YES BANK RESULTS UPDATE (Q4FY16 & FY16)

April 27, 2016

YES BANK – RESULTS UPDATE (Q4FY16 AND FY16) KEY FINANCIAL HIGHLIGHTS Income Statement Highlights for Fourth Quarter ended March 31, 2016 (Q4FY16) 

PAT of ` 7,021 million compared to ` 5,510 million in Q4FY15 representing an increase of 27.4%



NII of ` 12,414 million compared to ` 9,771 million in Q4FY15 representing an increase of 27.1%



Non Interest Income of ` 8,028 million compared to ` 5,904 million in Q4FY15 representing an increase of 36.0%



Total Net Income (NII and Non Interest Income) of ` 20,442 million compared to ` 15,675 million in Q4FY15 representing an increase of 30.4%



Non Interest Income to Total Net Income ratio of 39.3%



Cost to Income ratio of 40.1%



Yield on advances of 11.2%



Cost of funds of 7.0%



Net Interest Margin (NIM) of 3.4%



Return on Average Assets of 1.8% (annualized)



Return on Equity of 21.1% (annualized)



Basic EPS of ` 16.7 and Diluted EPS of ` 16.4 (not annualized)

Income Statement Highlights for Year ended March 31, 2016 (FY16) 

PAT of ` 25,394 million compared to ` 20,054 million in FY15 representing an increase of 26.6%



NII of ` 45,667 million compared to ` 34,878 million in FY15 representing an increase of 30.9%



Non Interest Income at ` 27,121 million compared to ` 20,465 million in FY15 representing an increase of 32.5%



Total Net Income of ` 72,789 million compared to `55,343 million in FY15 representing an increase of 31.5%



Non Interest Income to Total Net Income ratio of 37.3%



Cost to Income ratio of 40.9%



Yield on advances of 11.5%



Cost of funds of 7.2%



Net Interest Margin (NIM) of 3.4%



Return on Average Assets of 1.7%



Return on Equity of 19.9%



Basic EPS of ` 60.6 and Diluted EPS of ` 59.3



Dividend of ` 10 per share (100%) recommended by Management & Board (subject to shareholders’ approval)

Balance Sheet Highlights as at March 31, 2016 

Advances at ` 982.1 billion; growth of 30.0% y-o-y



Deposits at ` 1,117.2 billion; growth of 22.5% y-o-y; CD ratio stands at 87.9%



CASA at ` 313.4 billion; growth of 48.7% y-o-y; CASA ratio of 28.1%; SA deposits at ` 204.2 bn; growth of 62.3% y-o-y; Retail TD’s stand at 54.5%



Total Assets of ` 1,652.6 billion; growth of 21.4% y-o-y



Gross NPA at 0.76% of Gross Advances; Net NPA at 0.29% of Net Advances



Specific loan loss coverage ratio of 62.0%



Total Capital Funds (Tier I + Tier II) of ` 218.7 billion as per Basel III (`161.5 billion as at March 31, 2015). Raised ` 18.5 billion Basel III Tier II Bonds during Q4FY16 (raised total of ` 39.0 billion Basel III Tier II Bonds during FY16)



Capital Adequacy Ratio of 16.5% at March 31, 2016 (CET I at 10.3%; Tier I at 10.7%)



Monthly average Liquidity Coverage ratio of 83.9% for the quarter, well above the regulatory requirement of 70%



Total Risk Weighted Assets (RWA) at ` 1,329.5 billion



Book value per share of ` 327.8; growth of 17.3% y-o-y post proposed Board approved 100% dividend(` 279.6 as at March 31, 2015)



Total headcount stands at 15,000 as at March 31, 2016, an increase of 1,523 employees in the quarter (highest ever addition in a single quarter) and 4,190 employees during the year. Total network now stands at 860 Branches (an increase of 230 in FY16) and 1,609 ATMs, of which 359 are Bunch Note Acceptor (BNA) Page 1 of 6

YES BANK RESULTS UPDATE (Q4FY16 & FY16)

April 27, 2016

SUMMARY RESULTS & PRIOR PERIOD COMPARISON ` Million

Q4FY16

Q4FY15

Growth

Q3FY16

Growth

FY16

FY15

Growth

Net Interest Income Non Interest Income Total Net Income Operating Expense Operating Profit Provisions & Contingencies Provision for Tax Profit After Tax

