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IDFC First Bank

Profit Statement 2016 2017 2018
Net Interest Income INR bil 20.6 19.7 34.6
Net Fee Income INR bil 3.05 4.33 7.62
Other Income INR bil 7.19 6.88 1.78
Total Revenues INR bil 30.9 30.9 44.0
Operating Profit INR bil 10.7 9.57 -18.8
Provisions INR bil 0 0 0
Net Profit INR bil 10.2 8.80 -19.1
Balance Sheet 2016 2017 2018
Interbank Loans INR bil 21.4 18.6 54.3
Customer Loans INR bil 494 522 863
Total Assets INR bil 1,121 1,264 1,671
Shareholders' Equity INR bil 147 153 182
Interbank Borrowing INR bil 1.10 1.65 1.32
Customer Deposits INR bil 401 480 704
Issued Debt Securities INR bil 503 573 700
Ratios 2016 2017 2018
ROE % 7.20 5.88 -11.4
ROA % 1.04 0.738 -1.30
Costs (As % Of Assets) % 2.07 1.79 4.28
Costs (As % Of Income) % 65.4 69.1 143
Net Interest Margin % 2.11 1.65 2.36
Loans (As % Of Deposits) % 123 109 123
NPLs (As % Of Loans) % ... ... ...
Valuation 2016 2017 2018
Price/Earnings (P/E) 19.8 18.3 ...
Price/Book Value (P/BV) 1.37 1.06 1.46
Dividend Yield % 1.26 1.58 0
Earnings Per Share (EPS) INR 2.98 2.58 -4.63
Book Value Per Share INR 42.9 44.8 44.1
Dividend Per Share INR 0.745 0.748 0

