner for theselarge Corporates of tomorrow
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Branch Banking (Business Banking and Retail)
Customer Segmentation
Small and Medium Enterprises (SMEs) with
turnover less than INR 1.0 billion (with a focuson the INR 0.5 1.0 billion range)
Focus on supply chain partners of largerCorporates
Typical exposure in the range INR 20-100 mn
Customer Segmentation
Small businesses near branch areas
Focus on affluent and mass affluent Retailcustomers
Focus in leveraging Corporate relationships forsalary accounts
Business Banking (SME) Retail Banking (Includes Small Businesses)
12
Branch Banking to be a key value driver for the next level growth of the bank
Business Highlights
Product suite comprises fully secured,collateralized working capital credit in tandemwith liability products like Cash managementservices and payment solutions
Advances at INR 5.9 billion as at Sep 30, 2009comprising 4.3% of non-PSL advances
Business Highlights
43.4% y-o-y growth in CASA in Q2FY10
285% y-o-y growth in the total ATMtransactions (Sep 30 2009)
43% of the Banks Savings Account Customershave Net Banking Account (Industry average isonly 15%)
Business Strategy
Focus on liabilities generation and transactional products
Service and Technology to be key differentiators for the Bank
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PRODUCT CAPITAL
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Transaction Banking
Payments Bank of India
Significant investment made in this gestationary business
since the inception of the Bank
Catering to Corporates, Domestic & InternationalFinancial Institutions
Focus on creating financial efficiencies through
Number of Transactions
0
200
400
600
800
1000
Q2FY07 Q2FY08 Q2FY09 Q2FY10
LC BG BC
14
YES BANK won the Financial Insights Innovation Award (FIIA) for the Most Innovative e- PaymentsSolution in Asia for two consecutive years, FY08 and FY09
Pioneering Direct Banking Channel Innovations to createe-Financial Supply Chain Solutions
Operating A/C banker to top Corporates
Collections/payments mandates from leading Corporates
Business grew by 25% y-o-y during the quarter
Income from Transaction Banking
-50
100150200250300350400
Q2FY07 Q2FY08 Q2FY09 Q2FY10
INR million
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Financial Markets
Product suite comprise Fixed income sales, Debt Capital Markets(DCM), Fixed income trading and Balance Sheet Management
Array of products right from vanilla FX spot/forward tostructured currency/interest rate swaps/fixed income productsand risk solutions
Focus on Wholesale and Commercial Banking clients; noexposure to SME clients
Superior relationships with domestic business houses and reachinto AAA issuers and emer in mid sized Cor orates for the
DCM Deals for the Quarter
Sole Arranger
INR 2 bn of5 Year Bond Issue
2009
Sole Arranger
INR 250 mn3 year Bond Issue
2009
RuralElectrification
Corp.
Joint Arranger
INR 23 bn of 3/10year Bond Issue
2009
15
DCM desk
State of the art technology platform Murex; pricing andstructuring capability at par with the best in the industry
Dedicated Research Economic Knowledge desk Fundamentaland technical analysis and Macro Economic Analysis
Financial Advisors rather than just product & Service providers
Late night desk to cater to client deals in US time zone
Consistently ranked among the 10 by Thomson Reuters in the Indian Rupee Bond League Tables
Income from Financial Markets
-
100200
300
400
500
600
Q2FY07 Q2FY08 Q2FY09 Q2FY10
INR million
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Financial Advisory
Structured solutions to meet specialized clientrequirements
Knowledge & product expertise in infrastructure, realestate, financial restructurings, acquisitions & leveragedfinance
InfrastructureBanking
Structured &Project Finance
Project Advisory &Syndication
Select Transactions for the quarter
YES BANK was the Exclusive Strategic andFinancial Advisor divestment of 100% equityownership in Super Wind Project PrivateLimited, a company owning and operating 45MW of wind turbines, to Techno ElectricEngineering Company Limited.