12,414 8,028 20,442 8,188 12,255 1,865 3,369 7,021

9,771 5,904 15,675 6,300 9,375 1,264 2,601 5,510

27.1% 36.0% 30.4% 30.0% 30.7% 47.6% 29.5% 27.4%

11,570 7,461 19,031 7,534 11,496 1,479 3,259 6,757

7.3% 7.6% 7.4% 8.7% 6.6% 26.0% 3.4% 3.9%

45,667 27,121 72,789 29,764 43,025 5,363 12,268 25,394

34,878 20,465 55,343 22,847 32,496 3,395 9,047 20,054

30.9% 32.5% 31.5% 30.3% 32.4% 58.0% 35.6% 26.6%

INCOME AND PROFITABILITY TRENDS FOR LAST 5 QUARTERS ` Million

Q4FY16

Q3FY16

Q2FY16

Q1FY16

Q4FY15

Net Interest Income Non Interest Income Corporate Trade & Cash Management Forex, Debt Capital Markets & Securities Corporate Banking Fees Retail Banking Fees : Trade & Remittance : Facility / Processing Fee : Third Party Sales : Interchange Income : General Banking Fees Total Net Income Operating Expense Operating Profit Net Profit EPS (`) % Non Interest Income to Total Net Income Cost to Income ratio NIM RoA (Annualized) RoE (Annualized) No. of Branches

12,414 8,028 1,412 1,163 3,638 1,816 580 248 307 347 335 20,442 8,188 12,255 7,021 16.7

11,570 7,461 1,119 1,025 3,802 1,515 529 175 184 360 267

11,085 6,181 1,009 1,523 2,197 1,451 498 177 213 259 304 17,266 7,074 10,191 6,104 14.6 35.8% 41.0% 3.3% 1.7% 19.4% 700

10,598 5,452 1,071 971 2,069 1,341 463 119 258 239 262 16,050 6,967 9,083 5,512 13.2 34.0% 43.4% 3.3% 1.6% 18.4% 662

9,771 5,904 1,361 923 2,087 1,533 445 213 390 211 274 15,675 6,300 9,375 5,510 13.2 37.7% 40.2% 3.2% 1.7% 19.0% 630

19,031 7,534 11,496 6,757 16.1 39.2% 39.6% 3.4% 1.8% 20.5% 750

39.3% 40.1% 3.4% 1.8% 21.1% 860

SUMMARY BALANCE SHEET & PRIOR PERIOD COMPARISON FOR LAST 5 QUARTERS ` Million Assets Advances Investments Liabilities + Shareholders’ Equity Shareholders’ Funds Total Capital Funds* Borrowings Deposits CASA #

March 31 2016

Dec 31 2015

Sept 30 2015

Jun 30 2015

March 31 2015

y-o-y growth

1,652,634 982,099 488,385

1,477,540 843,962 456,354

1,447,835 800,151 439,444

1,390,371 796,656 422,043

1,361,704 755,498 432,285

21.4% 30.0% 13.0%

1,652,634

1,477,540

1,447,835

1,390,371

1,361,704

21.4%

137,866 218,744 316,590 1,117,195 313,428

135,613 195,252 266,671 1,014,372 270,194

128,676 174,551 237,706 993,443 253,183

122,397 169,104 252,845 953,159 222,677

116,800 161,513 262,204 911,758 210,790

18.0% 35.4% 20.7% 22.5% 48.7%

` 18.5 billion of Basel III compliant Tier II bonds raised during the quarter aggregating to ` 39.0 billion of Basel III compliant Tier II bonds raised during FY16

Page 2 of 6

YES BANK RESULTS UPDATE (Q4FY16 & FY16)

April 27, 2016

PORTFOLIO & ASSET QUALITY DISCLOSURES PART A - PORTFOLIO DISCLOSURES 

Break-up of Advances: Corporate Banking – 65.1% and Retail & Business Banking – 34.9% As on Mar 31, 2016

As on Dec 31, 2015

As on Sep 30, 2015

As on Jun 30, 2015

65.1%

67.2%

68.2%

68.0%

34.9%

32.8%

31.8%

32.0%

i) Business Banking (Medium Enterprises)

11.1%

12.7%

13.3%

14.1%

ii) Micro & Small Enterprises

13.0%

10.6%

11.3%

10.6%

iii) Consumer Banking (Urban and Rural)