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summary Unit 2015 2016 2017 2018
income statement        
Net Interest Income INR bil 8.47 20.6    
Total Revenues INR bil 12.5 30.9    
Operating Profit INR bil 4.67 10.7    
Net Profit INR bil 4.67 10.2    
balance sheet        
Interbank Loans INR bil 10.0 21.4    
Customer Loans INR bil 457 494    
Debt Securities INR bil 297 502    
Total Assets INR bil 832 1,121    
Shareholders' Equity INR bil 136 147    
Interbank Borrowing INR bil 148 1.10    
Customer Deposits INR bil 82.2 401    
Issued Debt Securities INR bil 424 503    
ratios        
ROE % 3.42 7.20    
ROA % 0.561 1.04    
Costs (As % Of Assets) % 0.942 2.07    
Costs (As % Of Income) % 62.7 65.4    
Net Interest Margin % 1.02 2.11    
Interest Income (As % Of Revenues) % 67.8 66.8    
Fee Income (As % Of Revenues) % 5.42 9.89    
Equity (As % Of Assets) % 16.4 13.1    
Loans (As % Of Deposits) % 556 123    
Loans (As % Assets) % 54.9 44.1    
NPLs (As % Of Loans) % 6.42 ... ... ...
valuation        
Market Capitalisation (End Of Period) USD mil 2,465 2,966    
Number Of Shares (Average) mil 1,995 3,420    
Share Price (End Of Period) INR 82.0 58.9    
Earnings Per Share (EPS) INR 2.34 2.98    
Book Value Per Share INR 68.4 42.9    
Dividend Per Share INR 0.425 0.745    
Price/Earnings (P/E) 35.0 19.8   ...
Price/Book Value (P/BV) 1.20 1.37    
Dividend Yield % 0.519 1.26    
Earnings Per Share Growth % ... 27.3    
Book Value Per Share Growth % ... -37.2    
income statement Unit 2015 2016 2017 2018
income statement        
Interest Income INR bil 36.5 85.8    
Interest Cost INR bil 28.0 65.2    
Net Interest Income INR bil 8.47 20.6    
Net Fee Income INR bil 0.677 3.05    
Other Income INR bil 3.35 7.19    
Total Revenues INR bil 12.5 30.9    
Operating Cost INR bil 7.84 20.2    
Operating Profit INR bil 4.67 10.7    
Provisions INR bil 0 0    
Extra and Other Cost INR bil < 0.001 0.053    
Pre-Tax Profit INR bil 4.67 10.6    
Tax INR bil 0 0    
Minorities INR bil 0 0    
Net Profit INR bil 4.67 10.2    
Dividends INR bil 0.848 2.55    
growth rates        
Net Interest Income Growth % ... 143    
Net Fee Income Growth % ... 351    
Total Revenue Growth % ... 147    
Operating Cost Growth % ... 158    
Operating Profit Growth % ... 129    
Pre-Tax Profit Growth % ... 128    
Net Profit Growth % ... 118    
market share        
Market Share in Revenues % 0.371 0.768   ...
Market Share in Net Profit % 1.13 ... ... ...
balance sheet Unit 2015 2016 2017 2018
balance sheet        
Cash INR bil 19.0 30.0    
Interbank Loans INR bil 10.0 21.4    
Customer Loans INR bil 457 494    
Debt Securities INR bil 297 502    
Fixed Assets INR bil 6.73 7.99    
Total Assets INR bil 832 1,121    
Shareholders' Equity INR bil 136 147    
Of Which Minority Interest INR bil 0 0    
Liabilities INR bil 696 974    
Interbank Borrowing INR bil 148 1.10    
Customer Deposits INR bil 82.2 401    
Sight Deposits INR bil 3.69 13.0    
Term Deposits INR bil 78.5 388    
Issued Debt Securities INR bil 424 503    
Other Liabilities INR bil 41.9 69.2    
asset quality        
Non-Performing Loans INR bil 30.6 ... ... ...
Gross Loans INR bil 476 494    
growth rates        
Customer Loan Growth % ... 8.10    
Total Asset Growth % ... 34.7    
Shareholders' Equity Growth % ... 7.66    
Customer Deposit Growth % ... 388    
market share        
Market Share in Customer Loans % 0.573 0.598   ...
Market Share in Total Assets % 0.660 0.789   ...
Market Share in Customer Deposits % 0.090 0.377   ...
ratios Unit 2015 2016 2017 2018
ratios        
ROE % 3.42 7.20    
ROA % 0.561 1.04    
Costs (As % Of Assets) % 0.942 2.07    
Costs (As % Of Income) % 62.7 65.4    
Net Interest Margin % 1.02 2.11    
Interest Spread % ... 0.981    
Asset Yield % 4.38 8.79    
Cost Of Liabilities % ... 7.80    
Payout Ratio % 18.2 25.0    
Interest Income (As % Of Revenues) % 67.8 66.8    
Fee Income (As % Of Revenues) % 5.42 9.89    
Other Income (As % Of Revenues) % 26.8 23.3    
Equity (As % Of Assets) % 16.4 13.1    
Loans (As % Of Deposits) % 556 123    
Loans (As % Assets) % 54.9 44.1    
NPLs (As % Of Loans) % 6.42 ... ... ...
Cost of Provisions (As % Of Loans) % 0 0    
other data Unit 2015 2016 2017 2018
other data        
Employees 2,405 ... ...  
Sight (As % Of Customer Deposits) % 4.50 3.25    

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IDFC First Bank Logo

Finance

IDFC First Bank has been growing its revenues and asset by 52.1% and 26.2% a year on average in the last 3 years. Its loans and deposits have grown by 23.6% and 105% a year during that time and loans to deposits ratio reached 123% at the end of 2018. The company achieved an average return on equity of 0.558% in the last three years with net profit growing % a year on average. In terms of operating efficiency, its cost to income ratio reached 143% in 2018, compared to 92.4% average in the last three years.

Equity represented 10.9% of total assets or 21.1% of loans at the end of 2018. IDFC First Bank's non-performing loans were of total loans while provisions covered some of NPLs at the end of 2018.

Valuation

IDFC First Bank stock traded at INR 64.3 per share at the end of 2018 resulting in a market capitalization of USD 3,802 mil. Over the previous three years, stock price fell by 21.5% or 7.76% a year on average. That’s compared to an average ROE of 0.558% the bank generated for its shareholders. This closing price put stock at a 12-month trailing price to earnings (PE) of x and price to book value (PBV) of 1.46x in 2018.