YES BANK was the Advisor to AsmithaMicrofin Limited, amongst the top five micro
Corporate Finance
RealtyBanking
16
Comprehensive role from pre-zero date advisory, taking
meaningful exposure and syndication of balancerequirements
Strong expertise in Financial Advisory practice demonstrated by a 135 % y-o-y increase in revenues
Investment Banking
,
its second round of equity infusion byBlueOrchard Private Equity Fund
Private Equity
Syndication
M&A
Advisory
Healthy transaction origination (both inbound &outbound)
Successfully executed over 100 PE and M&A dealsduring the last 5 years
Consistently ranked amongst the top 10 in cross-borderoutbound M&A Indian league tables by Bloomberg
0
100
200
300400
500
600
Q2FY07 Q2FY08 Q2FY09 Q2FY10
INR million
Income from Financial Advisory
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Name Designation Previous Assignment
Rana Kapoor Founder/ Managing Director & CEO Managing Partner / CEO & Managing Director - Rabo India, Bank of America(16 years)
Rajat Monga Group President Financial Markets & Chief Financial Officer Head of Treasury - Rabo India
Sunil Gulati Group President Corporate and Institutional Banking Managing Director - GE Commercial Finance
Varun Tuli Group President Branch Banking Executive Director and Country Head - Avigo Capital Partners/ Bank of America
Sumit Gupta President Commercial Banking Associate Director & Head (North) - Rabo India
Arun Agrawal President & Global Head International Banking General Manager ICRA
Surendra Jalan President Indian Financial Institutions AGM, Corporate Banking - ICICI Bank
Suhail Kazmi President Insurance and Wealth Management Retail Head, West and South India - ABN Amro Bank
Somak Ghosh Grou President Cor orate Finance and Develo ment Bankin Director Pro ect Advisor & Infrastructure M mt - Rabo India
Execution focused Human Capital
17
Suresh Sethi Group President Transaction Banking Group, InternationalBanking, Liabilities & Investment Mgt. Global Transaction Services Head - Caribbean, Central & Latin America, Citibank N.A.
Aditya Sanghi President & Sr. Managing Director Investment Banking Executive Director, Head of Mergers & Acquisitions - Rabo India
Kavita Venugopal Group President and Chief Risk Officer Executive Director, Investment Banking, Kotak Mahindra Capital Company
Deodutta Kurane President Human Capital Head of HR - Bajaj Allianz Life Insurance
Alok Rastogi President & Chief Operating Officer Citibank N.A.
Devamalya Dey President Audit & Compliance Vice President , Audit & Risk Review - Citigroup
Anindya Datta Chief Marketing Officer Manager, Markets KPMG
Umesh Jain President & Chief Information Officer Citigroup IT Operations & Solutions ( CITOS)
Awarded the Qimpro Best Prax Compass Award for Innovative Practices in Customer Service Channels
Top management team drawn from top private sector and foreign banks in India and abroad
Rana Kapoor was adjudged the Start up Entrepreneur of the Year at the E&Y Entrepreneur Awards 2005 & received the PHDCCI DistinguishedEntrepreneurship Award 2007 at the PHDCCI Awards for Excellence 2007
Stock purchase / option plans enable senior management and employees to own substantial capital of the Bank at all times
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Capital Structure
Successful entrepreneurial track record at Rabobank India
Held leadership positions at Bank of America(16 years),ANZ Grindlays(2.5 years)
Promoter
Promoter;31.3%
EmployeesFDI; 18.3%
NRIs; 0.5%
Others;11.1%
Pedigree domestic and foreign investors in Banks HybridTier I and Tier II capital (LIC, Public Sector Banks,
Rabobank)
YES BANK successfully raised INR 260 crore ofsubordinated Lower Tier II debt through privateplacement issue to marquee investors like LIC, IFCIand GIC. The bonds have a maturity of 127 months
Hybrid Tier I / Tier II Investors
Shareholding
18
Key Shareholders (> 1%)(*)
Rabobank 18.12%Orient Global 4.93%
HSBC Financial Services 4.88%
Khazanah Nasional 4.69%
Templeton MF 4.28%
New Vernon 1.62%
.
MutualFunds;8.7%
FII; 29.2%
.
YES BANK successfully entered into an agreementwith PROPARCO to raise USD 20 million (Rs. 93crore) Upper Tier II debt. YES BANK is the firstIndian Bank to raise capital from PROPARCO, theprivate sector investment arm of Agence Franaisede Dveloppement (AFD), the leading Frenchmultilateral development finance agency. Theinstrument has a maturity of 15 years with a calloption with YES BANK at the end of 10 years fromthe date of subscription.
* As on Sep 30 2009
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No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only
current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be
forward looking statements, including those relating to the Companys general business plans and strategy, its future financial
condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actualresults may differ materially from these forward-looking statements due to a number of factors, including future changes or
developments in the Companys business, its competitive environment and political, economic, legal and social conditions in India.
This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of
any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the
Important Notice
19
Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment
whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation
to notify any person of such revision or changes. This presentation can not be copied and/or disseminated in any manner.
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THANK YOU
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