10.8%

9.5%

7.2%

7.3%

100.0%

100.0%

100.0%

100.0%

Business Segment A) Corporate Banking (8 segmental relationship groups) B) Retail & Business Banking of which:

Total 

Sectoral Distribution: Overall portfolio is well distributed with significant deployment in YES BANK focused knowledge sectors, where the Bank has developed considerable sectoral expertise with specialized Relationship Managers, Product Managers and Risk Managers Petroleum, Coal and Other Fuels 3.7%

Social & Commercial Infrastructure 2.4%

Rubber, Plastic & Products 0.7%

Telecommunication 4.5%

Roadways 0.9%

Technology/ ITES 1.4%

Paper & Paper Products 0.8%

Railways 0.4%

Other Real Estate ( LRD/ Non CRE etc) 0.9% Other Metal & Metal Products 2.4%

Vehicles, Parts & Equipments 2.5% Travel, Tourism & Hospitality 2.6% Water Sanitation 0.1%

All Engg 3.0% Aviation (Airports) 0.6%

Waterways 1.3% Agri and Allied 3.7%

Textiles 0.9%

Beverages 0.3% Cement 1.1%

Chemical Products (Dyes, Paints, etc.) 1.1%

Other Industries 13.0%

Commercial Real Estate 6.8% Drugs & Pharmaceuticals 2.5%

Diversified 1.2% Educational Services 0.9%

Electricity 8.7%

Other Financial Services 3.0% NBFC 2.3% Mining & Quarrying 0.3%

EPC 6.0%

Media & Entertainment 2.2%

Glass & Glassware 0.1%

Iron & Steel 2.2%



Food Processing 2.7%

Gems and Jewellery 1.3%

Housing Finance Co. 0.7% Healthcare & Hospitals (Non Infra) 1.1%

Gas storage and pipeline 0.3%

Granular & Retail 9.8%

Sensitive Sector Disclosure: Sector/ Rating

Break-up

(A) Electricity

8.7%

AAA/AA rated investments

1.2%

T&D

1.3%

Renewable Exposures(Green-Financing) 2.5% of which 2.1% is operational Non-Renewable Exposure to SEBs

3.6% all of which is operational Nil Page 3 of 6

Sector/ Rating

Break-up

(B) Iron & Steel

2.2%

A or above rated

1.4%

(C) EPC

6.0%

A or above rated

4.0%

YES BANK RESULTS UPDATE (Q4FY16 & FY16)

April 27, 2016

PART B – ASSET QUALITY DISCLOSURES 

Gross Slippages (excluding slippages from Standard restructured) for the quarter was at ` 3,293.4 million. Recovery / upgrades of ` 271.6 million and write-offs of ` 1,117.6 million



Gross NPA at ` 7,489.8 million (0.76% of Gross Advances) and Net NPA at ` 2,844.7 million (0.29% of Net Advances) as at Mar 31, 2016



Specific provision coverage ratio of 62.0%.



Credit cost of 50 bps for FY16. Contingent Provision stands at 0.3%



The total Standard Restructured Advances as a proportion of Gross Advances was at 0.53% (` 5,240 million) as at March 31, 2016, down from 0.67% (` 5,683 million) as on December 31, 2015. The restructuring loans have been performing in line with expectations and the Bank does not anticipate any material slippages in this book.



Net Security Receipts (SRs) stand at ` 1,994 million (0.20% of Gross Advances, comprising 10 borrowers) as on March 31, 2016, down from ` 2,124 million (0.25% of Gross Advances) as on December 31, 2015. During the quarter the Bank sold one account to an Asset Reconstruction company for debt aggregation to facilitate resolution across lenders. The account was part of Standard Restructured advances book as on December 31, 2015. Further, during the quarter, the Bank recovered its entire exposure from one account that was sold to ARC in the past, resulting in net reduction in SRs outstanding. 

The Bank has not refinanced any loan through 5-25 route and has not participated in any SDR since the introduction of these schemes.



Trend of key Asset Quality parameters: Mar 31, 2016 0.76% 0.29% 62.0% 0.53% 0.20%

As a % of Advances A

B C 

1. Gross NPA % 2. Net NPA % 3. Provision Coverage Ratio Restructured Advances % Security Receipts (Net) %

Dec 31, 2015 0.66% 0.22% 66.5% 0.67% 0.25%

Sept 30, 2015 0.61% 0.20% 67.7% 0.71% 0.27%

June 30, 2015 0.46% 0.13% 71.0% 0.71% 0.28%

Mar 31, 2015 0.41% 0.12% 72.0% 0.50% 0.29%

Rating breakup of Corporate Banking exposures spread across 8 segmental corporate relationship groups: Mar 31, 2016 18.4% 18.5% 39.6% 21.7% 1.8% 100.0%

Dec 31, 2015 19.4% 17.6% 38.9% 21.8% 2.3% 100.0%

Sept 30, 2015 19.2% 17.8% 38.6% 21.9% 2.5% 100.0%

Long-term

Outlook

Short-term

Baa3

Stable

Prime-3

Stable

A1+

Stable

As a % of Total Exposure AAA AA A BBB BB and Below Total

 Profile of the Bank’s International and Domestic Ratings: Rating Agency International Moody's Domestic Tier II ICRA

AA+

Infra Bonds AA+

CARE

AA+

AA+

Page 4 of 6

June 30, 2015 19.0% 15.8% 40.9% 22.0% 2.4% 100.0%

Mar 31, 2015 20.3% 14.9% 41.6% 20.8% 2.5% 100.0%

YES BANK RESULTS UPDATE (Q4FY16 & FY16)

April 27, 2016

DIVERSIFIED LIABILITIES FRANCHISE 

Continuing growth in number of liability accounts (from both retail and corporate segments); total deposits grew by 22.5% y-o-y to ` 1,117.2 billion.



CASA deposits grew 48.7% y-o-y to ` 313.4 billion as at March 31, 2016. CASA ratio increased to 28.1% from 23.1%as at March 31, 2015 (5% improvement in one year) as of March 31, 2016.



Robust growth of 62.3% in SA deposits to ` 204.2 billion while CA deposits grew 28.5% to ` 109.3 billion as of March 31, 2016.



Retail Banking FDs increased 30.3% y-o-y to ` 295.0 billion.



Total Retail Deposits (CASA + Retail FDs) now constitute 54.5% from 47.9% as of March 31, 2015 (6.6% improvement in one year). DIGITAL BANKING YES BANK 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:



YES Money program: One of the largest Domestic Remittance program encompassing over 4.6 million customers with a cumulative transaction throughput of 120 billion (over 40 billion in FY 16). This program is a prime example of YES BANK’s DIGICAL strategy by helping convert Cash (Physical) to Digitised Funds transfer transactions



Over 1.6 million YES BANK co-branded Virtual prepaid Cards issued on the Mastercard platform since launch in January 2016, the ‘largest virtual prepaid card’ program in the world within this platform



Over 27 million YES BANK powered Freecharge Wallets issued since launch in September 2015



YES BANK is among the top 5 banks in terms of IMPS transaction throughput contributing over 5% of the IMPS transactions performed in the country



YES BANK signed an MoU with T-Hub, a unique public/private partnership between the government of Telangana to set up a World Class Centre of Excellence (CoE) for FinTech startups at T-Hub This association will help create a conducive business environment and support system for a large number of FinTech startups. In addition, YES BANK will offer its various products and payment gateways and open APIs to the startup community



Partnership with UltraCash Technologies for Sound Based Payments to launch payments processing through Sound Waves. Ultracash utilizes novel, first of its kind technology to enable merchant and person to person proximity payments



YES BANK was one of the first Banks to partner with NPCI for UPI based offerings towards creating an efficient payment and cashless eco system for companies across industries viz E-commerce, Insurance, AMC, Large Retailers SOCIAL MEDIA



According to The Financial Brand 2016, YES BANK is now the Highest followed Bank in the World on Twitter with over 9.0 lakh followers and also the HIGHEST Followed Bank Brand in India on Instagram with 1.3 lakh+ followers. YES Bank’s LinkedIn page has over 99 thousand followers and the YES SME Showcase LinkedIn page is now the HIGHEST followed LinkedIn page for SMEs by any Bank in India. The Facebook following has also been increase to more than 2.8 Million Fans resulting in synergies across all Social Media Channels. Overall, YES BANK is one of the FASTEST growing bank brands in the world on social media

Twitter Followers Fans

Followers

YES BANK

3,005k [4]

AXIS Bank

3,193k [3]

105k [4]

ICICI Bank

4,719k [2]

89.7k [5]

HDFC Bank

2,308k [5]

76.5k [6]

642k [6]

115k [3]

5,264k [1]

585k [2]

Kotak Mahindra Bank

State Bank of India

900k [1]

Note: Data as on April 25, 2016

Page 5 of 6

YES BANK RESULTS UPDATE (Q4FY16 & FY16)

April 27, 2016

EXPANSION & KNOWLEDGE INITIATIVES 

Total headcount stands at 15,000 as at March 31, 2016, an increase of 1,523 employees in the quarter (highest ever addition in a single quarter) and 4,190 incremental employees during the year.



The Bank’s branch network stood at 860 branches as on March 31, 2016, an addition of 110 branches in the quarter. Total ATM network stands at 1,609 as on March 31, 2016, of which 359 are Bunch Note Acceptors (BNA).



YES Bank’s Board has approved the renewal of its Capital Raising plan of upto US$ 1 Billion through ADR/GDR/QIP, or any other appropriate capital raising mode as deemed suitable.



YES Bank has taken another significant step towards Women empowerment and Gender financing. To accomplish this, YES Bank has signed a USD 50 Million loan agreement with IFC, Washington to lend to Women-owned businesses. This project is part of the Women Entrepreneurs Opportunity Facility (WEOF), the first-of-its-kind global facility dedicated to expanding access to capital for approximately 100,000 women entrepreneurs set up by IFC and ‘Goldman Sachs 10,000 Women’. Further, on International Women’s Day, YES Bank launched its first three All-Women branches in Kalkaji, New Delhi; Vile Parle (E), Mumbai and Cunnigham Road, Bangalore. Named YES GRACE, the branches will be operated exclusively by women employees, including the support staff.



YES Bank, signed a Memorandum of Understanding (MoU) with the Indian Renewable Energy Development Agency (IREDA) to foster development of the Renewable Energy Sector in India at the Make in India Week hosted in Mumbai from February 13-18, 2016. The strategic MoU will boost green energy financing & enable close partnership between both institutions to create a supporting framework for funding of Renewable Energy and Energy Efficiency projects. YES Bank will also support the initiatives of IREDA in the development of these critical sectors.



YES Bank launched its 1st Currency Chest and Small Coin Depot in Mumbai which was inaugurated by Dr. (Smt.) Deepali Pant Joshi, Executive Director, Reserve Bank of India AWARDS & RECOGNITIONS

  

    

YES BANK has been awarded the prestigious Green Bond Pioneer Award for being the “Pioneer in Emerging Markets – India’ by the Climate Bonds Initiative at London Stock Exchange (LSE), London in Feb 2016. YES BANK’s Innovations – ‘API Banking’ and ‘Bank in a Box’ received the FINNOVITI Award 2016 from Banking Frontiers in February 2016. YES BANK received multiple awards in the prestigious Business Today – KPMG India’s Best Banks Survey in January 2016. This is the 7th year in a row, where YES BANK has been recognized by Business Today in its annual Banking survey. The awards include. o Best Mid Sized Bank (Overall) o Best Mid Sized Bank – Quality of Assets o Best Mid Sized Bank – Growth YES BANK was ranked in the Top 500 Global Banking Brands list by The Banker, London and moved up 118 ranks for the 4th highest leap among all top global banking brands. YES BANK was recognized with the Astitva Award 2016 for Promoting Women Empowerment, by PHD Women & Child Development Committee at the Astitva Award 2016 held on March 31, 2016 in New Delhi. Mr. Rana Kapoor, MD & CEO, was recognized by the Indian Institute of Technology Bombay as a “Role Model Entrepreneur” at the Entrepreneurship Summit 2016 hosted by the Entrepreneurship Cell at IIT Bombay. Mr. Rana Kapoor, MD & CEO, was felicitated by The Indian Econometric Society for "Exemplary Contribution to Financial Services" during the 52nd Annual Conference on January 6, 2016 at IIM Kozhikode. Mr. Rana Kapoor, MD & CEO, was felicitated by the Institute of Rural Management, Anand (IRMA) for his “Exemplary Contribution to Agribusiness in Emerging Economies” at the International Conference on ‘Agribusiness in Emerging Economies’ organized by IRMA on January 6, 2016.

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 6 of 6